National PSI EXAM PRACTICE TEST QUESTIONS
WITH COMPLETE SOLUTIONS
Real |Estate |law |governing |advertising |applies |to |all |of |these |EXCEPT: |
A. |In |house |notes |for |showing
B. |Multiple |listing |service |(MLS)
C. |communications |with |consumers
D. |Social |Media |- |CORRECT |ANSWER✔✔-A. |In-house |notes |for |showing |are |not |seen |by |
consumers |an |so |do |not |have |to |follow |state |or |federal |laws.
A |couple |accompanies |a |property |inspector |during |an |inspection |of |a |house |on |which |they |
have |a |contract. |The |inspector |points |to |a |six-inch |crack |at |the |corner |of |a |dining |room |
window. |The |crack |is |an |example |of |: |
A. |A |structural |defect |
B. |A |patent |Defect |
C. |a |latent |defect |
D. |an |environmental |defect |- |CORRECT |ANSWER✔✔-B. |A |patent |defect |is |easily |visible |when |
inspecting |a |property. |(another) |term |for |material)
An |eligible |veteran |made |an |offer |of |$225,000 |to |purchase |a |home |contingent |upon |obtaining |
a |no-down |payment |U.S |department |of |Veterans |Affairs |(VA) |guaranteed |loan. |Three |weeks |
after |the |offer |was |accepted, |the |VA |issued |a |certificate |of |reasonable |value |(CRV) |for |the |
$222,000 |for |the |property. |In |this |case, |the |veteran |may: |
A. |withdraw |from |the |sale |with |a |three-point |penalty |
B. |withdraw |from |the |sale |on |payment |of |a |commission |to |the |seller's |broker |
C. |purchase |the |property |by |making |a |$3,000 |cash |payment
,D. |seek |secondary |funding |for |the |$3,0000 |- |CORRECT |ANSWER✔✔-C. |When |the |purchase |
price |of |a |property |is |greater |than |the |VA-issued |(CRV), |the |veteran |may |pay |the |difference |in |
cash |to |purchase |the |property |because |secondary |financing |is |somewhat |restricted |under |VA |
regulations.
General |real |estate |property |taxes |levied |for |the |operation |of |the |government |are |called: |
A. |special |taxes
B. |ad |valorem |taxes
C. |improvement |taxes |
D. |special |assessment |taxes |- |CORRECT |ANSWER✔✔-B.
Under |current |Regulations, |a |U.S. |department |of |Veteran |Affairs |(VA) |loan |is |assumable |if: |
A. |The |VA |approves |both |the |buyer |and |the |assumption |agreement |
B. |the |veteran |agrees |not |to |request |a |releases |of |liability |for |repayment |
C. |the |VA |approves |the |buyer |only |
D. |the |VA |approves |the |assumption |of |the |agreement |only |- |CORRECT |ANSWER✔✔-A. |
for |VA |loans |made |after |March |1, |1988 |the |VA |must |approve |both |the |buyer |and |the |
assumption |agreement |before |the |loan |may |be |assumed.
During |the |period |of |time |after |a |real |estate |sales |contract |is |signed, |but |before |title |actually |
passes, |the |status |of |the |contract |is:
A. |executory |
B. |voidable
C. |executed
D. |unilateral |- |CORRECT |ANSWER✔✔-A. |
, A |contract |is |in |executory |status |when |its |terms |of |agreement |have |not |yet |been |carried |out.
If |there |is |a |discrepancy |between |a |residential |lot |size |quoted |in |a |listing |contract |and |the |
actual |lot |size, |the |actual |lot |size |that |will |prevail |in |a |sales |transaction |will |be |found |in |:
A. |the |MLS |
B. |the |survey |
C. |the |listing |contract |
D. |the |deed |- |CORRECT |ANSWER✔✔-B.
The |buyers |secured |a |loan |at |75% |(LTV) |ration. |The |interest |rate |was |7.125%, |and |the |term |
was |for |30 |Years. |The |first |month's |interest |payment |was |$477.82. |What |was |the |appraised |
value |of |the |property?
