PSI Real Estate Salesperson Practice Exam, Exams of Real Estate Management

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PSI REAL ESTATE SALESPERSON

PRACTICE EXAM BEST STUDYING

MATERIAL WITH VERIFIED ANSWERS

LATEST VERSION UPDATE 2024- 2025

WITH 100+ QUESTIONS

A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?

1. Deed amendment.
2. Approval of surrounding property owners.
3. Inclusionary zoning.
4. Conditional use permit or zoning variance.
   • CORRECT ANS-Conditional use permit or zoning variance. Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area. The buyer could seek to rescind the contract on the basis of
5. puffing.
6. misrepresentation.
7. lack of care and diligence.
8. nothing; property taxes are a matter of public record and it was the buyer's responsibility to check them.

• CORRECT ANS-misrepresentation. A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if

1. it satisfies or exceeds all terms included in the counteroffer.
2. the owner withdraws the counteroffer before it is accepted.
3. the owner gives the first buyer notice that another offer was received and an opportunity to revise the bid.
4. the first buyer is informed, in writing, of the owner's intent to accept another offer. - CORRECT ANS-the owner withdraws the counteroffer before it is accepted Earnest money should be deposited into a trust account
5. in a timely manner, according to state laws.
6. upon removal of all contingencies.
7. at the broker's discretion.
8. according to MLS rules.

• CORRECT ANS-in a timely manner, according to state laws. When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should

1. have short deadlines.
2. be discouraged by the broker.
3. be stated as briefly as possible.
4. be limited to mortgage arrangements . - CORRECT ANS-have short deadlines

Legal descriptions using the government survey system are NOT generally used in

1. the original 13 states.
2. subdivisions.
3. quitclaim deeds.
4. mortgages or deeds of trust.

• CORRECT ANS-the original 13 states. During the listing presentation, the seller questions the amount of commission to be paid and is told

1. the amount is set by law.
2. everyone charges the same amount.
3. the amount of commission is negotiable.
4. the agent that charges a lower commission will not do as good a job selling the property. - CORRECT ANS-the amount of commission is negotiable. Which of the following real estate contracts is a service contract?
5. a purchase agreement
6. a listing agreement
7. an option contract
8. a mortgage
   • CORRECT ANS-a listing agreement A home buyer is obtaining a fully amortized loan in the amount of $140,000. The savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the nearest dollar, what

is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)

1. $
2. $
3. $
4. $
   • CORRECT ANS-$ A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the other company?
5. There is no obligation because the buyer's agent has a fiduciary duty to the buyer.
6. The buyer's agent will be paid by the buyer and has no obligations to the seller or his agent.
7. The listing broker works for the seller and has no right to any information from the buyer's broker or the buyer.
8. Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer.

• CORRECT ANS-Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer. A lawsuit for inverse condemnation may be brought by

1. the police.
2. the city.
3. a homeowner.
4. the zoning board.

• CORRECT ANS-a homeowner.

To what party or parties does the broker owe the fiduciary duty of care?

1. the seller
2. both the buyer and the seller
3. the party or parties employing the broker
4. the party or parties paying the commission
   • CORRECT ANS-the party or parties employing the broker A major difference between freehold and nonfreehold estates is that all freehold estates
5. are of indeterminable duration.
6. terminate upon the death of the person on whose life they are based.
7. are inheritable by the holder's heirs.
8. are estates for a fixed term . - CORRECT ANS-are of indeterminable duration. A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
9. an agency.
10. an assessment.
11. a contract.
12. a fiduciary obligation.

• CORRECT ANS-a contract. 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

1. eminent domain.
2. prior appropriation.
3. express reservation.
4. avulsion.

