PSI National Real Estate Salesperson Practice
Exam with solutions
A competitive market analysis is MOST often used for - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔setting a listing price. ||! ||! ||!
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 - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔anticipation.
A commercial property lost value because a recently constructed highway
||! ||! ||! ||! ||! ||! ||! ||! ||!
moved traffic away from the property. This is an example of - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔economic or external obsolescence.
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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 - correct answer ✔most homes are larger than
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the sale home.
||! ||!
A prospective seller asks a salesperson to recommend a listing price for
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
a property. The salesperson should suggest - correct answer ✔a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
competitive market analysis to determine the property's value.
||! ||! ||! ||! ||! ||! ||!
,If all other factors are equal, in which location is a parking lot likely to
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
bring the highest sales price? - correct answer ✔Business district zoned
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
for a six story office building.
||! ||! ||! ||! ||! ||!
When the sellers are lending part of the purchase price, they may
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
secure the debt either with a deed of trust or a mortgage. For the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
seller, one benefit of the deed of trust is that - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔foreclosure is usually simpler and faster. ||! ||! ||! ||! ||!
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 - correct answer ✔commission sales.
||! ||! ||! ||! ||!
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? - correct 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. ||! ||!
The FHA functions MOST like - correct answer ✔an insurance company.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Federal Truth-in-Lending laws are also known as - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔Regulation Z. ||!
, Which of these Federal laws regulates the advertisement of a lender's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
credit terms (rates, payment, etc.)? - correct answer ✔Regulation Z.
||! ||! ||! ||! ||! ||! ||! ||! ||!
A borrower has defaulted on the mortgage. The mortgage contains an
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
acceleration clause. This permits the lender to - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔demand immediate payment of the entire note.
||! ||! ||! ||! ||! ||!
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 - correct answer ✔prepayment penalties and rebates.
||! ||! ||! ||! ||! ||! ||!
An owner hired a construction company to build a swimming pool at a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
new home. The owner failed to pay the bill once the work was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
completed and the construction company filed a lien to obtain payment
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of the debt. The encumbrance created is called - correct answer ✔a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
mechanic's lien. ||!
Three people buy a house as tenants in common. Subsequently, two of
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the owners want to sell, but the third discourages each potential
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
purchaser. The two owners who wish to sell the house can - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔file an action for partition against the third owner.
||! ||! ||! ||! ||! ||! ||! ||! ||!
A legal easement can be created by any of the following EXCEPT -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔merger of the titles.
||! ||! ||! ||! ||!
In the sale of property, there is often confusion over whether an item
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
is a fixture or personal property. What is the best way to avoid this
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
confusion? - correct answer ✔Specify questionable items of property in
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the written sales contract.
||! ||! ||!
Exam with solutions
A competitive market analysis is MOST often used for - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔setting a listing price. ||! ||! ||!
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 - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔anticipation.
A commercial property lost value because a recently constructed highway
||! ||! ||! ||! ||! ||! ||! ||! ||!
moved traffic away from the property. This is an example of - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔economic or external obsolescence.
||! ||! ||! ||!
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 - correct answer ✔most homes are larger than
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the sale home.
||! ||!
A prospective seller asks a salesperson to recommend a listing price for
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
a property. The salesperson should suggest - correct answer ✔a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
competitive market analysis to determine the property's value.
||! ||! ||! ||! ||! ||! ||!
,If all other factors are equal, in which location is a parking lot likely to
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
bring the highest sales price? - correct answer ✔Business district zoned
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
for a six story office building.
||! ||! ||! ||! ||! ||!
When the sellers are lending part of the purchase price, they may
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
secure the debt either with a deed of trust or a mortgage. For the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
seller, one benefit of the deed of trust is that - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔foreclosure is usually simpler and faster. ||! ||! ||! ||! ||!
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 - correct answer ✔commission sales.
||! ||! ||! ||! ||!
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? - correct 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. ||! ||!
The FHA functions MOST like - correct answer ✔an insurance company.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Federal Truth-in-Lending laws are also known as - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔Regulation Z. ||!
, Which of these Federal laws regulates the advertisement of a lender's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
credit terms (rates, payment, etc.)? - correct answer ✔Regulation Z.
||! ||! ||! ||! ||! ||! ||! ||! ||!
A borrower has defaulted on the mortgage. The mortgage contains an
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
acceleration clause. This permits the lender to - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔demand immediate payment of the entire note.
||! ||! ||! ||! ||! ||!
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 - correct answer ✔prepayment penalties and rebates.
||! ||! ||! ||! ||! ||! ||!
An owner hired a construction company to build a swimming pool at a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
new home. The owner failed to pay the bill once the work was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
completed and the construction company filed a lien to obtain payment
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of the debt. The encumbrance created is called - correct answer ✔a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
mechanic's lien. ||!
Three people buy a house as tenants in common. Subsequently, two of
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the owners want to sell, but the third discourages each potential
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
purchaser. The two owners who wish to sell the house can - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔file an action for partition against the third owner.
||! ||! ||! ||! ||! ||! ||! ||! ||!
A legal easement can be created by any of the following EXCEPT -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔merger of the titles.
||! ||! ||! ||! ||!
In the sale of property, there is often confusion over whether an item
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
is a fixture or personal property. What is the best way to avoid this
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
confusion? - correct answer ✔Specify questionable items of property in
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the written sales contract.
||! ||! ||!
