PSI REAL ESTATE EXAM SCRIPT COMPLETE
QUESTIONS AND ANSWERS GRADED A+
●● Antitrust laws prohibit competing brokers from all of the following
Answer: 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
Answer: all current owners of real estate fronting on that road
●● State laws differ on whether a buyer is entitled to know about
Answer: a suicide that occurred in the house last year.
●● A lawsuit for inverse condemnation may be brought by
Answer: a homeowner
●● When is racial discrimination in the rental of rooms or apartments
permitted?
Answer: Under no circumstances
,●● The real estate broker who is listing a house for sale should
personally verify
Answer: the number of square feet in the building
●● Real property can be converted to personal property by
Answer: 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?
Answer: 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
Answer: prior appropriation
,●● The purpose of requiring an earnest money deposit in a real estate
sales contract is to
Answer: 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.)
Answer: $409.20.
●● A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to
Answer: demand immediate payment of the entire note
●● The FHA functions MOST like
Answer: 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.
Answer: discount points
, ●● When land is conveyed to a trustee, the trustee may
Answer: 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
was reviewing the counteroffer, the owner received a better offer. The
owner can accept the second offer if
Answer: 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
Answer: the agreement does not comply with the Statute of Frauds
●● Earnest money should be deposited into a trust account
Answer: in a timely manner, according to state laws
●● A deed restriction is applicable to the activities of
Answer: all owners, present and future
●● An easement can be terminated by
Answer: prescription
QUESTIONS AND ANSWERS GRADED A+
●● Antitrust laws prohibit competing brokers from all of the following
Answer: 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
Answer: all current owners of real estate fronting on that road
●● State laws differ on whether a buyer is entitled to know about
Answer: a suicide that occurred in the house last year.
●● A lawsuit for inverse condemnation may be brought by
Answer: a homeowner
●● When is racial discrimination in the rental of rooms or apartments
permitted?
Answer: Under no circumstances
,●● The real estate broker who is listing a house for sale should
personally verify
Answer: the number of square feet in the building
●● Real property can be converted to personal property by
Answer: 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?
Answer: 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
Answer: prior appropriation
,●● The purpose of requiring an earnest money deposit in a real estate
sales contract is to
Answer: 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.)
Answer: $409.20.
●● A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to
Answer: demand immediate payment of the entire note
●● The FHA functions MOST like
Answer: 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.
Answer: discount points
, ●● When land is conveyed to a trustee, the trustee may
Answer: 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
was reviewing the counteroffer, the owner received a better offer. The
owner can accept the second offer if
Answer: 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
Answer: the agreement does not comply with the Statute of Frauds
●● Earnest money should be deposited into a trust account
Answer: in a timely manner, according to state laws
●● A deed restriction is applicable to the activities of
Answer: all owners, present and future
●● An easement can be terminated by
Answer: prescription
