PSI Salesperson Real Estate Practice Exam
V1 (New 2023/ 2024 Update) | Questions and
Verified Answers|100% Correct
QUESTION
A deed restriction is applicable to the activities of
1. the current owner only.
2. all owners, present and future.
3. tenants.
4. mortgagors.
Answer:
all owners, present and future.
QUESTION
To be valid, every deed must
1. contain a warranty.
2. include granting language.
3. be executed by the grantor.
4. be signed by the grantee if there are covenants.
Answer:
be executed by the grantor.
QUESTION
A realty firm has just entered into an agreement to represent a home builder in the sale of a new
subdivision. The firm has located several potential buyers and five homes have been sold to
purchasers that the firm's agents have contacted. The realty firm has an agency relationship with
1. the builder.
2. the buyers.
3. the builder and the buyers.
4. neither the builder nor the buyers.
,Answer:
the builder.
QUESTION
Salesperson Susan was at the local coffee shop with some agents from other offices. The subject
of commissions came up, and agents began to compare their commission rates. Susan should
1. excuse herself from the discussion as this could constitute illegal blockbusting.
2. advise her friends this could constitute a violation of Sherman Antitrust Act.
3. listen carefully so she can be more competitive in the market.
4. be certain her company is charging as much as the others.
Answer:
advise her friends this could constitute a violation of Sherman Antitrust Act.
QUESTION
A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The
property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume
that all costs of the foreclosure sale are included in these balances. Which of the following
statements is FALSE regarding the distribution of funds?
1. The first mortgagee receives $60,000.
2. The second mortgagee receives $23,500.
3. The second mortgagee receives nothing unless he forced the foreclosur
Answer:
The second mortgagee receives nothing unless he forced the foreclosure auction.
QUESTION
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is
1. an independent contractor to the broker and an agent to the principal.
2. an agent to the broker and a subagent to the principal.
3. a subagent to the broker and an agent to the principal.
, 4. an agent to the broker and an agent to the principal.
Answer:
an agent to the broker and a subagent to the principal.
QUESTION
The Department of Housing and Urban Development estimates that most private homes built
before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies,
such as FHA,
1. will no longer lend or guarantee loans on these older properties.
2. require evidence of testing for and disclosure of any type of lead contamination before they
will lend or guarantee loans on such properties.
3. require funds to be escrowed for lead abatement as a condition of lending or guaran
Answer:
require the buyer to acknowledge disclosure of the presence of any known lead paint.
QUESTION
For Federal income tax purposes, which of the following are costs of homeownership that may
be deducted from gross income?
1. Mortgage loan interest, local property taxes, mortgage loan origination fees.
2. Mortgage loan interest, homeowner's insurance premium, local property taxes.
3. Cost of essential repairs, mortgage loan origination fees, local property taxes.
4. Homeowner's insurance premium, mortgage loan origination fees, mortgage loan interest.
Answer:
Mortgage loan interest, local property taxes, mortgage loan origination fees.
QUESTION
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the
broker has earned his commission when
1. any offer is delivered to the seller.
2. the seller accepts the offer.
V1 (New 2023/ 2024 Update) | Questions and
Verified Answers|100% Correct
QUESTION
A deed restriction is applicable to the activities of
1. the current owner only.
2. all owners, present and future.
3. tenants.
4. mortgagors.
Answer:
all owners, present and future.
QUESTION
To be valid, every deed must
1. contain a warranty.
2. include granting language.
3. be executed by the grantor.
4. be signed by the grantee if there are covenants.
Answer:
be executed by the grantor.
QUESTION
A realty firm has just entered into an agreement to represent a home builder in the sale of a new
subdivision. The firm has located several potential buyers and five homes have been sold to
purchasers that the firm's agents have contacted. The realty firm has an agency relationship with
1. the builder.
2. the buyers.
3. the builder and the buyers.
4. neither the builder nor the buyers.
,Answer:
the builder.
QUESTION
Salesperson Susan was at the local coffee shop with some agents from other offices. The subject
of commissions came up, and agents began to compare their commission rates. Susan should
1. excuse herself from the discussion as this could constitute illegal blockbusting.
2. advise her friends this could constitute a violation of Sherman Antitrust Act.
3. listen carefully so she can be more competitive in the market.
4. be certain her company is charging as much as the others.
Answer:
advise her friends this could constitute a violation of Sherman Antitrust Act.
QUESTION
A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The
property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume
that all costs of the foreclosure sale are included in these balances. Which of the following
statements is FALSE regarding the distribution of funds?
1. The first mortgagee receives $60,000.
2. The second mortgagee receives $23,500.
3. The second mortgagee receives nothing unless he forced the foreclosur
Answer:
The second mortgagee receives nothing unless he forced the foreclosure auction.
QUESTION
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is
1. an independent contractor to the broker and an agent to the principal.
2. an agent to the broker and a subagent to the principal.
3. a subagent to the broker and an agent to the principal.
, 4. an agent to the broker and an agent to the principal.
Answer:
an agent to the broker and a subagent to the principal.
QUESTION
The Department of Housing and Urban Development estimates that most private homes built
before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies,
such as FHA,
1. will no longer lend or guarantee loans on these older properties.
2. require evidence of testing for and disclosure of any type of lead contamination before they
will lend or guarantee loans on such properties.
3. require funds to be escrowed for lead abatement as a condition of lending or guaran
Answer:
require the buyer to acknowledge disclosure of the presence of any known lead paint.
QUESTION
For Federal income tax purposes, which of the following are costs of homeownership that may
be deducted from gross income?
1. Mortgage loan interest, local property taxes, mortgage loan origination fees.
2. Mortgage loan interest, homeowner's insurance premium, local property taxes.
3. Cost of essential repairs, mortgage loan origination fees, local property taxes.
4. Homeowner's insurance premium, mortgage loan origination fees, mortgage loan interest.
Answer:
Mortgage loan interest, local property taxes, mortgage loan origination fees.
QUESTION
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the
broker has earned his commission when
1. any offer is delivered to the seller.
2. the seller accepts the offer.
