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PSI National Exam for Real Estate Test Bank with complete solutions | Latest
Question 1: A written agreement in which a purchaser agrees to
buy and a seller agrees to sell is called
CORRECT ANSWER : a contract
Question 2: Antitrust laws prohibit competing brokers from all
of the following
- boycotting other brokers in the marketplace.
- dividing the market to restrict competition.
- agreeing to set sales commissions and management rates.
CORRECT ANSWER : 1. boycotting other brokers in the
marketplace.
- dividing the market to restrict competition.
- agreeing to set sales commissions and management rates.
Question 3: When a sewer line is installed down a rural road, the
cost will probably be shared by
CORRECT ANSWER : all current owners of real estate fronting
on that road
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Question 4: State laws differ on whether a buyer is entitled to
know about
CORRECT ANSWER : a suicide that occurred in the house last
year.
Question 5: A lawsuit for inverse condemnation may be brought
by
CORRECT ANSWER : a homeowner
Question 6: When is racial discrimination in the rental of rooms
or apartments permitted?
CORRECT ANSWER : Under no circumstances
Question 7: The real estate broker who is listing a house for sale
should personally verify
CORRECT ANSWER : the number of square feet in the building
Question 8: Real property can be converted to personal property
by
CORRECT ANSWER : Severance
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Question 9: Prospective buyers made an offer on a property. The
seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?
CORRECT ANSWER : Both contracts are valid
Question 10: Although states make specific laws governing
water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. In many states, the common law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with property. In others, all water rights are controlled by the state under the doctrine of
CORRECT ANSWER : prior appropriation
Question 11: The purpose of requiring an earnest money deposit
in a real estate sales contract is to
CORRECT ANSWER : provide evidence of the buyer's intention
to carry out the contract.
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Question 12: A buyer is getting a fully amortized loan for
$220,000. The bank will give the buyer the loan for 15 years at
- 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is
the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)
CORRECT ANSWER : $409.20.
Question 13: A borrower has defaulted on the mortgage. The
mortgage contains an acceleration clause. This permits the lender to
CORRECT ANSWER : demand immediate payment of the
entire note
Question 14: The FHA functions MOST like
CORRECT ANSWER : an insurance company
Question 15: 1. They are used to buy down interest rate.
- They are a function of the marketplace.
- They are paid by either the buyer or the seller.