• CORRECT ANS-prior appropriation In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT

1. closing costs may be lower.
2. loan originator has knowledge of the underwriter's policies.
3. more variety of loan programs available.
4. originator and lender are part of same company.
   • CORRECT ANS-more variety of loan programs available. Antitrust laws prohibit competing brokers from all of the following EXCEPT
5. boycotting other brokers in the marketplace.
6. dividing the market to restrict competition.
7. agreeing to set sales commissions and management rates.
8. receiving compensation from both the buyer and the seller.

• CORRECT ANS-receiving compensation from both the buyer and the seller.

Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)?

1. 33.3%
2. 36.0%
3. 41.2%
4. 45.0%

• CORRECT ANS-41.2% When a principal authorizes an agent to perform a particular act or transaction, it is an example of a

1. universal agency.
2. special agency.
3. general agency.
4. common agency.
   • CORRECT ANS-special agency A gross lease can be best defined as one where the tenant pays, as a part of the rent,
5. all property changes excluding utilities.
6. no operating expenses of the leased space.
7. outside maintenance and property taxes only.
8. all property expenses except the interest on the owner's mortgage.

• CORRECT ANS-no operating expenses of the leased space

A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should

1. tell the seller that the buyer will pay more.
2. not disclose that the buyer will pay more to ensure fair treatment of all parties.
3. try to negotiate a fair compromise between what the seller is asking and what the buyer is offering.
4. encourage the seller to delay accepting the offer. - CORRECT ANS-tell the seller that the buyer will pay more. An equal housing opportunity notice MUST be - CORRECT ANS-displayed in the brokerage office. A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely
5. an exclusive agency listing.
6. an exclusive right to sell listing.
7. a net listing.
8. an advance fee listing. - CORRECT ANS-an exclusive agency listing What critical aspect of the property inspection process MUST licensees convey to prospective buyers?
9. Difficulty of finding competent inspectors.
10. Appropriate fee splitting between inspectors and brokers.
11. Need for inspections to be completed within the time stated in the contract.
12. Likelihood that the inspection will generate a list of items sellers must repair. - CORRECT ANS- Need for inspections to be completed within the time stated in the contract.

An exception to title insurance coverage is

1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. - CORRECT ANS-defects that clearly appear in the title search. If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION TABLE.)
5. $158,
6. $158,
7. $175,
8. $176,100 - CORRECT ANS-$176, State laws differ on whether a buyer is entitled to know about
9. a suicide that occurred in the house last year.
10. possible lead paint in the property.
11. the flooding of the basement every spring.
12. the fact that the sellers are getting a divorce. - CORRECT ANS-a suicide that occurred in the house last year. 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?

1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given - CORRECT ANS-The first sold. A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes maintenance of value over profitability?
5. An individual entrepreneur who owns several apartment buildings.
6. The Department of Housing and Urban Development.
7. The investment division of a bank.
8. A corporate Real Estate Investment Trust. - CORRECT ANS-The Department of Housing and Urban Development. Federal Truth-in-Lending laws are also known as
9. the Freedom of Information Act.
10. the Equal Credit Opportunity Act.
11. Regulation Z.
12. Title VIII. - CORRECT ANS-Regulation Z. The FHA functions MOST like
13. a bank or savings and loan association.
14. a mortgage company.
15. an investment group.
16. an insurance company. - CORRECT ANS-an insurance company.

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?

1. Apply the legal tests of a fixture.
2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales contract.
4. Use the legal definition of a fixture as any permanently attached item. - CORRECT ANS- Specify questionable items of property in the written sales contract. A salesperson in a branch office is sued for damages by a buyer after the salesperson misrepresents a property. Who has the ultimate responsibility for the salesperson's actions?
5. the owner of the property
6. the supervising broker
7. the branch manager
8. the salesperson - CORRECT ANS-the supervising broker A seller's statement in a property disclosure document means
9. the owner is disclosing known latent defects.
10. nothing, because the seller will not be responsible for any defects.
11. the property is fully suitable for the uses contemplated by the buyer.
12. the owner creates a warranty that there are no defects in the property. - CORRECT ANS-the owner is disclosing known latent defects. When compiling a competitive market analysis, a broker would look for comparable properties that
13. were sold for all cash.

