PSI REAL ESTATE SALESPERSON PRACTICE EXAM QUESTIONS
& ANSWERS 2024 ( A+ GRADED 100% VERIFIED)
1. A couple listed their home with a broker. After 2 months, the seller found a buyer,
and the sale closed. The seller was not obligated to pay a commission to the broker.
This listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing.: an exclusive agency listing
2. What critical aspect of the property inspection process MUST licensees convey to
prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the contract.4.
Likelihood that the inspection will generate a list of items sellers must repair.:
Need for inspections to be completed within the time stated in the contract.
3. An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search.: defects that clearly appear in the title
search.
4. If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-
1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford?
(BE SURE TO USE THE AMORTIZATION TABLE.)
1. $158,100 2. $158,300
3. $175,900
4. $176,100: $176,100
5. State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
,3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce.: a suicide that occurred in the house
last year.
6. Three identical homes in a neighborhood were listed at the same time in a
market where demand was constant. According to the law of supply and demand,
which would have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given: The first sold.
7. A property management plan may serve different purposes for different owners,
and generally has to strike a balance between preservation of the property's value
and generation of income. Which of the following owners would MOST likely prefer
a property manager who emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust.: The Department of Housing and Urban
Development.
8. Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII.: Regulation Z.
9. The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
3. an investment group.
4. an insurance company.: an insurance company.
10. In the sale of property, there is often confusion over whether an item is a fixture
or personal property. What is the best way to avoid this confusion?
1. Apply the legal tests of a fixture.
, 2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales contract.
4. Use the legal definition of a fixture as any permanently attached item.: Specify
questionable items of property in the written sales contract.
11. 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?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson: the supervising broker
12. A seller's statement in a property disclosure document means
1. the owner is disclosing known latent defects.
2. nothing, because the seller will not be responsible for any defects.
3. the property is fully suitable for the uses contemplated by the buyer.
4. the owner creates a warranty that there are no defects in the property.: the owner
is disclosing known latent defects.
13. When compiling a competitive market analysis, a broker would look for
comparable properties that
1. were sold for all cash.
2. had been extensively advertised.
3. were offered by owner with no broker.
4. were located near the property being listed.: were located near the property being
listed.
14. A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest
1. listing the property at the price the owner believes it is worth.
2. listing the property at least 30% above the current mortgage.
3. a competitive market analysis to determine the property's value.
4. setting the price at the value of the most recent sale in the neighborhood.: a
competitive market analysis to determine the property's value.
& ANSWERS 2024 ( A+ GRADED 100% VERIFIED)
1. A couple listed their home with a broker. After 2 months, the seller found a buyer,
and the sale closed. The seller was not obligated to pay a commission to the broker.
This listing was MOST likely
1. an exclusive agency listing.
2. an exclusive right to sell listing.
3. a net listing.
4. an advance fee listing.: an exclusive agency listing
2. What critical aspect of the property inspection process MUST licensees convey to
prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the contract.4.
Likelihood that the inspection will generate a list of items sellers must repair.:
Need for inspections to be completed within the time stated in the contract.
3. An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search.: defects that clearly appear in the title
search.
4. If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-
1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford?
(BE SURE TO USE THE AMORTIZATION TABLE.)
1. $158,100 2. $158,300
3. $175,900
4. $176,100: $176,100
5. State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
,3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce.: a suicide that occurred in the house
last year.
6. Three identical homes in a neighborhood were listed at the same time in a
market where demand was constant. According to the law of supply and demand,
which would have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given: The first sold.
7. A property management plan may serve different purposes for different owners,
and generally has to strike a balance between preservation of the property's value
and generation of income. Which of the following owners would MOST likely prefer
a property manager who emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several apartment buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust.: The Department of Housing and Urban
Development.
8. Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII.: Regulation Z.
9. The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
3. an investment group.
4. an insurance company.: an insurance company.
10. In the sale of property, there is often confusion over whether an item is a fixture
or personal property. What is the best way to avoid this confusion?
1. Apply the legal tests of a fixture.
, 2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales contract.
4. Use the legal definition of a fixture as any permanently attached item.: Specify
questionable items of property in the written sales contract.
11. 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?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson: the supervising broker
12. A seller's statement in a property disclosure document means
1. the owner is disclosing known latent defects.
2. nothing, because the seller will not be responsible for any defects.
3. the property is fully suitable for the uses contemplated by the buyer.
4. the owner creates a warranty that there are no defects in the property.: the owner
is disclosing known latent defects.
13. When compiling a competitive market analysis, a broker would look for
comparable properties that
1. were sold for all cash.
2. had been extensively advertised.
3. were offered by owner with no broker.
4. were located near the property being listed.: were located near the property being
listed.
14. A prospective seller asks a salesperson to recommend a listing price for a
property. The salesperson should suggest
1. listing the property at the price the owner believes it is worth.
2. listing the property at least 30% above the current mortgage.
3. a competitive market analysis to determine the property's value.
4. setting the price at the value of the most recent sale in the neighborhood.: a
competitive market analysis to determine the property's value.
