FINA 2020A: PSI PRACTICE
TEST Q & A
#22 on 2015 test (#56 Hurley’s PSI test • #54 Constanza’s test • #72 April’s test)
A seller's statement in a property disclosure
document means answer: the owner is
disclosing known latent defects.
#37 on 2015 test
A seller tells the listing agent that her home was treated for termites 10
years ago, so there are no termites now. Before listing the property, the
agent should
answer: tell the seller to disclose the termite treatment on the property
disclosure.
#3 on 2015 test (#50 Hurley’s PSI test • # 29 April’s test)
A broker has brought a ready, willing, and able buyer to a seller. In
MOST listing contracts, the broker has earned his commission when
answer: the seller accepts the offer.
#27 on 2015 test (#48 Hurley’s PSI test • #23 Constanza’s test • #26 April’s test)
A contract has been drawn which obliges the sellers to convey title to their
land to the buyers if the buyers come up with $22,000 on or before
December 31st. This is called
answer: an option contract.
#51 on 2015 test (#23 Hurley’s PSI test • #4 Constanza’s test • #48
April’s test) A gross lease can be best defined as one where the
,tenant pays, as a part of the rent, answer: no operating expenses
of the leased space.
#58 on 2015 test (#59 Hurley’s PSI test • #22 April’s test)
When a listing broker is preparing an Offer to Purchase for a buyer
customer, contingencies involving inspections or approval by a third
party should
answer: have short deadlines.
#7 on 2015 test (#2 Hurley’s PSI test • #12 Constanza’s test)
Salesperson Susan was at the local coffee shop with some agents from other
offices. The subject of commissions came up, and agents began to compare
their commission rates. Susan should answer: advise her friends this could
constitute a violation of Sherman Antitrust Act.
#26 on 2015 test
A salesperson in a branch office is sued for damages by a buyer after
the salesperson misrepresents a property. Who has the ultimate
responsibility for the salesperson's actions? answer: the supervising
broker
#39 on 2015 test
A managing broker can be held
responsible for answer: all real estate
activities of salespersons.
#43 on 2015 test
Which of the following services can be provided by a real
estate salesperson? answer: competitive market analyses
#71 on 2015 test (#47 Constanza’s test)
During the listing presentation, the seller questions the amount of
commission to be paid and is told
,answer: the amount of commission is negotiable.
#1 (#24 on 2015 test • #53 Hurley’s PSI test • #73 Constanza’s test • #70 April’s test)
At the closing on June 15, the buyer is assuming a mortgage presently on
the property, on which the monthly interest charge is currently $600. The
seller has made the payment due on June 1.
Assuming a VA mortgage, what is the adjustment made at closing?
Answer: Debit seller $300; credit buyer $300
#2
When compiling a competitive market analysis, a broker would look for
comparable properties that Answer: were located near the property being
listed.
#3 (#44 on 2015 test • #14 April’s test)
What is the duration of a home warranty’s
coverage? Answer: as disclosed in the
contract that offers the warranty
#4 (#5 Constanza’s test)
Even if a loan applicant’s current income seems adequate to qualify for a
certain loan, the ECOA allows a lender to refuse the loan as high risk if the
applicant’s main source of income is
Answer: commission sales
#5 (#50 Constanza’s test • #63 April’s test)
Davis, Hernandez, and Moore are vested as tenants in common on a parcel
of land. Each received a pro-rata undivided interest in the parcel. The total
price was $120,000. David put up 40% and Hernandez put up $22,500. What
percentage does Moore own (to the nearest tenth of a percent)?
Answer: 41.2%
#6 (#43 Hurley’s PSI test • #6 Constanza’s test • #66 April’s test)
, The buyer is assuming a mortgage presently on the property in the amount
of $110,000. What is the adjustment made at closing?
Answer: Credit buyer $110,000; debit seller $110,000.
#7 (#34 Constanza’s test)
The buyer was negotiating the purchase of a house for himself. During a
conversation with the seller, the seller agreed to include all kitchen
appliances in the sale, and this fact was included in the sales contract. In
this situation, if the seller takes the appliances with him, what recourse does
the buyer have?
