IL Real Estate Broker PSI Practice Exam with Complete Questions and Answers A licensee was showing property in an eight-unit complex to a prospective tenant using a motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom, and lower all the door handles. The landlord... - ANSWER-Must allow the tenant to make the modifications at the tenants expense, but can require, by the terms of the lease, restoration of the property
Which of the following is the best description of a fee simple estate? - ANSWER-The most complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-
SPAM Act, the licensee must - ANSWER-Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm. Has an agency been formed? - ANSWER-Yes, because an agency is formed whenever one party delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - ANSWER-control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The broker has a financial interest in this particular mortgage lender. Which of the following should the licensee recommend to buyers? - ANSWER-Consider this lender, disclosing the broker's interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and continued through July 31, 2010. The couple had - ANSWER-An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers which of the following pieces of information to a prospective buyer? - ANSWER-You should make an offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in value and she wants money for an investment. The new mortgage rate is 1% lower than
the old rate. What is this process called? - ANSWER-refinancing An enforceable purchase agreement is formed when - ANSWER-the buyer knows of the
seller's written acceptance of the offer
Which of the following is generally income tax deductible in home ownership? - ANSWER-points paid to obtain the loan
Which of the following is true concerning eminent domain? - ANSWER-The property is taken through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of - ANSWER-demanding immediate payment of the entire loan balance.
An owner has been asked to grand a 60-day option to purchase a property. When should the purchase price be decided? - ANSWER-Upon creation and signing of the option to purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for single-family dwellings? - ANSWER-Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - ANSWER-obtaining information from prospective tenants to determine if they are financially able to afford the rent.
Which of the following is a characteristic of a limited partner's role in a limited partnership? - ANSWER-reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - ANSWER-consideration
A home equity line of credit is - ANSWER-a secured loan
Which of the following factors tends to increase the price of residential real estate in a given area? - ANSWER-a large manufacturing plant opening in the city. If a large plant opens in a city, the employment opportunities increase and more employees would be buying houses, increasing demand
Four people bought an investment property together, each having an equal ownership interest. They took title in such a manner that if one died he could leave his one-fourth interest to his heirs. How did they take title to the real estate? - ANSWER-tenants in common. Each owner can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans for an amount equal to twice the annual income. Disregarding minimum percentage down payment requirements, what is the minimum cash down payment that
Which of the following is the best description of a fee simple estate? - ANSWER-The most complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-
SPAM Act, the licensee must - ANSWER-Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm. Has an agency been formed? - ANSWER-Yes, because an agency is formed whenever one party delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - ANSWER-control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The broker has a financial interest in this particular mortgage lender. Which of the following should the licensee recommend to buyers? - ANSWER-Consider this lender, disclosing the broker's interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and continued through July 31, 2010. The couple had - ANSWER-An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers which of the following pieces of information to a prospective buyer? - ANSWER-You should make an offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in value and she wants money for an investment. The new mortgage rate is 1% lower than
the old rate. What is this process called? - ANSWER-refinancing An enforceable purchase agreement is formed when - ANSWER-the buyer knows of the
seller's written acceptance of the offer
Which of the following is generally income tax deductible in home ownership? - ANSWER-points paid to obtain the loan
Which of the following is true concerning eminent domain? - ANSWER-The property is taken through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of - ANSWER-demanding immediate payment of the entire loan balance.
An owner has been asked to grand a 60-day option to purchase a property. When should the purchase price be decided? - ANSWER-Upon creation and signing of the option to purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for single-family dwellings? - ANSWER-Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - ANSWER-obtaining information from prospective tenants to determine if they are financially able to afford the rent.
Which of the following is a characteristic of a limited partner's role in a limited partnership? - ANSWER-reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - ANSWER-consideration
A home equity line of credit is - ANSWER-a secured loan
Which of the following factors tends to increase the price of residential real estate in a given area? - ANSWER-a large manufacturing plant opening in the city. If a large plant opens in a city, the employment opportunities increase and more employees would be buying houses, increasing demand
Four people bought an investment property together, each having an equal ownership interest. They took title in such a manner that if one died he could leave his one-fourth interest to his heirs. How did they take title to the real estate? - ANSWER-tenants in common. Each owner can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans for an amount equal to twice the annual income. Disregarding minimum percentage down payment requirements, what is the minimum cash down payment that
