PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called - ANSWER--a contract
Antitrust laws prohibit competing brokers from all of the
following - ANSWER--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 - ANSWER--all current owners of real
estate fronting on that road
State laws differ on whether a buyer is entitled to know about -
ANSWER--a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by -
ANSWER--a homeowner
When is racial discrimination in the rental of rooms or
apartments permitted? - ANSWER--Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - ANSWER--the number of square feet in the
building
Real property can be converted to personal property by -
ANSWER--Severance
Prospective buyers made an offer on a property. The seller did
NOT accept, but made a counteroffer. The
,PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
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? - ANSWER--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 - ANSWER--prior
appropriation
The purpose of requiring an earnest money deposit in a real
estate sales contract is to - ANSWER--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.) -
ANSWER--$409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to -
ANSWER--demand immediate payment of the entire note
,PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
The FHA functions MOST like - ANSWER--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. - ANSWER--
discount points
When land is conveyed to a trustee, the trustee may -
ANSWER--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 - ANSWER--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 - ANSWER--the agreement does
not comply with the Statute of Frauds
Earnest money should be deposited into a trust account -
ANSWER--in a timely manner, according to state laws
A deed restriction is applicable to the activities of - ANSWER--
all owners, present and future
An easement can be terminated by - ANSWER--prescription
, PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
Depreciation is calculated based on the - ANSWER--cost of the
building only
Which of the following approaches MOST reliably estimates
the sales price of a single-family residence? - ANSWER--
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? - ANSWER--
Seller
The escrow officer or closing agent MUST give information
regarding the sales price and seller's social security number to
- ANSWER--IRS
A broker supplies the financing for a project to build
condominiums with the stipulation that he has the exclusive
right to sell the completed condos. Which of the following
BEST describes this relationship? - ANSWER--Agency coupled
with an interest
If you own a building free and clear that is worth $115,000 and
want an annual return of 12%, what net income is needed each
month? - ANSWER--$1,150
Usury laws were enacted to protect the - ANSWER--borrower
complete solutions | Latest 2023/2024
A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called - ANSWER--a contract
Antitrust laws prohibit competing brokers from all of the
following - ANSWER--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 - ANSWER--all current owners of real
estate fronting on that road
State laws differ on whether a buyer is entitled to know about -
ANSWER--a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by -
ANSWER--a homeowner
When is racial discrimination in the rental of rooms or
apartments permitted? - ANSWER--Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - ANSWER--the number of square feet in the
building
Real property can be converted to personal property by -
ANSWER--Severance
Prospective buyers made an offer on a property. The seller did
NOT accept, but made a counteroffer. The
,PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
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? - ANSWER--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 - ANSWER--prior
appropriation
The purpose of requiring an earnest money deposit in a real
estate sales contract is to - ANSWER--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.) -
ANSWER--$409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to -
ANSWER--demand immediate payment of the entire note
,PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
The FHA functions MOST like - ANSWER--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. - ANSWER--
discount points
When land is conveyed to a trustee, the trustee may -
ANSWER--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 - ANSWER--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 - ANSWER--the agreement does
not comply with the Statute of Frauds
Earnest money should be deposited into a trust account -
ANSWER--in a timely manner, according to state laws
A deed restriction is applicable to the activities of - ANSWER--
all owners, present and future
An easement can be terminated by - ANSWER--prescription
, PSI National Exam for Real Estate Test Bank with
complete solutions | Latest 2023/2024
Depreciation is calculated based on the - ANSWER--cost of the
building only
Which of the following approaches MOST reliably estimates
the sales price of a single-family residence? - ANSWER--
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? - ANSWER--
Seller
The escrow officer or closing agent MUST give information
regarding the sales price and seller's social security number to
- ANSWER--IRS
A broker supplies the financing for a project to build
condominiums with the stipulation that he has the exclusive
right to sell the completed condos. Which of the following
BEST describes this relationship? - ANSWER--Agency coupled
with an interest
If you own a building free and clear that is worth $115,000 and
want an annual return of 12%, what net income is needed each
month? - ANSWER--$1,150
Usury laws were enacted to protect the - ANSWER--borrower
