Download Real Estate Exam Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
PSI NATIONAL REAL ESTATE QUESTIONS
100% VERIFIED ANSWERS
"What statement is true about asbestos removal - CORRECT ANSWER Encapsulation is the
safest tactic" "A developer of a subdivision does not want "clotheslines" to be installed in the houses in the subdivision. A way for the developer to have control to limit and fine people who want to install
clotheslines would be: - CORRECT ANSWER Covenant"
"A real estate committee met and decided to simplify real estate in an area by having one
commission structure at a low rate for all consumers. Is this legal? - CORRECT ANSWER No-this
is price fixing" "A couple is moving to a new city. They are renting a house temporarily before buying a house.
What type of lease would best suit their needs? - CORRECT ANSWER Month-to-month lease"
"A lender who forecloses on a property and sells it later for less than what was owed has the right
to obtain a(n) - CORRECT ANSWER deficiency judgment"
"Fair housing law allows seniors to have separate housing if 80 percent of the units are occupied by at least one person age 55 or older. This exemption allows
for discrimination based on - CORRECT ANSWER Familial Status"
"In an exclusive right to sell listing, the principal contracts: - CORRECT ANSWER to pay the
broker a commission if the property sells during the contract" "A seller is selling their house for $300,000. They agreed to pay a
commission. How much will the seller net if there are no other costs of selling? - CORRECT
ANSWER $279,000"
"A broker states "this is the best house in the neighborhood," and the buyer purchases the home. Later the buyer finds out it is not the best house in the neighborhood. Can the buyer sue the
broker? - CORRECT ANSWER No, since the broker was clearly puffing"
"When a buyer and a seller enter into a purchase agreement (contract of sale), the legal remedy
that each has to force the other transaction is - CORRECT ANSWER specific performance."
"A seller tells the listing agent that her home was treated for termites 10 years ago, so there are
no termites now. Before listing the property, the agent should - CORRECT ANSWER tell the
seller to disclose the termite treatment on the property disclosure" "In order to calm the fears of a buyer who is getting an Adjustable Rate Mortgage, what
statement would be the best? - CORRECT ANSWER There is a limit to the amount of
adjustments called a cap"
"All the following are protected classifications except - CORRECT ANSWER Homosexuals"
"As licensees usually work as independent contractors, a broker will have a contract
for the independent contractor which (for federal purposes) must outline - CORRECT ANSWER
Statement that FICA (taxes) are the associates responsibility"
"In a rescission agreement: - CORRECT ANSWER All parties return to original position and
earnest money is refunded" "Agent A has been working at Brokerage for 4 years. Agent has listed and sold many but desires to
try industrial office sales. What is the best course of action for houses Agent A? - CORRECT
ANSWER Move license to an industrial/office
company and train under them" "A seller is listing their $350,000 house. They state their property tax bill is $1,110 per year. What
should the agent do? - CORRECT ANSWER Verify the information with the county"
"A married couple owns a property together as tenancy in entirety. Which of the following about
selling a property as tenancy in entirety is true? - CORRECT ANSWER Both spouses must sign
the conveyance"
"An easement is - CORRECT ANSWER The right to use another's land"
"The amount to list a property is best determined by: - CORRECT ANSWER Competitive
Market Analysis (CMA)"
"With regard to the Lead Based Paint requirements under federal law, what is required? -
CORRECT ANSWER Buyer has a 10 day period to inspect and/or rescind offer"
"A principal broker can be held responsible for - CORRECT ANSWER All real estate activities of
salesperson" "A commercial property lost value because a recently constructed highway directed traffic away
from the property. This is an example of - CORRECT ANSWER Economic or external obsolesce"
"The amount of commission is established - CORRECT ANSWER Agreed upon by seller and
broker" "At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1.
Assuming a VA mortgage, what is the adjustment made at closing? - CORRECT ANSWER Credit
seller $300; debit buyer $300" "Two buyers bought a house with a $178,000 mortgage. The interest rate is 6 1/2% per annum payable for 30 years. To the nearest dollar, what is their monthly principal
and interest payment? (BE SURE TO USE THE AMORTIZATION TABLE.) - CORRECT ANSWER
"FHA functions most like - CORRECT ANSWER Insurance Company"
"At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend. The agent should - CORRECT ANSWER Tell potential buyers"
"An appraisal method that uses adjustments to recent sales to estimate value is the - CORRECT
ANSWER sales comparison approach"
"What is the payment difference on a loan amount of $220,000 with a 15 year, 5.5% interest
versus a 30 year at 6.5% (use amortization chart) - CORRECT ANSWER $407"
"A buyer and seller have a contract which states the buyer can buy the property for $120,000 and
close the sale before 12/31/2014. What type of contract exists? - CORRECT ANSWER Option"
"A buyer wants to have a home business in a residential neighborhood. The broker should advise
the buyer to - CORRECT ANSWER Check to see whether zoning will allow the business use."
