PSI National Exam for Real Estate Questions
and Answers 3.
A bwritten bagreement bin bwhich ba bpurchaser bagrees bto bbuy band ba bseller bagrees bto bsell bis
bcalled b- bANS b>> ba bcontract
Antitrust blaws bprohibit bcompeting bbrokers bfrom ball bof bthe bfollowing b- bANS b>> b1.
bboycotting bother bbrokers bin bthe bmarketplace.
2. bdividing bthe bmarket bto brestrict bcompetition.
3. bagreeing bto bset bsales bcommissions band bmanagement brates.
When ba bsewer bline bis binstalled bdown ba brural broad, bthe bcost bwill bprobably bbe bshared
bby b- bANS b>> ball bcurrent bowners bof breal bestate bfronting bon bthat broad
State blaws bdiffer bon bwhether ba bbuyer bis bentitled bto bknow babout b- bANS b>> ba bsuicide
bthat boccurred bin bthe bhouse blast byear.
A blawsuit bfor binverse bcondemnation bmay bbe bbrought bby b- bANS b>> ba bhomeowner
When bis bracial bdiscrimination bin bthe brental bof brooms bor bapartments bpermitted? b- bANS
b>> bUnder bno bcircumstances
The breal bestate bbroker bwho bis blisting ba bhouse bfor bsale bshould bpersonally bverify b- bANS
b>> bthe bnumber bof bsquare bfeet bin bthe bbuilding
Real bproperty bcan bbe bconverted bto bpersonal bproperty bby b- bANS b>> bSeverance
Prospective bbuyers bmade ban boffer bon ba bproperty. bThe bseller bdid bNOT baccept, bbut bmade
ba bcounteroffer. bThe
bprospective bbuyers bsigned bthe bcounteroffer band bthe breal bestate bagent bdelivered btheir
bacceptance bto bthe bseller.
bIn bthe binterim, bthe bsame bbuyers bhad bfound banother bhouse bthat bthey bliked bbetter band
bmade ban boffer bon bit, bwhich bwas baccepted. bWhich bof bthe bfollowing bis bTRUE? b- bANS b>>
bBoth bcontracts bare bvalid
Although bstates bmake bspecific blaws bgoverning bwater brights band bthe brights bin bland bthat
bborders bwater, bmost bstates b
generally bfollow bone bof btwo bbasic bdoctrines bregarding bwater brights. bIn bmany bstates, bthe
bcommon blaw bdoctrine bof briparian band blittoral brights bdictates bthat bwater brights bare
,bautomatically bconveyed bwith bproperty. bIn bothers, ball bwater brights bare bcontrolled bby bthe
bstate bunder bthe bdoctrine bof b- bANS b>> bprior bappropriation
The bpurpose bof brequiring ban bearnest bmoney bdeposit bin ba breal bestate bsales bcontract bis
bto b- bANS b>> bprovide bevidence bof bthe bbuyer's bintention bto bcarry bout bthe bcontract.
A bbuyer bis bgetting ba bfully bamortized bloan bfor b$220,000. bThe bbank bwill bgive bthe bbuyer
bthe bloan bfor b15 byears bat b5 b1/2% b
or bfor b30 byears bat b6 b1/2%. bTo bthe bnearest bcent, bwhat bis bthe bdifference bbetween bthe
bmonthly bpayments bfor bthese btwo bloans?
b(BE bSURE bTO bUSE bTHE bAMORTIZATION bTABLE.) b- bANS b>> b$409.20.
A bborrower bhas bdefaulted bon bthe bmortgage. bThe bmortgage bcontains ban bacceleration
bclause. bThis bpermits bthe blender bto b- bANS b>> bdemand bimmediate bpayment bof bthe bentire
bnote
The bFHA bfunctions bMOST blike b- bANS b>> ban binsurance bcompany
1. bThey bare bused bto bbuy bdown binterest brate.
2. bThey bare ba bfunction bof bthe bmarketplace.
3. bThey bare bpaid bby beither bthe bbuyer bor bthe bseller. b- bANS b>> bdiscount bpoints
When bland bis bconveyed bto ba btrustee, bthe btrustee bmay b- bANS b>> bdo bwhatever bis
bpermitted bunder bthe btrust bagreement
A bprospective bbuyer bmade ban boffer bto bpurchase ba bproperty. bThe bowner bresponded bwith
ba bcounteroffer. bWhile bthe bbuyer b
was breviewing bthe bcounteroffer, bthe bowner breceived ba bbetter boffer. bThe bowner bcan
baccept bthe bsecond boffer bif b- bANS b>> bthe bowner bwithdraws bthe bcounteroffer bbefore bit
bis baccepted.