A. |$103.700
B. |$80,475
C. |$107,300
D. |79,239 |- |CORRECT |ANSWER✔✔-C. |
$477.82x12=$5,733.84 |annual |interest |
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A |document |that |protects |against |hidden |risk |such |as |forgeries |and |loss |due |to |defects |in |title,
|subject |to |specific |exclusions, |is |called:
A. |a |title |insurance |policy |
WITH COMPLETE SOLUTIONS
Real |Estate |law |governing |advertising |applies |to |all |of |these |EXCEPT: |
A. |In |house |notes |for |showing
B. |Multiple |listing |service |(MLS)
C. |communications |with |consumers
D. |Social |Media |- |CORRECT |ANSWER✔✔-A. |In-house |notes |for |showing |are |not |seen |by |
consumers |an |so |do |not |have |to |follow |state |or |federal |laws.
A |couple |accompanies |a |property |inspector |during |an |inspection |of |a |house |on |which |they |
have |a |contract. |The |inspector |points |to |a |six-inch |crack |at |the |corner |of |a |dining |room |
window. |The |crack |is |an |example |of |: |
A. |A |structural |defect |
B. |A |patent |Defect |
C. |a |latent |defect |
D. |an |environmental |defect |- |CORRECT |ANSWER✔✔-B. |A |patent |defect |is |easily |visible |when |
inspecting |a |property. |(another) |term |for |material)
An |eligible |veteran |made |an |offer |of |$225,000 |to |purchase |a |home |contingent |upon |obtaining |
a |no-down |payment |U.S |department |of |Veterans |Affairs |(VA) |guaranteed |loan. |Three |weeks |
after |the |offer |was |accepted, |the |VA |issued |a |certificate |of |reasonable |value |(CRV) |for |the |
$222,000 |for |the |property. |In |this |case, |the |veteran |may: |
A. |withdraw |from |the |sale |with |a |three-point |penalty |
B. |withdraw |from |the |sale |on |payment |of |a |commission |to |the |seller's |broker |
C. |purchase |the |property |by |making |a |$3,000 |cash |payment
,D. |seek |secondary |funding |for |the |$3,0000 |- |CORRECT |ANSWER✔✔-C. |When |the |purchase |
price |of |a |property |is |greater |than |the |VA-issued |(CRV), |the |veteran |may |pay |the |difference |in |
cash |to |purchase |the |property |because |secondary |financing |is |somewhat |restricted |under |VA |
regulations.
General |real |estate |property |taxes |levied |for |the |operation |of |the |government |are |called: |
A. |special |taxes
B. |ad |valorem |taxes
C. |improvement |taxes |
D. |special |assessment |taxes |- |CORRECT |ANSWER✔✔-B.
Under |current |Regulations, |a |U.S. |department |of |Veteran |Affairs |(VA) |loan |is |assumable |if: |
A. |The |VA |approves |both |the |buyer |and |the |assumption |agreement |
B. |the |veteran |agrees |not |to |request |a |releases |of |liability |for |repayment |
C. |the |VA |approves |the |buyer |only |
D. |the |VA |approves |the |assumption |of |the |agreement |only |- |CORRECT |ANSWER✔✔-A. |
for |VA |loans |made |after |March |1, |1988 |the |VA |must |approve |both |the |buyer |and |the |
assumption |agreement |before |the |loan |may |be |assumed.
During |the |period |of |time |after |a |real |estate |sales |contract |is |signed, |but |before |title |actually |
passes, |the |status |of |the |contract |is:
A. |executory |
B. |voidable
C. |executed
D. |unilateral |- |CORRECT |ANSWER✔✔-A. |
, A |contract |is |in |executory |status |when |its |terms |of |agreement |have |not |yet |been |carried |out.
If |there |is |a |discrepancy |between |a |residential |lot |size |quoted |in |a |listing |contract |and |the |
actual |lot |size, |the |actual |lot |size |that |will |prevail |in |a |sales |transaction |will |be |found |in |:
A. |the |MLS |
B. |the |survey |
C. |the |listing |contract |
D. |the |deed |- |CORRECT |ANSWER✔✔-B.
The |buyers |secured |a |loan |at |75% |(LTV) |ration. |The |interest |rate |was |7.125%, |and |the |term |
was |for |30 |Years. |The |first |month's |interest |payment |was |$477.82. |What |was |the |appraised |
value |of |the |property?
A. |$103.700
B. |$80,475
C. |$107,300
D. |79,239 |- |CORRECT |ANSWER✔✔-C. |
$477.82x12=$5,733.84 |annual |interest |
$5,733.84/7.125%=$80,475
$80,475/75%=$107,300
A |document |that |protects |against |hidden |risk |such |as |forgeries |and |loss |due |to |defects |in |title,
|subject |to |specific |exclusions, |is |called:
A. |a |title |insurance |policy |
