PSI National Exam for Real Estate/ 544 Quizzes
with Certified Ans.
An adjustable rate loan should include all of the following elements - Answer: 1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following -
Answer: 1. loan fees.
2 .the origination fee.
3. the annual percentage rate
A couple signed a lease on an apartment for a period of 1 year. The lease does
NOT contain an automatic renewal clause. The couple plans to move out at the
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,end of the lease rather than renew it. How much notice MUST they give to comply
with
the lease term? - Answer: No notice is required
The relationship in which the agent is placed in the position of trust and
confidence to the principal is known by the term - Answer: fiduciary
A couple are moving to a new city. They have decided to rent temporarily before
buying a house to see which part of the city
they would like to live in. What type of lease would BEST suit the couple's needs? -
Answer: Month-to-month lease
A broker says, while showing a rural property, "This property has the world's
purest well water." This would be an example of - Answer: an expression of
opinion, or puffing, which could lead to misrepresentation
A contract has been drawn which obliges the sellers to convey title to their land to
the buyers if the buyers come up with
$22,000 on or before December 31st. This is called - Answer: an option contract
Errors and Omissions insurance covers the broker for - Answer: unintentional
misrepresentations
The land description T3N, R4W Principal Meridian refers to what method of
property description? - Answer: Rectangular survey.
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,All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT - Answer: straight-line method
The buyer is assuming a mortgage presently on the property in the amount of
$110,000. What is the adjustment made at closing? - Answer: Credit buyer
$110,000; debit seller $110,000
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - Answer: an agent to the broker and a subagent to the
principal.
The amount of commission to be paid is - Answer: agreed upon by the seller and
agent on the contract.
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - Answer: $250,000
An odorless, radioactive gas that can cause cancer - Answer: Radon
The document used in a real estate sale that establishes the legal rights of the
buyer and seller is the - Answer: purchase contract
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, A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest - Answer: a competitive market analysis
to determine the property's value.
Two lots of the same size are sold on a street. The lot on the corner sells for
$20,000 more than the lot in the middle of the street. Which of the following
characteristics MOST likely explains the price difference? - Answer: Situs
An agency relationship between a property owner and a property manager is
usually created by - Answer: management agreement
. On January 15, a seller paid $960 in annual property tax for the current calendar
year. A buyer is purchasing the house with the closing set for March 1. What will
be the seller's credit for the property taxes already paid if the buyer pays for the
day of closing? Use a 360-day year and a 30-day month. - Answer: $800
Which of the following is NOT usually prorated at closing - Answer: Special tax
assessments
Which of the following is usually prorated at closing? - Answer: 1. Homeowners
association fees.
2. Property taxes.
3. Transferred homeowner's insurance.
In MOST states, foreclosed property is sold through - Answer: public auction
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with Certified Ans.
An adjustable rate loan should include all of the following elements - Answer: 1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following -
Answer: 1. loan fees.
2 .the origination fee.
3. the annual percentage rate
A couple signed a lease on an apartment for a period of 1 year. The lease does
NOT contain an automatic renewal clause. The couple plans to move out at the
Page 1 of 81
,end of the lease rather than renew it. How much notice MUST they give to comply
with
the lease term? - Answer: No notice is required
The relationship in which the agent is placed in the position of trust and
confidence to the principal is known by the term - Answer: fiduciary
A couple are moving to a new city. They have decided to rent temporarily before
buying a house to see which part of the city
they would like to live in. What type of lease would BEST suit the couple's needs? -
Answer: Month-to-month lease
A broker says, while showing a rural property, "This property has the world's
purest well water." This would be an example of - Answer: an expression of
opinion, or puffing, which could lead to misrepresentation
A contract has been drawn which obliges the sellers to convey title to their land to
the buyers if the buyers come up with
$22,000 on or before December 31st. This is called - Answer: an option contract
Errors and Omissions insurance covers the broker for - Answer: unintentional
misrepresentations
The land description T3N, R4W Principal Meridian refers to what method of
property description? - Answer: Rectangular survey.
Page 2 of 81
,All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT - Answer: straight-line method
The buyer is assuming a mortgage presently on the property in the amount of
$110,000. What is the adjustment made at closing? - Answer: Credit buyer
$110,000; debit seller $110,000
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - Answer: an agent to the broker and a subagent to the
principal.
The amount of commission to be paid is - Answer: agreed upon by the seller and
agent on the contract.
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - Answer: $250,000
An odorless, radioactive gas that can cause cancer - Answer: Radon
The document used in a real estate sale that establishes the legal rights of the
buyer and seller is the - Answer: purchase contract
Page 3 of 81
, A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest - Answer: a competitive market analysis
to determine the property's value.
Two lots of the same size are sold on a street. The lot on the corner sells for
$20,000 more than the lot in the middle of the street. Which of the following
characteristics MOST likely explains the price difference? - Answer: Situs
An agency relationship between a property owner and a property manager is
usually created by - Answer: management agreement
. On January 15, a seller paid $960 in annual property tax for the current calendar
year. A buyer is purchasing the house with the closing set for March 1. What will
be the seller's credit for the property taxes already paid if the buyer pays for the
day of closing? Use a 360-day year and a 30-day month. - Answer: $800
Which of the following is NOT usually prorated at closing - Answer: Special tax
assessments
Which of the following is usually prorated at closing? - Answer: 1. Homeowners
association fees.
2. Property taxes.
3. Transferred homeowner's insurance.
In MOST states, foreclosed property is sold through - Answer: public auction
Page 4 of 81
