PSI National Exam for Real
Estate with complete
answers(verified for accuracy)
A written agreement in which a purchaser agrees to buy and a seller
agrees to sell is called - answer a contract
Antitrust laws prohibit competing brokers from all of the following -
answer 1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will
probably be shared by - answer all current owners of real estate
fronting on that road
State laws differ on whether a buyer is entitled to know about -
answer a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - answer a
homeowner
When is racial discrimination in the rental of rooms or apartments
permitted? - answer Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - answer the number of square feet in the
building
,Real property can be converted to personal property by - answer
Severance
Prospective buyers made an offer on a property. The seller did NOT
accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real estate
agent delivered their acceptance to the seller.
In the interim, the same buyers had found another house that they
liked better and made an offer on it, which was accepted. Which of
the following is TRUE? - answer Both contracts are valid
Although states make specific laws governing water rights and the
rights in land that borders water, most states
generally follow one of two basic doctrines regarding water rights.
In many states, the common law doctrine of riparian and littoral
rights dictates that water rights are automatically conveyed with
property. In others, all water rights are controlled by the state
under the doctrine of - answer prior appropriation
The purpose of requiring an earnest money deposit in a real estate
sales contract is to - answer provide evidence of the buyer's
intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will
give the buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference
between the monthly payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - answer $409.20.
A borrower has defaulted on the mortgage. The mortgage contains
an acceleration clause. This permits the lender to - answer demand
immediate payment of the entire note
,The FHA functions MOST like - answer an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - answer discount
points
When land is conveyed to a trustee, the trustee may - answer do
whatever is permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The
owner responded with a counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer.
The owner can accept the second offer if - answer the owner
withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer
enter into an oral agreement for the purchase of the home. If a
dispute over the terms arises later, the agreement may be
unenforceable because - answer the agreement does not comply
with the Statute of Frauds
Earnest money should be deposited into a trust account - answer
in a timely manner, according to state laws
A deed restriction is applicable to the activities of - answer all
owners, present and future
An easement can be terminated by - answer prescription
Depreciation is calculated based on the - answer cost of the
building only
, Which of the following approaches MOST reliably estimates the
sales price of a single-family residence? - answer Market data
A seller mentions to his agent that the previous owners of his
property may have dumped hazardous waste on the site. Under the
Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - answer Seller
The escrow officer or closing agent MUST give information regarding
the sales price and seller's social security number to - answer IRS
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? - answer Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want
an annual return of 12%, what net income is needed each month? -
answer $1,150
Usury laws were enacted to protect the - answer borrower
At the time of listing, the seller tells the listing agent they are
moving because the neighbor has loud parties every weekend.
The agent should - answer tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its
conditions, that contract is deemed to be - answer breached
Estate with complete
answers(verified for accuracy)
A written agreement in which a purchaser agrees to buy and a seller
agrees to sell is called - answer a contract
Antitrust laws prohibit competing brokers from all of the following -
answer 1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will
probably be shared by - answer all current owners of real estate
fronting on that road
State laws differ on whether a buyer is entitled to know about -
answer a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - answer a
homeowner
When is racial discrimination in the rental of rooms or apartments
permitted? - answer Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - answer the number of square feet in the
building
,Real property can be converted to personal property by - answer
Severance
Prospective buyers made an offer on a property. The seller did NOT
accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real estate
agent delivered their acceptance to the seller.
In the interim, the same buyers had found another house that they
liked better and made an offer on it, which was accepted. Which of
the following is TRUE? - answer Both contracts are valid
Although states make specific laws governing water rights and the
rights in land that borders water, most states
generally follow one of two basic doctrines regarding water rights.
In many states, the common law doctrine of riparian and littoral
rights dictates that water rights are automatically conveyed with
property. In others, all water rights are controlled by the state
under the doctrine of - answer prior appropriation
The purpose of requiring an earnest money deposit in a real estate
sales contract is to - answer provide evidence of the buyer's
intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will
give the buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference
between the monthly payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - answer $409.20.
A borrower has defaulted on the mortgage. The mortgage contains
an acceleration clause. This permits the lender to - answer demand
immediate payment of the entire note
,The FHA functions MOST like - answer an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - answer discount
points
When land is conveyed to a trustee, the trustee may - answer do
whatever is permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The
owner responded with a counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer.
The owner can accept the second offer if - answer the owner
withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer
enter into an oral agreement for the purchase of the home. If a
dispute over the terms arises later, the agreement may be
unenforceable because - answer the agreement does not comply
with the Statute of Frauds
Earnest money should be deposited into a trust account - answer
in a timely manner, according to state laws
A deed restriction is applicable to the activities of - answer all
owners, present and future
An easement can be terminated by - answer prescription
Depreciation is calculated based on the - answer cost of the
building only
, Which of the following approaches MOST reliably estimates the
sales price of a single-family residence? - answer Market data
A seller mentions to his agent that the previous owners of his
property may have dumped hazardous waste on the site. Under the
Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - answer Seller
The escrow officer or closing agent MUST give information regarding
the sales price and seller's social security number to - answer IRS
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? - answer Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want
an annual return of 12%, what net income is needed each month? -
answer $1,150
Usury laws were enacted to protect the - answer borrower
At the time of listing, the seller tells the listing agent they are
moving because the neighbor has loud parties every weekend.
The agent should - answer tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its
conditions, that contract is deemed to be - answer breached
