National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
1. The doctrine of laches refers to the _______ of restrictive covenants/deed
restrictions.
-Creation
-Enforcement
-History
-Types: Enforcement
2. Roberto, a licensee, filled in the blanks on a standard form used in his
brokerage firm. Is this okay?
-No, because he's not an attorney, he shouldn't prepare contracts.
-No, he should have his client complete any forms.
-Yes, licensees can use standard forms originally created or approved by an
attorney.
-Yes, real estate licensees may draft contracts and fill in blanks on existing
contracts.: Yes, licensees can use standard forms originally created or approved
by an attorney.
3. Derrick was thrilled to find out that the land he purchased includes several
small caves. He's been spelunking for about three years and looks forward to
exploring the caves on weekends. Which real property right allows him to do
so?
-Disposition
-Enjoyment
-Exclusion
-Possession: Enjoyment
4. Lawrence is a buyer closing on a home purchase for which he's obtaining
financing. He receives a Loan Estimate from his lender. What's the purpose of
this document?
-To detail the amount Lawrence needs to bring to closing
-To detail the estimated closing costs for Lawrence's loan
-To disclose the interest rates available on this lender's various loan pro-
grams
-To disclose the lender's source of loan funds: To detail the estimated closing
costs for Lawrence's loan
**The Loan Estimate, which the lender must provide within three days of loan
application, provides an estimate of mortgage loan costs.
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
5. Claire rents 1,100 square feet of office space in a new professional building.
Her rent payment includes all utilities and property taxes, but she pays sepa-
rately for custodial services. What kind of lease does Claire have?
-Full-service lease
-Modified gross lease
-Percentage lease
-Triple-net lease: Modified gross lease
**A modified gross lease typically includes all the nets in the base rent, but not
utilities and/or janitorial services.
6. Marlon and Leah are interested in buying a home in a new homeowner
opportunity area. The 100-year-old row house was renovated and is like new
on the inside. The property taxes decreased by more than $5,000 last year.
What's the likely reason for this?
-Introductory rates
-Seller error
-Tax abatement
-Tax reassessment: Tax abatement
**A tax abatement program will lower the property taxes on a given property for a
set amount of time. This is typically in response to some sort of improvement or
rehabilitation, or for some new construction properties.
7. Which of the following is an example of price fixing?
-A brokerage requires all licensees to offer a fair cooperative brokerage fee.
-Three brokerages agree to purchase office supplies together to obtain a bulk
discount.
-Twelve brokerages discuss compensation of associated independent con-
tractor licensees.
-Two brokerages determine a standard commission rate.: Two brokerages de-
termine a standard commission rate.
**Collusion must occur on pricing for the public in order for price fixing to occur.
8. Which legislative act prohibits certain types of electronic communication?
-CAN-SPAM
-NO-SPAM
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
-SPAM-CAN
-SPAM-JAM: CAN-SPAM
**The Controlling the Assault of Non-Solicited Pornography and Marketing Act
(CAN-SPAM) prohibits junk email and requires an "unsubscribe" option in any email
marketing messages.
9. Tracy is looking in the MLS and sees a listing marked "REO." Which of these
statements regarding REOs is correct?
-An REO property is one that the lender is trying to help the owner sell before
beginning foreclosure proceedings.
-Banks acquire REOs through failed foreclosure sales or deed in lieu of
foreclosure actions.
-REOs are properties that the lender has given permission to sell for less than
the loan amount.
-REOs refer to investment properties a bank owns.: Banks acquire REOs
through failed foreclosure sales or deed in lieu of foreclosure actions.
**Failed foreclosure sales and deed in lieu of foreclosure actions result in lenders
taking title to properties they previously had mortgage loans on. These properties
are called real estate owned, or REOs.
10. Shakira is attending an association meeting when, in a small group break-
out, her group begins discussing how to deal with the new kid in town: a real
estate firm that charges a flat $500 to list properties, then lets the sellers fend
for themselves. Shakira should leave the discussion because _______.
