PSI REAL ESTATE SALESPERSON PRACTICE EXAM questions with correct answers

A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely 1. an exclusive agency listing. 2. an exclusive right to sell listing. 3. a net listing. 4. an advance fee listing. CORRECT ANSWER an exclusive agency listing What critical aspect of the property inspection process MUST licensees convey to prospective buyers? 1. Difficulty of finding competent inspectors. 2. Appropriate fee splitting between inspectors and brokers. 3. Need for inspections to be completed within the time stated in the contract. 4. Likelihood that the inspection will generate a list of items sellers must repair. CORRECT ANSWER Need for inspections to be completed within the time stated in the contract. An exception to title insurance coverage is 1. forged documents. 2. defects found in public newspapers. 3. incorrect records of marital status. 4. defects that clearly appear in the title search. CORRECT ANSWER defects that clearly appear in the title search. If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4