Comprehensive Study 1 Up to Date Content
PSI National Exam for Real Estate
Latest Questions and Graded
Answers
A written agreement in which a purchaser agrees to buy and
a seller agrees to sell is called
Ans: a contract
Antitrust laws prohibit competing brokers from all of the
following
Ans: 1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and
management rates.
When a sewer line is installed down a rural road, the cost
will probably be shared by
Ans: all current owners of real estate fronting on
that road
State laws differ on whether a buyer is entitled to know
about
Ans: a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by
Ans: a homeowner
When is racial discrimination in the rental of rooms or
apartments permitted?
Up to Date Content
,Comprehensive Study 2 Up to Date Content
Ans: Under no circumstances
The real estate broker who is listing a house for sale should
personally verify
Ans: the number of square feet in the building
Real property can be converted to personal property by
Ans: Severance
Prospective buyers made an offer on a property. The seller
did NOT accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real
estate agent delivered their acceptance to the seller.
In the interim, the same buyers had found another house that
they liked better and made an offer on it, which was
accepted. Which of the following is TRUE?
Ans: Both contracts are valid
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. In many states, the common law doctrine of riparian
and littoral rights dictates that water rights are automatically
conveyed with property. In others, all water rights are
controlled by the state under the doctrine of
Ans: prior appropriation
The purpose of requiring an earnest money deposit in a real
estate sales contract is to
Up to Date Content
,Comprehensive Study 3 Up to Date Content
Ans: provide evidence of the buyer's intention to
carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The
bank will give the buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the
difference between the monthly payments for these two
loans?
(BE SURE TO USE THE AMORTIZATION TABLE.)
Ans: $409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to
Ans: demand immediate payment of the entire note
The FHA functions MOST like
Ans: an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller.
Ans: discount points
When land is conveyed to a trustee, the trustee may
Ans: do whatever is permitted under the trust
agreement
A prospective buyer made an offer to purchase a property.
The owner responded with a counteroffer. While the buyer
Up to Date Content
, Comprehensive Study 4 Up to Date Content
was reviewing the counteroffer, the owner received a better
offer. The owner can accept the second offer if
Ans: the owner withdraws the counteroffer before it
is accepted.
While an agent is showing a listed property, the seller and
the buyer enter into an oral agreement for the purchase of
the home. If a dispute over the terms arises later, the
agreement may be unenforceable because
Ans: the agreement does not comply with the
Statute of Frauds
Earnest money should be deposited into a trust account
Ans: in a timely manner, according to state laws
A deed restriction is applicable to the activities of
Ans: all owners, present and future
An easement can be terminated by
Ans: prescription
Depreciation is calculated based on the
Ans: cost of the building only
Which of the following approaches MOST reliably estimates
the sales price of a single-family residence?
Ans: Market data
Up to Date Content
PSI National Exam for Real Estate
Latest Questions and Graded
Answers
A written agreement in which a purchaser agrees to buy and
a seller agrees to sell is called
Ans: a contract
Antitrust laws prohibit competing brokers from all of the
following
Ans: 1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and
management rates.
When a sewer line is installed down a rural road, the cost
will probably be shared by
Ans: all current owners of real estate fronting on
that road
State laws differ on whether a buyer is entitled to know
about
Ans: a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by
Ans: a homeowner
When is racial discrimination in the rental of rooms or
apartments permitted?
Up to Date Content
,Comprehensive Study 2 Up to Date Content
Ans: Under no circumstances
The real estate broker who is listing a house for sale should
personally verify
Ans: the number of square feet in the building
Real property can be converted to personal property by
Ans: Severance
Prospective buyers made an offer on a property. The seller
did NOT accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real
estate agent delivered their acceptance to the seller.
In the interim, the same buyers had found another house that
they liked better and made an offer on it, which was
accepted. Which of the following is TRUE?
Ans: Both contracts are valid
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. In many states, the common law doctrine of riparian
and littoral rights dictates that water rights are automatically
conveyed with property. In others, all water rights are
controlled by the state under the doctrine of
Ans: prior appropriation
The purpose of requiring an earnest money deposit in a real
estate sales contract is to
Up to Date Content
,Comprehensive Study 3 Up to Date Content
Ans: provide evidence of the buyer's intention to
carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The
bank will give the buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the
difference between the monthly payments for these two
loans?
(BE SURE TO USE THE AMORTIZATION TABLE.)
Ans: $409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to
Ans: demand immediate payment of the entire note
The FHA functions MOST like
Ans: an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller.
Ans: discount points
When land is conveyed to a trustee, the trustee may
Ans: do whatever is permitted under the trust
agreement
A prospective buyer made an offer to purchase a property.
The owner responded with a counteroffer. While the buyer
Up to Date Content
, Comprehensive Study 4 Up to Date Content
was reviewing the counteroffer, the owner received a better
offer. The owner can accept the second offer if
Ans: the owner withdraws the counteroffer before it
is accepted.
While an agent is showing a listed property, the seller and
the buyer enter into an oral agreement for the purchase of
the home. If a dispute over the terms arises later, the
agreement may be unenforceable because
Ans: the agreement does not comply with the
Statute of Frauds
Earnest money should be deposited into a trust account
Ans: in a timely manner, according to state laws
A deed restriction is applicable to the activities of
Ans: all owners, present and future
An easement can be terminated by
Ans: prescription
Depreciation is calculated based on the
Ans: cost of the building only
Which of the following approaches MOST reliably estimates
the sales price of a single-family residence?
Ans: Market data
Up to Date Content