While ban bagent bis bshowing ba blisted bproperty, bthe bseller band bthe bbuyer benter binto ban
boral bagreement bfor bthe bpurchase bof bthe bhome. bIf ba bdispute bover bthe bterms barises
blater, bthe bagreement bmay bbe bunenforceable bbecause b- bANS b>> bthe bagreement bdoes bnot
bcomply bwith bthe bStatute bof bFrauds
Earnest bmoney bshould bbe bdeposited binto ba btrust baccount b- bANS b>> bin ba btimely bmanner,
baccording bto bstate blaws
A bdeed brestriction bis bapplicable bto bthe bactivities bof b- bANS b>> ball bowners, bpresent band
bfuture
,An beasement bcan bbe bterminated bby b- bANS b>> bprescription
Depreciation bis bcalculated bbased bon bthe b- bANS b>> bcost bof bthe bbuilding bonly
Which bof bthe bfollowing bapproaches bMOST breliably bestimates bthe bsales bprice bof ba bsingle-
family bresidence? b- bANS b>> bMarket bdata
A bseller bmentions bto bhis bagent bthat bthe bprevious bowners bof bhis bproperty bmay bhave
bdumped bhazardous bwaste bon bthe bsite. bUnder bthe bComprehensive bEnvironmental bResponse,
bCompensation, band bLiability bAct b(CERCLA), bwho bis bliable bfor bdamages bfrom
bthe bdumping bprior bto bthe bsale bof bthe bproperty? b- bANS b>> bSeller
The bescrow bofficer bor bclosing bagent bMUST bgive binformation bregarding bthe bsales bprice band
bseller's bsocial bsecurity bnumber bto b- bANS b>> bIRS
A bbroker bsupplies bthe bfinancing bfor ba bproject bto bbuild bcondominiums bwith bthe bstipulation
bthat bhe bhas bthe bexclusive bright bto bsell bthe bcompleted bcondos. bWhich bof bthe bfollowing
bBEST bdescribes bthis brelationship? b- bANS b>> bAgency bcoupled bwith ban binterest
If byou bown ba bbuilding bfree band bclear bthat bis bworth b$115,000 band bwant ban bannual
breturn bof b12%, bwhat bnet bincome bis bneeded beach bmonth? b- bANS b>> b$1,150
Usury blaws bwere benacted bto bprotect bthe b- bANS b>> bborrower
At bthe btime bof blisting, bthe bseller btells bthe blisting bagent bthey bare bmoving bbecause bthe
bneighbor bhas bloud bparties bevery bweekend.
bThe bagent bshould b- bANS b>> btell bpotential bbuyers babout bthe bparties
When bone bof bthe bparties bto ban bagreement bfails bto bperform bone bof bits bconditions, bthat
bcontract bis bdeemed bto bbe b- bANS b>> bbreached
Which bof bthe bfollowing bis bNOT ba bconsideration bin bthe bdefinition bof bmarket bvalue? b-
bANS b>> bBuyer band bseller bmust bagree bto bappraised bvalue
One bcommon bmethod bfor bcontrolling bthe bproblems bcreated bby bconflict bof binterest bin
bdual brepresentation bis b- bANS b>> ballowing ba bbroker bto bdesignate bseparate bsalespeople
bwithin bthe bcompany bas blegal brepresentatives bof beach bof bthe bclients.
Ownership bof bcommon bstock bin ba bcorporation bgives b- bANS b>> ban binterest bthat bis
bclassified bas bpersonal bproperty
At bthe bclosing bon bJune b15, bthe bbuyer bis bassuming ba bmortgage bpresently bon bthe
bproperty, bon bwhich bthe bmonthly binterest bcharge
, bis bcurrently b$600. bThe bseller bhas bmade bthe bpayment bdue bon bJune b1. bAssuming ba bVA
bmortgage, bwhat bis bthe badjustment b
made bat bclosing? b- bANS b>> bDebit bseller b$300; bcredit bbuyer b$300
Too bmuch bleverage bmay bresult bin b- bANS b>> bnegative bcash bflow
A bmajor breason bfor bbuying band bowning ba bcondominium brather bthan ba bdetached bsingle-
family bhome bis bthat b- bANS b>> ba bcondominium btends bto bbe bmore baffordable
An badjustable brate bloan bshould binclude ball bof bthe bfollowing belements b- bANS b>> b1.
bmargin
2. blife-of-the-loan bcap
3. bindex
Regulation bZ brequires bthat bthe bborrower bbe bfully binformed bof ball bof bthe bfollowing b-
bANS b>> b1. bloan bfees.
