PSI NATIONAL REAL ESTATE SALESPERSON PRACTICE
EXAM WITH ALL CORRECT & 100% VERIFIED ANSWERS
|LATEST UPDATE|ALREADY GRADED A+
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.
A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given ✔Correct Answer-constructive notice.
Legal descriptions using the government survey system are NOT generally used in ✔Correct
Answer-the original 13 states.
If conditions for property use are included in a deed and these conditions are violated, what is the
most severe potential penalty? ✔Correct Answer-A court may order the return of the property to
the original owner.
A deed restriction is applicable to the activities of ✔Correct Answer-present and future owners.
An environmental impact statement typically describes the effects of a proposed project on factors
such as ✔Correct Answer-public health and safety.
A deed restriction is applicable to the activities of ✔Correct Answer-all owners, present and future.
An exclusive right to sell listing obtained by a broker associate belongs to ✔Correct Answer-the
employing broker only.
To what party or parties does the broker owe the fiduciary duty of care? ✔Correct Answer-the
party or parties employing the broker
A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale
closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely
✔Correct Answer-an exclusive agency listing.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former college
roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns
down the offer. When presenting the offer, the broker should ✔Correct Answer-tell the seller that
the buyer will pay more.
EXAM WITH ALL CORRECT & 100% VERIFIED ANSWERS
|LATEST UPDATE|ALREADY GRADED A+
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.
A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given ✔Correct Answer-constructive notice.
Legal descriptions using the government survey system are NOT generally used in ✔Correct
Answer-the original 13 states.
If conditions for property use are included in a deed and these conditions are violated, what is the
most severe potential penalty? ✔Correct Answer-A court may order the return of the property to
the original owner.
A deed restriction is applicable to the activities of ✔Correct Answer-present and future owners.
An environmental impact statement typically describes the effects of a proposed project on factors
such as ✔Correct Answer-public health and safety.
A deed restriction is applicable to the activities of ✔Correct Answer-all owners, present and future.
An exclusive right to sell listing obtained by a broker associate belongs to ✔Correct Answer-the
employing broker only.
To what party or parties does the broker owe the fiduciary duty of care? ✔Correct Answer-the
party or parties employing the broker
A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale
closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely
✔Correct Answer-an exclusive agency listing.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former college
roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns
down the offer. When presenting the offer, the broker should ✔Correct Answer-tell the seller that
the buyer will pay more.
