PSI Real Estate Salesperson exam 1 Questions Solved Correctly (Latest Update 2023) 68 Ques, Exams of Nursing

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Correctly (Latest Update 2023) 68 Questions

Which of the following would NOT be considered Real Property?

1. Mineral Rights
2. A Leasehold Estate
3. Fixtures
4. Air - correct answers ✅2. A Leasehold Estate The servient estate in an easement appurtenant is the property
5. owned by the landlord
6. on which the easement is placed
7. owned by the tenant
8. that benefits from the easement - correct answers ✅2. on which the easement is placed Which of the following statements concerning encumbrances is NOT true
9. All encumbrances are liens

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2. All liens are encumbrances
3. Restrictions beneficial to the grantee are encumbrances
4. An easement is a physical encumbrance - correct answers ✅1. All encumbrances are liens Which of the following is not a specific lien?
5. Mortgage Lien
6. State inheritance tax
7. Real Estate taxes
8. Mechanic's Lien - correct answers ✅2. 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
9. variable lease
10. net lease
11. percentage lease

Correctly (Latest Update 2023) 68 Questions

4. gross lease - correct answers ✅2. 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?
5. Leasehold Estate
6. Joint tenancy
7. Tenancy in common
8. Tenancy by the entirety - correct answers ✅3. Tenancy in common The highest form of ownership a person may hold in Real Estate is?
9. Life Estate
10. Fee Simple
11. Legal life estate
12. base fee - correct answers ✅2. Fee simple

Correctly (Latest Update 2023) 68 Questions

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 - correct answers ✅1. 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:
5. curtsey
6. descent
7. escheat
8. laches - correct answers ✅2. descent

Correctly (Latest Update 2023) 68 Questions

Which of the following statements does NOT correctly describe a legal life estate?

1. During his or her life estate the life tenant is generally answerable to the holder of the future interest.
2. The life tenant may not commit any acts that would permanently injure the property.
3. There may be a reversionary interest.
4. There may be a remainder interest. - correct answers ✅1. 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?
5. An estate for years
6. Periodic estate
7. Time-Share estate
8. Estate from year to year - correct answers ✅3. A Time-Share estate

Correctly (Latest Update 2023) 68 Questions

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?

1. in severalty
2. a joint tenancy
3. tenancy in common
4. tenancy by the entirety - correct answers ✅1. 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?
5. No, because private investments aren't allowed.
6. Yes, if just compensation is paid to the owners of the land.
7. No, because eminent domain can only be used for highway expansion.
8. Yes, if the owners hold fee-simple interest in the land. - correct answers ✅2. Yes, if just compensation is paid to the owners of the land.

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Which of the following grants zoning authority to municipal governments?

1. Eminent domain
2. State enabling acts
3. Laches
4. Escheat - correct answers ✅2. State enabling acts The city in which you live has a zoning ordinance. The basis for the city to have such an ordinance is
5. eminent domain
6. escheat
7. police power
8. riparian right - correct answers ✅3. police power Which of the following terms are NOT related?
9. Freehold Estate - fee simple

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2. Grantor- person conveying title
3. Leasehold estate - personal property
4. Police Power- deed restriction - correct answers ✅4. Police power - deed restriction Strict liability under Superfund means that:
5. each of the individual owners is personally responsible for the damages in whole.
6. the owner is responsible to the injured party without excuse.
7. 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.
8. The owner is not responsible to the injured party unless it can be proved that the owner was aware of the problem. - correct answers ✅2. 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?

Correctly (Latest Update 2023) 68 Questions

1. Clients should be asked about the possibility of hazardous substances on the property.
2. Licensees should consider the consequences of potential liability.
3. Licensees should be scrupulous in considering environmental issues.
4. Licensees should not disclose the problem because it might harm the seller. - correct answers ✅4. Licensees should not disclose the problem because it might harm the seller. Sources of groundwater contamination do NOT include:
5. waste disposal sites
6. underground storage tanks
7. use of pesticides in farming communities
8. radon - correct answers ✅4. radon Your neighbor has given you revocable permission to go hunting on his farm. You have a (an):

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1. leasehold estate
2. easement appurtenant
3. license
4. defeasible fee-estate - correct answers ✅3. license A claim based on adverse possession of property must NOT be:
5. notorious
6. open
7. hostile
8. secretive - correct answers ✅4. secretive A man gives his friend the right to go hunting on his property for just one day. This is an example of
9. a license
10. an easement in gross
11. an easement in appurtenance

Correctly (Latest Update 2023) 68 Questions

4. an easement by prescription - correct answers ✅1. a license A person who receives real property by will is called a
5. trustee
6. devisee
7. testator
8. hypothecator - correct answers ✅2. a devisee Riparian rights would exist in a
9. condominium on a bay
10. house on a bay
11. hotel whose land abuts a large lake
12. cooperative on a river - correct answers ✅4. cooperative on a river

Correctly (Latest Update 2023) 68 Questions

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

1. accession
2. attachment
3. exchange
4. plottage - correct answers ✅4. 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
5. competition
6. conformity
7. highest and best use
8. progression - correct answers ✅1. competition