2. had been extensively advertised.
3. were offered by owner with no broker.
4. were located near the property being listed. - CORRECT ANS-were located near the property being listed. A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest
5. listing the property at the price the owner believes it is worth.
6. listing the property at least 30% above the current mortgage.
7. a competitive market analysis to determine the property's value.
8. setting the price at the value of the most recent sale in the neighborhood. - CORRECT ANS-a competitive market analysis to determine the property's value. 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?
9. The contract on the first house is not enforceable.
10. Neither contract is enforceable.
11. Only the first contract is valid.
12. Both contracts are valid. - CORRECT ANS-Both contracts are valid. Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT
13. loyalty.
14. competence.

3. indemnification.
4. full disclosure. - CORRECT ANS-indemnification. The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that
5. he is no longer the listing agent.
6. he will set up an appointment for showing the home.
7. he will leave the key under the door mat.
8. the house is currently off the market. - CORRECT ANS-he is no longer the listing agent. 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
9. all homes are similar in size.
10. most homes are smaller than the sale home.
11. most homes are larger than the sale home.
12. most of the homes are rental properties. - CORRECT ANS-most homes are larger than the sale home. An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than
13. $100,000.
14. $250,000.
15. $500,000.
16. $1,000,000. - CORRECT ANS-$250,000.

The buyer wants to make the purchase offer contingent on a complex mortgage arrangement. The buyer's agent who is drawing up the contract should

1. include the provision for the mortgage as the buyer requests.
2. suggest the buyer ask a lawyer to furnish the wording.
3. consult the supervising broker for advice.
4. refer the matter to the seller's agent. - CORRECT ANS-suggest the buyer ask a lawyer to furnish the wording. A licensee is listing a property in a known flood plain. The seller flatly denies that the structure and the property have ever been flooded. What is the licensee required to do in this situation?
5. Rely on the face value of seller's statement.
6. Inform the seller of potential legal consequences if this claim is untrue.
7. Inform the seller of the legal obligation to disclose facts regarding flood plains.
8. Refuse to list the property and explain to the seller that all properties in this area flood. - CORRECT ANS-Inform the seller of the legal obligation to disclose facts regarding flood plains. A deed restriction is applicable to the activities of
9. the current owner only.
10. all owners, present and future.
11. tenants.
12. mortgagors. - CORRECT ANS-all owners, present and future. To be valid, every deed must
13. contain a warranty.

2. include granting language.
3. be executed by the grantor.
4. be signed by the grantee if there are covenants. - CORRECT ANS-be executed by the grantor. A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with
5. the builder.
6. the buyers.
7. the builder and the buyers.
8. neither the builder nor the buyers. - CORRECT ANS-the builder. Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. Susan should
9. excuse herself from the discussion as this could constitute illegal blockbusting.
10. advise her friends this could constitute a violation of Sherman Antitrust Act.
11. listen carefully so she can be more competitive in the market.
12. be certain her company is charging as much as the others. - CORRECT ANS-advise her friends this could constitute a violation of Sherman Antitrust Act. A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds?
13. The first mortgagee receives $60,000.

2. The second mortgagee receives $23,500.
3. The second mortgagee receives nothing unless he forced the foreclosure auction.
4. The former owner receives $4,500. - CORRECT ANS-The second mortgagee receives nothing unless he forced the foreclosure auction. A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is
5. an independent contractor to the broker and an agent to the principal.
6. an agent to the broker and a subagent to the principal.
7. a subagent to the broker and an agent to the principal.
8. an agent to the broker and an agent to the principal. - CORRECT ANS-an agent to the broker and a subagent to the principal. The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA,
9. will no longer lend or guarantee loans on these older properties.
10. require evidence of testing for and disclosure of any type of lead contamination before they will lend or guarantee loans on such properties.
11. require funds to be escrowed for lead abatement as a condition of lending or guaranteeing loans on such properties.
12. require the buyer to acknowledge disclosure of the presence of any known lead paint. - CORRECT ANS-require the buyer to acknowledge disclosure of the presence of any known lead paint. For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?