2 b.the borigination bfee.
3. bthe bannual bpercentage brate
A bcouple bsigned ba blease bon ban bapartment bfor ba bperiod bof b1 byear. bThe blease bdoes
bNOT bcontain ban bautomatic brenewal bclause. bThe bcouple bplans bto bmove bout bat bthe bend
bof bthe blease brather bthan brenew bit. bHow bmuch bnotice bMUST bthey bgive bto bcomply bwith
b
the blease bterm? b- bANS b>> bNo bnotice bis brequired
The brelationship bin bwhich bthe bagent bis bplaced bin bthe bposition bof btrust band bconfidence
bto bthe bprincipal bis bknown bby bthe bterm b- bANS b>> bfiduciary
A bcouple bare bmoving bto ba bnew bcity. bThey bhave bdecided bto brent btemporarily bbefore
bbuying ba bhouse bto bsee bwhich bpart bof bthe bcity b
they bwould blike bto blive bin. bWhat btype bof blease bwould bBEST bsuit bthe bcouple's bneeds? b-
bANS b>> bMonth-to-month blease
A bbroker bsays, bwhile bshowing ba brural bproperty, b"This bproperty bhas bthe bworld's bpurest
bwell bwater." bThis bwould bbe ban bexample bof b- bANS b>> ban bexpression bof bopinion, bor
bpuffing, bwhich bcould blead bto bmisrepresentation
A bcontract bhas bbeen bdrawn bwhich bobliges bthe bsellers bto bconvey btitle bto btheir bland bto
bthe bbuyers bif bthe bbuyers bcome bup bwith b
$22,000 bon bor bbefore bDecember b31st. bThis bis bcalled b- bANS b>> ban boption bcontract
and Answers 3.
A bwritten bagreement bin bwhich ba bpurchaser bagrees bto bbuy band ba bseller bagrees bto bsell bis
bcalled b- bANS b>> ba bcontract
Antitrust blaws bprohibit bcompeting bbrokers bfrom ball bof bthe bfollowing b- bANS b>> b1.
bboycotting bother bbrokers bin bthe bmarketplace.
2. bdividing bthe bmarket bto brestrict bcompetition.
3. bagreeing bto bset bsales bcommissions band bmanagement brates.
When ba bsewer bline bis binstalled bdown ba brural broad, bthe bcost bwill bprobably bbe bshared
bby b- bANS b>> ball bcurrent bowners bof breal bestate bfronting bon bthat broad
State blaws bdiffer bon bwhether ba bbuyer bis bentitled bto bknow babout b- bANS b>> ba bsuicide
bthat boccurred bin bthe bhouse blast byear.
A blawsuit bfor binverse bcondemnation bmay bbe bbrought bby b- bANS b>> ba bhomeowner
When bis bracial bdiscrimination bin bthe brental bof brooms bor bapartments bpermitted? b- bANS
b>> bUnder bno bcircumstances
The breal bestate bbroker bwho bis blisting ba bhouse bfor bsale bshould bpersonally bverify b- bANS
b>> bthe bnumber bof bsquare bfeet bin bthe bbuilding
Real bproperty bcan bbe bconverted bto bpersonal bproperty bby b- bANS b>> bSeverance
Prospective bbuyers bmade ban boffer bon ba bproperty. bThe bseller bdid bNOT baccept, bbut bmade
ba bcounteroffer. bThe
bprospective bbuyers bsigned bthe bcounteroffer band bthe breal bestate bagent bdelivered btheir
bacceptance bto bthe bseller.
