PSI Real Estate Exam
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? - ANS- Specify
questionable items of property in the written sales contract.
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? - ANS- Tenancy at will.
A legal easement can be created by any of the following EXCEPT - ANS- Merger of the
titles.
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called - ANS- A
mechanic's lien.
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over
the northern part of the neighbor's land to gain access to the river. He pays the neighbor
$9,000 for the right of access and receives a deed. This is an easement - ANS-
Appurtenant.
Legal descriptions using the government survey system are NOT generally used in -
ANS- The original 13 states.
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - ANS- Conditional use permit or zoning variance.
An escheat occurs when - ANS- A property owner dies without heirs or a valid will.
A lawsuit for inverse condemnation may be brought by - ANS- A homeowner.
A deed restriction is applicable to the activities of - ANS- All owners, present and future.
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? - ANS- Cannot tell from the information given.
, A formal appraisal will ALWAYS be REQUIRED when the - ANS- Lender wants to sell the
mortgage to the secondary market.
When compiling a competitive market analysis, a broker would look for comparable
properties that - ANS- Were located near the property being listed.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ANS- Business district zoned for a six-story office building.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANS- Demand immediate payment of the entire note.
Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)? - ANS- Regulation Z.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation? - ANS- Confirm with the seller's broker, the lender and the closing entity that
the closing must be delayed to allow for a new seven-day waiting period because of the
interest rate revision.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANS- Prepayment penalties
and rebates.
When a home is purchased using an ARM, the monthly loan payment on the mortgage
will - ANS- Vary over the life of the loan depending on fluctuations in the interest rate to
which the loan is referenced.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend a
mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT -
ANS- More variety of loan programs available.
The FHA functions MOST like - ANS- An insurance company.
Even if a loan applicant's current income seems adequate to qualify for a certain loan,
the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the
applicant's main source of income is - ANS- Commission sales.
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? - ANS- Specify
questionable items of property in the written sales contract.
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? - ANS- Tenancy at will.
A legal easement can be created by any of the following EXCEPT - ANS- Merger of the
titles.
An owner hired a construction company to build a swimming pool at a new home. The
owner failed to pay the bill once the work was completed and the construction company
filed a lien to obtain payment of the debt. The encumbrance created is called - ANS- A
mechanic's lien.
A homeowner has negotiated with a neighbor to obtain the permanent right to pass over
the northern part of the neighbor's land to gain access to the river. He pays the neighbor
$9,000 for the right of access and receives a deed. This is an easement - ANS-
Appurtenant.
Legal descriptions using the government survey system are NOT generally used in -
ANS- The original 13 states.
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - ANS- Conditional use permit or zoning variance.
An escheat occurs when - ANS- A property owner dies without heirs or a valid will.
A lawsuit for inverse condemnation may be brought by - ANS- A homeowner.
A deed restriction is applicable to the activities of - ANS- All owners, present and future.
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? - ANS- Cannot tell from the information given.
, A formal appraisal will ALWAYS be REQUIRED when the - ANS- Lender wants to sell the
mortgage to the secondary market.
When compiling a competitive market analysis, a broker would look for comparable
properties that - ANS- Were located near the property being listed.
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ANS- Business district zoned for a six-story office building.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANS- Demand immediate payment of the entire note.
Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)? - ANS- Regulation Z.
A broker and the buyers he represents are anxiously awaiting the closing on their new
home. The closing is scheduled in 4 days. The buyers inform the broker that they just
received revised Loan Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker take in this
situation? - ANS- Confirm with the seller's broker, the lender and the closing entity that
the closing must be delayed to allow for a new seven-day waiting period because of the
interest rate revision.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the - ANS- Prepayment penalties
and rebates.
When a home is purchased using an ARM, the monthly loan payment on the mortgage
will - ANS- Vary over the life of the loan depending on fluctuations in the interest rate to
which the loan is referenced.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend a
mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT -
ANS- More variety of loan programs available.
The FHA functions MOST like - ANS- An insurance company.
Even if a loan applicant's current income seems adequate to qualify for a certain loan,
the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the
applicant's main source of income is - ANS- Commission sales.
