PSI NATIONAL REAL ESTATE EXAM 2024 |
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS WITH RATIONALE | ALREADY
GRADED A+
What critical aspect of the property inspection process MUST licensees convey to
prospective buyers? - ANSWER Need for inspections to be completed within the
time stated in the contract.
A contract for the sale of a home has been signed by both parties. This contract will
remain executory until - ANSWER the transaction has closed.
A broker is showing a buyer one of his residential listings. The buyer says he wants
to establish a day care center for seniors in the property. The property has been
used as a day care center for no more than five children. How should the broker
advise this buyer? - ANSWER Provide the buyer with contact information for the
local planning and zoning office to confirm the zoning and determine whether it
permits his use.
A broker hires a salesperson as an independent contractor. In order for the
salesperson to be considered an independent contractor for federal income tax
purposes, the broker's written contract with the salesperson MUST specify -
ANSWER that the salesperson will not be treated as an employee for federal
income tax purposes.
The sellers want to accept a purchase offer, but only if the price is raised by $5,000.
What should they give the prospective buyer? - ANSWER Counteroffer.
When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of
trust is that - ANSWER foreclosure is usually simpler and faster.
Even after an offer has been accepted and is binding, the buyer and seller may still
choose to sign mutual release papers rather than proceed to closing. Which of the
following circumstances would NOT give either party a justifiable reason to insist on
a mutual release? - ANSWER The buyer finds a better property for better terms.
A tenant rented an apartment, signing a 15-month lease. After the lease expired, the
tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant
have? - ANSWER Tenancy at will.
MOST closed real estate transactions should be reported to the IRS. REQUIRED
information includes seller name(s) and social security number(s) and - ANSWER
the sale price.
, A minority couple come to a salesperson looking for a house. The salesperson has
some properties for which the couple qualify but avoids showing or mentioning these
listings. Instead, the salesperson shows only properties in low-priced and integrated
neighborhoods. This practice is known as - ANSWER steering.
Failure of a real estate agent to comply with Fair Housing practices is punishable by
- ANSWER license revocation and criminal prosecution.
A salesperson qualified a minority couple with two children and defined their price
range as between $110,000 and $120,000 for the three-bedroom house they
wanted. They asked to look at two listings in a nonminority neighborhood. The
salesperson did not show them the properties because they were priced under
$90,000 and had only two small bedrooms. Did the salesperson act appropriately
and why or why not? - ANSWER No, because it is appropriate to show any
property for which the buyer is qualified.
A company agrees to lease a property to be used as a gambling casino. State laws
prohibit gambling. This particular contract would be legally defined as - ANSWER
void.
A distinguishing characteristic of owning property by land trust is that - ANSWER
the identity of the legal owner is kept confidential.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER lender wants
to sell the mortgage to the secondary market.
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? - ANSWER Both contracts are valid.
Which of the following events would AUTOMATICALLY cancel a listing agreement? -
ANSWER Property owner's death.
Refer to the scenario below.
You are hosting an open house. Mr. and Mrs. Charles Martin come into the house.
You greet them and show them the house. The Martins tell you the house is exactly
what they are looking for and they are very interested in purchasing it. You then give
them information showing the various types of financing available with down
payment options and projected payments. Mr. Martin tells you they have been
working with Mary Hempstead of XX Realty, a competing real estate company.
Before leaving, you thank them for coming and give them your business card.
The first thing on Monday morning, Mrs. Martin calls and indicates they have tried to
reach Mary and cannot. They indicate they have a written buyer's agent agreement
with Mary's broker. They are afraid someone else is going to buy the house. Which
of the following should you do? - ANSWER Tell them to call Mary's supervising
broker or branch manager.
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS WITH RATIONALE | ALREADY
GRADED A+
What critical aspect of the property inspection process MUST licensees convey to
prospective buyers? - ANSWER Need for inspections to be completed within the
time stated in the contract.
A contract for the sale of a home has been signed by both parties. This contract will
remain executory until - ANSWER the transaction has closed.
A broker is showing a buyer one of his residential listings. The buyer says he wants
to establish a day care center for seniors in the property. The property has been
used as a day care center for no more than five children. How should the broker
advise this buyer? - ANSWER Provide the buyer with contact information for the
local planning and zoning office to confirm the zoning and determine whether it
permits his use.
A broker hires a salesperson as an independent contractor. In order for the
salesperson to be considered an independent contractor for federal income tax
purposes, the broker's written contract with the salesperson MUST specify -
ANSWER that the salesperson will not be treated as an employee for federal
income tax purposes.
The sellers want to accept a purchase offer, but only if the price is raised by $5,000.
What should they give the prospective buyer? - ANSWER Counteroffer.
When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of
trust is that - ANSWER foreclosure is usually simpler and faster.
Even after an offer has been accepted and is binding, the buyer and seller may still
choose to sign mutual release papers rather than proceed to closing. Which of the
following circumstances would NOT give either party a justifiable reason to insist on
a mutual release? - ANSWER The buyer finds a better property for better terms.
A tenant rented an apartment, signing a 15-month lease. After the lease expired, the
tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant
have? - ANSWER Tenancy at will.
MOST closed real estate transactions should be reported to the IRS. REQUIRED
information includes seller name(s) and social security number(s) and - ANSWER
the sale price.
, A minority couple come to a salesperson looking for a house. The salesperson has
some properties for which the couple qualify but avoids showing or mentioning these
listings. Instead, the salesperson shows only properties in low-priced and integrated
neighborhoods. This practice is known as - ANSWER steering.
Failure of a real estate agent to comply with Fair Housing practices is punishable by
- ANSWER license revocation and criminal prosecution.
A salesperson qualified a minority couple with two children and defined their price
range as between $110,000 and $120,000 for the three-bedroom house they
wanted. They asked to look at two listings in a nonminority neighborhood. The
salesperson did not show them the properties because they were priced under
$90,000 and had only two small bedrooms. Did the salesperson act appropriately
and why or why not? - ANSWER No, because it is appropriate to show any
property for which the buyer is qualified.
A company agrees to lease a property to be used as a gambling casino. State laws
prohibit gambling. This particular contract would be legally defined as - ANSWER
void.
A distinguishing characteristic of owning property by land trust is that - ANSWER
the identity of the legal owner is kept confidential.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER lender wants
to sell the mortgage to the secondary market.
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? - ANSWER Both contracts are valid.
Which of the following events would AUTOMATICALLY cancel a listing agreement? -
ANSWER Property owner's death.
Refer to the scenario below.
You are hosting an open house. Mr. and Mrs. Charles Martin come into the house.
You greet them and show them the house. The Martins tell you the house is exactly
what they are looking for and they are very interested in purchasing it. You then give
them information showing the various types of financing available with down
payment options and projected payments. Mr. Martin tells you they have been
working with Mary Hempstead of XX Realty, a competing real estate company.
Before leaving, you thank them for coming and give them your business card.
The first thing on Monday morning, Mrs. Martin calls and indicates they have tried to
reach Mary and cannot. They indicate they have a written buyer's agent agreement
with Mary's broker. They are afraid someone else is going to buy the house. Which
of the following should you do? - ANSWER Tell them to call Mary's supervising
broker or branch manager.