bIn bthe binterim, bthe bsame bbuyers bhad bfound banother bhouse bthat bthey bliked bbetter band
bmade ban boffer bon bit, bwhich bwas baccepted. bWhich bof bthe bfollowing bis bTRUE? b- bANS b>>
bBoth bcontracts bare bvalid
Although bstates bmake bspecific blaws bgoverning bwater brights band bthe brights bin bland bthat
bborders bwater, bmost bstates b
generally bfollow bone bof btwo bbasic bdoctrines bregarding bwater brights. bIn bmany bstates, bthe
bcommon blaw bdoctrine bof briparian band blittoral brights bdictates bthat bwater brights bare
,bautomatically bconveyed bwith bproperty. bIn bothers, ball bwater brights bare bcontrolled bby bthe
bstate bunder bthe bdoctrine bof b- bANS b>> bprior bappropriation
The bpurpose bof brequiring ban bearnest bmoney bdeposit bin ba breal bestate bsales bcontract bis
bto b- bANS b>> bprovide bevidence bof bthe bbuyer's bintention bto bcarry bout bthe bcontract.
A bbuyer bis bgetting ba bfully bamortized bloan bfor b$220,000. bThe bbank bwill bgive bthe bbuyer
bthe bloan bfor b15 byears bat b5 b1/2% b
or bfor b30 byears bat b6 b1/2%. bTo bthe bnearest bcent, bwhat bis bthe bdifference bbetween bthe
bmonthly bpayments bfor bthese btwo bloans?
b(BE bSURE bTO bUSE bTHE bAMORTIZATION bTABLE.) b- bANS b>> b$409.20.
A bborrower bhas bdefaulted bon bthe bmortgage. bThe bmortgage bcontains ban bacceleration
bclause. bThis bpermits bthe blender bto b- bANS b>> bdemand bimmediate bpayment bof bthe bentire
bnote
The bFHA bfunctions bMOST blike b- bANS b>> ban binsurance bcompany
1. bThey bare bused bto bbuy bdown binterest brate.
2. bThey bare ba bfunction bof bthe bmarketplace.
3. bThey bare bpaid bby beither bthe bbuyer bor bthe bseller. b- bANS b>> bdiscount bpoints
When bland bis bconveyed bto ba btrustee, bthe btrustee bmay b- bANS b>> bdo bwhatever bis
bpermitted bunder bthe btrust bagreement
A bprospective bbuyer bmade ban boffer bto bpurchase ba bproperty. bThe bowner bresponded bwith
ba bcounteroffer. bWhile bthe bbuyer b
was breviewing bthe bcounteroffer, bthe bowner breceived ba bbetter boffer. bThe bowner bcan
baccept bthe bsecond boffer bif b- bANS b>> bthe bowner bwithdraws bthe bcounteroffer bbefore bit
bis baccepted.
While ban bagent bis bshowing ba blisted bproperty, bthe bseller band bthe bbuyer benter binto ban
boral bagreement bfor bthe bpurchase bof bthe bhome. bIf ba bdispute bover bthe bterms barises
blater, bthe bagreement bmay bbe bunenforceable bbecause b- bANS b>> bthe bagreement bdoes bnot
bcomply bwith bthe bStatute bof bFrauds
Earnest bmoney bshould bbe bdeposited binto ba btrust baccount b- bANS b>> bin ba btimely bmanner,
baccording bto bstate blaws
A bdeed brestriction bis bapplicable bto bthe bactivities bof b- bANS b>> ball bowners, bpresent band
bfuture
,An beasement bcan bbe bterminated bby b- bANS b>> bprescription
Depreciation bis bcalculated bbased bon bthe b- bANS b>> bcost bof bthe bbuilding bonly
Which bof bthe bfollowing bapproaches bMOST breliably bestimates bthe bsales bprice bof ba bsingle-
family bresidence? b- bANS b>> bMarket bdata
A bseller bmentions bto bhis bagent bthat bthe bprevious bowners bof bhis bproperty bmay bhave
bdumped bhazardous bwaste bon bthe bsite. bUnder bthe bComprehensive bEnvironmental bResponse,
bCompensation, band bLiability bAct b(CERCLA), bwho bis bliable bfor bdamages bfrom
bthe bdumping bprior bto bthe bsale bof bthe bproperty? b- bANS b>> bSeller
The bescrow bofficer bor bclosing bagent bMUST bgive binformation bregarding bthe bsales bprice band
bseller's bsocial bsecurity bnumber bto b- bANS b>> bIRS
A bbroker bsupplies bthe bfinancing bfor ba bproject bto bbuild bcondominiums bwith bthe bstipulation
bthat bhe bhas bthe bexclusive bright bto bsell bthe bcompleted bcondos. bWhich bof bthe bfollowing
bBEST bdescribes bthis brelationship? b- bANS b>> bAgency bcoupled bwith ban binterest
If byou bown ba bbuilding bfree band bclear bthat bis bworth b$115,000 band bwant ban bannual
breturn bof b12%, bwhat bnet bincome bis bneeded beach bmonth? b- bANS b>> b$1,150
Usury blaws bwere benacted bto bprotect bthe b- bANS b>> bborrower
At bthe btime bof blisting, bthe bseller btells bthe blisting bagent bthey bare bmoving bbecause bthe
bneighbor bhas bloud bparties bevery bweekend.
