PSI MARYLAND PRACTICE EXAM| TOP SCORES
MADE SIMPLE | TRUSTED TEST SOLUTIONS!
QUALITY CONTENT YOU CAN RELY ON!
If an older building cannot be air-conditioned, it is an example of ___________ ?
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration Answer: B. Functional obsolescence.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000. Answer: B. $250,000.
The main difference between tenancy in common and joint tenancy is that with tenancy in
common, when a co-owner dies, _____________
A. His undivided interest passes to his heirs.
B. The last surviving owner holds title in severalty.
C. His undivided interest passes to the surviving co-owners.
D. The principle of the right to survivorship determines the rights of the surviving co-
owners. Answer: A. His undivided interest passes to his heirs.
A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender
charges 2 points. How much money does the buyer need up front to make the purchase?
A. $2,720
B. $24,000
C. $24,408
D. $26,720 Answer: D. $26,720
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period until the cap is reached.
B. Be adjusted automatically to ensure that negative amortization does not occur.
C. Be based on a very low interest rate to begin with, but will rise to the market rate at the
first adjustment.
D. Vary over the life of the loan depending on fluctuations in the interest rate to which the
loan is referenced. Answer: D. Vary over the life of the loan depending on fluctuations in
the interest rate to which the loan is referenced.
An exception to title insurance coverage is ___________?
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search. Answer: D. Defects that clearly appear in
the title search.
Under the common law of agency, licensees owe the broker with whom they are associated
all of the following duties EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnification.
D. Full disclosure. Answer: C. Indemnification.
The buyer is assuming a mortgage presently on the property in the amount of $110,000.
What is the adjustment made at closing?
A. Credit buyer $110,000; debit seller $110,000.
B. Credit seller $110,000; debit buyer $110,000.
C. Credit buyer $110,000; no adjustment to seller.
D. Credit seller $110,000; no adjustment to buyer. Answer: A. Credit buyer $110,000; debit
seller $110,000.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A mentally disabled person who has been declared incompetent by a judge wishes to enter
into a contract. Under what conditions can such a person do so?
A. The person must obtain prior written approval by a licensed psychiatrist or psychologist.
B. The person must be capable of understanding the transaction.
C. The person appointed by the court to act for the disabled person must contract on his or
her behalf.
D. The person may enter a contract under any conditions, because the law prohibits
discrimination against persons with disabilities. Answer: C. The person appointed by the
court to act for the disabled person must contract on his or her behalf.
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 source of income is ___________?
A. Alimony.
B. Commission sales.
C. Pension fund.
D. Child support payments. Answer: B. Commission sales.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the TILA-RESPA
Integrated Disclosure rule, what action should the broker take in this situation?
A. Assist the buyers in calculating the new loan payments and ask them if they want to
proceed with the closing as scheduled.
B. Advise the buyers to file a legal action against the lender for violation of predatory
lending practices under the Real Estate Settlement Procedures Act.
C. Call the lender and inform them that they are in violation of the seven-day waiting period
and cannot change the terms of the loan this close to the closing.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
MADE SIMPLE | TRUSTED TEST SOLUTIONS!
QUALITY CONTENT YOU CAN RELY ON!
If an older building cannot be air-conditioned, it is an example of ___________ ?
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration Answer: B. Functional obsolescence.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000. Answer: B. $250,000.
The main difference between tenancy in common and joint tenancy is that with tenancy in
common, when a co-owner dies, _____________
A. His undivided interest passes to his heirs.
B. The last surviving owner holds title in severalty.
C. His undivided interest passes to the surviving co-owners.
D. The principle of the right to survivorship determines the rights of the surviving co-
owners. Answer: A. His undivided interest passes to his heirs.
A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender
charges 2 points. How much money does the buyer need up front to make the purchase?
A. $2,720
B. $24,000
C. $24,408
D. $26,720 Answer: D. $26,720
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
,When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period until the cap is reached.
B. Be adjusted automatically to ensure that negative amortization does not occur.
C. Be based on a very low interest rate to begin with, but will rise to the market rate at the
first adjustment.
D. Vary over the life of the loan depending on fluctuations in the interest rate to which the
loan is referenced. Answer: D. Vary over the life of the loan depending on fluctuations in
the interest rate to which the loan is referenced.
An exception to title insurance coverage is ___________?
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search. Answer: D. Defects that clearly appear in
the title search.
Under the common law of agency, licensees owe the broker with whom they are associated
all of the following duties EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnification.
D. Full disclosure. Answer: C. Indemnification.
The buyer is assuming a mortgage presently on the property in the amount of $110,000.
What is the adjustment made at closing?
A. Credit buyer $110,000; debit seller $110,000.
B. Credit seller $110,000; debit buyer $110,000.
C. Credit buyer $110,000; no adjustment to seller.
D. Credit seller $110,000; no adjustment to buyer. Answer: A. Credit buyer $110,000; debit
seller $110,000.
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
, A mentally disabled person who has been declared incompetent by a judge wishes to enter
into a contract. Under what conditions can such a person do so?
A. The person must obtain prior written approval by a licensed psychiatrist or psychologist.
B. The person must be capable of understanding the transaction.
C. The person appointed by the court to act for the disabled person must contract on his or
her behalf.
D. The person may enter a contract under any conditions, because the law prohibits
discrimination against persons with disabilities. Answer: C. The person appointed by the
court to act for the disabled person must contract on his or her behalf.
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 source of income is ___________?
A. Alimony.
B. Commission sales.
C. Pension fund.
D. Child support payments. Answer: B. Commission sales.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the TILA-RESPA
Integrated Disclosure rule, what action should the broker take in this situation?
A. Assist the buyers in calculating the new loan payments and ask them if they want to
proceed with the closing as scheduled.
B. Advise the buyers to file a legal action against the lender for violation of predatory
lending practices under the Real Estate Settlement Procedures Act.
C. Call the lender and inform them that they are in violation of the seven-day waiting period
and cannot change the terms of the loan this close to the closing.
3
APPHIA - Crafted with Care and Precision for Academic Excellence.
