Page 1 of 296
PSI NATIONAL EXAM FOR REAL ESTATE AND
MISSISSIPPI REAL ESTATE EXAM QUESTIONS AND
VERIFIED ANSWERS
agent ......ANSWER........works for a client giving advice and with
a customer giving information
agency ......ANSWER........condition which legally exists when a
principal contracts with an agent to perform on his behalf.
universal agency ......ANSWER........authorizes an agent to handle
matters of all types for the principal. Requires power of attorney
general agent ......ANSWER........authorizes an agent to transact
matters concerning a specific area of business for the principal.
example: managing several investment properties
specific agent ......ANSWER........represents the principal for a
specific act only, such as the sale of a house
express agency ......ANSWER........based on a formal agreement
between parties in which the parties express the establishment of
an agency and state the terms and conditions
EX. listing agreement
implied agency ......ANSWER........occurs when parties act in such
a was as to indicate that they have agreed to an agency
fiduciary relationship ......ANSWER........based on trust and
confidence
EX giving power of attorney
,Page 2 of 296
fiduciary responsibilities ......ANSWER........OLD CAR
obedience, loyalty, disclosure, confidentiality, accountability,
reasonable care
duties owed to the customer ......ANSWER........the person you do
not represent, owe them honesty and fairness
termination of agency ......ANSWER........death or incapacity of
either party
destruction or condemnation of property
expiration of terms
by mutual agreement
renunciation by the agent (fire each other)
bankruptcy of the principal
fulfillment of purpose
designated agent ......ANSWER........person authorized by the
broker to act as the agent of a specific principal
sub agency ......ANSWER........(not in La) salespersons are general
agents of the broker, and therefore owe fiduciary duties to the
broker. a cooperating broker may also be a subagent of a
listing broker
dual agency ......ANSWER........the act of representing 2 principals
to a transaction at the same time and require equal loyalty to
both.
undisclosed dual agency ......ANSWER........(illegal in La) may
occur unintentionally by either carelessness or misunderstanding
,Page 3 of 296
disclosed dual agency ......ANSWER........representing both the
buyer and seller in the same transaction with the informed
consent of both
agency disclosure brochure ......ANSWER........must be signed by
the client and agent before an agent may show a property
Pertinent material facts and defects ......ANSWER........an agent
must fully disclose that he knows to be present in the property he
is showing
latent defect ......ANSWER........a hidden structural defect that
would not be discovered by ordinary inspection
fraud ......ANSWER........the intentional misrepresentation of a
material fact
negligent misrepresentation ......ANSWER........occurs when the
agent should have known that a statement about a material fact
was false
negligent omission ......ANSWER........the agent accidently fails to
perform some act, such as delivering a counter offer
puffing ......ANSWER........exaggerating a property's benefits such
as views or landscaping. an opinion
agent may be ......ANSWER........employee of a broker or an
independent contractor
exempt from licensing ......ANSWER........for sale by owner
executors, administrators, guardians
, Page 4 of 296
attorney
lending institution
city, state, federal
appraisers, trustees
(la) appraisers must have license
environmental hazards ......ANSWER........hazards you must
disclose.
option (unilateral contract) ......ANSWER........a right extended to
purchase real property for a specified amount within a specified
period of time. If the second party accepts, the offerer is
obligated. Must be signed by one.
void contract (La null) ......ANSWER........no contract at all. does
not conform with law
voidable contract (La relatively null) ......ANSWER........a contract
that is still binding, but is flawed
offer and acceptance ......ANSWER........"meeting of the minds"
offerer makes and offer and offeree accepts or rejects
constructive communication ......ANSWER........when an offerer
specifies the means by which he wants his offer accepted.
legally binding as soon as the offeree follows offerers directions
actual communication ......ANSWER........when the offerer receives
written or oral communication of acceptance
Valid contract in La must have ......ANSWER........cause, even if
money is involved.
PSI NATIONAL EXAM FOR REAL ESTATE AND
MISSISSIPPI REAL ESTATE EXAM QUESTIONS AND
VERIFIED ANSWERS
agent ......ANSWER........works for a client giving advice and with
a customer giving information
agency ......ANSWER........condition which legally exists when a
principal contracts with an agent to perform on his behalf.
universal agency ......ANSWER........authorizes an agent to handle
matters of all types for the principal. Requires power of attorney
general agent ......ANSWER........authorizes an agent to transact
matters concerning a specific area of business for the principal.
example: managing several investment properties
specific agent ......ANSWER........represents the principal for a
specific act only, such as the sale of a house
express agency ......ANSWER........based on a formal agreement
between parties in which the parties express the establishment of
an agency and state the terms and conditions
EX. listing agreement
implied agency ......ANSWER........occurs when parties act in such
a was as to indicate that they have agreed to an agency
fiduciary relationship ......ANSWER........based on trust and
confidence
EX giving power of attorney
,Page 2 of 296
fiduciary responsibilities ......ANSWER........OLD CAR
obedience, loyalty, disclosure, confidentiality, accountability,
reasonable care
duties owed to the customer ......ANSWER........the person you do
not represent, owe them honesty and fairness
termination of agency ......ANSWER........death or incapacity of
either party
destruction or condemnation of property
expiration of terms
by mutual agreement
renunciation by the agent (fire each other)
bankruptcy of the principal
fulfillment of purpose
designated agent ......ANSWER........person authorized by the
broker to act as the agent of a specific principal
sub agency ......ANSWER........(not in La) salespersons are general
agents of the broker, and therefore owe fiduciary duties to the
broker. a cooperating broker may also be a subagent of a
listing broker
dual agency ......ANSWER........the act of representing 2 principals
to a transaction at the same time and require equal loyalty to
both.
undisclosed dual agency ......ANSWER........(illegal in La) may
occur unintentionally by either carelessness or misunderstanding
,Page 3 of 296
disclosed dual agency ......ANSWER........representing both the
buyer and seller in the same transaction with the informed
consent of both
agency disclosure brochure ......ANSWER........must be signed by
the client and agent before an agent may show a property
Pertinent material facts and defects ......ANSWER........an agent
must fully disclose that he knows to be present in the property he
is showing
latent defect ......ANSWER........a hidden structural defect that
would not be discovered by ordinary inspection
fraud ......ANSWER........the intentional misrepresentation of a
material fact
negligent misrepresentation ......ANSWER........occurs when the
agent should have known that a statement about a material fact
was false
negligent omission ......ANSWER........the agent accidently fails to
perform some act, such as delivering a counter offer
puffing ......ANSWER........exaggerating a property's benefits such
as views or landscaping. an opinion
agent may be ......ANSWER........employee of a broker or an
independent contractor
exempt from licensing ......ANSWER........for sale by owner
executors, administrators, guardians
, Page 4 of 296
attorney
lending institution
city, state, federal
appraisers, trustees
(la) appraisers must have license
environmental hazards ......ANSWER........hazards you must
disclose.
option (unilateral contract) ......ANSWER........a right extended to
purchase real property for a specified amount within a specified
period of time. If the second party accepts, the offerer is
obligated. Must be signed by one.
void contract (La null) ......ANSWER........no contract at all. does
not conform with law
voidable contract (La relatively null) ......ANSWER........a contract
that is still binding, but is flawed
offer and acceptance ......ANSWER........"meeting of the minds"
offerer makes and offer and offeree accepts or rejects
constructive communication ......ANSWER........when an offerer
specifies the means by which he wants his offer accepted.
legally binding as soon as the offeree follows offerers directions
actual communication ......ANSWER........when the offerer receives
written or oral communication of acceptance
Valid contract in La must have ......ANSWER........cause, even if
money is involved.
