NATIONAL PSI BROKER EXAM PREP EXAM
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2025-2026 ALREADY GRADED A+
A property has had many issues, including water damage, a previous owner's
suicide, and a tenant that had AIDS. The current owner's spouse recently died in
the home, and the property is now on the market. The seller and the broker
have a duty to disclose
A)
the death and suicide of the previous owners.
B)
the water damage to the property.
C)
that a tenant had AIDS.
,D)
all of these. - ANSWERS-B)
The answer is the water damage to the property. Current water damage would
be a material fact; the other items are considered stigmatized issues and are
governed by state disclosure laws.
If a property suffered a flood 15 years ago, the seller
A)
does not have to disclose the flood because the homeowners insurance is
responsible for offering flood insurance and will determine if the property
qualifies or is in a floodplain.
B)
can rely on the appraiser to disclose floodplain information; the seller has no
obligation to disclose the flood to the buyer.
C)
should tell the buyer about the flood and that flood maps can be used to
determine if the property is in a floodplain.
D)
should tell the listing broker who will then be obligated to determine if the
property is in a floodplain and if the past flood must be disclosed. - ANSWERS-C)
,The answer is should tell the buyer about the flood and that flood maps can be
used to determine if the property is in a floodplain. The seller must disclose the
flood, and broker will have the same obligation to disclose if the seller reports
this to the broker. The appraiser is obligated to determine if the property is in
the 100-year floodplain and the buyer can then decide whether to buy flood
insurance.
The listing broker visually inspected the property and found no issues. The
seller's property disclosure states that there are no problems. After closing,
thebuyers find long-standing issues with water entering the basement. Who is
MOST likely to be held liable for nondisclosure of this latent material defect?
A)
The listing broker and the seller, because they must disclose all defects, even
latent
B)
The listing broker, because the listing broker should have had the property
inspected
C)
The seller, because brokers are not responsible for latent defects the seller does
not disclose
D)
The buyers, because they should have had an inspection before they closed;
after closing, they own the property and have no recourse - ANSWERS-C)
, The answer is the seller, because brokers are not responsible for latent defects
the seller does not disclose. The broker has done what is expected by
conducting a visual inspection and obtaining a seller's disclosure, which showed
no problems and thus removed the liability from the broker. The seller who
covered up the defect would be liable.
The listing broker asked the seller if any of the improvements on the property
were done without a permit. The seller responded that the family room
addition was not fully permitted but was completed before the current seller's
ownership. Are the broker and the seller both responsible for disclosure of this
fact?
A)
No, only the seller will need to disclose it
B)
Yes, both must disclose this fact if the buyer asks
C)
No, because the buyer will have title work done, which would find the issue,
there is no reason to disclose it
D)
Yes, this is a material fact that both the seller and the broker must disclose to all
potential buyers - ANSWERS-D)
The answer is yes, this is a material fact that both the seller and the broker must
disclose to all potential buyers. Material facts must be disclosed by both the
seller and the broker to all potential buyers.
WITH CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST 2025-2026 ALREADY GRADED A+
A property has had many issues, including water damage, a previous owner's
suicide, and a tenant that had AIDS. The current owner's spouse recently died in
the home, and the property is now on the market. The seller and the broker
have a duty to disclose
A)
the death and suicide of the previous owners.
B)
the water damage to the property.
C)
that a tenant had AIDS.
,D)
all of these. - ANSWERS-B)
The answer is the water damage to the property. Current water damage would
be a material fact; the other items are considered stigmatized issues and are
governed by state disclosure laws.
If a property suffered a flood 15 years ago, the seller
A)
does not have to disclose the flood because the homeowners insurance is
responsible for offering flood insurance and will determine if the property
qualifies or is in a floodplain.
B)
can rely on the appraiser to disclose floodplain information; the seller has no
obligation to disclose the flood to the buyer.
C)
should tell the buyer about the flood and that flood maps can be used to
determine if the property is in a floodplain.
D)
should tell the listing broker who will then be obligated to determine if the
property is in a floodplain and if the past flood must be disclosed. - ANSWERS-C)
,The answer is should tell the buyer about the flood and that flood maps can be
used to determine if the property is in a floodplain. The seller must disclose the
flood, and broker will have the same obligation to disclose if the seller reports
this to the broker. The appraiser is obligated to determine if the property is in
the 100-year floodplain and the buyer can then decide whether to buy flood
insurance.
The listing broker visually inspected the property and found no issues. The
seller's property disclosure states that there are no problems. After closing,
thebuyers find long-standing issues with water entering the basement. Who is
MOST likely to be held liable for nondisclosure of this latent material defect?
A)
The listing broker and the seller, because they must disclose all defects, even
latent
B)
The listing broker, because the listing broker should have had the property
inspected
C)
The seller, because brokers are not responsible for latent defects the seller does
not disclose
D)
The buyers, because they should have had an inspection before they closed;
after closing, they own the property and have no recourse - ANSWERS-C)
, The answer is the seller, because brokers are not responsible for latent defects
the seller does not disclose. The broker has done what is expected by
conducting a visual inspection and obtaining a seller's disclosure, which showed
no problems and thus removed the liability from the broker. The seller who
covered up the defect would be liable.
The listing broker asked the seller if any of the improvements on the property
were done without a permit. The seller responded that the family room
addition was not fully permitted but was completed before the current seller's
ownership. Are the broker and the seller both responsible for disclosure of this
fact?
A)
No, only the seller will need to disclose it
B)
Yes, both must disclose this fact if the buyer asks
C)
No, because the buyer will have title work done, which would find the issue,
there is no reason to disclose it
D)
Yes, this is a material fact that both the seller and the broker must disclose to all
potential buyers - ANSWERS-D)
The answer is yes, this is a material fact that both the seller and the broker must
disclose to all potential buyers. Material facts must be disclosed by both the
seller and the broker to all potential buyers.
