PSI NATIONAL REAL ESTATE ACTUAL EXAM
QUESTIONS AND ANSWERS PROFESSOR
VERIFIED ALREADY GRADED A JUST RELEASED
✔The Civil Rights Act of 1866 prohibits any type of discrimination based on. Answer: race
✔An agent shows a home to a couple and mentions that it has a lovely fireplace in the
living room. After buying the home, the buyers and agent discover that the brick fireplace is
just a decorative fireplace and is not "wood burning." Which of the following would BEST
protect the agent from financial loss?. Answer: E&O coverage
✔The sellers have agreed to give the buyers an allowance of $16.95 per square yard to
retile the kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the
nearest dollar)?. Answer: $264
✔A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax
rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will
REQUIRE for taxes? Round to the nearest cent. Answer: $225.00
✔The economic characteristics of land are. Answer: scarcity, location, and durability
✔A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want
to make the permission permanent in case he dislikes others who might move next door in
the future. What should he give his neighbor?. Answer: A license
✔Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)?. Answer: Regulation Z
✔Which of the following may be considered prima facie evidence of discrimination by a
broker?. Answer: Failure to display the equal housing opportunity poster at the broker's
place of business
,✔An agency relationship based on a formal agreement between the parties, either written
or
verbal, is. Answer: express agency
✔An agency relationship based on the actions of the parties is. Answer: implied agency
✔An agent has a fiduciary relationship with the. Answer: client or principle
✔The type of agency that exists between the real estate agent and his client is usually.
Answer: special agency
✔In Louisiana, the law states that, unless there is a written agreement to the contrary, the
agent represents. Answer: the person he is with
✔Representing two principals to a transaction without the knowledge and consent of both
is. Answer: undisclosed dual agency
✔What is grounds for termination of an agency relationship. Answer: 1. mutual agreement
2. destruction or condemnation of the property
3. death or incapacity of either party
✔An agency relationship in which the agent is given an interest in the subject of the
agency, such as the property being sold is called. Answer: agency coupled with an interest
✔An example of price fixing would be. Answer: two brokers agreeing to set the same fee
structure.
✔An agent representing both the buyer and seller in a transaction with the written consent.
Answer: a disclosed dual agent.
,✔An agent for a seller must disclose his agency relationship to the buyer when?. Answer: at
the first substantive contact
✔The person who is represented by the licensee is the. Answer: principle
✔A vendor wants to give you, the agent, a gift for services. What should you do?. Answer:
Tell your broker
✔Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a
commission
because of the principle of. Answer: procuring cause
✔A buyer makes an offer on a house. Before the listing agent has had a chance to present
the offer to the seller, a better offer comes in. What should the agent do with the first offer.
Answer: present it along with the second offer
✔When an agent should have known that a statement about a material fact was false, this
is called:. Answer: negligent misrepresentation
✔There are three basic types of buyer agency agreements. In which type is the agent
guaranteed a commission regardless of who sells the property?. Answer: exclusive buyer
agency
✔The intentional misrepresentation of a material fact is:. Answer: fraud
✔Which of the following is NOT required to have a real estate license?. Answer: 1. anyone
selling his own property
2. attorneys selling property as part of their professional duties for a client.
3. appraisers, trustees, and escrow clerks
✔When the commission is shared between the listing broker and the selling broker, this is
known as:. Answer: broker cooperation
, ✔If an agent is working as an independent contractor for the broker:. Answer: the agent is
responsible for paying his own Social Security and income taxes
✔A hidden structural defect that would not be discovered by ordinary inspection. Answer:
latent defect
✔Which of the following is an agent required to disclose to a potential buyer?. Answer: the
property contains asbestos insulation
✔An owner agrees to pay a commission if his property is sold but doesn't want to sign a
listing agreement. What type of agency is this?. Answer: Express
✔Which of the following is NOT a valid reason for terminating an agency relationship.
Answer: The seller decides he would rather sell the house himself
✔Which duty is easiest to perform as a dual agent?. Answer: disclosure
✔The agent owes only honesty and truthfulness to the. Answer: customer
✔A salesperson working with a co-operating broker has a fiduciary relationship to all
EXCEPT:. Answer: the buyer
✔The agent who is appointed by the broker to represent a particular client is known as the.
