©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
PSI ONLINE Exam Questions With Correct
Answers 100% Verified
A distinguishing characteristic of owning property by land trust is that - Answer✔the identity of
the legal owner is kept confidential.
Legal descriptions using the government survey system are NOT generally used in -
Answer✔the original 13 states.
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? - Answer✔The second
mortgagee receives nothing unless he forced the foreclosure auction
A broker hires a salesperson as an independent contractor. In order for the salesperson to be
considered an independent contractor for federal income tax purposes, the broker's written
contract with the salesperson MUST specify - Answer✔that the salesperson will not be treated
as an employee for federal income tax purposes.
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to
make the permission permanent in case he dislikes others who might move next door in the
future. What should he give his neighbor? - Answer✔A license.
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. Either
riparian and littoral rights are automatically conveyed with property, or all water rights are
controlled by the state under the doctrine of prior appropriation. The doctrine of prior
appropriation is MOST likely to be followed in states where - Answer✔water is scarce.
New sidewalks installed only on one particular street will probably be paid for by - Answer✔a
special assessment
A broker is showing a buyer one of his residential listings. The buyer says he wants to establish
a day care center for seniors in the property. The property has been used as a day care center
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
for no more than five children. How should the broker advise this buyer? - Answer✔Provide the
buyer with contact information for the local planning and zoning office to confirm the zoning
and determine whether it permits his use.
If conditions for property use are included in a deed and these conditions are violated, what is
the most severe potential penalty? - Answer✔A court may order the return of the property to
the original owner.
A potential buyer is interested in the residential property of your client. The buyer earns a living
by making crafts and selling them from home and caring for children in the late afternoons. In
this situation, you should - Answer✔suggest the buyer check the zoning ordinances.
A formal appraisal will ALWAYS be REQUIRED when the - Answer✔lender wants to sell the
mortgage to the secondary market.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than - Answer✔$250,000
According to the principle of progression, a three-bedroom, one-story home is MOST likely to
bring the highest sales price if located in a neighborhood in which - Answer✔most homes are
larger than the sale home.
A couple owns an older home in a neighborhood that is becoming a commercial area. Because
of the change in the use of the land, the couple can expect the value of their parcel to increase
at some future time. This is an example of the principle of - Answer✔anticipation
Even if a loan applicant's current income seems adequate to qualify for a certain loan, the Equal
Credit Opportunity Act allows a lender to refuse the loan as a high risk if the applicant's main
source of income is - Answer✔commission sales.
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
A broker and the buyers he represents are anxiously awaiting the closing on their new home.
The closing is scheduled in 4 days. The buyers inform the broker that they just received revised
Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual Percentage
Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule,
what action should the broker take in this situation? - Answer✔Confirm with the seller's broker,
the lender and the closing entity that the closing must be delayed to allow for a new seven-day
waiting period because of the interest rate revision.
When a home is purchased using an ARM, the monthly loan payment on the mortgage will -
Answer✔vary over the life of the loan depending on fluctuations in the interest rate to which
the loan is referenced.
2
PSI ONLINE Exam Questions With Correct
Answers 100% Verified
A distinguishing characteristic of owning property by land trust is that - Answer✔the identity of
the legal owner is kept confidential.
Legal descriptions using the government survey system are NOT generally used in -
Answer✔the original 13 states.
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? - Answer✔The second
mortgagee receives nothing unless he forced the foreclosure auction
A broker hires a salesperson as an independent contractor. In order for the salesperson to be
considered an independent contractor for federal income tax purposes, the broker's written
contract with the salesperson MUST specify - Answer✔that the salesperson will not be treated
as an employee for federal income tax purposes.
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to
make the permission permanent in case he dislikes others who might move next door in the
future. What should he give his neighbor? - Answer✔A license.
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. Either
riparian and littoral rights are automatically conveyed with property, or all water rights are
controlled by the state under the doctrine of prior appropriation. The doctrine of prior
appropriation is MOST likely to be followed in states where - Answer✔water is scarce.
New sidewalks installed only on one particular street will probably be paid for by - Answer✔a
special assessment
A broker is showing a buyer one of his residential listings. The buyer says he wants to establish
a day care center for seniors in the property. The property has been used as a day care center
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 10:31AM. A+
for no more than five children. How should the broker advise this buyer? - Answer✔Provide the
buyer with contact information for the local planning and zoning office to confirm the zoning
and determine whether it permits his use.
If conditions for property use are included in a deed and these conditions are violated, what is
the most severe potential penalty? - Answer✔A court may order the return of the property to
the original owner.
A potential buyer is interested in the residential property of your client. The buyer earns a living
by making crafts and selling them from home and caring for children in the late afternoons. In
this situation, you should - Answer✔suggest the buyer check the zoning ordinances.
A formal appraisal will ALWAYS be REQUIRED when the - Answer✔lender wants to sell the
mortgage to the secondary market.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than - Answer✔$250,000
According to the principle of progression, a three-bedroom, one-story home is MOST likely to
bring the highest sales price if located in a neighborhood in which - Answer✔most homes are
larger than the sale home.
A couple owns an older home in a neighborhood that is becoming a commercial area. Because
of the change in the use of the land, the couple can expect the value of their parcel to increase
at some future time. This is an example of the principle of - Answer✔anticipation
Even if a loan applicant's current income seems adequate to qualify for a certain loan, the Equal
Credit Opportunity Act allows a lender to refuse the loan as a high risk if the applicant's main
source of income is - Answer✔commission sales.
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
A broker and the buyers he represents are anxiously awaiting the closing on their new home.
The closing is scheduled in 4 days. The buyers inform the broker that they just received revised
Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual Percentage
Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule,
what action should the broker take in this situation? - Answer✔Confirm with the seller's broker,
the lender and the closing entity that the closing must be delayed to allow for a new seven-day
waiting period because of the interest rate revision.
When a home is purchased using an ARM, the monthly loan payment on the mortgage will -
Answer✔vary over the life of the loan depending on fluctuations in the interest rate to which
the loan is referenced.
2
