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2024/2025 PSI REAL ESTATE SALESPERSON EXAM 1 QUESTIONS AND 100% VERIFIED ANSWERS., Exams of Real Estate Management

2024/2025 PSI REAL ESTATE SALESPERSON EXAM 1 QUESTIONS AND 100% VERIFIED ANSWERS.

Typology: Exams

2023/2024

Available from 09/11/2024

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Download 2024/2025 PSI REAL ESTATE SALESPERSON EXAM 1 QUESTIONS AND 100% VERIFIED ANSWERS. and more Exams Real Estate Management in PDF only on Docsity!

2024/2025 PSI REAL ESTATE

SALESPERSON EXAM 1 QUESTIONS

AND 100% VERIFIED ANSWERS.

Which of the following would NOT be considered Real Property?

  1. Mineral Rights
  2. A Leasehold Estate
  3. Fixtures
  4. Air
  5. A Leasehold Estate The servient estate in an easement appurtenant is the property
  6. owned by the landlord
  7. on which the easement is placed
  8. owned by the tenant
  9. that benefits from the easement
  10. on which the easement is placed Which of the following statements concerning encumbrances is NOT true
  11. All encumbrances are liens
  12. All liens are encumbrances
  13. Restrictions beneficial to the grantee are encumbrances
  14. An easement is a physical encumbrance
  15. All encumbrances are liens Which of the following is not a specific lien?
  16. Mortgage Lien
  17. State inheritance tax
  1. Real Estate taxes
  2. Mechanic's Lien
  3. State Inheritance tax You have entered into a lease that requires you to pay 20% of the owners expenses. Your lease would be an example of
  4. variable lease
  5. net lease
  6. percentage lease
  7. gross lease
  8. Net lease If a husband and wife own an apartment building and the husband owns an undivided three-fourths interest and the wife owns a one-fourth interest, what type of tenancy exists?
  9. Leasehold Estate
  10. Joint tenancy
  11. Tenancy in common
  12. Tenancy by the entirety
  13. Tenancy in common The highest form of ownership a person may hold in Real Estate is?
  14. Life Estate
  15. Fee Simple
  16. Legal life estate
  17. base fee
  18. Fee simple Two unrelated people own a three-unit apartment building as tenants in common. One wants to sell but the others do not. Which of the following statements describes the legal rights of the party who wants to sell?
  1. The party may request a court to partition the building
  2. The party may require the co-owner to sell
  3. The party may record a lis penden on the property
  4. The party may refinance the mortgage in his or her own name, thus eliminating the co-owner's interest in the property
  5. The party may request a court to partition the building Your aunt died intestate and you inherited her house. The way in which you acquired the title to her house is by:
  6. curtsey
  7. descent
  8. escheat
  9. laches
  10. descent Which of the following statements does NOT correctly describe a legal life estate?
  11. During his or her life estate the life tenant is generally answerable to the holder of the future interest.
  12. The life tenant may not commit any acts that would permanently injure the property.
  13. There may be a reversionary interest.
  14. There may be a remainder interest.
  15. During his or her life estate the life tenant is generally answerable to the holder of the future interest. Which of the following is NOT a leasehold estate?
  16. An estate for years
  17. Periodic estate
  18. Time-Share estate
  19. Estate from year to year
  1. A Time-Share estate You are married and own a house under a form of ownership that prohibits you from selling it without the signature of your spouse. Your form of ownership is LEAST likely to be?
  2. in severalty
  3. a joint tenancy
  4. tenancy in common
  5. tenancy by the entirety
  6. in severalty A state wants to build a publicly owned convention center to attract private development in its largest city. Can the state use eminent domain to acquire the land?
  7. No, because private investments aren't allowed.
  8. Yes, if just compensation is paid to the owners of the land.
  9. No, because eminent domain can only be used for highway expansion.
  10. Yes, if the owners hold fee-simple interest in the land.
  11. Yes, if just compensation is paid to the owners of the land. Which of the following grants zoning authority to municipal governments?
  12. Eminent domain
  13. State enabling acts
  14. Laches
  15. Escheat
  16. State enabling acts The city in which you live has a zoning ordinance. The basis for the city to have such an ordinance is
  17. eminent domain
  18. escheat
  1. police power
  2. riparian right
  3. police power Which of the following terms are NOT related?
  4. Freehold Estate - fee simple
  5. Grantor- person conveying title
  6. Leasehold estate - personal property
  7. Police Power- deed restriction
  8. Police power - deed restriction Strict liability under Superfund means that:
  9. each of the individual owners is personally responsible for the damages in whole.
  10. the owner is responsible to the injured party without excuse.
  11. the liability is not limited to the person who currently owns the property but also includes the people who have owned the site in the past.
  12. The owner is not responsible to the injured party unless it can be proved that the owner was aware of the problem.
  13. the owner is responsible to the injured party without excuse. Which of the following does NOT correctly describe how Real Estate licensees should handle the possibility of hazardous substances on a property being sold?
  14. Clients should be asked about the possibility of hazardous substances on the property.
  15. Licensees should consider the consequences of potential liability.
  16. Licensees should be scrupulous in considering environmental issues.
  17. Licensees should not disclose the problem because it might harm the seller.
  18. Licensees should not disclose the problem because it might harm the seller. Sources of groundwater contamination do NOT include:
  1. waste disposal sites
  2. underground storage tanks
  3. use of pesticides in farming communities
  4. radon
  5. radon Your neighbor has given you revocable permission to go hunting on his farm. You have a (an):
  6. leasehold estate
  7. easement appurtenant
  8. license
  9. defeasible fee-estate
  10. license A claim based on adverse possession of property must NOT be:
  11. notorious
  12. open
  13. hostile
  14. secretive
  15. secretive A man gives his friend the right to go hunting on his property for just one day. This is an example of
  16. a license
  17. an easement in gross
  18. an easement in appurtenance
  19. an easement by prescription
  20. a license A person who receives real property by will is called a
  21. trustee
  1. devisee
  2. testator
  3. hypothecator
  4. a devisee Riparian rights would exist in a
  5. condominium on a bay
  6. house on a bay
  7. hotel whose land abuts a large lake
  8. cooperative on a river
  9. cooperative on a river A developer was able to buy 2 adjoining single family lots for $20,000 each. He combined the lots into one parcel with a value of $90,000. The developers actions reflects the process of
  10. accession
  11. attachment
  12. exchange
  13. plottage
  14. plottage A restaurant opened in a neighborhood and was enjoying substantial profits. Within a year another restaurant was built across the street and resulted in the first restaurant losing in the next year, 30% of its profits. This is an example of the principal of
  15. competition
  16. conformity
  17. highest and best use
  18. progression
  19. competition

