THE CODE, Oregon Real Estate Exam (PSI) Questions & Answers(RATED A+)

The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response would be to: - ANSWER give the buyer the website address so the buyer can look up that information A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets as the development will be signed to give access to each lot, when can he begin to list this property? - ANSWER When he has submitted his plat map to local authorities, received approval, and recorded it The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will: - ANSWER provide the buyer with the opportunity to wave the right to a lead paint inspection. Market price is: - ANSWER What the property sells for The most listing contracts, a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract: - ANSWER Does not earn money unless the sales closes. A motel is the subject of an appraisal and it is determined that a rerouting of a country highway has limited customer access to the motel. This is an example of: - ANSWER economic obsolescence An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A lawsuit filed by the buyers would be for: - ANSWER Specific Performance Quality Supermarkets has taken occupancy of a retail building and has a long term lease. As part of the their fit-up, they bolt to the floor their meat and dairy coolers, and shelves. When Quality Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures? - ANSWER Yes, if removed prior to the end of the lease A seller has listed a home with a broker for $112,000. The seller is leaving for a 45 day cruise midway through the listing period, and authorizes the broker through a power of attorney to accept any offer of all cash at a price $100,000 or more. Broker receives a cash offer for $110,000, what does the broker do? - ANSWER May accept the offer The sellers have listed their property for sale because they are in a difficult financial situation and would like to get the house sold quickly. If one of the other sellers in the area ask why that client is selling, the listing agent should respond by explaining what: - ANSWER Because they are looking to sell their house A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the customers to know exactly what it will cost to list a property. This marketing plan is: - ANSWER Price Fixing Title insurance has allowed for more accessible loans for buyers. This is because: - ANSWER It reduces the risk of loss due to title defects What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate? - ANSWER Appraisal report Which of the following is among the typical responsibilities of a residential property manager? - ANSWER Selecting tenants to provide a diverse enviroment Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? - ANSWER Reconciliation report for a FHA loan Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines? - ANSWER Female seeking female roomate Which of the following statements is true regarding an option agreement? - ANSWER Seller agrees to sell at fixed price within a stipulated time Zoning ordinances are typically established by: - ANSWER town and city governments In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for - ANSWER ensuring that the buyer receives the property disclosure before the contract is finalized The clause designed to ensure that a broker will receive a commission if negotiation with a - ANSWER ready, willing, and able buyer are completed after the listing has expired is called extension or "tail" clause When will an agent earn commission? - ANSWER when a will, ready and able buyer is found A complete historical summary of all recorded documents affecting the title of a property is known as - ANSWER abstract of title Which if the following are MOST likely to be addressed by building codes? - ANSWER building codes What should buyers insert into their purchase offer to make sure they would NOT have to go through the purchase if they CANNOT obtain the necessary financing? - ANSWER Escape Clause A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this? - ANSWER alienation clause Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of a - ANSWER unilateral contract in which only Seller A has made a promise to perform The seller entered in an exclusive right to sell agreement with terry Hill, Ms. Hill, presents the seller with an offer to purchase. Which of the following is appropriate - ANSWER The seller is under no obligation to accept the offer or make a counter offer. The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to - ANSWER $500,000 Which of the following is NOT an example of a fixture? - ANSWER A cast iron garden bench In estimating the value of a 50-unit ap