NATIONAL PSI EXAM PRACTICE TEST
NATIONAL PSI EXAM PRACTICE TEST
Real Estate law governing advertising applies to all of these EXCEPT:
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media Correct Answer: A. In-house notes for showing are not seen by
consumers an so do not have to follow state or federal laws.
A couple accompanies a property inspector 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 :
A. A structural defect
B. A patent Defect
C. a latent defect
D. an environmental defect Correct Answer: B. A patent defect is easily visible when
inspecting a property. (another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home contingent upon
obtaining a no-down payment U.S department of Veterans 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 veteran may:
A. withdraw from the sale with a three-point penalty
B. withdraw from the sale on payment of a commission to the seller's broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000 Correct Answer: C. When the purchase price
of a property is greater than the VA-issued (CRV), the veteran may pay the difference in
cash to purchase the property because secondary financing is somewhat restricted
under VA regulations.
General real estate property taxes levied for the operation of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes Correct Answer: B.
Under current Regulations, a U.S. department of Veteran Affairs (VA) loan is assumable
if:
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, NATIONAL PSI EXAM PRACTICE TEST
A. The VA approves both the buyer and the assumption agreement
B. the veteran agrees not to request a releases of liability for repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the agreement only Correct Answer: A.
for VA loans made after March 1, 1988 the VA must approve both the buyer and the
assumption agreement before the loan may be assumed.
During the period of time after a real estate sales contract is signed, but before title
actually passes, the status of the contract is:
A. executory
B. voidable
C. executed
D. unilateral Correct Answer: A.
A contract is in executory status when its terms of agreement have not yet been carried
out.
If there is a discrepancy between a residential lot size quoted in a listing contract and
the actual lot size, the actual lot size that will prevail in a sales transaction will be found
in :
A. the MLS
B. the survey
C. the listing contract
D. the deed Correct Answer: B.
The buyers secured a loan at 75% (LTV) ration. The interest rate was 7.125%, and the
term was for 30 Years. The first month's interest payment was $477.82. What was the
appraised value of the property?
A. $103.700
B. $80,475
C. $107,300
D. 79,239 Correct Answer: C.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
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NATIONAL PSI EXAM PRACTICE TEST
Real Estate law governing advertising applies to all of these EXCEPT:
A. In house notes for showing
B. Multiple listing service (MLS)
C. communications with consumers
D. Social Media Correct Answer: A. In-house notes for showing are not seen by
consumers an so do not have to follow state or federal laws.
A couple accompanies a property inspector 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 :
A. A structural defect
B. A patent Defect
C. a latent defect
D. an environmental defect Correct Answer: B. A patent defect is easily visible when
inspecting a property. (another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home contingent upon
obtaining a no-down payment U.S department of Veterans 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 veteran may:
A. withdraw from the sale with a three-point penalty
B. withdraw from the sale on payment of a commission to the seller's broker
C. purchase the property by making a $3,000 cash payment
D. seek secondary funding for the $3,0000 Correct Answer: C. When the purchase price
of a property is greater than the VA-issued (CRV), the veteran may pay the difference in
cash to purchase the property because secondary financing is somewhat restricted
under VA regulations.
General real estate property taxes levied for the operation of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes Correct Answer: B.
Under current Regulations, a U.S. department of Veteran Affairs (VA) loan is assumable
if:
1|Page
, NATIONAL PSI EXAM PRACTICE TEST
A. The VA approves both the buyer and the assumption agreement
B. the veteran agrees not to request a releases of liability for repayment
C. the VA approves the buyer only
D. the VA approves the assumption of the agreement only Correct Answer: A.
for VA loans made after March 1, 1988 the VA must approve both the buyer and the
assumption agreement before the loan may be assumed.
During the period of time after a real estate sales contract is signed, but before title
actually passes, the status of the contract is:
A. executory
B. voidable
C. executed
D. unilateral Correct Answer: A.
A contract is in executory status when its terms of agreement have not yet been carried
out.
If there is a discrepancy between a residential lot size quoted in a listing contract and
the actual lot size, the actual lot size that will prevail in a sales transaction will be found
in :
A. the MLS
B. the survey
C. the listing contract
D. the deed Correct Answer: B.
The buyers secured a loan at 75% (LTV) ration. The interest rate was 7.125%, and the
term was for 30 Years. The first month's interest payment was $477.82. What was the
appraised value of the property?
A. $103.700
B. $80,475
C. $107,300
D. 79,239 Correct Answer: C.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
2|Page