A meat packing plant has just been built one block from your house. The strong odors are lowering property values in your neighborhood. The loss in value would be classified as:

  1. functional obsolescence
  2. physical deterioration
  3. the principle of change
  4. external obsolescense
  5. external obsolescence In the appraisal of public building an appraiser would use the
  6. cost approach
  7. income cap approach
  8. sales comparison approach
  9. gross rent multiplier
  10. cost approach A four bedroom house with one bathroom would be an example of:
  11. physical deterioration
  12. functional obsolescence
  13. economic obsolescence
  14. environmental obsolescence
  15. functional obsolescence which of the following is not a stage in the appraisal process?
  16. state the problem
  17. analyze the tax consequences of the property owner
  18. reconcile the date for the final value estimate
  19. analyze an interpret the data
  20. analyze the tax consequence of the property owner

An appraiser uses the cost approach in appraising a home. The appraiser should not use which of the following types of information?

  1. physical deterioration
  2. cost of replacement of house
  3. depreciation of land
  4. economic obsolescence
  5. depreciation of land A house that is the least expensive in its neighborhood has nevertheless grown significantly in value over the years bc of the increasing number of larger, more expensive houses being built nearby. This growth in value is an example of the principle of
  6. regression
  7. competition
  8. progression
  9. highest and bestuse
  10. progression You are preparing a competitive market analysis on a house that you hope to list for sale. Which of the following approaches to value will be used in the development of the estimated value?
  11. cost approach
  12. gross rent multiplier
  13. income approach
  14. sale comparison approach
  15. sale comparison approach A competitive market analysis reflects the use of the
  16. cost approach
  17. income approach
  1. sale comparison approach
  2. gross rent multiplier method
  3. sale comparison approach Bank A holds the lien on a home in which Bank B already had a lien. The lenders subsequently entered into an agreement in which Bank A moved into a first lien position. This is an example of a (an):
  4. hypothetication agreement
  5. disintermediation agreement
  6. reverse annuity mortgage
  7. subordination agreement
  8. subordination agreement If the Federal Reserve board raises its discount rate, which of the following is likely to occur?
  9. mortgage money will become more available
  10. interest rates will stay the same
  11. mortgage money will become less available
  12. interest rates will decline
  13. mortgage money will become less available You have a mortgage in which you make the same payment each month for principal and interest, with the principal payment increasing and the interest payment decreasing from month-to-month. This is called a (an):
  14. amortized mortgage
  15. term mortgage
  16. reverse annuity mortgage
  17. partially amortized mortgage
  18. amortized mortgage Which agency is involved with purchasing government-related loans?
  1. Fannie Mae
  2. Ginnie Mae
  3. Freddie Mac
  4. The "Fed"
  5. Ginnie Mae Which of the following agencies is NOT included in the secondary mortgage market?
  6. FHA
  7. FNMA
  8. GNMA
  9. FHLMC
  10. FHA All loans subject to the Real Estate Settlement Procedures Act (RESPA) require lenders to :
  11. charge their seller for all loan discount points
  12. document any reason for declining credit to a loan applicant
  13. deliver a Uniform Settlement Statement (HUD-1) form to both buyer and seller.
  14. Allow the buyer to rescind the contract any time prior to the first payment due.
  15. deliver a Uniform Settlement Statement (HUD-1) form to both buyer and seller You mortgaged your property and just made the final payment. Recording which of the following documents will provide notice that the mortgage lien has been removed?
  16. reconveyance deed
  17. satisfaction of mortgage
  18. alienation of the mortgage instrument
  19. reversion of the deed
  20. satisfaction of mortgage

