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A series of practice questions and answers for the psi national real estate salesperson exam. It covers various topics related to real estate law, contracts, financing, property valuation, and ethical considerations. The questions are designed to test the knowledge and understanding of key concepts and principles relevant to the real estate profession.
Typology: Exams
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"A seller signs a listing agreement with a broker. The seller can cancel the listing at any time
"If leased premises become unusable for the purpose state in the lease, the tenant may have the
eviction." "Salesperson Susan was at the local coffee shop with some agents from other offices. The subject
Act." "A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson
show any property for which the buyer is qualified." "On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes
"A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that
"For Federal income tax purposes, which of the following are costs of homeownership that may
taxes, mortgage loan origination fees." "A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with
- CORRECT ANSWER the builder." "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
"When preparing a market data estimate of value, which of the following categories of
price." "According to the principle of progression, a three-bedroom, one-story home is MOST likely to
homes are larger than the sale home." "A prospective seller asks a salesperson to recommend a listing price for a property. The
the property's value." "If all other factors are equal, in which location is a parking lot likely to bring the highest sales
"A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this
"When a principal authorizes an agent to perform a particular act or transaction, it is an example
"A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the
showing and disclose material information about the buyer if presenting an offer." "The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show
listing agent." "The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies,
presence of any known lead paint." "What critical aspect of the property inspection process MUST licensees convey to prospective
the contract." "A licensee is listing a property in a known flood plain. The seller flatly denies that the structure
plains."
knowledge or consent of the other joint tenant."
"The sellers want to accept a purchase offer, but only if the price is raised by $5,000. What should
"A broker has signed a listing contract for the sale of a home. Which of the following could make
at the time of signing." "A mentally disabled person who has been declared incompetent by a judge wishes to enter into
appointed by the court to act for the disabled person must contract on his or her behalf." "If the terms of a contract indicate that Party A will be obliged to perform her part of the contract
unilateral contract in which only Party A has made a promise to perform." "Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances
"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
"A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract. In this situation, if the seller takes the appliances with him, what recourse does
"A company agrees to lease a property to be used as a gambling casino. State laws prohibit
broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area. The buyer could seek to
manner, according to state laws."
brokerage office." "If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
"A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges
"On January 15, a seller paid $960 in annual property tax for the current calendar year. A buyer is purchasing the house with the closing set for March 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-
"If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION
"An investment property returns 12% of its value or $21,000 annually. What is the value of the
"A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for
"A home buyer is obtaining a fully amortized loan in the amount of $140,000. The savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the nearest dollar, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE
"A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice
"A lender will make an 80% loan-to-value loan on a property that is appraised for $72,250 and sells for $73,500. If the buyer has saved $14,450 for a down payment, how much more (if any) will
contract that offers the warranty" "A couple are moving to a new city. They have decided to rent temporarily before buying a house to see which part of the city they would like to live in. What type of lease would BEST suit the
"When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies
deadlines." "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.
counteroffer before it is accepted." "A contract has been drawn which obliges the sellers to convey title to their land to the buyers if
that occurred in the house last year."
"When the sellers are lending part of the purchase price, they may secure the debt either with a
"Even if a loan applicant's current income seems adequate to qualify for a certain loan, the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the applicant's main
"A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
"According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following
rebates." "Three people buy a house as tenants in common. Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house
of the titles." "In the sale of property, there is often confusion over whether an item is a fixture or personal
questionable items of property in the written sales contract." "If conditions for property use are included in a deed and these conditions are violated, what is
property to the original owner."
owners." "An environmental impact statement typically describes the effects of a proposed project on
"A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST
"A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller
the seller that the buyer will pay more." "Under the terms of their listing contract, the owners may sell their house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the
"Under the common law of agency, licensees owe the broker with whom they are associated all
"Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the
"A seller tells the listing agent that her home was treated for termites 10 years ago, so there are
seller to disclose the termite treatment on the property disclosure." "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
Statute of Frauds." "Alex, 14, and Kent, 17, inherited a piece of property. The next year, Kent deeded the whole property to Alex, who immediately put it on the market. An adult buyer made a written offer
cannot legally compel Alex to sell." "A contract for the sale of a home has been signed by both parties. This contract will remain