NATIONAL PSI EXAM PRACTICE TEST WITH
CORRECT ANSWERS
Real Estate law governing advertising applies to all of these EXCEPT:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A. In house notes for showing
||! ||! ||! ||! ||!
B. Multiple listing service (MLS)
||! ||! ||! ||!
C. communications with consumers
||! ||! ||!
D. Social Media - correct answer ✔A. In-house notes for showing are
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
not seen by consumers an so do not have to follow state or federal
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
laws.
A couple accompanies a property inspector during an inspection of a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
house on which they have a contract. The inspector points to a six-inch
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
crack at the corner of a dining room window. The crack is an example
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of :
||! ||! ||!
A. A structural defect
||! ||! ||! ||!
B. A patent Defect
||! ||! ||! ||!
C. a latent defect
||! ||! ||! ||!
D. an environmental defect - correct answer ✔B. A patent defect is
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
easily visible when inspecting a property. (another) term for material)
||! ||! ||! ||! ||! ||! ||! ||! ||!
An eligible veteran made an offer of $225,000 to purchase a home
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
contingent upon obtaining a no-down payment U.S department of
||! ||! ||! ||! ||! ||! ||! ||! ||!
Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
accepted, the VA issued a certificate of reasonable value (CRV) for the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
$222,000 for the property. In this case, the veteran may:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
,A. withdraw from the sale with a three-point penalty
||! ||! ||! ||! ||! ||! ||! ||! ||!
B. withdraw from the sale on payment of a commission to the seller's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
broker ||!
C. purchase the property by making a $3,000 cash payment
||! ||! ||! ||! ||! ||! ||! ||! ||!
D. seek secondary funding for the $3,0000 - correct answer ✔C. When
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the purchase price of a property is greater than the VA-issued (CRV),
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the veteran may pay the difference in cash to purchase the property
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
because secondary financing is somewhat restricted under VA regulations.
||! ||! ||! ||! ||! ||! ||! ||!
General real estate property taxes levied for the operation of the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
government are called: ||! ||! ||!
A. special taxes
||! ||!
B. ad valorem taxes
||! ||! ||!
C. improvement taxes
||! ||! ||!
D. special assessment taxes - correct answer ✔B.
||! ||! ||! ||! ||! ||! ||!
Under current Regulations, a U.S. department of Veteran Affairs (VA)
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
loan is assumable if:
||! ||! ||! ||!
A. The VA approves both the buyer and the assumption agreement
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
B. the veteran agrees not to request a releases of liability for
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
repayment ||!
C. the VA approves the buyer only
||! ||! ||! ||! ||! ||! ||!
D. the VA approves the assumption of the agreement only - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔A. ||! ||!
, for VA loans made after March 1, 1988 the VA must approve both the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
buyer and the assumption agreement before the loan may be assumed.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
During the period of time after a real estate sales contract is signed,
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
but before title actually passes, the status of the contract is:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A. executory
||! ||!
B. voidable
||!
C. executed
||!
D. unilateral - correct answer ✔A.
||! ||! ||! ||! ||! ||!
A contract is in executory status when its terms of agreement have not
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
yet been carried out.
||! ||! ||! ||!
If there is a discrepancy between a residential lot size quoted in a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
listing contract and the actual lot size, the actual lot size that will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
prevail in a sales transaction will be found in :
||! ||! ||! ||! ||! ||! ||! ||! ||!
A. the MLS
||! ||! ||!
B. the survey
||! ||! ||!
C. the listing contract
||! ||! ||! ||!
D. the deed - correct answer ✔B.
||! ||! ||! ||! ||! ||!
The buyers secured a loan at 75% (LTV) ration. The interest rate was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
7.125%, and the term was for 30 Years. The first month's interest
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
payment was $477.82. What was the appraised value of the property?
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
CORRECT ANSWERS
Real Estate law governing advertising applies to all of these EXCEPT:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A. In house notes for showing
||! ||! ||! ||! ||!
B. Multiple listing service (MLS)
||! ||! ||! ||!
C. communications with consumers
||! ||! ||!
D. Social Media - correct answer ✔A. In-house notes for showing are
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
not seen by consumers an so do not have to follow state or federal
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
laws.
A couple accompanies a property inspector during an inspection of a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
house on which they have a contract. The inspector points to a six-inch
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
crack at the corner of a dining room window. The crack is an example
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of :
||! ||! ||!
A. A structural defect
||! ||! ||! ||!
B. A patent Defect
||! ||! ||! ||!
C. a latent defect
||! ||! ||! ||!
D. an environmental defect - correct answer ✔B. A patent defect is
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
easily visible when inspecting a property. (another) term for material)
||! ||! ||! ||! ||! ||! ||! ||! ||!
An eligible veteran made an offer of $225,000 to purchase a home
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
contingent upon obtaining a no-down payment U.S department of
||! ||! ||! ||! ||! ||! ||! ||! ||!
Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
accepted, the VA issued a certificate of reasonable value (CRV) for the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
$222,000 for the property. In this case, the veteran may:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
,A. withdraw from the sale with a three-point penalty
||! ||! ||! ||! ||! ||! ||! ||! ||!
B. withdraw from the sale on payment of a commission to the seller's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
broker ||!
C. purchase the property by making a $3,000 cash payment
||! ||! ||! ||! ||! ||! ||! ||! ||!
D. seek secondary funding for the $3,0000 - correct answer ✔C. When
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the purchase price of a property is greater than the VA-issued (CRV),
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the veteran may pay the difference in cash to purchase the property
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
because secondary financing is somewhat restricted under VA regulations.
||! ||! ||! ||! ||! ||! ||! ||!
General real estate property taxes levied for the operation of the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
government are called: ||! ||! ||!
A. special taxes
||! ||!
B. ad valorem taxes
||! ||! ||!
C. improvement taxes
||! ||! ||!
D. special assessment taxes - correct answer ✔B.
||! ||! ||! ||! ||! ||! ||!
Under current Regulations, a U.S. department of Veteran Affairs (VA)
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
loan is assumable if:
||! ||! ||! ||!
A. The VA approves both the buyer and the assumption agreement
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
B. the veteran agrees not to request a releases of liability for
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
repayment ||!
C. the VA approves the buyer only
||! ||! ||! ||! ||! ||! ||!
D. the VA approves the assumption of the agreement only - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔A. ||! ||!
, for VA loans made after March 1, 1988 the VA must approve both the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
buyer and the assumption agreement before the loan may be assumed.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
During the period of time after a real estate sales contract is signed,
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
but before title actually passes, the status of the contract is:
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A. executory
||! ||!
B. voidable
||!
C. executed
||!
D. unilateral - correct answer ✔A.
||! ||! ||! ||! ||! ||!
A contract is in executory status when its terms of agreement have not
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
yet been carried out.
||! ||! ||! ||!
If there is a discrepancy between a residential lot size quoted in a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
listing contract and the actual lot size, the actual lot size that will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
prevail in a sales transaction will be found in :
||! ||! ||! ||! ||! ||! ||! ||! ||!
A. the MLS
||! ||! ||!
B. the survey
||! ||! ||!
C. the listing contract
||! ||! ||! ||!
D. the deed - correct answer ✔B.
||! ||! ||! ||! ||! ||!
The buyers secured a loan at 75% (LTV) ration. The interest rate was
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
7.125%, and the term was for 30 Years. The first month's interest
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
payment was $477.82. What was the appraised value of the property?
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
