PSI Real Estate Test MA - State Portion
Only Exam Questions and Answers
Which of the following provides the strongest evidence of a marketable title? -
ANSWER-Title insurance
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owners gross income from the property, this kind of
lease is a... - ANSWER-Percentage lease
An owner leases a property to a business in exchange for rent. The tenant is
required to pay all operating expenses as well. This is an example of a... - ANSWER-
Net lease
A lease automatically terminates under which of the following circumstances? -
ANSWER-The tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - ANSWER-The construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - ANSWER-Takes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates
that the forested portion of the property must never be razed for development. Three
months later, Rycole proceeds to harvest the trees and turn the area into an effective
golf course. What recourse, if any, does Emily have under the deed condition? -
ANSWER-She has the right to re-possess the property because the grantee has
violated the condition
What is the essential purpose of legal descriptions of real property? - ANSWER-To
create a consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - ANSWER-They identify an
enclosed area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a
contingency to procure financing. The buyer extends the financing period in the offer
by one week, signs the form, and mails it back to the seller. At this point the sellers
offer... - ANSWER-Is void
Real estate contracts that are not personal service contracts - ANSWER-May be
assigned
, Which of the following contracts must be in writing to be enforceable? - ANSWER-A
two-year lease
Agent bib, who works for broker bill, obtains an owner listing to lease a building. Bills
other agent, Sue, locates a tenant for Bob's listing. Broker bill in this instance is a -
ANSWER-Dual agent
A transaction broker should disclose his or her agency relationship to prospective
buyers and sellers - ANSWER-Upon first substantive communication
A transaction facilitator in a residential transaction represents - ANSWER-Neither
buyer or seller
a principal instructs an agent to inform any minority buyer that the property was just
put under contract an hour ago and is no longer available. the agent refuses to
comply. in this case - ANSWER-The principal has proposed an illegal act, which
should not be obeyed
The amount of a real estate broker's commission is established by - ANSWER-
Negotiation with clients
A client revokes an exclusive right-to-sell listing two months prior to expiration. The
reason stated: the client is too busy to meet with the agent. In this case, - ANSWER-
The client may be liable for a commission and marketing expenses
A protection period clause in an exclusive listing provides that - ANSWER-the agent
has a claim to a commission if the owner sells or leases to a party within a certain
time following the listing's expiration.
Real estate advertising must conform to regulatory standards and requirements. One
requirement is - ANSWER-The advertising must not be deceptive
The three principal brokerage firms in a market agree to pay sales agents 15% more
that any other competitor currently in practice. This is an example of - ANSWER-
Collusion
Two leading agencies jointly agree to raise commissions charged a certain class of
client to 8%
of the sales price. Which of the following is true? - ANSWER-The brokers have
illegally fixed prices.
A sale contract contains an open-ended financing contingency: if the buyer cannot
obtain financing,
the deal is off. Six months later, the buyer still cannot secure financing. Which of the
following is
true? - ANSWER-The seller may cancel the contract, since it can be ruled invalid
Only Exam Questions and Answers
Which of the following provides the strongest evidence of a marketable title? -
ANSWER-Title insurance
A store owner enters into a lease that charges rent per square foot, a common area
fee, and a portion of the store owners gross income from the property, this kind of
lease is a... - ANSWER-Percentage lease
An owner leases a property to a business in exchange for rent. The tenant is
required to pay all operating expenses as well. This is an example of a... - ANSWER-
Net lease
A lease automatically terminates under which of the following circumstances? -
ANSWER-The tenant goes out of business
A county or municipal authority usually grants a certificate of occupancy for new
construction only after... - ANSWER-The construction conforms to building codes
A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell the property to another party. The new
owner... - ANSWER-Takes title subject to the same restriction
Emily sells Rycole a property containing a deed condition. The condition stipulates
that the forested portion of the property must never be razed for development. Three
months later, Rycole proceeds to harvest the trees and turn the area into an effective
golf course. What recourse, if any, does Emily have under the deed condition? -
ANSWER-She has the right to re-possess the property because the grantee has
violated the condition
What is the essential purpose of legal descriptions of real property? - ANSWER-To
create a consistent, unchanging standard for uniquely locating a property
What characterizes metes and bounds description? - ANSWER-They identify an
enclosed area, beginning and ending at the same point
A buyer agrees to all terms of a seller's offer except the length of time for a
contingency to procure financing. The buyer extends the financing period in the offer
by one week, signs the form, and mails it back to the seller. At this point the sellers
offer... - ANSWER-Is void
Real estate contracts that are not personal service contracts - ANSWER-May be
assigned
, Which of the following contracts must be in writing to be enforceable? - ANSWER-A
two-year lease
Agent bib, who works for broker bill, obtains an owner listing to lease a building. Bills
other agent, Sue, locates a tenant for Bob's listing. Broker bill in this instance is a -
ANSWER-Dual agent
A transaction broker should disclose his or her agency relationship to prospective
buyers and sellers - ANSWER-Upon first substantive communication
A transaction facilitator in a residential transaction represents - ANSWER-Neither
buyer or seller
a principal instructs an agent to inform any minority buyer that the property was just
put under contract an hour ago and is no longer available. the agent refuses to
comply. in this case - ANSWER-The principal has proposed an illegal act, which
should not be obeyed
The amount of a real estate broker's commission is established by - ANSWER-
Negotiation with clients
A client revokes an exclusive right-to-sell listing two months prior to expiration. The
reason stated: the client is too busy to meet with the agent. In this case, - ANSWER-
The client may be liable for a commission and marketing expenses
A protection period clause in an exclusive listing provides that - ANSWER-the agent
has a claim to a commission if the owner sells or leases to a party within a certain
time following the listing's expiration.
Real estate advertising must conform to regulatory standards and requirements. One
requirement is - ANSWER-The advertising must not be deceptive
The three principal brokerage firms in a market agree to pay sales agents 15% more
that any other competitor currently in practice. This is an example of - ANSWER-
Collusion
Two leading agencies jointly agree to raise commissions charged a certain class of
client to 8%
of the sales price. Which of the following is true? - ANSWER-The brokers have
illegally fixed prices.
A sale contract contains an open-ended financing contingency: if the buyer cannot
obtain financing,
the deal is off. Six months later, the buyer still cannot secure financing. Which of the
following is
true? - ANSWER-The seller may cancel the contract, since it can be ruled invalid