1. Mortgage loan interest, local property taxes, mortgage loan origination fees.
2. Mortgage loan interest, homeowner's insurance premium, local property taxes.
3. Cost of essential repairs, mortgage loan origination fees, local property taxes.
4. Homeowner's insurance premium, mortgage loan origination fees, mortgage loan interest. - CORRECT ANS-Mortgage loan interest, local property taxes, mortgage loan origination fees. A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when
5. any offer is delivered to the seller.
6. the seller accepts the offer.
7. all contingencies are removed.
8. the sale closes. - CORRECT ANS-the seller accepts the offer. At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?
9. Credit seller $300; credit buyer $300.
10. Debit seller $300; debit buyer $300.
11. Credit seller $300; debit buyer $300.
12. Debit seller $300; credit buyer $300. - CORRECT ANS-Credit seller $300; debit buyer $300. Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond?
13. If you feel it is in your best interest, please do so.
14. Since I represent the seller I am not able to answer your question.

3. I am not aware of any issues that such an inspection would identify.
4. Since the seller has provided a property disclosure, there should be no need for any further inspection. - CORRECT ANS-If you feel it is in your best interest, please do so. Which of the following consumers would be able to derive the most benefit from a reverse mortgage?
5. Any homeowner whose property is free of any mortgage encumbrance.
6. A young couple whose mortgage loan has a higher interest rate than the current rate for new loans.
7. A 65-year-old man who has recently bought a condominium with a conventional loan for 90 percent of the purchase price
8. A couple in their late 60?s who need to tap their home equity to help cover their expenses but do not want to sell their house. - CORRECT ANS-A couple in their late 60?s who need to tap their home equity to help cover their expenses but do not want to sell their house. A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should
9. tell the seller not to disclose, because the statute of limitations has run out.
10. tell the seller to disclose the termite treatment on the property disclosure.
11. talk to neighbors to see if there are termites in the neighborhood.
12. talk to the planning and zoning department for local termite eradication ordinance. - CORRECT ANS-tell the seller to disclose the termite treatment on the property disclosure Ordinances that specify construction standards are
13. building codes.
14. building permits.
15. construction alterations.

4. certificates of occupancy. - CORRECT ANS-building codes. An Environmental Impact Statement (EIS)
5. summarizes the environmental impact of an existing project.
6. projects the impact on the environment of a proposed project.
7. is used primarily for state and Federally funded projects.
8. must be approved by all affected water districts. - CORRECT ANS-projects the impact on the environment of a proposed project. An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?
9. $79,
10. $80,
11. $90,
12. $90,426 - CORRECT ANS-$90, A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called
13. a buy-sell agreement.
14. an option contract.
15. an installment contract.
16. a vendor's lien interest. - CORRECT ANS-an option contract. Which restrictive covenant would be considered illegal?

1. A covenant that is more restrictive than local zoning ordinances.
2. A restriction that is time-limited and expires after a stated period.
3. A covenant that restricts the type of building that may be constructed.
4. A covenant that restricts selected parcels within a defined subdivision. - CORRECT ANS-A covenant that restricts selected parcels within a defined subdivision. A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as
5. steering.
6. blockbusting.
7. redlining.
8. conciliation. - CORRECT ANS-steering. An investment property returns 12% of its value or $21,000 annually. What is the value of the property?
9. $100,
10. $175,
11. $235,
12. $252,000 - CORRECT ANS-$175, Three people buy a house as tenants in common. Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house can

