IL Real Estate Broker PSI Practice Exam
A licensee was showing property in an eight-unit complex to a prospective tenant using a
motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom,
and lower all the door handles. The landlord... - ANS- Must allow the tenant to make the
modifications at the tenants expense, but can require, by the terms of the lease,
restoration of the property
Which of the following is the best description of a fee simple estate? - ANS- The most
complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-SPAM
Act, the licensee must - ANS- Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm.
Has an agency been formed? - ANS- Yes, because an agency is formed whenever one
party delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - ANS- control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The
broker has a financial interest in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? - ANS- Consider this lender, disclosing the
broker's interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and
continued through July 31, 2010. The couple had - ANS- An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers
which of the following pieces of information to a prospective buyer? - ANS- You should
make an offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in
value and she wants money for an investment. The new mortgage rate is 1% lower than
the old rate. What is this process called? - ANS- refinancing
An enforceable purchase agreement is formed when - ANS- the buyer knows of the
seller's written acceptance of the offer
, Which of the following is generally income tax deductible in home ownership? - ANS-
points paid to obtain the loan
Which of the following is true concerning eminent domain? - ANS- The property is taken
through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the
option of - ANS- demanding immediate payment of the entire loan balance.
An owner has been asked to grant a 60-day option to purchase a property. When should
the purchase price be decided? - ANS- Upon creation and signing of the option to
purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for
single-family dwellings? - ANS- Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - ANS- obtaining
information from prospective tenants to determine if they are financially able to afford the
rent.
Which of the following is a characteristic of a limited partner's role in a limited
partnership? - ANS- reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - ANS- consideration
A home equity line of credit is - ANS- a secured loan
Which of the following factors tends to increase the price of residential real estate in a
given area? - ANS- a large manufacturing plant opening in the city. If a large plant opens
in a city, the employment opportunities increase and more employees would be buying
houses, increasing demand
Four people bought an investment property together, each having an equal ownership
interest. They took title in such a manner that if one died he could leave his one-fourth
interest to his heirs. How did they take title to the real estate? - ANS- tenants in common.
Each owner can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans
for an amount equal to twice the annual income. Disregarding minimum percentage down
payment requirements, what is the minimum cash down payment that the couple will
need to have on a $210,000 home? - ANS- $35,200. The couple would have to make up
any difference between the loan amount and the purchase price of the property in the
form of a down payment. Since their joint incomes equal $87,4000, the bank will loan
A licensee was showing property in an eight-unit complex to a prospective tenant using a
motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom,
and lower all the door handles. The landlord... - ANS- Must allow the tenant to make the
modifications at the tenants expense, but can require, by the terms of the lease,
restoration of the property
Which of the following is the best description of a fee simple estate? - ANS- The most
complete ownership in property that one can obtain
A licensee plans to send out an email offering his services. According to the CAN-SPAM
Act, the licensee must - ANS- Tell recipients how to opt out of receiving future emails
The owner of an apartment building has just signed an agreement with a real estate firm.
Has an agency been formed? - ANS- Yes, because an agency is formed whenever one
party delegates to another the right to act on his behalf in certain business transactions
The most typical purpose of a deed restriction is to - ANS- control future uses of the
property
A managing broker requires his licensees to mention a particular lender to buyers. The
broker has a financial interest in this particular mortgage lender. Which of the following
should the licensee recommend to buyers? - ANS- Consider this lender, disclosing the
broker's interest, and other lenders.
A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and
continued through July 31, 2010. The couple had - ANS- An estate for years
A licensee anxious to make a sale violates his duties toward his principal if he volunteers
which of the following pieces of information to a prospective buyer? - ANS- You should
make an offer for less than the listing price because the owner is anxious to sell
An owner obtains a new mortgage on her house because the house has appreciated in
value and she wants money for an investment. The new mortgage rate is 1% lower than
the old rate. What is this process called? - ANS- refinancing
An enforceable purchase agreement is formed when - ANS- the buyer knows of the
seller's written acceptance of the offer
, Which of the following is generally income tax deductible in home ownership? - ANS-
points paid to obtain the loan
Which of the following is true concerning eminent domain? - ANS- The property is taken
through the process of condemnation
When a borrower defaults on a mortgage, an acceleration clause allows the lender the
option of - ANS- demanding immediate payment of the entire loan balance.
An owner has been asked to grant a 60-day option to purchase a property. When should
the purchase price be decided? - ANS- Upon creation and signing of the option to
purchase.
Which of the following is true about prepayment penalties on VA or FHA loans for
single-family dwellings? - ANS- Neither the VA nor the FHA allows prepayment penalties.
When managing property, which of the following actions is legal? - ANS- obtaining
information from prospective tenants to determine if they are financially able to afford the
rent.
Which of the following is a characteristic of a limited partner's role in a limited
partnership? - ANS- reduced personal liability and no management decision making
For a real estate sales contract to be valid, it must include - ANS- consideration
A home equity line of credit is - ANS- a secured loan
Which of the following factors tends to increase the price of residential real estate in a
given area? - ANS- a large manufacturing plant opening in the city. If a large plant opens
in a city, the employment opportunities increase and more employees would be buying
houses, increasing demand
Four people bought an investment property together, each having an equal ownership
interest. They took title in such a manner that if one died he could leave his one-fourth
interest to his heirs. How did they take title to the real estate? - ANS- tenants in common.
Each owner can sell or bequeath their property without consent of the other co-tenants
A couple's yearly income is $87,400. The couple's bank currently allows residential loans
for an amount equal to twice the annual income. Disregarding minimum percentage down
payment requirements, what is the minimum cash down payment that the couple will
need to have on a $210,000 home? - ANS- $35,200. The couple would have to make up
any difference between the loan amount and the purchase price of the property in the
form of a down payment. Since their joint incomes equal $87,4000, the bank will loan