Correctly (Latest Update 2023) 68 Questions

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 - correct answers ✅4. external obsolescence In the appraisal of public building an appraiser would use the
5. cost approach
6. income cap approach
7. sales comparison approach
8. gross rent multiplier - correct answers ✅1. cost approach A four bedroom house with one bathroom would be an example of:

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1. physical deterioration
2. functional obsolescence
3. economic obsolescence
4. environmental obsolescence - correct answers ✅2. functional obsolescence which of the following is not a stage in the appraisal process?
5. state the problem
6. analyze the tax consequences of the property owner
7. reconcile the date for the final value estimate
8. analyze an interpret the data - correct answers ✅2. 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?
9. physical deterioration
10. cost of replacement of house

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3. depreciation of land
4. economic obsolescence - correct answers ✅3. 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
5. regression
6. competition
7. progression
8. highest and bestuse - correct answers ✅3. 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?
9. cost approach
10. gross rent multiplier

Correctly (Latest Update 2023) 68 Questions

3. income approach
4. sale comparison approach - correct answers ✅4. sale comparison approach A competitive market analysis reflects the use of the
5. cost approach
6. income approach
7. sale comparison approach
8. gross rent multiplier method - correct answers ✅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):
9. hypothetication agreement
10. disintermediation agreement
11. reverse annuity mortgage

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4. subordination agreement - correct answers ✅4. subordination agreement If the Federal Reserve board raises its discount rate, which of the following is likely to occur?
5. mortgage money will become more available
6. interest rates will stay the same
7. mortgage money will become less available
8. interest rates will decline - correct answers ✅3. 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):
9. amortized mortgage
10. term mortgage
11. reverse annuity mortgage
12. partially amortized mortgage - correct answers ✅1. amortized mortgage

Correctly (Latest Update 2023) 68 Questions

Which agency is involved with purchasing government-related loans?

1. Fannie Mae
2. Ginnie Mae
3. Freddie Mac
4. The "Fed" - correct answers ✅2. Ginnie Mae Which of the following agencies is NOT included in the secondary mortgage market?
5. FHA
6. FNMA
7. GNMA
8. FHLMC - correct answers ✅1. FHA All loans subject to the Real Estate Settlement Procedures Act (RESPA) require lenders to :

Correctly (Latest Update 2023) 68 Questions

1. charge their seller for all loan discount points
2. document any reason for declining credit to a loan applicant
3. deliver a Uniform Settlement Statement (HUD-1) form to both buyer and seller.
4. Allow the buyer to rescind the contract any time prior to the first payment due. - correct answers ✅3. 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?
5. reconveyance deed
6. satisfaction of mortgage
7. alienation of the mortgage instrument
8. reversion of the deed - correct answers ✅2. satisfaction of mortgage

Correctly (Latest Update 2023) 68 Questions

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 - correct answers ✅1. 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?
5. Fines only
6. License revocation
7. Fines and/or imprisonment
8. None; all violations of regulation Z are referred to state licensing agencies

• correct answers ✅3. Fines and/or imprisonment

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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:

1. His own buyer
2. Salesperson A
3. Broker B
4. Broker D - correct answers ✅4. Broker D In MOST states, the listing boker has a fiduciary relationship with
5. the customer
6. the listing salesperson
7. the client
8. the buyer - correct answers ✅3. the client

Correctly (Latest Update 2023) 68 Questions

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?

1. The Broker has become the sellers agent
2. the Broker owes fiduciary duty to the seller
3. the Broker is a special agent
4. the broker is a general agent - correct answers ✅4. 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?
5. Your friend is your customer
6. Your position as seller's agent prohibits you from writing the offer
7. The request automatically creates an express dual agency relationship.

Correctly (Latest Update 2023) 68 Questions

4. The relationship with your friend presents an irreconcilable conflict of interest - correct answers ✅1. 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?
5. One
6. Six
7. Seven
8. None of the above - correct answers ✅1. 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?
9. the listing is terminated
10. the listing is transferred to the new broker
11. the two brokers will negotiate to decide who will hold the listing

Correctly (Latest Update 2023) 68 Questions

4. the listing will stay with the former broker of the salesperson - correct answers ✅4. 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:
5. hold the payment until the buyer has received a financial commitment
6. give the earnest money to his broker
7. open up a trust account and deposit the payment in it
8. deposit the payment in the sellers checking account - correct answers ✅2. 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?
9. You should show the buyer properties only in which your commission is protected.
10. You should counsel the buyer about developing accurate objectives.

Correctly (Latest Update 2023) 68 Questions

3. You should search the best properties for your buyer to inspect, widening the marketplace to include homes for sale by owners (FSBO's)
4. You should help the buyer prepare the best offer. - correct answers ✅1. 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:
5. exercising reasonable care
6. acting in good faith
7. conforming with the principal's legal instructions
8. offering legal advice - correct answers ✅4. offering legal advice A broker acting as the agent of a seller:
9. can agree to change in the listing price without the principals approval
10. may share her commission with the salesperson of another broker
11. must report all offers to the principal unless instructed otherwise