PSI Maryland Practice Exam (National Real Estate
Salesperson) 80 Q&A/ 2024-2025
A licensee has entered into a dual agency agreement. In this situation, it is critical that all parties
understand that it is impossible for the licensee to fully perform for either party the traditional common-
law agency duty of __________?
A. Accounting.
B. Care.
C. Disclosure.
D. Loyalty. - Answer: D. Loyalty.
An environmental impact statement typically describes the effects of a proposed project on factors such
as __________?
A. Public health and safety.
B. Zoning regulations.
C. Highest and best use of the land.
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,D. Mapping requirements. - Answer: A. Public health and safety.
Building codes are _____________?
A. Created to establish zoning in a neighborhood.
B. Ordinances that specify construction standards.
C. Established in each neighborhood or development.
D. Set up to hear complaints about effects of zoning ordinances. - Answer: B. Ordinances that specify
construction standards.
If an older building cannot be air-conditioned, it is an example of ___________ ?
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration - Answer: B. Functional obsolescence.
An appraiser MUST be licensed or certified to handle Federally related work on residential property
valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000. - Answer: B. $250,000.
The main difference between tenancy in common and joint tenancy is that with tenancy in common,
when a co-owner dies, _____________
A. His undivided interest passes to his heirs.
B. The last surviving owner holds title in severalty.
C. His undivided interest passes to the surviving co-owners.
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, D. The principle of the right to survivorship determines the rights of the surviving co-owners. - Answer:
A. His undivided interest passes to his heirs.
A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points.
How much money does the buyer need up front to make the purchase?
A. $2,720
B. $24,000
C. $24,408
D. $26,720 - Answer: D. $26,720
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period until the cap is reached.
B. Be adjusted automatically to ensure that negative amortization does not occur.
C. Be based on a very low interest rate to begin with, but will rise to the market rate at the first
adjustment.
D. Vary over the life of the loan depending on fluctuations in the interest rate to which the loan is
referenced. - Answer: D. Vary over the life of the loan depending on fluctuations in the interest rate to
which the loan is referenced.
An exception to title insurance coverage is ___________?
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search. - Answer: D. Defects that clearly appear in the title
search.
Under the common law of agency, licensees owe the broker with whom they are associated all of the
following duties EXCEPT _________?
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Salesperson) 80 Q&A/ 2024-2025
A licensee has entered into a dual agency agreement. In this situation, it is critical that all parties
understand that it is impossible for the licensee to fully perform for either party the traditional common-
law agency duty of __________?
A. Accounting.
B. Care.
C. Disclosure.
D. Loyalty. - Answer: D. Loyalty.
An environmental impact statement typically describes the effects of a proposed project on factors such
as __________?
A. Public health and safety.
B. Zoning regulations.
C. Highest and best use of the land.
Page 1 of 24
,D. Mapping requirements. - Answer: A. Public health and safety.
Building codes are _____________?
A. Created to establish zoning in a neighborhood.
B. Ordinances that specify construction standards.
C. Established in each neighborhood or development.
D. Set up to hear complaints about effects of zoning ordinances. - Answer: B. Ordinances that specify
construction standards.
If an older building cannot be air-conditioned, it is an example of ___________ ?
A. Economic obsolescence.
B. Functional obsolescence.
C. Physical deterioration.
D. External deterioration - Answer: B. Functional obsolescence.
An appraiser MUST be licensed or certified to handle Federally related work on residential property
valued at more than ___________?
A. $100,000.
B. $250,000.
C. $500,000.
D. $1,000,000. - Answer: B. $250,000.
The main difference between tenancy in common and joint tenancy is that with tenancy in common,
when a co-owner dies, _____________
A. His undivided interest passes to his heirs.
B. The last surviving owner holds title in severalty.
C. His undivided interest passes to the surviving co-owners.
Page 2 of 24
, D. The principle of the right to survivorship determines the rights of the surviving co-owners. - Answer:
A. His undivided interest passes to his heirs.
A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points.
How much money does the buyer need up front to make the purchase?
A. $2,720
B. $24,000
C. $24,408
D. $26,720 - Answer: D. $26,720
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
____________ ?
A. Rise slightly in each adjustment period until the cap is reached.
B. Be adjusted automatically to ensure that negative amortization does not occur.
C. Be based on a very low interest rate to begin with, but will rise to the market rate at the first
adjustment.
D. Vary over the life of the loan depending on fluctuations in the interest rate to which the loan is
referenced. - Answer: D. Vary over the life of the loan depending on fluctuations in the interest rate to
which the loan is referenced.
An exception to title insurance coverage is ___________?
A. Forged documents.
B. Defects found in public newspapers.
C. Incorrect records of marital status.
D. Defects that clearly appear in the title search. - Answer: D. Defects that clearly appear in the title
search.
Under the common law of agency, licensees owe the broker with whom they are associated all of the
following duties EXCEPT _________?
Page 3 of 24