1. sell without the third owner's consent.
2. file an action for partition against the third owner.
3. file for a lien against the third owner's interest as damages.
4. force the third owner to sell if they invoke the rule of specific performance. - CORRECT ANS- file an action for partition against the third owner. An agency relationship between a property owner and a property manager is usually created by
5. a management agreement.
6. payment of a management fee.
7. an exclusive agency agreement.
8. an independent contractor agreement. - CORRECT ANS-a management agreement. A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given
9. actual notice.
10. prescriptive notice.
11. constructive notice.
12. exculpatory notice. - CORRECT ANS-constructive notice. A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable?
13. The seller cannot write and sign with an "X".
14. The listing contract specifies that no other broker may show the house.
15. The seller is heavily under the influence of alcohol at the time of signing.

4. The listing contract specifies that a commission will be paid only if the house is sold within 3 weeks. - CORRECT ANS-The seller is heavily under the influence of alcohol at the time of signing. What is the duration of a home warranty's coverage?
5. the expected life of the purchaser
6. the expected life of the product or system covered
7. as disclosed in the contract that offers the warranty
8. a minimum of 5 years or the duration of the purchaser's ownership, whichever is shorter - CORRECT ANS-as disclosed in the contract that offers the warranty A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for taxes? Round to the nearest cent.
9. $225.00
10. $162.50
11. $150.00
12. $112.50 - CORRECT ANS-$225.00 If an older building cannot be air-conditioned, it is an example of
13. economic obsolescence.
14. functional obsolescence.
15. physical deterioration.
16. external deterioration. - CORRECT ANS-functional obsolescence. A managing broker can be held responsible for

1. all actions of associated salespersons.
2. all real estate activities of salespersons.
3. only those real estate activities the broker is aware of.
4. no activities of independent contractors. - CORRECT ANS-all real estate activities of salespersons. A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to
5. confiscate the borrower's personal assets.
6. demand immediate payment of the entire note.
7. report the borrower to the Federal Housing Administration.
8. force the borrower to vacate the premises. - CORRECT ANS-demand immediate payment of the entire note. An example of a contract terminated due to inability to perform would be one in which the
9. purchaser had suffered financial reverses so that she could not make payment as required by the contract.
10. seller had died after the contract became binding but before the closing.
11. seller had contracted for sale of the entire property without the knowledge or consent of the other joint tenant.
12. property had been severely damaged by fire after the contract became binding but before the closing. - CORRECT ANS-seller had contracted for sale of the entire property without the knowledge or consent of the other joint tenant. 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

1. cash price or amount of the loan.
2. amount of down payment required.
3. number, amount, and frequency of payments.
4. prepayment penalties and rebates. - CORRECT ANS-prepayment penalties and rebates A competitive market analysis is MOST often used for
5. estate tax purposes.
6. setting a listing price.
7. divorce proceedings.
8. property tax assessment. - CORRECT ANS-setting a listing price. A competitive market analysis takes into consideration
9. square footage of the subject property.
10. neighborhood nuisances.
11. unemployment levels in the community.
12. age of the sellers. - CORRECT ANS-square footage of the subject property. Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?
13. The buyer finds a better property for better terms.
14. A title defect that will take months to clear is discovered.
15. A basement fire causes damage that requires extensive repairs.
16. The buyer is unable to obtain financing that meets the terms of the contract's financing contingency. - CORRECT ANS-The buyer finds a better property for better terms.

In MOST states, foreclosed property is sold through

1. sealed bids.
2. public auction.
3. deficiency judgment.
4. right of redemption. - CORRECT ANS-public auction. Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?
5. "Nonsmoker preferred."
6. "Military discount."
7. "Seniors welcome."
8. "Catholics preferred." - CORRECT ANS-"Catholics preferred." A landlord may legally refuse to rent to a prospective tenant if the tenant
9. has a history of serious mental illness.
10. is unable to live alone without assistance.
11. has ever been convicted of using illegal drugs.
12. has ever been convicted of selling illegal drugs. - CORRECT ANS-has ever been convicted of selling illegal drugs.