PSI NATIONAL REAL ESTATE NEW PRACTICE QUESTIONS AND ANSWERS
A legal description in land that includes language like "the old oak tree" or "the big rock"
would be - Metes and bounds
As a licensee is showing a property contiguous to a lake, the licensee notices that the
lake has a large amount of algae. The buyer wishes to make an offer. What should the
licensee do? - Encourage the buyer to have an authoritative party investigate the algae
growth.
All the following are protected classifications except - Homosexuals
As licensees usually work as independent contractors, a broker will have a contract
for the independent contractor which (for federal purposes) must outline - Statement
that FICA (taxes) are the associates responsibility
In a rescission agreement: - All parties return to original position and earnest money is
refunded
Agent A has been working at Brokerage for 4 years. Agent has listed and sold many but
desires to try industrial office sales. What is the best course of action for houses Agent
A? - Move license to an industrial/office
company and train under them
A seller is listing their $350,000 house. They state their property tax bill is $1,110 per
year. What should the agent do? - Verify the information with the county
A home warranty will typically provide coverage for which of the following: - Electrical
and plumbing systems
The local governments have authority to ensure that properties are being built properly.
Under the authority of police power, the government can adapt and implement: -
Construction standards
A married couple owns a property together as tenancy in entirety. Which of the following
about selling a property as tenancy in entirety is true? - Both spouses must sign the
conveyance
What statement is true about asbestos removal - Encapsulation is the safest tactic
An easement is - The right to use another's land
The amount to list a property is best determined by: - Competitive Market Analysis
(CMA)
, Interest on a security deposit Starts: - The month the Property Manager receives the
security deposit
Racial discrimination is allowed: - NEVER
An agent goes door knocking in a subdivision. As part of his presentation, he makes
mention of the fact that many families with children are moving into the area and that
house prices are rising. He then recommends the owner should sell because he has a
nice quiet subdivision of older, mature families that are quiet. Is this discrimination -
Yes- he is blockbusting by playing on the fears of consumers of protected class.
The purpose of an Agency Disclosure is: - To inform the consumer of their
representation choices
The purpose of Regulation Z is: - Disclose loan costs
interest rates on credit cards, loans, car loans, etc. are established by: - Usury
The ways to terminate an Agency Agreement include all except: - Unilateral cancellatio
Title Insurance covers all matters that are: - Itemized on the title report
A purchaser in the secondary mortgage market is - Federal National Mortgage
Association
While performing an analysis of value for listing a house, all of the following would be
included in the Market Data Approach except: - Capitalization
A developer of a subdivision does not want "clotheslines" to be installed in the houses in
the subdivision. A way for the developer to have control to limit and fine people who
want to install clotheslines would be: - Covenant
Seller is selling their property. Their outstanding loan balance is $240,000. The house
has a value of $200,000. Assuming the seller pays realty fees, closing fees, state fees,
the amount left over is only $180,000 to pay off the loan. What statement - Lender may
pursue the seller for a deficiency judgment of $60,000
A seller has received an offer at 80% of list price. Seller counter offers at 90% of list the
response, an offer of 98% of list price comes in from another buyer. The seller wishes to
sell to the second buyer. What is true? - Withdraw the first buyer's counter-offer and
then accept the second offer
A buyer makes an offer on a property that the seller accepts. While waiting for an
inspection, the buyers see another property that they like even better. They draft an
offer on that property which is accepted by that seller. What statement about the offers
is true? - Both offers are Valid Offers
A legal description in land that includes language like "the old oak tree" or "the big rock"
would be - Metes and bounds
As a licensee is showing a property contiguous to a lake, the licensee notices that the
lake has a large amount of algae. The buyer wishes to make an offer. What should the
licensee do? - Encourage the buyer to have an authoritative party investigate the algae
growth.
All the following are protected classifications except - Homosexuals
As licensees usually work as independent contractors, a broker will have a contract
for the independent contractor which (for federal purposes) must outline - Statement
that FICA (taxes) are the associates responsibility
In a rescission agreement: - All parties return to original position and earnest money is
refunded
Agent A has been working at Brokerage for 4 years. Agent has listed and sold many but
desires to try industrial office sales. What is the best course of action for houses Agent
A? - Move license to an industrial/office
company and train under them
A seller is listing their $350,000 house. They state their property tax bill is $1,110 per
year. What should the agent do? - Verify the information with the county
A home warranty will typically provide coverage for which of the following: - Electrical
and plumbing systems
The local governments have authority to ensure that properties are being built properly.
Under the authority of police power, the government can adapt and implement: -
Construction standards
A married couple owns a property together as tenancy in entirety. Which of the following
about selling a property as tenancy in entirety is true? - Both spouses must sign the
conveyance
What statement is true about asbestos removal - Encapsulation is the safest tactic
An easement is - The right to use another's land
The amount to list a property is best determined by: - Competitive Market Analysis
(CMA)
, Interest on a security deposit Starts: - The month the Property Manager receives the
security deposit
Racial discrimination is allowed: - NEVER
An agent goes door knocking in a subdivision. As part of his presentation, he makes
mention of the fact that many families with children are moving into the area and that
house prices are rising. He then recommends the owner should sell because he has a
nice quiet subdivision of older, mature families that are quiet. Is this discrimination -
Yes- he is blockbusting by playing on the fears of consumers of protected class.
The purpose of an Agency Disclosure is: - To inform the consumer of their
representation choices
The purpose of Regulation Z is: - Disclose loan costs
interest rates on credit cards, loans, car loans, etc. are established by: - Usury
The ways to terminate an Agency Agreement include all except: - Unilateral cancellatio
Title Insurance covers all matters that are: - Itemized on the title report
A purchaser in the secondary mortgage market is - Federal National Mortgage
Association
While performing an analysis of value for listing a house, all of the following would be
included in the Market Data Approach except: - Capitalization
A developer of a subdivision does not want "clotheslines" to be installed in the houses in
the subdivision. A way for the developer to have control to limit and fine people who
want to install clotheslines would be: - Covenant
Seller is selling their property. Their outstanding loan balance is $240,000. The house
has a value of $200,000. Assuming the seller pays realty fees, closing fees, state fees,
the amount left over is only $180,000 to pay off the loan. What statement - Lender may
pursue the seller for a deficiency judgment of $60,000
A seller has received an offer at 80% of list price. Seller counter offers at 90% of list the
response, an offer of 98% of list price comes in from another buyer. The seller wishes to
sell to the second buyer. What is true? - Withdraw the first buyer's counter-offer and
then accept the second offer
A buyer makes an offer on a property that the seller accepts. While waiting for an
inspection, the buyers see another property that they like even better. They draft an
offer on that property which is accepted by that seller. What statement about the offers
is true? - Both offers are Valid Offers
