PSI National Real Estate Exam Updated
Complete Questions and 100% Correct
Answers (Exam Ready Pack)
• A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✓✓anticipation.
• A commercial property lost value because a recently constructed highway moved
traffic away from the property. This is an example of -✓✓economic or external
obsolescence.
• According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which -✓✓most
homes are larger than the sale home.
• A prospective seller asks a salesperson to recommend a listing price for a property.
The salesperson should suggest -✓✓a competitive market analysis to determine the
property's value.
• If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? -✓✓Business district zoned for a six story office building.
• When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust
is that -✓✓foreclosure is usually simpler and faster.
• 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 -✓✓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? -✓✓Confirm with the seller's broker, the lender and the closing entity that the
closing must be delayed to allow for a new seven-day waiting period because of the
interest rate revision.
• The FHA functions MOST like -✓✓an insurance company.
, • Federal Truth-in-Lending laws are also known as -✓✓Regulation Z.
• Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)? -✓✓Regulation Z.
• A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to -✓✓demand immediate payment of the entire note.
• According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the -✓✓prepayment
penalties and rebates.
• An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called -✓✓a
mechanic's lien.
• 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 can -✓✓file an action for partition against the third owner.
• A legal easement can be created by any of the following EXCEPT -✓✓merger of the
titles.
• In the sale of property, there is often confusion over whether an item is a fixture or
personal property. What is the best way to avoid this confusion? -✓✓Specify
questionable items of property in the written sales contract.
• A judgment has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been given -✓✓constructive notice.
• Legal descriptions using the government survey system are NOT generally used in -
✓✓the original 13 states.
• If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty? -✓✓A court may order the return of the
property to the original owner.
• A deed restriction is applicable to the activities of -✓✓present and future owners.
• An environmental impact statement typically describes the effects of a proposed
project on factors such as -✓✓public health and safety.
Complete Questions and 100% Correct
Answers (Exam Ready Pack)
• A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
✓✓anticipation.
• A commercial property lost value because a recently constructed highway moved
traffic away from the property. This is an example of -✓✓economic or external
obsolescence.
• According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which -✓✓most
homes are larger than the sale home.
• A prospective seller asks a salesperson to recommend a listing price for a property.
The salesperson should suggest -✓✓a competitive market analysis to determine the
property's value.
• If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? -✓✓Business district zoned for a six story office building.
• When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust
is that -✓✓foreclosure is usually simpler and faster.
• 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 -✓✓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? -✓✓Confirm with the seller's broker, the lender and the closing entity that the
closing must be delayed to allow for a new seven-day waiting period because of the
interest rate revision.
• The FHA functions MOST like -✓✓an insurance company.
, • Federal Truth-in-Lending laws are also known as -✓✓Regulation Z.
• Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)? -✓✓Regulation Z.
• A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to -✓✓demand immediate payment of the entire note.
• According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of
the following disclosures MUST appear in the ad EXCEPT the -✓✓prepayment
penalties and rebates.
• An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called -✓✓a
mechanic's lien.
• 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 can -✓✓file an action for partition against the third owner.
• A legal easement can be created by any of the following EXCEPT -✓✓merger of the
titles.
• In the sale of property, there is often confusion over whether an item is a fixture or
personal property. What is the best way to avoid this confusion? -✓✓Specify
questionable items of property in the written sales contract.
• A judgment has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been given -✓✓constructive notice.
• Legal descriptions using the government survey system are NOT generally used in -
✓✓the original 13 states.
• If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty? -✓✓A court may order the return of the
property to the original owner.
• A deed restriction is applicable to the activities of -✓✓present and future owners.
• An environmental impact statement typically describes the effects of a proposed
project on factors such as -✓✓public health and safety.
