Na onal PSI EXAM PRACTICE TEST Open With complete
solu on RATED A+
Real Estate law governing adver sing applies to all of these EXCEPT:
A. In house notes for showing
B. Mul ple lis ng service (MLS)
C. communica ons with consumers
D. Social Media - Ans 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 inspec on 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 - Ans B. A patent defect is easily visible when inspec ng a property.
(another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home con ngent upon obtaining a
no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks a4er
the offer was accepted, the VA issued a cer ficate 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 - Ans 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 regula ons.
General real estate property taxes levied for the opera on of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes - Ans B.
Under current Regula ons, a U.S. department of Veteran Affairs (VA) loan is assumable if:
A. The VA approves both the buyer and the assump on 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 assump on of the agreement only - Ans A.
for VA loans made a4er March 1, 1988 the VA must approve both the buyer and the assump on
agreement before the loan may be assumed.
During the period of me a4er a real estate sales contract is signed, but before tle actually
passes, the status of the contract is:
A. executory
B. voidable
C. executed
D. unilateral - Ans 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 residen al lot size quoted in a lis ng contract and the actual
lot size, the actual lot size that will prevail in a sales transac on will be found in :
A. the MLS
B. the survey
C. the lis ng contract
D. the deed - Ans B.
The buyers secured a loan at 75% (LTV) ra on. 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 - Ans C.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A document that protects against hidden risk such as forgeries and loss due to defects in tle,
subject to specific exclusions, is called:
A. a tle insurance policy
solu on RATED A+
Real Estate law governing adver sing applies to all of these EXCEPT:
A. In house notes for showing
B. Mul ple lis ng service (MLS)
C. communica ons with consumers
D. Social Media - Ans 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 inspec on 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 - Ans B. A patent defect is easily visible when inspec ng a property.
(another) term for material)
An eligible veteran made an offer of $225,000 to purchase a home con ngent upon obtaining a
no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks a4er
the offer was accepted, the VA issued a cer ficate 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 - Ans 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 regula ons.
General real estate property taxes levied for the opera on of the government are called:
A. special taxes
B. ad valorem taxes
C. improvement taxes
D. special assessment taxes - Ans B.
Under current Regula ons, a U.S. department of Veteran Affairs (VA) loan is assumable if:
A. The VA approves both the buyer and the assump on 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 assump on of the agreement only - Ans A.
for VA loans made a4er March 1, 1988 the VA must approve both the buyer and the assump on
agreement before the loan may be assumed.
During the period of me a4er a real estate sales contract is signed, but before tle actually
passes, the status of the contract is:
A. executory
B. voidable
C. executed
D. unilateral - Ans 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 residen al lot size quoted in a lis ng contract and the actual
lot size, the actual lot size that will prevail in a sales transac on will be found in :
A. the MLS
B. the survey
C. the lis ng contract
D. the deed - Ans B.
The buyers secured a loan at 75% (LTV) ra on. 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 - Ans C.
$477.82x12=$5,733.84 annual interest
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A document that protects against hidden risk such as forgeries and loss due to defects in tle,
subject to specific exclusions, is called:
A. a tle insurance policy
