National PSI Salesperson Exam II
A grantor wishes to convey title to a grantee in a deed that creates the least protection
for the grantee. The grantor should give the grantee a
1. bargain and sale deed.
2. quitclaim deed.
3. general warranty deed.
4. special warranty deed.
2. The general warranty and special warranty deed contain express warranties. A bargain
and sale deed has an implied warranty. A quitclaim deed contains no warranty. page 152
Of the following liens, which generally would be given the highest priority?
1. A judgment issued last year
2. A mortgage recorded four years ago
3. A special assessment
4. A mechanic's lien for work begun two months ago
3. Special assessments and real estate taxes take priority over all other liens, regardless
of the date of recording. page 24
You are showing a property described as being in the “nicest neighborhood in town”
when, in fact, other neighborhoods are arguably as nice. A statement such as this is
MOST likely to be categorized as
1. fraud.
2. puffing.
3. misrepresentation.
4. professional negligence.
2. Your opinion would be an example of puffing. page 168
You are chairperson of the Democratic party in your state, and you also own an eight-unit
apartment building you currently rent out. You are taking a rental application from a
,prospective tenant when she informs you that she works for the Republican party of your
state. You inform her that all the apartments have been rented even though you know
they have not been rented. Which of the following statements correctly describes this
unethical situation?
1. You have violated Truth-in-Lending.
2. You have violated the federal fair housing law.
3. You have exercised your rights as an owner of private property to discriminate.
4. You have violated RESPA.
3. Political belief is not a protected class under the federal fair housing laws. page 164
When a listing agreement includes a broker protection clause, the clause
1. protects the broker against any lawsuits filed by the client.
2. allows the broker to buy the listed property if the broker is unable to sell it.
3. automatically extends the listing for six months if the broker is unable to see the
property.
4. states that the owner will pay a commission to the listing broker if the property is sold
to a buyer with whom the broker negotiated during the listing term within a specific time
after the listing expires.
4. The broker protection clause refers to the broker’s commission. The broker protection
clause does not exist in Connecticut. In addition, the automatic extension of listing
agreements is against the law in most states. page 122
Which of the following would NOT be considered to be real property?
1. Trees
2. Buildings
3. Trade fixtures
4. Water rights
3. Trade fixtures are items installed by a tenant for conducting a business. page 30
A sale is to be closed on June 23. Real estate taxes of $3,760 for the current year have
not been paid. What is the amount of real estate tax proration to be credited to the buyer?
(Use a 30-day month for calculation.)
1. $1,566.65
, 2. $1,806.86
3. $1,879.98
4. None of these
2. $3,760 ÷ 12 months = $313.33 per month
$313.33 ÷ 30 days = $10.444 per day
$313.33 × 5 months = $1,566.65
$10.444 × 23 = $240.21
$1,566.65 + $240.21 = $1,806.86 page 187
The giver of an option is called the
1. vendor.
2. optionor.
3. vendee.
4. optionee.
2. The giver of an option is the optionor; the buyer is the optionee. The vendor is a seller
of realty; the vendee is the purchaser of realty. page 121–122
Which of the following types of depreciation is generally incurable?
1. Physical deterioration
2. Economic or external obsolescence
3. Functional obsolescence
4. Physical depreciation
2. Functional obsolescence and physical deterioration and depreciation may be
incurable. Economic obsolescence generally is incurable. page 61
Three investors decided to pool their savings and buy a motel for $330,000. If one
invested $90,000 and the second contributed $50,000, what percentage of ownership was
left for the third investor?
1. 14.1
2. 27.3
3. 57.6
4. None of these
(3) $90,000 (first investor) + $50,000 (second investor) = $140,000
A grantor wishes to convey title to a grantee in a deed that creates the least protection
for the grantee. The grantor should give the grantee a
1. bargain and sale deed.
2. quitclaim deed.
3. general warranty deed.
4. special warranty deed.
2. The general warranty and special warranty deed contain express warranties. A bargain
and sale deed has an implied warranty. A quitclaim deed contains no warranty. page 152
Of the following liens, which generally would be given the highest priority?
1. A judgment issued last year
2. A mortgage recorded four years ago
3. A special assessment
4. A mechanic's lien for work begun two months ago
3. Special assessments and real estate taxes take priority over all other liens, regardless
of the date of recording. page 24
You are showing a property described as being in the “nicest neighborhood in town”
when, in fact, other neighborhoods are arguably as nice. A statement such as this is
MOST likely to be categorized as
1. fraud.
2. puffing.
3. misrepresentation.
4. professional negligence.
2. Your opinion would be an example of puffing. page 168
You are chairperson of the Democratic party in your state, and you also own an eight-unit
apartment building you currently rent out. You are taking a rental application from a
,prospective tenant when she informs you that she works for the Republican party of your
state. You inform her that all the apartments have been rented even though you know
they have not been rented. Which of the following statements correctly describes this
unethical situation?
1. You have violated Truth-in-Lending.
2. You have violated the federal fair housing law.
3. You have exercised your rights as an owner of private property to discriminate.
4. You have violated RESPA.
3. Political belief is not a protected class under the federal fair housing laws. page 164
When a listing agreement includes a broker protection clause, the clause
1. protects the broker against any lawsuits filed by the client.
2. allows the broker to buy the listed property if the broker is unable to sell it.
3. automatically extends the listing for six months if the broker is unable to see the
property.
4. states that the owner will pay a commission to the listing broker if the property is sold
to a buyer with whom the broker negotiated during the listing term within a specific time
after the listing expires.
4. The broker protection clause refers to the broker’s commission. The broker protection
clause does not exist in Connecticut. In addition, the automatic extension of listing
agreements is against the law in most states. page 122
Which of the following would NOT be considered to be real property?
1. Trees
2. Buildings
3. Trade fixtures
4. Water rights
3. Trade fixtures are items installed by a tenant for conducting a business. page 30
A sale is to be closed on June 23. Real estate taxes of $3,760 for the current year have
not been paid. What is the amount of real estate tax proration to be credited to the buyer?
(Use a 30-day month for calculation.)
1. $1,566.65
, 2. $1,806.86
3. $1,879.98
4. None of these
2. $3,760 ÷ 12 months = $313.33 per month
$313.33 ÷ 30 days = $10.444 per day
$313.33 × 5 months = $1,566.65
$10.444 × 23 = $240.21
$1,566.65 + $240.21 = $1,806.86 page 187
The giver of an option is called the
1. vendor.
2. optionor.
3. vendee.
4. optionee.
2. The giver of an option is the optionor; the buyer is the optionee. The vendor is a seller
of realty; the vendee is the purchaser of realty. page 121–122
Which of the following types of depreciation is generally incurable?
1. Physical deterioration
2. Economic or external obsolescence
3. Functional obsolescence
4. Physical depreciation
2. Functional obsolescence and physical deterioration and depreciation may be
incurable. Economic obsolescence generally is incurable. page 61
Three investors decided to pool their savings and buy a motel for $330,000. If one
invested $90,000 and the second contributed $50,000, what percentage of ownership was
left for the third investor?
1. 14.1
2. 27.3
3. 57.6
4. None of these
(3) $90,000 (first investor) + $50,000 (second investor) = $140,000