When a loan is subject to provisions of the Real Estate Settlement Procedures Act (RESPA), which of the following elements of a real estate transaction need NOT observe RESPA guidelines?

  1. the commission structure for licensees
  2. the type of settlement statement used at the closing
  3. who receives a good faith estimate of closing costs
  4. the payment referral fees to licensees by providers of closing-related services
  5. the commission structure for licensees regulation Z in the Truth-In-Lending Act provides which of the following penalties for licensees who willfully fail to comply with its advertising guidelines for real estate financing?
  6. Fines only
  7. License revocation
  8. Fines and/or imprisonment
  9. None; all violations of regulation Z are referred to state licensing agencies
  10. Fines and/or imprisonment Salesperson A for Broker B has listed a home. Salesperson C for Broker D is acting as a buyer's agent and trying to sell the same home to his buyer. Saleperson C is primarily responsible to:
  11. His own buyer
  12. Salesperson A
  13. Broker B
  14. Broker D
  15. Broker D In MOST states, the listing boker has a fiduciary relationship with
  16. the customer
  17. the listing salesperson
  1. the client
  2. the buyer
  3. the client A Broker was employed by an owner to sell her home. Which of the following statements does NOT correctly describe the broker's relationship to the owner?
  4. The Broker has become the sellers agent
  5. the Broker owes fiduciary duty to the seller
  6. the Broker is a special agent
  7. the broker is a general agent
  8. the Broker is a general agent You are a licensee holding an open house on one of your listings. An old friend see the sign and stops in, and ultimately asks you to write up an offer to purchase. At this point, without any discussion about agency, which of the following statements about agency is correct?
  9. Your friend is your customer
  10. Your position as seller's agent prohibits you from writing the offer
  11. The request automatically creates an express dual agency relationship.
  12. The relationship with your friend presents an irreconcilable conflict of interest
  13. Your friend is your customer You listed a home that was subsequently shown by six cooperating outside brokers. How many seller-agency relationships are involved in this transaction?
  14. One
  15. Six
  16. Seven
  17. None of the above
  18. One A Salesperson listed a home for sale and transferred to another brokerage firm two weeks later. Which of the following statements describes the status of the

listing?