Answer: designated agent
✔A protection clauses in a listing allows for. Answer: payment of the commission if the
buyer was secured by the broker even if the sale takes
place after the expiration of the contract
✔An express contract must be. Answer: written or spoken
✔If a contract is not legal and is not binding on either party it is said to be. Answer: void
QUESTIONS AND ANSWERS PROFESSOR
VERIFIED ALREADY GRADED A JUST RELEASED
✔The Civil Rights Act of 1866 prohibits any type of discrimination based on. Answer: race
✔An agent shows a home to a couple and mentions that it has a lovely fireplace in the
living room. After buying the home, the buyers and agent discover that the brick fireplace is
just a decorative fireplace and is not "wood burning." Which of the following would BEST
protect the agent from financial loss?. Answer: E&O coverage
✔The sellers have agreed to give the buyers an allowance of $16.95 per square yard to
retile the kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the
nearest dollar)?. Answer: $264
✔A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax
rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will
REQUIRE for taxes? Round to the nearest cent. Answer: $225.00
✔The economic characteristics of land are. Answer: scarcity, location, and durability
✔A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want
to make the permission permanent in case he dislikes others who might move next door in
the future. What should he give his neighbor?. Answer: A license
✔Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)?. Answer: Regulation Z
✔Which of the following may be considered prima facie evidence of discrimination by a
broker?. Answer: Failure to display the equal housing opportunity poster at the broker's
place of business
,✔An agency relationship based on a formal agreement between the parties, either written
or
verbal, is. Answer: express agency
✔An agency relationship based on the actions of the parties is. Answer: implied agency
✔An agent has a fiduciary relationship with the. Answer: client or principle
✔The type of agency that exists between the real estate agent and his client is usually.
Answer: special agency
✔In Louisiana, the law states that, unless there is a written agreement to the contrary, the
agent represents. Answer: the person he is with
✔Representing two principals to a transaction without the knowledge and consent of both
is. Answer: undisclosed dual agency
✔What is grounds for termination of an agency relationship. Answer: 1. mutual agreement
2. destruction or condemnation of the property
3. death or incapacity of either party
✔An agency relationship in which the agent is given an interest in the subject of the
agency, such as the property being sold is called. Answer: agency coupled with an interest
✔An example of price fixing would be. Answer: two brokers agreeing to set the same fee
structure.
✔An agent representing both the buyer and seller in a transaction with the written consent.
Answer: a disclosed dual agent.
,✔An agent for a seller must disclose his agency relationship to the buyer when?. Answer: at
the first substantive contact
✔The person who is represented by the licensee is the. Answer: principle
✔A vendor wants to give you, the agent, a gift for services. What should you do?. Answer:
Tell your broker
✔Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a
commission
because of the principle of. Answer: procuring cause
✔A buyer makes an offer on a house. Before the listing agent has had a chance to present
the offer to the seller, a better offer comes in. What should the agent do with the first offer.
Answer: present it along with the second offer
✔When an agent should have known that a statement about a material fact was false, this
is called:. Answer: negligent misrepresentation
✔There are three basic types of buyer agency agreements. In which type is the agent
guaranteed a commission regardless of who sells the property?. Answer: exclusive buyer
agency
✔The intentional misrepresentation of a material fact is:. Answer: fraud
✔Which of the following is NOT required to have a real estate license?. Answer: 1. anyone
selling his own property
2. attorneys selling property as part of their professional duties for a client.
3. appraisers, trustees, and escrow clerks
✔When the commission is shared between the listing broker and the selling broker, this is
known as:. Answer: broker cooperation
, ✔If an agent is working as an independent contractor for the broker:. Answer: the agent is
responsible for paying his own Social Security and income taxes
✔A hidden structural defect that would not be discovered by ordinary inspection. Answer:
latent defect
✔Which of the following is an agent required to disclose to a potential buyer?. Answer: the
property contains asbestos insulation
✔An owner agrees to pay a commission if his property is sold but doesn't want to sign a
listing agreement. What type of agency is this?. Answer: Express
✔Which of the following is NOT a valid reason for terminating an agency relationship.
Answer: The seller decides he would rather sell the house himself
✔Which duty is easiest to perform as a dual agent?. Answer: disclosure
✔The agent owes only honesty and truthfulness to the. Answer: customer
✔A salesperson working with a co-operating broker has a fiduciary relationship to all
EXCEPT:. Answer: the buyer
✔The agent who is appointed by the broker to represent a particular client is known as the.
Answer: designated agent
✔A protection clauses in a listing allows for. Answer: payment of the commission if the
buyer was secured by the broker even if the sale takes
place after the expiration of the contract
✔An express contract must be. Answer: written or spoken
✔If a contract is not legal and is not binding on either party it is said to be. Answer: void
