PSI National Exam for Real Estate with correct
answers
A written agreement in which a purchaser agrees to buy and a seller
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
agrees to sell is called - correct answer ✔a contract
||! ||! ||! ||! ||! ||! ||! ||! ||!
Antitrust laws prohibit competing brokers from all of the following -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔1. boycotting other brokers in the marketplace.
||! ||! ||! ||! ||! ||! ||! ||!
2. dividing the market to restrict competition.
||! ||! ||! ||! ||! ||!
3. agreeing to set sales commissions and management rates.
||! ||! ||! ||! ||! ||! ||! ||!
When a sewer line is installed down a rural road, the cost will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
probably be shared by - correct answer ✔all current owners of real
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
estate fronting on that road
||! ||! ||! ||!
State laws differ on whether a buyer is entitled to know about -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔a suicide that occurred in the house last year.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A lawsuit for inverse condemnation may be brought by - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔a homeowner
||! ||!
When is racial discrimination in the rental of rooms or apartments
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
permitted? - correct answer ✔Under no circumstances
||! ||! ||! ||! ||! ||!
,The real estate broker who is listing a house for sale should personally
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
verify - correct answer ✔the number of square feet in the building
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Real property can be converted to personal property by - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔Severance ||!
Prospective buyers made an offer on a property. The seller did NOT
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
accept, but made a counteroffer. The
||! ||! ||! ||! ||!
prospective buyers signed the counteroffer and the real estate agent
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
delivered their acceptance to the seller.
||! ||! ||! ||! ||!
In the interim, the same buyers had found another house that they
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
liked better and made an offer on it, which was accepted. Which of
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the following is TRUE? - correct answer ✔Both contracts are valid
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Although states make specific laws governing water rights and the rights
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
in land that borders water, most states
||! ||! ||! ||! ||! ||! ||! ||!
generally follow one of two basic doctrines regarding water rights. In
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
many states, the common law doctrine of riparian and littoral rights
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
dictates that water rights are automatically conveyed with property. In
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
others, all water rights are controlled by the state under the doctrine
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of - correct answer ✔prior appropriation
||! ||! ||! ||! ||!
The purpose of requiring an earnest money deposit in a real estate
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
sales contract is to - correct answer ✔provide evidence of the buyer's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
intention to carry out the contract. ||! ||! ||! ||! ||!
A buyer is getting a fully amortized loan for $220,000. The bank will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
give the buyer the loan for 15 years at 5 1/2%
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
,or for 30 years at 6 1/2%. To the nearest cent, what is the difference
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
between the monthly payments for these two loans?
||! ||! ||! ||! ||! ||! ||!
(BE SURE TO USE THE AMORTIZATION TABLE.) - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
acceleration clause. This permits the lender to - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔demand immediate payment of the entire note
||! ||! ||! ||! ||! ||!
The FHA functions MOST like - correct answer ✔an insurance company
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
1. They are used to buy down interest rate.
||! ||! ||! ||! ||! ||! ||! ||!
2. They are a function of the marketplace.
||! ||! ||! ||! ||! ||! ||!
3. They are paid by either the buyer or the seller. - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔discount points ||!
When land is conveyed to a trustee, the trustee may - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔do whatever is permitted under the trust agreement
||! ||! ||! ||! ||! ||! ||!
A prospective buyer made an offer to purchase a property. The owner
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
responded with a counteroffer. While the buyer
||! ||! ||! ||! ||! ||! ||!
was reviewing the counteroffer, the owner received a better offer. The
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
owner can accept the second offer if - correct answer ✔the owner
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
withdraws the counteroffer before it is accepted.
||! ||! ||! ||! ||! ||!
While an agent is showing a listed property, the seller and the buyer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
enter into an oral agreement for the purchase of the home. If a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
dispute over the terms arises later, the agreement may be
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
, unenforceable because - correct answer ✔the agreement does not
||! ||! ||! ||! ||! ||! ||! ||! ||!
comply with the Statute of Frauds
||! ||! ||! ||! ||!
Earnest money should be deposited into a trust account - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔in a timely manner, according to state laws
||! ||! ||! ||! ||! ||! ||! ||!
A deed restriction is applicable to the activities of - correct answer ✔all
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
owners, present and future
||! ||! ||! ||!
An easement can be terminated by - correct answer ✔prescription
||! ||! ||! ||! ||! ||! ||! ||! ||!
Depreciation is calculated based on the - correct answer ✔cost of the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
building only ||!
Which of the following approaches MOST reliably estimates the sales
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
price of a single-family residence? - correct answer ✔Market data
||! ||! ||! ||! ||! ||! ||! ||! ||!
A seller mentions to his agent that the previous owners of his property
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
may have dumped hazardous waste on the site. Under the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Comprehensive Environmental Response, Compensation, and Liability Act
||! ||! ||! ||! ||! ||! ||!
(CERCLA), who is liable for damages from||! ||! ||! ||! ||! ||!
the dumping prior to the sale of the property? - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔Seller
The escrow officer or closing agent MUST give information regarding the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
sales price and seller's social security number to - correct answer ✔IRS
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answers
A written agreement in which a purchaser agrees to buy and a seller
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
agrees to sell is called - correct answer ✔a contract
||! ||! ||! ||! ||! ||! ||! ||! ||!