-She needs to get to work developing this model for herself
-The group seems bent on creating a tie-in arrangement
-This conversation seems to be turning into a discussion of market allocation
-This conversation sounds like it might become an antitrust violation: This
conversation sounds like it might become an antitrust violation
**This conversation sounds like it could lead to group boycotting, an antitrust
violation.
11. Seller Jason is giving listing agent Rebecca a tour of his house and
pointing out all the features, even the spot in the attic where a previous
owner's ghost likes to come back and visit. Jason asks Rebecca if buyers
should be told about this. Which response is best?
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
-"All states require sellers to disclose any undesirable feature of a house,
which includes ghosts."
-"The presence of spirits stigmatizes the property. Many states don't consider
this a material fact requiring disclosure, but this is my first ghost encounter,
so I'll check our laws."
-"We can tell prospective buyers that the property comes with a roommate."
-"You can't mention this, because it would be a fair housing violation.": "The
presence of spirits stigmatizes the property. Many states don't consider this a
material fact requiring disclosure, but this is my first ghost encounter, so I'll check
our laws."
12. Which one of the following types of ownership termination allows each ten-
ant to have a specific, divided portion (partition) of the property exclusively?
-Termination by division
-Termination of co-ownership by partition
-Termination of estate in severalty
-Termination of joint tenancies: Termination of co-ownership by partition
**Termination of tenancy in common by partition allows each tenant to have a
specific, divided portion of the property exclusively. If the property can't be divided,
the court may rule that the property be sold and the proceeds divided by the tenants.
13. Which of these would void a deed intended to convey property?
-The grantee is not mentally competent.
-The grantee's signature is not acknowledged.
-The grantor is not mentally competent.
-The transfer includes no monetary consideration.: The grantor is not mentally
competent.
14. Desmond has a signed listing agreement with his clients, the Harpers.
In exchange for helping the Harpers list, market, and sell their home, the
Harpers have agreed to pay Desmond a commission. What type of agreement
do Desmond and the Harpers have?
-Bilateral
-Executed
-Mutual
-Unilateral: Bilateral
Study online at https://quizlet.com/_gtnrlw
1. The doctrine of laches refers to the _______ of restrictive covenants/deed
restrictions.
-Creation
-Enforcement
-History
-Types: Enforcement
2. Roberto, a licensee, filled in the blanks on a standard form used in his
brokerage firm. Is this okay?
-No, because he's not an attorney, he shouldn't prepare contracts.
-No, he should have his client complete any forms.
-Yes, licensees can use standard forms originally created or approved by an
attorney.
-Yes, real estate licensees may draft contracts and fill in blanks on existing
contracts.: Yes, licensees can use standard forms originally created or approved
by an attorney.
3. Derrick was thrilled to find out that the land he purchased includes several
small caves. He's been spelunking for about three years and looks forward to
exploring the caves on weekends. Which real property right allows him to do
so?
-Disposition
-Enjoyment
-Exclusion
-Possession: Enjoyment
4. Lawrence is a buyer closing on a home purchase for which he's obtaining
financing. He receives a Loan Estimate from his lender. What's the purpose of
this document?
-To detail the amount Lawrence needs to bring to closing
-To detail the estimated closing costs for Lawrence's loan
-To disclose the interest rates available on this lender's various loan pro-
grams
-To disclose the lender's source of loan funds: To detail the estimated closing
costs for Lawrence's loan
**The Loan Estimate, which the lender must provide within three days of loan
application, provides an estimate of mortgage loan costs.
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
5. Claire rents 1,100 square feet of office space in a new professional building.
Her rent payment includes all utilities and property taxes, but she pays sepa-
rately for custodial services. What kind of lease does Claire have?
-Full-service lease
-Modified gross lease
-Percentage lease
-Triple-net lease: Modified gross lease
**A modified gross lease typically includes all the nets in the base rent, but not
utilities and/or janitorial services.
6. Marlon and Leah are interested in buying a home in a new homeowner
opportunity area. The 100-year-old row house was renovated and is like new
on the inside. The property taxes decreased by more than $5,000 last year.
What's the likely reason for this?
