PSI NATIONAL EXAM FOR REAL ESTATE
EXAM QUESTIONS COMPLETE WITH
100% VERIFIED ANSWERS
\.A written agreement in which a purchaser agrees to buy and a seller agrees to
sell is called - ANSWERS-a contract
\.Antitrust laws prohibit competing brokers from all of the following - ANSWERS-1.
boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
\.When a sewer line is installed down a rural road, the cost will probably be shared
by - ANSWERS-all current owners of real estate fronting on that road
\.State laws differ on whether a buyer is entitled to know about - ANSWERS-a
suicide that occurred in the house last year.
\.A lawsuit for inverse condemnation may be brought by - ANSWERS-a
homeowner
,\.When is racial discrimination in the rental of rooms or apartments permitted? -
ANSWERS-Under no circumstances
\.The real estate broker who is listing a house for sale should personally verify -
ANSWERS-the number of square feet in the building
\.Real property can be converted to personal property by - ANSWERS-Severance
\.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 liked better
and made an offer on it, which was accepted. Which of the following is TRUE? -
ANSWERS-Both contracts are valid
\.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 the doctrine of - ANSWERS-prior appropriation
\.The purpose of requiring an earnest money deposit in a real estate sales contract
is to - ANSWERS-provide evidence of the buyer's intention to carry out the
contract.
,\.A buyer is getting a fully amortized loan for $220,000. The bank will give the
buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the
monthly payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - ANSWERS-$409.20.
\.A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERS-demand immediate
payment of the entire note
\.The FHA functions MOST like - ANSWERS-an insurance company
\.1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - ANSWERS-discount points
\.When land is conveyed to a trustee, the trustee may - ANSWERS-do whatever is
permitted under the trust agreement
\.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. The owner can
accept the second offer if - ANSWERS-the owner withdraws the counteroffer
before it is accepted.
, \.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 may be unenforceable because - ANSWERS-the agreement
does not comply with the Statute of Frauds
\.Earnest money should be deposited into a trust account - ANSWERS-in a timely
manner, according to state laws
\.A deed restriction is applicable to the activities of - ANSWERS-all owners,
present and future
\.An easement can be terminated by - ANSWERS-prescription
\.Depreciation is calculated based on the - ANSWERS-cost of the building only
\.Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? - ANSWERS-Market data
\.A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? - ANSWERS-Seller
\.The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to - ANSWERS-IRS
EXAM QUESTIONS COMPLETE WITH
100% VERIFIED ANSWERS
\.A written agreement in which a purchaser agrees to buy and a seller agrees to
sell is called - ANSWERS-a contract
\.Antitrust laws prohibit competing brokers from all of the following - ANSWERS-1.
boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
\.When a sewer line is installed down a rural road, the cost will probably be shared
by - ANSWERS-all current owners of real estate fronting on that road
\.State laws differ on whether a buyer is entitled to know about - ANSWERS-a
suicide that occurred in the house last year.
\.A lawsuit for inverse condemnation may be brought by - ANSWERS-a
homeowner
,\.When is racial discrimination in the rental of rooms or apartments permitted? -
ANSWERS-Under no circumstances
\.The real estate broker who is listing a house for sale should personally verify -
ANSWERS-the number of square feet in the building
\.Real property can be converted to personal property by - ANSWERS-Severance
\.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 liked better
and made an offer on it, which was accepted. Which of the following is TRUE? -
ANSWERS-Both contracts are valid
\.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 the doctrine of - ANSWERS-prior appropriation
\.The purpose of requiring an earnest money deposit in a real estate sales contract
is to - ANSWERS-provide evidence of the buyer's intention to carry out the
contract.
,\.A buyer is getting a fully amortized loan for $220,000. The bank will give the
buyer the loan for 15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the
monthly payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - ANSWERS-$409.20.
\.A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERS-demand immediate
payment of the entire note
\.The FHA functions MOST like - ANSWERS-an insurance company
\.1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - ANSWERS-discount points
\.When land is conveyed to a trustee, the trustee may - ANSWERS-do whatever is
permitted under the trust agreement
\.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. The owner can
accept the second offer if - ANSWERS-the owner withdraws the counteroffer
before it is accepted.
, \.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 may be unenforceable because - ANSWERS-the agreement
does not comply with the Statute of Frauds
\.Earnest money should be deposited into a trust account - ANSWERS-in a timely
manner, according to state laws
\.A deed restriction is applicable to the activities of - ANSWERS-all owners,
present and future
\.An easement can be terminated by - ANSWERS-prescription
\.Depreciation is calculated based on the - ANSWERS-cost of the building only
\.Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? - ANSWERS-Market data
\.A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? - ANSWERS-Seller
\.The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to - ANSWERS-IRS