  1. the listing is terminated
  2. the listing is transferred to the new broker
  3. the two brokers will negotiate to decide who will hold the listing
  4. the listing will stay with the former broker of the salesperson
  5. the listing will stay with the former broker of the salesperson A salesperson presented an offer that was accepted and received an earnest money payment of $2000.00. The Salesperson should:
  6. hold the payment until the buyer has received a financial commitment
  7. give the earnest money to his broker
  8. open up a trust account and deposit the payment in it
  9. deposit the payment in the sellers checking account
  10. give the earnest money to the broker You are working as a buyers broker for your client. which of the following would NOT describe your role as a buyers broker?
  11. You should show the buyer properties only in which your commission is protected.
  12. You should counsel the buyer about developing accurate objectives.
  13. You should search the best properties for your buyer to inspect, widening the marketplace to include homes for sale by owners (FSBO's)
  14. You should help the buyer prepare the best offer.
  15. You should show the buyer properties only in which your commission is protected According to the law of agency, a real estate broker does NOT owe the principal the duty of:
  16. exercising reasonable care
  17. acting in good faith
  1. conforming with the principal's legal instructions
  2. offering legal advice
  3. offering legal advice A broker acting as the agent of a seller:
  4. can agree to change in the listing price without the principals approval
  5. may share her commission with the salesperson of another broker
  6. must report all offers to the principal unless instructed otherwise
  7. must maintain as confidential all information the orincipalsays not to disclose
  8. must report all offers to the principal unless instructed otherwise A broker listed a residential property under a valid written listing agreement. After the sale was completed, the owner refused to pay the brokers fee. Which of the following can the broker do?
  9. She can take the seller to court and sue for the commission
  10. She is entitled to a lien on the seller's property for the amount of the commission
  11. She can go to court and stop the transaction until she is paid
  12. She can collect the commission from the buyer
  13. She can take the seller to court and sue for the commission Commissions and fees paid by the seller to the listing agency are determined by:
  14. standards promulgated by the local board of realtors
  15. negotiations between the seller and the listing license
  16. applying and prevailing customary fees charged in that area
  17. and industry index computed monthly from multiple-listing service data
  18. negotiations between the seller and the listing license A listing broker is MOST likely to have earned a commission from a principal when which of the following events occur?
  19. An offer to purchase has been presented to the client
  1. title has been transferred to the buyer.
  2. the seller accepts and signs and offer to purchase
  3. A "ready, willing and able" buyer signs a non-contingent or cash offer that meets the terms of the listing contract
  4. A "ready, willing and able" buyer signs a non-contingent or cash offer that meets the terms of the listing contract A broker listed an owner's home and later received an offer from another licensee that met all of the listing terms and conditions. After considering the offer, the owner informed the broker that the owner no longer wished to sell, and asked to be released from the listing agreement immediately. Which of the following is TRUE statement about the brokers position in this situation?
  5. The broker must release the owner without obligation
  6. The broker must tell the owner that the offeror may sue for specific performance
  7. The broker may succeed in collecting an earned commission from the owner.
  8. The broker may keep the earnest money that accompanied the offer as liquidated damages.
  9. The broker may succeed in collecting an earned commission from the owner. An option, prior to being exersized, is an example of:
  10. an assignable contract
  11. a unilateral contract
  12. a bilateral contract
  13. an executed contract
  14. A unilateral contract Which of the following is a similarity between an exclusive-right-to-sell listing and an exclusive-agency listing?
  15. Under both, the seller avoids paying the broker a commission if the seller sells the property without the help of a broker
  1. Both give the responsibility of representing the seller to just one broker
  2. Both are net listings
  3. Under both, the seller authorizes one specific salesperson to show the property
  4. Both give the responsibility of representing the seller to just one broker A buyer has entered into an agency agreement with more than one buyer's agent but only owes compensation to the one who puts an actual transaction together. This arrangement is known as:
  5. multiple listing agreement
  6. exclusive right agreement
  7. exclusive agency agreement
  8. non exclusive agency agreement
  9. nonexclusive agency agreement Which of the following types of clauses governs the right of a listing broker to collect a commission from an owner who waits until the listing period expires and then personally contracts to sell the property to a party the broker had shown the property to during the listing period.
  10. Alienation
  11. Protection
  12. Defeasance
  13. Habendum
  14. Protection You wrote an offer on a house for $214,000. The seller gave you a counteroffer for $218,000. The seller may withdraw the counteroffer any time
  15. within 72 hours after acceptance
  16. prior to the buyer's acceptance
  17. prior to removal of all contingencies in the offer
  18. prior to closing
  1. prior to the buyers acceptance You signed a lease for one year and you took possession of an apartment. When the lease expired, you continued to live in the apartment without the owner's consent. Your tenancy would be considered to be a (an):
  2. estate for years
  3. estate from year to year
  4. tenancy at will
  5. tenancy in sufference
  6. tenancy in sufference A commercial lease that allows rent to be increased or decreased periodically based on changes in economic indicators is a (an):
  7. graduated lease
  8. gross lease
  9. percentage lease
  10. index lease
  11. index lease In theory, which of the following types of deeds gives a property buyer the MOST protection against problems that may arise with the title?
  12. Quitclaim
  13. Bargain and Sale
  14. Special Warranty
  15. General Warranty
  16. General Warranty You have entered into an installment land contract for the sale of your home. Which of the following is NOT correct?
  17. The buyer is the vendee
  18. The buyer will take possession when the contract is signed by both parties, if

the contract so provides.

  1. The buyer will hold legal title during the term of the contract
  2. The buyer will hold equitable title during the term of the contract?
  3. The buyer will hold legal title during the term of the contract Personal property is generally conveyed by a
  4. bill of sale
  5. certificate of title
  6. quitclaim deed
  7. trust deed
  8. bill of sale The movement of land caused by an earthquake would be an example of
  9. accretion
  10. avulsion
  11. erosion
  12. hypothecation
  13. avulsion