-Introductory rates
-Seller error
-Tax abatement
-Tax reassessment: Tax abatement
**A tax abatement program will lower the property taxes on a given property for a
set amount of time. This is typically in response to some sort of improvement or
rehabilitation, or for some new construction properties.
7. Which of the following is an example of price fixing?
-A brokerage requires all licensees to offer a fair cooperative brokerage fee.
-Three brokerages agree to purchase office supplies together to obtain a bulk
discount.
-Twelve brokerages discuss compensation of associated independent con-
tractor licensees.
-Two brokerages determine a standard commission rate.: Two brokerages de-
termine a standard commission rate.
**Collusion must occur on pricing for the public in order for price fixing to occur.
8. Which legislative act prohibits certain types of electronic communication?
-CAN-SPAM
-NO-SPAM
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
-SPAM-CAN
-SPAM-JAM: CAN-SPAM
**The Controlling the Assault of Non-Solicited Pornography and Marketing Act
(CAN-SPAM) prohibits junk email and requires an "unsubscribe" option in any email
marketing messages.
9. Tracy is looking in the MLS and sees a listing marked "REO." Which of these
statements regarding REOs is correct?
-An REO property is one that the lender is trying to help the owner sell before
beginning foreclosure proceedings.
-Banks acquire REOs through failed foreclosure sales or deed in lieu of
foreclosure actions.
-REOs are properties that the lender has given permission to sell for less than
the loan amount.
-REOs refer to investment properties a bank owns.: Banks acquire REOs
through failed foreclosure sales or deed in lieu of foreclosure actions.
**Failed foreclosure sales and deed in lieu of foreclosure actions result in lenders
taking title to properties they previously had mortgage loans on. These properties
are called real estate owned, or REOs.
10. Shakira is attending an association meeting when, in a small group break-
out, her group begins discussing how to deal with the new kid in town: a real
estate firm that charges a flat $500 to list properties, then lets the sellers fend
for themselves. Shakira should leave the discussion because _______.
-She needs to get to work developing this model for herself
-The group seems bent on creating a tie-in arrangement
-This conversation seems to be turning into a discussion of market allocation
-This conversation sounds like it might become an antitrust violation: This
conversation sounds like it might become an antitrust violation
**This conversation sounds like it could lead to group boycotting, an antitrust
violation.
11. Seller Jason is giving listing agent Rebecca a tour of his house and
pointing out all the features, even the spot in the attic where a previous
owner's ghost likes to come back and visit. Jason asks Rebecca if buyers
should be told about this. Which response is best?
, National Real Estate Exam PSI
Study online at https://quizlet.com/_gtnrlw
-"All states require sellers to disclose any undesirable feature of a house,
which includes ghosts."
-"The presence of spirits stigmatizes the property. Many states don't consider
this a material fact requiring disclosure, but this is my first ghost encounter,
so I'll check our laws."
-"We can tell prospective buyers that the property comes with a roommate."
-"You can't mention this, because it would be a fair housing violation.": "The
presence of spirits stigmatizes the property. Many states don't consider this a
material fact requiring disclosure, but this is my first ghost encounter, so I'll check
our laws."
12. Which one of the following types of ownership termination allows each ten-
ant to have a specific, divided portion (partition) of the property exclusively?
-Termination by division
-Termination of co-ownership by partition
-Termination of estate in severalty
-Termination of joint tenancies: Termination of co-ownership by partition
**Termination of tenancy in common by partition allows each tenant to have a
specific, divided portion of the property exclusively. If the property can't be divided,
the court may rule that the property be sold and the proceeds divided by the tenants.
13. Which of these would void a deed intended to convey property?
-The grantee is not mentally competent.
-The grantee's signature is not acknowledged.
-The grantor is not mentally competent.
-The transfer includes no monetary consideration.: The grantor is not mentally
competent.
14. Desmond has a signed listing agreement with his clients, the Harpers.
In exchange for helping the Harpers list, market, and sell their home, the
Harpers have agreed to pay Desmond a commission. What type of agreement
do Desmond and the Harpers have?
-Bilateral
-Executed
-Mutual
-Unilateral: Bilateral