Antitrust laws prohibit competing brokers from all of the following -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔1. boycotting other brokers in the marketplace.
||! ||! ||! ||! ||! ||! ||! ||!
2. dividing the market to restrict competition.
||! ||! ||! ||! ||! ||!
3. agreeing to set sales commissions and management rates.
||! ||! ||! ||! ||! ||! ||! ||!
When a sewer line is installed down a rural road, the cost will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
probably be shared by - correct answer ✔all current owners of real
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
estate fronting on that road
||! ||! ||! ||!
State laws differ on whether a buyer is entitled to know about -
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
correct answer ✔a suicide that occurred in the house last year.
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
A lawsuit for inverse condemnation may be brought by - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔a homeowner
||! ||!
When is racial discrimination in the rental of rooms or apartments
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
permitted? - correct answer ✔Under no circumstances
||! ||! ||! ||! ||! ||!
,The real estate broker who is listing a house for sale should personally
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
verify - correct answer ✔the number of square feet in the building
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Real property can be converted to personal property by - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔Severance ||!
Prospective buyers made an offer on a property. The seller did NOT
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
accept, but made a counteroffer. The
||! ||! ||! ||! ||!
prospective buyers signed the counteroffer and the real estate agent
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
delivered their acceptance to the seller.
||! ||! ||! ||! ||!
In the interim, the same buyers had found another house that they
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
liked better and made an offer on it, which was accepted. Which of
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
the following is TRUE? - correct answer ✔Both contracts are valid
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Although states make specific laws governing water rights and the rights
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
in land that borders water, most states
||! ||! ||! ||! ||! ||! ||! ||!
generally follow one of two basic doctrines regarding water rights. In
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
many states, the common law doctrine of riparian and littoral rights
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
dictates that water rights are automatically conveyed with property. In
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
others, all water rights are controlled by the state under the doctrine
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
of - correct answer ✔prior appropriation
||! ||! ||! ||! ||!
The purpose of requiring an earnest money deposit in a real estate
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
sales contract is to - correct answer ✔provide evidence of the buyer's
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
intention to carry out the contract. ||! ||! ||! ||! ||!
A buyer is getting a fully amortized loan for $220,000. The bank will
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
give the buyer the loan for 15 years at 5 1/2%
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
,or for 30 years at 6 1/2%. To the nearest cent, what is the difference
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
between the monthly payments for these two loans?
||! ||! ||! ||! ||! ||! ||!
(BE SURE TO USE THE AMORTIZATION TABLE.) - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
acceleration clause. This permits the lender to - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔demand immediate payment of the entire note
||! ||! ||! ||! ||! ||!
The FHA functions MOST like - correct answer ✔an insurance company
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
1. They are used to buy down interest rate.
||! ||! ||! ||! ||! ||! ||! ||!
2. They are a function of the marketplace.
||! ||! ||! ||! ||! ||! ||!
3. They are paid by either the buyer or the seller. - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔discount points ||!
When land is conveyed to a trustee, the trustee may - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔do whatever is permitted under the trust agreement
||! ||! ||! ||! ||! ||! ||!
A prospective buyer made an offer to purchase a property. The owner
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
responded with a counteroffer. While the buyer
||! ||! ||! ||! ||! ||! ||!
was reviewing the counteroffer, the owner received a better offer. The
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
owner can accept the second offer if - correct answer ✔the owner
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
withdraws the counteroffer before it is accepted.
||! ||! ||! ||! ||! ||!
While an agent is showing a listed property, the seller and the buyer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
enter into an oral agreement for the purchase of the home. If a
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
dispute over the terms arises later, the agreement may be
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
, unenforceable because - correct answer ✔the agreement does not
||! ||! ||! ||! ||! ||! ||! ||! ||!
comply with the Statute of Frauds
||! ||! ||! ||! ||!
Earnest money should be deposited into a trust account - correct
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
answer ✔in a timely manner, according to state laws
||! ||! ||! ||! ||! ||! ||! ||!
A deed restriction is applicable to the activities of - correct answer ✔all
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
owners, present and future
||! ||! ||! ||!
An easement can be terminated by - correct answer ✔prescription
||! ||! ||! ||! ||! ||! ||! ||! ||!
Depreciation is calculated based on the - correct answer ✔cost of the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
building only ||!
Which of the following approaches MOST reliably estimates the sales
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
price of a single-family residence? - correct answer ✔Market data
||! ||! ||! ||! ||! ||! ||! ||! ||!
A seller mentions to his agent that the previous owners of his property
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
may have dumped hazardous waste on the site. Under the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
Comprehensive Environmental Response, Compensation, and Liability Act
||! ||! ||! ||! ||! ||! ||!
(CERCLA), who is liable for damages from||! ||! ||! ||! ||! ||!
the dumping prior to the sale of the property? - correct answer
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
✔Seller
The escrow officer or closing agent MUST give information regarding the
||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
sales price and seller's social security number to - correct answer ✔IRS
||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||! ||!