"Which of the following is a disadvantage to owning real estate? - CORRECT ANSWER
Liquidity" "A broker lists a property and begins marketing it. The seller sells the property to a neighbor and
pays the broker a full commission, What type of listing agreement was signed?" - CORRECT
ANSWER Exclusive Right to sell"
"A potential buyer was turned down for a mortgage loan because of the high crime rate where
the property is located. This is an example of - CORRECT ANSWER Redlining"
"A property manager would do all the following except: - CORRECT ANSWER Invest the profits
into the building"
"The listing agreement must contain all the following items except - CORRECT ANSWER
Statement regarding how to earn commission" "The renter of a property has recently become disabled and can no longer walk. The tenant needs a ramp to gain access to the property. What must the landlord
do? - CORRECT ANSWER Permit tenant to install ramp at their expense"
"The right of an agent to represent a principal is created by - CORRECT ANSWER fiduciary
agreements" "A tenancy in which the lessee remains in possession of the property without the lessor's consent
is: - CORRECT ANSWER An estate at sufferance"
"All of the following are true of the holder of a fee simple absolute estate EXCEPT: - CORRECT
ANSWER his estate terminates upon death"
"when a borrower wishes to obtain a loan in excess of 80% of the property's value, the lender is
likely to require: - CORRECT ANSWER Mortgage default insurance"
"The listing broker has done a visual inspection of the property and found no issues. The seller's property disclosure states there are no problems. After closing, the buyer finds long-standing issues with water entering the basement.
Who is most likely to be held liable for non-disclosure of this latent material defect? - CORRECT
ANSWER The seller, since brokers are not responsible for latent defects the seller does not
disclose"
"A licensee when showing property MUST disclose - CORRECT ANSWER material facts of
which the licensee is aware" "In order for a property manager to determine the net operating income for the investor/owner,
which fees or expenses are subtracted from the effective gross income? - CORRECT ANSWER
Operating expenses" "The owners of a cooperative
apartment and the owners of a condominium apartment both - CORRECT ANSWER pay
assessments"
"An equal housing opportunity notice must: - CORRECT ANSWER Be displayed in each office"
"The words "littoral", "riparian" and "prior appropriation" all refer to - CORRECT ANSWER
Water Rights"
"An acre of land contains: - CORRECT ANSWER 43,560 square feet"
"An appraiser would be most likely to rely on the cost approach in appraising a: - CORRECT
ANSWER church"
"Which one of the following governmental rights in property does not allow the government to
foreclosure (take') the property if the right is violated? - CORRECT ANSWER Police power"
"A titleholder of a piece of real estate has passed away and in their will, they are leaving the property to their son. The son wishes to sell the property. What type of deed would the son sign
to convey ownership to the new buyer? - CORRECT ANSWER Personal representative deed"
"An appraiser's compensation may be based on.... - CORRECT ANSWER Time"
"The type of deed that is best for the grantee (buyer) is: - CORRECT ANSWER Warranty"
“A legal description in land that includes language like "the old oak tree" or "the big rock" would
be - CORRECT ANSWER Metes and bounds"
"As a licensee is showing a property contiguous to a lake, the licensee notices that the lake has a
large amount of algae. The buyer wishes to make an offer. What should the licensee do? -
CORRECT ANSWER Encourage the buyer to have an authoritative party investigate the algae
growth."
"A home warranty will typically provide coverage for which of the following: - CORRECT
ANSWER Electrical and plumbing systems"
"The local governments have authority to ensure that properties are being built properly. Under
the authority of police power, the government can adapt and implement: - CORRECT ANSWER
Construction standards" "An agent goes door knocking in a subdivision. As part of his presentation, he makes mention of the fact that many families with children are moving into the area and that house prices are rising. He then recommends the owner should sell because he has a nice quiet
subdivision of older, mature families that are quiet. Is this discrimination - CORRECT ANSWER
Yes- he is blockbusting by playing on the fears of consumers of protected class." "While performing an analysis of value for listing a house, all of the following would be
included in the Market Data Approach except: - CORRECT ANSWER Capitalization"
"A buyer makes an offer on a property that the seller accepts. While waiting for an inspection, the buyers see another property that they like even better. They draft an offer on that property which is accepted by that seller. What statement about the offers is true?
CORRECT ANSWER Both offers are Valid Offers"
"A prospective buyer makes an offer to buy a house. The owner counter-offers. While the buyers are reviewing the counteroffer, the owner receives a better offer. The owner can accept the
second offer if... - CORRECT ANSWER The owner withdraws the counteroffer before the first
buyer accepts-it"
