National PSI Exam Practice Test Questions with Answers
Graded A+
Real Estate law governing advertising applies to financing is somewhat restricted under VA
all of these EXCEPT: regulations.
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media - ANSWER -A. In-house General real estate property taxes levied for the
notes for showing are not seen by consumers an operation of the government are called:
so do not have to follow state or federal laws.
A. special taxes
B. ad valorem taxes
C. improvement taxes
A couple accompanies a property inspector D. special assessment taxes - ANSWER -B.
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 : Under current Regulations, a U.S. department of
A. A structural defect Veteran Affairs (VA) loan is assumable if:
B. A patent Defect
C. a latent defect A. The VA approves both the buyer and the
D. an environmental defect - ANSWER -B. assumption agreement
A patent defect is easily visible when inspecting B. the veteran agrees not to request a releases of
a property. (another) term for material) liability for repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the
agreement only - ANSWER -A.
An eligible veteran made an offer of $225,000 to for VA loans made after March 1, 1988 the VA
purchase a home contingent upon obtaining a must approve both the buyer and the assumption
no-down payment U.S department of Veterans agreement before the loan may be assumed.
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 During the period of time after a real estate sales
veteran may: contract is signed, but before title actually
A. withdraw from the sale with a three-point passes, the status of the contract is:
penalty
B. withdraw from the sale on payment of a A. executory
commission to the seller's broker B. voidable
C. purchase the property by making a $3,000 C. executed
cash payment D. unilateral - ANSWER -A.
D. seek secondary funding for the $3,0000 - A contract is in executory status when its terms of
ANSWER -C. When the purchase price of a agreement have not yet been carried out.
property is greater than the VA-issued (CRV), the
veteran may pay the difference in cash to
purchase the property because secondary
1/8
, National PSI Exam Practice Test Questions with Answers
Graded A+
If there is a discrepancy between a residential lot A. 7.75%
size quoted in a listing contract and the actual lot B. 8.25%
size, the actual lot size that will prevail in a sales C, 8.5%
transaction will be found in : D. 7.5% - ANSWER -B.
$412.50 x 12 = $4,950(annual interest amount)
A. the MLS $4,950 / $60,000 (loan balance) = 8.25% (0
B. the survey 0825) interest
C. the listing contract
D. the deed - ANSWER -B.
If, upon the receipt of an offer to purchase a
property, the seller makes a counteroffer, the
The buyers secured a loan at 75% (LTV) ration. prospective buyer is:
The interest rate was 7.125%, and the term was
for 30 Years. The first month's interest payment A. relieved of the original offer, which is
was $477.82. What was the appraised value of terminated
the property? B. relieved of the offer which is now void
C. bound to accept the counteroffer
A. $103.700 D. bound by the original offer, which is still active
B. $80,475 - ANSWER -A.
C. $107,300 Countering an offer terminates the original offer
D. 79,239 - ANSWER -C. and creates a new offer.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300 The component of an adjustable rate mortgage
(ARM) that limits the percentage that the interest
rate may increase over a specific time period.
usually a year is:
A document that protects against hidden risk
such as forgeries and loss due to defects in title, A. the margin
subject to specific exclusions, is called: B. the life-of-the loan rate cap
C. the payment cap
A. a title insurance policy D. the rate cap - ANSWER -D.
B. an abstract of title the rate cap limits the amount an ARM's interest
C. a chain of title rate may change over a specific period of time,
D. a certificate of title - ANSWER -A. usually a year.
Last month's loan payment included $412.50 In MOST market ares, rents are determined by:
interest on a $60,000 loan balance. What is the
annual rate of interest? A. the local apartment owner's association
B. department of housing (HUD)
2/8
Graded A+
Real Estate law governing advertising applies to financing is somewhat restricted under VA
all of these EXCEPT: regulations.
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media - ANSWER -A. In-house General real estate property taxes levied for the
notes for showing are not seen by consumers an operation of the government are called:
so do not have to follow state or federal laws.
A. special taxes
B. ad valorem taxes
C. improvement taxes
A couple accompanies a property inspector D. special assessment taxes - ANSWER -B.
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 : Under current Regulations, a U.S. department of
A. A structural defect Veteran Affairs (VA) loan is assumable if:
B. A patent Defect
C. a latent defect A. The VA approves both the buyer and the
D. an environmental defect - ANSWER -B. assumption agreement
A patent defect is easily visible when inspecting B. the veteran agrees not to request a releases of
a property. (another) term for material) liability for repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the
agreement only - ANSWER -A.
An eligible veteran made an offer of $225,000 to for VA loans made after March 1, 1988 the VA
purchase a home contingent upon obtaining a must approve both the buyer and the assumption
no-down payment U.S department of Veterans agreement before the loan may be assumed.
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 During the period of time after a real estate sales
veteran may: contract is signed, but before title actually
A. withdraw from the sale with a three-point passes, the status of the contract is:
penalty
B. withdraw from the sale on payment of a A. executory
commission to the seller's broker B. voidable
C. purchase the property by making a $3,000 C. executed
cash payment D. unilateral - ANSWER -A.
D. seek secondary funding for the $3,0000 - A contract is in executory status when its terms of
ANSWER -C. When the purchase price of a agreement have not yet been carried out.
property is greater than the VA-issued (CRV), the
veteran may pay the difference in cash to
purchase the property because secondary
1/8
, National PSI Exam Practice Test Questions with Answers
Graded A+
If there is a discrepancy between a residential lot A. 7.75%
size quoted in a listing contract and the actual lot B. 8.25%
size, the actual lot size that will prevail in a sales C, 8.5%
transaction will be found in : D. 7.5% - ANSWER -B.
$412.50 x 12 = $4,950(annual interest amount)
A. the MLS $4,950 / $60,000 (loan balance) = 8.25% (0
B. the survey 0825) interest
C. the listing contract
D. the deed - ANSWER -B.
If, upon the receipt of an offer to purchase a
property, the seller makes a counteroffer, the
The buyers secured a loan at 75% (LTV) ration. prospective buyer is:
The interest rate was 7.125%, and the term was
for 30 Years. The first month's interest payment A. relieved of the original offer, which is
was $477.82. What was the appraised value of terminated
the property? B. relieved of the offer which is now void
C. bound to accept the counteroffer
A. $103.700 D. bound by the original offer, which is still active
B. $80,475 - ANSWER -A.
C. $107,300 Countering an offer terminates the original offer
D. 79,239 - ANSWER -C. and creates a new offer.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300 The component of an adjustable rate mortgage
(ARM) that limits the percentage that the interest
rate may increase over a specific time period.
usually a year is:
A document that protects against hidden risk
such as forgeries and loss due to defects in title, A. the margin
subject to specific exclusions, is called: B. the life-of-the loan rate cap
C. the payment cap
A. a title insurance policy D. the rate cap - ANSWER -D.
B. an abstract of title the rate cap limits the amount an ARM's interest
C. a chain of title rate may change over a specific period of time,
D. a certificate of title - ANSWER -A. usually a year.
Last month's loan payment included $412.50 In MOST market ares, rents are determined by:
interest on a $60,000 loan balance. What is the
annual rate of interest? A. the local apartment owner's association
B. department of housing (HUD)
2/8