bThe bagent bshould b- bANS b>> btell bpotential bbuyers babout bthe bparties
When bone bof bthe bparties bto ban bagreement bfails bto bperform bone bof bits bconditions, bthat
bcontract bis bdeemed bto bbe b- bANS b>> bbreached
Which bof bthe bfollowing bis bNOT ba bconsideration bin bthe bdefinition bof bmarket bvalue? b-
bANS b>> bBuyer band bseller bmust bagree bto bappraised bvalue
One bcommon bmethod bfor bcontrolling bthe bproblems bcreated bby bconflict bof binterest bin
bdual brepresentation bis b- bANS b>> ballowing ba bbroker bto bdesignate bseparate bsalespeople
bwithin bthe bcompany bas blegal brepresentatives bof beach bof bthe bclients.
Ownership bof bcommon bstock bin ba bcorporation bgives b- bANS b>> ban binterest bthat bis
bclassified bas bpersonal bproperty
At bthe bclosing bon bJune b15, bthe bbuyer bis bassuming ba bmortgage bpresently bon bthe
bproperty, bon bwhich bthe bmonthly binterest bcharge
, bis bcurrently b$600. bThe bseller bhas bmade bthe bpayment bdue bon bJune b1. bAssuming ba bVA
bmortgage, bwhat bis bthe badjustment b
made bat bclosing? b- bANS b>> bDebit bseller b$300; bcredit bbuyer b$300
Too bmuch bleverage bmay bresult bin b- bANS b>> bnegative bcash bflow
A bmajor breason bfor bbuying band bowning ba bcondominium brather bthan ba bdetached bsingle-
family bhome bis bthat b- bANS b>> ba bcondominium btends bto bbe bmore baffordable
An badjustable brate bloan bshould binclude ball bof bthe bfollowing belements b- bANS b>> b1.
bmargin
2. blife-of-the-loan bcap
3. bindex
Regulation bZ brequires bthat bthe bborrower bbe bfully binformed bof ball bof bthe bfollowing b-
bANS b>> b1. bloan bfees.
2 b.the borigination bfee.
3. bthe bannual bpercentage brate
A bcouple bsigned ba blease bon ban bapartment bfor ba bperiod bof b1 byear. bThe blease bdoes
bNOT bcontain ban bautomatic brenewal bclause. bThe bcouple bplans bto bmove bout bat bthe bend
bof bthe blease brather bthan brenew bit. bHow bmuch bnotice bMUST bthey bgive bto bcomply bwith
b
the blease bterm? b- bANS b>> bNo bnotice bis brequired
The brelationship bin bwhich bthe bagent bis bplaced bin bthe bposition bof btrust band bconfidence
bto bthe bprincipal bis bknown bby bthe bterm b- bANS b>> bfiduciary
A bcouple bare bmoving bto ba bnew bcity. bThey bhave bdecided bto brent btemporarily bbefore
bbuying ba bhouse bto bsee bwhich bpart bof bthe bcity b
they bwould blike bto blive bin. bWhat btype bof blease bwould bBEST bsuit bthe bcouple's bneeds? b-
bANS b>> bMonth-to-month blease
A bbroker bsays, bwhile bshowing ba brural bproperty, b"This bproperty bhas bthe bworld's bpurest
bwell bwater." bThis bwould bbe ban bexample bof b- bANS b>> ban bexpression bof bopinion, bor
bpuffing, bwhich bcould blead bto bmisrepresentation
A bcontract bhas bbeen bdrawn bwhich bobliges bthe bsellers bto bconvey btitle bto btheir bland bto
bthe bbuyers bif bthe bbuyers bcome bup bwith b
$22,000 bon bor bbefore bDecember b31st. bThis bis bcalled b- bANS b>> ban boption bcontract
