PSI Maryland Prac ce Exam| Ques ons and answers |
Updated RATED A+ 2026| NEW
If an older building cannot be air-condi oned, it is an example of ___________ ?
A. Economic obsolescence.
B. Func onal obsolescence.
C. Physical deteriora on.
D. External deteriora on
B. Func onal obsolescence.
An appraiser MUST be licensed or cer fied to handle Federally related work on residen al
property valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000.
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 tle 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.
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
,D. $26,720
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period un l the cap is reached.
B. Be adjusted automa cally to ensure that nega ve amor za on 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 fluctua ons in the interest rate to which the loan
is referenced.
D. Vary over the life of the loan depending on fluctua ons in the interest rate to which the loan
is referenced.
An excep on to tle 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 tle search.
D. Defects that clearly appear in the tle search.
Under the common law of agency, licensees owe the broker with whom they are associated all
of the following du es EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnifica on.
D. Full disclosure.
C. Indemnifica on.
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.
, A. Credit buyer $110,000; debit seller $110,000.
A mentally disabled person who has been declared incompetent by a judge wishes to enter into
a contract. Under what condi ons can such a person do so?
A. The person must obtain prior wriAen approval by a licensed psychiatrist or psychologist.
B. The person must be capable of understanding the transac on.
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 condi ons, because the law prohibits
discrimina on against persons with disabili es.
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.
B. Commission sales.
A broker and the buyers he represents are anxiously awai ng the closing on their new home.
The closing is scheduled in 4 days. The buyers inform the broker that they just received revised
Loan Es mate and Closing Disclosure forms from the lender, indica ng the Annual Percentage
Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule,
what ac on should the broker take in this situa on?
A. Assist the buyers in calcula ng 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 ac on against the lender for viola on of predatory lending
prac ces under the Real Estate SeAlement Procedures Act.
C. Call the lender and inform them that they are in viola on of the seven-day wai ng period and
cannot change the terms of the loan this close to the closing.
D. Confirm with the seller's broker, the lender and the closing en ty that the closing must be
delayed to allow for a new seven-day wai ng period because of the interest rate revision.
Updated RATED A+ 2026| NEW
If an older building cannot be air-condi oned, it is an example of ___________ ?
A. Economic obsolescence.
B. Func onal obsolescence.
C. Physical deteriora on.
D. External deteriora on
B. Func onal obsolescence.
An appraiser MUST be licensed or cer fied to handle Federally related work on residen al
property valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000.
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 tle 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.
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
,D. $26,720
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period un l the cap is reached.
B. Be adjusted automa cally to ensure that nega ve amor za on 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 fluctua ons in the interest rate to which the loan
is referenced.
D. Vary over the life of the loan depending on fluctua ons in the interest rate to which the loan
is referenced.
An excep on to tle 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 tle search.
D. Defects that clearly appear in the tle search.
Under the common law of agency, licensees owe the broker with whom they are associated all
of the following du es EXCEPT _________?
A. Loyalty.
B. Competence.
C. Indemnifica on.
D. Full disclosure.
C. Indemnifica on.
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.
, A. Credit buyer $110,000; debit seller $110,000.
A mentally disabled person who has been declared incompetent by a judge wishes to enter into
a contract. Under what condi ons can such a person do so?
A. The person must obtain prior wriAen approval by a licensed psychiatrist or psychologist.
B. The person must be capable of understanding the transac on.
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 condi ons, because the law prohibits
discrimina on against persons with disabili es.
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.
B. Commission sales.
A broker and the buyers he represents are anxiously awai ng the closing on their new home.
The closing is scheduled in 4 days. The buyers inform the broker that they just received revised
Loan Es mate and Closing Disclosure forms from the lender, indica ng the Annual Percentage
Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule,
what ac on should the broker take in this situa on?
A. Assist the buyers in calcula ng 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 ac on against the lender for viola on of predatory lending
prac ces under the Real Estate SeAlement Procedures Act.
C. Call the lender and inform them that they are in viola on of the seven-day wai ng period and
cannot change the terms of the loan this close to the closing.
D. Confirm with the seller's broker, the lender and the closing en ty that the closing must be
delayed to allow for a new seven-day wai ng period because of the interest rate revision.
