PSI- Real Estate Practice Exam
Questions with complete
answers(verified for accuracy)
-Agency coupled with an interest - answer A broker supplies the
financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which
of the following BEST describes this relationship?
-Agency coupled with an interest
-Specific agency
-General agency
-Exclusive agency
-A homeowner - answer A lawsuit for inverse condemnation may be
brought by
-The police
-The city
-A homeowner
-The zoning board
-The owner withdraws the counteroffer before it is accepted -
answer A prospective buyer made an offer to purchase property.
The owner responded with a counteroffer. While the buyer was
reviewing the counter offer, the owner received a better offer. The
owner can accept the second offer if
-It satisfies or exceeds all terms included in the counter offer
-The owner withdraws the counteroffer before it is accepted
-The owner gives the first buyer notice that another offer was
received and an opportunity to revise the bid
,-The first buyer is informed, in writing, the owner's intent to accept
another offer
-Were located near the property being listed - answer When
compiling a competitive market analysis, a broker would look for
comparable properties that
-Were sold for cash
-Had been extensively advertised
-Were offered by owner with no broker
-Were located near the property being listed
-If you feel it is in your best interest, please do so - answer
Unrepresented buyers ask the licensee who listed the home whether
they should order a property inspection as part of their due
diligence for the purchase of the home. Which of the following
would be the most appropriate way for the listing agent to respond?
-If you feel it is in your best interest, please do so
-Since I represent the seller I am not able to answer your questions
-I am not aware of any issues that such an inspection would identify
-Since the seller has provided a property disclosure, there should be
no need for any further inspection
-Prepayment penalties and rebates - answer According to the
Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the
-Cash price or amount of the lian
-Amount of down payment required
-Number, amount, and frequency of payments
-Prepayment penalties and rebates
, -"Catholics preferred" - answer Under the Federal Fair Housing
Law, which of the following is considered discriminatory
advertising?
-"Nonsmoker preferred"
-"Military discount"
-"Seniors welcome"
-"Catholics preferred"
-A management agreement - answer An agency relationship
between a property owner and a property manager is usually
created by
-A management agreement
-Payment of a management fee
-An exclusive agency agreement
-An independent contractor agreement
-Cost of the building only - answer Depreciation is calculated based
on the
-Cost of the building only
-Value of the land only
-Total purchase price
-Assessed valuation
-The second mortgagee receives nothing unless he forced the
foreclosure auction - answer A property is encumbered by a first
mortgage of $60,000 and a second mortgage of $23,500. The
property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale
are included in these balances. Which of the following statements is
FALSE regarding the distribution of funds?
-The first mortgagee receives $60,000
-The second mortgagee received $23,500
Questions with complete
answers(verified for accuracy)
-Agency coupled with an interest - answer A broker supplies the
financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which
of the following BEST describes this relationship?
-Agency coupled with an interest
-Specific agency
-General agency
-Exclusive agency
-A homeowner - answer A lawsuit for inverse condemnation may be
brought by
-The police
-The city
-A homeowner
-The zoning board
-The owner withdraws the counteroffer before it is accepted -
answer A prospective buyer made an offer to purchase property.
The owner responded with a counteroffer. While the buyer was
reviewing the counter offer, the owner received a better offer. The
owner can accept the second offer if
-It satisfies or exceeds all terms included in the counter offer
-The owner withdraws the counteroffer before it is accepted
-The owner gives the first buyer notice that another offer was
received and an opportunity to revise the bid
,-The first buyer is informed, in writing, the owner's intent to accept
another offer
-Were located near the property being listed - answer When
compiling a competitive market analysis, a broker would look for
comparable properties that
-Were sold for cash
-Had been extensively advertised
-Were offered by owner with no broker
-Were located near the property being listed
-If you feel it is in your best interest, please do so - answer
Unrepresented buyers ask the licensee who listed the home whether
they should order a property inspection as part of their due
diligence for the purchase of the home. Which of the following
would be the most appropriate way for the listing agent to respond?
-If you feel it is in your best interest, please do so
-Since I represent the seller I am not able to answer your questions
-I am not aware of any issues that such an inspection would identify
-Since the seller has provided a property disclosure, there should be
no need for any further inspection
-Prepayment penalties and rebates - answer According to the
Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the
-Cash price or amount of the lian
-Amount of down payment required
-Number, amount, and frequency of payments
-Prepayment penalties and rebates
, -"Catholics preferred" - answer Under the Federal Fair Housing
Law, which of the following is considered discriminatory
advertising?
-"Nonsmoker preferred"
-"Military discount"
-"Seniors welcome"
-"Catholics preferred"
-A management agreement - answer An agency relationship
between a property owner and a property manager is usually
created by
-A management agreement
-Payment of a management fee
-An exclusive agency agreement
-An independent contractor agreement
-Cost of the building only - answer Depreciation is calculated based
on the
-Cost of the building only
-Value of the land only
-Total purchase price
-Assessed valuation
-The second mortgagee receives nothing unless he forced the
foreclosure auction - answer A property is encumbered by a first
mortgage of $60,000 and a second mortgage of $23,500. The
property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale
are included in these balances. Which of the following statements is
FALSE regarding the distribution of funds?
-The first mortgagee receives $60,000
-The second mortgagee received $23,500
