Page 1 of 22
PSI REAL ESTATE SALESPERSON PRACTICE
EXAM/ PSI REAL ESTATE SALESPERSON TEST
ALL QUESTIONS AND CORRECT ANSWERS/ BEST
GRADED A+
Legal descriptions using the government survey system are NOT generally used in
- ANSWER: the original 13 states.
A homeowner is willing to let his neighbor park an RV in his backyard. He does
NOT want to make the permission permanent in case he dislikes others who might
move next door in the future. What should he give his neighbor? - ANSWER: A
license.
A legal easement can be created by any of the following EXCEPT - ANSWER:
merger of the titles.
An owner hired a construction company to build a swimming pool at a new home.
The owner failed to pay the bill once the work was completed and the construction
company filed a lien to obtain payment of the debt. The encumbrance created is
called - ANSWER: a mechanic's lien.
A tenant rented an apartment, signing a 15-month lease. After the lease expired,
the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the
tenant have? - ANSWER: Tenancy at will.
In the sale of property, there is often confusion over whether an item is a fixture or
personal property. What is the best way to avoid this confusion? - ANSWER:
Specify questionable items of property in the written sales contract.
Ordinances that specify construction standards are - ANSWER: building codes.
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If conditions for property use are included in a deed and these conditions are
violated, what is the most severe potential penalty? - ANSWER: A court may
order the return of the property to the original owner.
A deed restriction is applicable to the activities of - ANSWER: present and future
owners.
An escheat occurs when - ANSWER: a property owner dies without heirs or a
valid will.
All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT the - ANSWER: straight-line method.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER: lender
wants to sell the mortgage to the secondary market.
According to the principle of progression, a three-bedroom, one-story home is
MOST likely to bring the highest sales price if located in a neighborhood in which
- ANSWER: most homes are larger than the sale home.
Depreciation is calculated based on the - ANSWER: cost of the building only.
Three identical homes in a neighborhood were listed at the same time in a market
where demand was constant. According to the law of supply and demand, which
would have sold for the lowest price? - ANSWER: The first sold.
When preparing a market data estimate of value, which of the following categories
of adjustment is NOT essential? - ANSWER: The original cost of the building.
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Even if a loan applicant's current income seems adequate to qualify for a certain
loan, the Equal Credit Opportunity Act allows a lender to refuse the loan as a high
risk if the applicant's main source of income is - ANSWER: commission sales.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all
of the following disclosures MUST appear in the ad EXCEPT the - ANSWER:
prepayment penalties and rebates.
Federal Truth-in-Lending laws are also known as - ANSWER: Regulation Z.
When a home is purchased using an ARM, the monthly loan payment on the
mortgage will - ANSWER: vary over the life of the loan depending on fluctuations
in the interest rate to which the loan is referenced.
Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)? - ANSWER: Regulation Z.
When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of
trust is that - ANSWER: foreclosure is usually simpler and faster.
A broker and the buyers he represents are anxiously awaiting the closing on their
new home. The closing is scheduled in 4 days. The buyers inform the broker that
they just received revised Loan Estimate and Closing Disclosure forms from the
lender, indicating the Annual Percentage Rate on their loan has increased by 0.3%.
Based on the TILA-RESPA Integrated Disclosure rule, what action should the
broker take in this situation? - ANSWER: Confirm with the seller's broker, the
lender and the closing entity that the closing must be delayed to allow for a new
seven-day waiting period because of the interest rate revision.
PSI REAL ESTATE SALESPERSON PRACTICE
EXAM/ PSI REAL ESTATE SALESPERSON TEST
ALL QUESTIONS AND CORRECT ANSWERS/ BEST
GRADED A+
Legal descriptions using the government survey system are NOT generally used in
- ANSWER: the original 13 states.
A homeowner is willing to let his neighbor park an RV in his backyard. He does
NOT want to make the permission permanent in case he dislikes others who might
move next door in the future. What should he give his neighbor? - ANSWER: A
license.
A legal easement can be created by any of the following EXCEPT - ANSWER:
merger of the titles.
An owner hired a construction company to build a swimming pool at a new home.
The owner failed to pay the bill once the work was completed and the construction
company filed a lien to obtain payment of the debt. The encumbrance created is
called - ANSWER: a mechanic's lien.
A tenant rented an apartment, signing a 15-month lease. After the lease expired,
the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the
tenant have? - ANSWER: Tenancy at will.
In the sale of property, there is often confusion over whether an item is a fixture or
personal property. What is the best way to avoid this confusion? - ANSWER:
Specify questionable items of property in the written sales contract.
Ordinances that specify construction standards are - ANSWER: building codes.
,Page 2 of 22
If conditions for property use are included in a deed and these conditions are
violated, what is the most severe potential penalty? - ANSWER: A court may
order the return of the property to the original owner.
A deed restriction is applicable to the activities of - ANSWER: present and future
owners.
An escheat occurs when - ANSWER: a property owner dies without heirs or a
valid will.
All of the following are methods to calculate the reproduction or replacement cost
of a building EXCEPT the - ANSWER: straight-line method.
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER: lender
wants to sell the mortgage to the secondary market.
According to the principle of progression, a three-bedroom, one-story home is
MOST likely to bring the highest sales price if located in a neighborhood in which
- ANSWER: most homes are larger than the sale home.
Depreciation is calculated based on the - ANSWER: cost of the building only.
Three identical homes in a neighborhood were listed at the same time in a market
where demand was constant. According to the law of supply and demand, which
would have sold for the lowest price? - ANSWER: The first sold.
When preparing a market data estimate of value, which of the following categories
of adjustment is NOT essential? - ANSWER: The original cost of the building.
, Page 3 of 22
Even if a loan applicant's current income seems adequate to qualify for a certain
loan, the Equal Credit Opportunity Act allows a lender to refuse the loan as a high
risk if the applicant's main source of income is - ANSWER: commission sales.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all
of the following disclosures MUST appear in the ad EXCEPT the - ANSWER:
prepayment penalties and rebates.
Federal Truth-in-Lending laws are also known as - ANSWER: Regulation Z.
When a home is purchased using an ARM, the monthly loan payment on the
mortgage will - ANSWER: vary over the life of the loan depending on fluctuations
in the interest rate to which the loan is referenced.
Which of these Federal laws regulates the advertisement of a lender's credit terms
(rates, payment, etc.)? - ANSWER: Regulation Z.
When the sellers are lending part of the purchase price, they may secure the debt
either with a deed of trust or a mortgage. For the seller, one benefit of the deed of
trust is that - ANSWER: foreclosure is usually simpler and faster.
A broker and the buyers he represents are anxiously awaiting the closing on their
new home. The closing is scheduled in 4 days. The buyers inform the broker that
they just received revised Loan Estimate and Closing Disclosure forms from the
lender, indicating the Annual Percentage Rate on their loan has increased by 0.3%.
Based on the TILA-RESPA Integrated Disclosure rule, what action should the
broker take in this situation? - ANSWER: Confirm with the seller's broker, the
lender and the closing entity that the closing must be delayed to allow for a new
seven-day waiting period because of the interest rate revision.