Answer: The buyer may sue the seller for specific
performance. #8 (#79 on 2015 test • #63
Hurley’s PSI test • #18 April’s test)
TEST Q & A
#22 on 2015 test (#56 Hurley’s PSI test • #54 Constanza’s test • #72 April’s test)
A seller's statement in a property disclosure
document means answer: the owner is
disclosing known latent defects.
#37 on 2015 test
A seller tells the listing agent that her home was treated for termites 10
years ago, so there are no termites now. Before listing the property, the
agent should
answer: tell the seller to disclose the termite treatment on the property
disclosure.
#3 on 2015 test (#50 Hurley’s PSI test • # 29 April’s test)
A broker has brought a ready, willing, and able buyer to a seller. In
MOST listing contracts, the broker has earned his commission when
answer: the seller accepts the offer.
#27 on 2015 test (#48 Hurley’s PSI test • #23 Constanza’s test • #26 April’s test)
A contract has been drawn which obliges the sellers to convey title to their
land to the buyers if the buyers come up with $22,000 on or before
December 31st. This is called
answer: an option contract.
#51 on 2015 test (#23 Hurley’s PSI test • #4 Constanza’s test • #48
April’s test) A gross lease can be best defined as one where the
,tenant pays, as a part of the rent, answer: no operating expenses
of the leased space.
#58 on 2015 test (#59 Hurley’s PSI test • #22 April’s test)
When a listing broker is preparing an Offer to Purchase for a buyer
customer, contingencies involving inspections or approval by a third
party should
answer: have short deadlines.
#7 on 2015 test (#2 Hurley’s PSI test • #12 Constanza’s test)
Salesperson Susan was at the local coffee shop with some agents from other
offices. The subject of commissions came up, and agents began to compare
their commission rates. Susan should answer: advise her friends this could
constitute a violation of Sherman Antitrust Act.
#26 on 2015 test
A salesperson in a branch office is sued for damages by a buyer after
the salesperson misrepresents a property. Who has the ultimate
responsibility for the salesperson's actions? answer: the supervising
broker
#39 on 2015 test
A managing broker can be held
responsible for answer: all real estate
activities of salespersons.
#43 on 2015 test
Which of the following services can be provided by a real
estate salesperson? answer: competitive market analyses
#71 on 2015 test (#47 Constanza’s test)
During the listing presentation, the seller questions the amount of
commission to be paid and is told
,answer: the amount of commission is negotiable.
#1 (#24 on 2015 test • #53 Hurley’s PSI test • #73 Constanza’s test • #70 April’s test)
At the closing on June 15, the buyer is assuming a mortgage presently on
the property, on which the monthly interest charge is currently $600. The
seller has made the payment due on June 1.
Assuming a VA mortgage, what is the adjustment made at closing?
Answer: Debit seller $300; credit buyer $300
#2
When compiling a competitive market analysis, a broker would look for
comparable properties that Answer: were located near the property being
listed.
#3 (#44 on 2015 test • #14 April’s test)
What is the duration of a home warranty’s
coverage? Answer: as disclosed in the
contract that offers the warranty
#4 (#5 Constanza’s test)
Even if a loan applicant’s current income seems adequate to qualify for a
certain loan, the ECOA allows a lender to refuse the loan as high risk if the
applicant’s main source of income is
Answer: commission sales
#5 (#50 Constanza’s test • #63 April’s test)
Davis, Hernandez, and Moore are vested as tenants in common on a parcel
of land. Each received a pro-rata undivided interest in the parcel. The total
price was $120,000. David put up 40% and Hernandez put up $22,500. What
percentage does Moore own (to the nearest tenth of a percent)?
Answer: 41.2%
#6 (#43 Hurley’s PSI test • #6 Constanza’s test • #66 April’s test)
, The buyer is assuming a mortgage presently on the property in the amount
of $110,000. What is the adjustment made at closing?
Answer: Credit buyer $110,000; debit seller $110,000.
#7 (#34 Constanza’s test)
The buyer was negotiating the purchase of a house for himself. During a
conversation with the seller, the seller agreed to include all kitchen
appliances in the sale, and this fact was included in the sales contract. In
this situation, if the seller takes the appliances with him, what recourse does
the buyer have?
Answer: The buyer may sue the seller for specific
performance. #8 (#79 on 2015 test • #63
Hurley’s PSI test • #18 April’s test)
