Real Estate Broker PSI Exam 2024/2025, Exams of Nursing

Download Real Estate Broker PSI Exam 2024/2025 and more Exams Nursing in PDF only on Docsity! IL REAL ESTATE BROKER PSI EXAM 2024/2025 A licensee was showing property in an eight-unit complex to a prospective tenant using a motorized wheelchair. The tenant wanted to rent a unit, install grab bars in the bathroom, and lower all the door handles. The landlord... - Precise Answer ✔✔Must allow the tenant to make the modifications at the tenants expense, but can require, by the terms of the lease, restoration of the property Which of the following is the best description of a fee simple estate? - Precise Answer ✔✔The most complete ownership in property that one can obtain A licensee plans to send out an email offering his services. According to the CAN-SPAM Act, the licensee must - Precise Answer ✔✔Tell recipients how to opt out of receiving future emails The owner of an apartment building has just signed an agreement with a real estate firm. Has an agency been formed? - Precise Answer ✔✔Yes, because an agency is formed whenever one party delegates to another the right to act on his behalf in certain business transactions The most typical purpose of a deed restriction is to - Precise Answer ✔✔control future uses of the property A managing broker requires his licensees to mention a particular lender to buyers. The broker has a financial interest in this particular mortgage lender. Which of the following should the licensee recommend to buyers? - Precise Answer ✔✔Consider this lender, disclosing the broker's interest, and other lenders. A couple leased a waterfront bungalow. The Lease began on June 15, 2012, and continued through July 31, 2010. The couple had - Precise Answer ✔✔An estate for years A licensee anxious to make a sale violates his duties toward his principal if he volunteers which of the following pieces of information to a prospective buyer? - Precise Answer ✔✔You should make an offer for less than the listing price because the owner is anxious to sell An owner obtains a new mortgage on her house because the house has appreciated in value and she wants money for an investment. The new mortgage rate is 1% lower than the old rate. What is this process called? - Precise Answer ✔✔refinancing An enforceable purchase agreement is formed when - Precise Answer ✔✔the buyer knows of the seller's written acceptance of the offer Which of the following is generally income tax deductible in home ownership? - Precise Answer ✔✔points paid to obtain the loan Which of the following is true concerning eminent domain? - Precise Answer ✔✔The property is taken through the process of condemnation When a borrower defaults on a mortgage, an acceleration clause allows the lender the option of - Precise Answer ✔✔demanding immediate payment of the entire loan balance. An owner has been asked to grand a 60-day option to purchase a property. When should the purchase price be decided? - Precise Answer ✔✔Upon creation and signing of the option to purchase. Which of the following is true about prepayment penalties on VA or FHA loans for single-family dwellings? - Precise Answer ✔✔Neither the VA nor the FHA allows prepayment penalties. When managing property, which of the following actions is legal? - Precise Answer ✔✔obtaining information from prospective tenants to determine if they are financially able to afford the rent. Which of the following is a characteristic of a limited partner's role in a limited partnership? - Precise Answer ✔✔reduced personal liability and no management decision making For a real estate sales contract to be valid, it must include - Precise Answer ✔✔consideration A home equity line of credit is - Precise Answer ✔✔a secured loan stated he knew the court would uphold his interest. In a general warranty deed, the buyer is protected from this situation by the covenant.. - Precise Answer ✔✔of seisin. Although all covenants in a general warranty deep work together to protect the buyer, the covenant of seisin specifically guarantees that the owner owned the real estate at the time of the sale and had the right to convey it. what do special, general and universal types of agency have in common? - Precise Answer ✔✔The originate with the principal. Which of the following could be deducted as expenses from annual income taxes on an investment property? - Precise Answer ✔✔Painting a structure. Repairs and recurring expenditures such as repairing a leaking roof or painting a structure are tax deductible expenses. A builder is obtaining a construction loan $95,000 for a single-family residence. Under the Truth-in- Lending Act, disclosure of a prepayment penalty by the lender is - Precise Answer ✔✔not required for a business loan. Which of the following is a unilateral contract? - Precise Answer ✔✔an option. A unilateral contract is one in which one party makes an obligation to perform without receiving in return any express promise of performance from the other party. An option is a unilateral contract because the seller agrees to sell for a certain period of time at set terms, provided the buyer performs by paying the specified option price. A metes and bounds description must contain which of the following? - Precise Answer ✔✔A point from which the description begins and at which it ends A prospective buyer says he only has $1,000 for earnest money, but he anticipates receiving $4,000 as a gift from his aunt. The licensee accepts the $1,000 and a promissory note for the remaining $4,000 as a deposit. Must the promissory note be tied to the buyer's mortgage? - Precise Answer ✔✔No, the note is a personal promise to repay a debt and is a complete contract alone. A buyer wants a high initial equity investment in a house. Which of the following should the buyer seek as part of the mortgage terms on the house? - Precise Answer ✔✔Largest down payment. An equity investment refers to the amount of monetary interest an owner has in the property over and above any mortgage indebtedness. In the appraisal process, the relationship between basic and non-basic employment patterns as a means of predicted population and income is known as - Precise Answer ✔✔Economic-base analysis measures the economic activity of a community that enables it to attract income from outside its borders A minor leases an apartment. Immediately upon reaching the age of majority, the lessee notified the lessor that the lease was being terminated. Which of the following is true in this situation? - Precise Answer ✔✔the termination is possible because the rescission was made within a reasonable amount of time after the lessee reached the age of majority. Most contracts entered into by a minor are generally voidable at his or her option. However, if a minor does not disaffirm a contract within a reasonable time after attaining majority, the contract becomes fully enforceable against him. A seller wants to allow a buyer to assume the existing mortgage. The sellers want to be sure that they will not be liable for the mortgage after it is assumed. Which of the following will best meet the seller's needs? - Precise Answer ✔✔Novation is substituting one party's obligations for that of the other party. In assumptions, the novation clause would release the seller from liability on the loan and make the buyer liable. to allow for a more intensive use of subdivision land, a zoning variation is required to permit which of the following? - Precise Answer ✔✔an increase in the number of building sites per acre. This allows more buildings to be built, which intensifies the use of subdivision land. To qualify as a tax-deferred exchange, a property must be - Precise Answer ✔✔held for productive use in trade or business. To defer the gain on the sale of an income-producing property, a tax-deferred exchange may be used. A person wants to lease a small building to use as a coffee shop. The tenant and the landlord agree upon a lease where the tenant will pay all utilities and taxes, in addition to rent. The landlord will pay the insurance. This type of lease is best known as a - Precise Answer ✔✔Net lease. The tenant pays some or all of the operating expenses, such as utilities and taxes. An owner operated a gas station for 15 years. The city has decided to rezone the area from commercial to residential use. Which of the following is true regarding this situation? - Precise Answer ✔✔the owner has a non-conforming use and can continue to operate the gas station. since the gas station existed prior to the change of the zoning ordinance it is grandfathered in A farmer continuously plowed and planted an unused field that neighbored his property for the statutory period of time set by state law. He did not have the owner's permission to do this. After the statutory time period, the farmer put in a claim of ownership. He may become the owner of the land through - Precise Answer ✔✔adverse possession is acquiring title to real estate owned by someone else. The use must have been continuous for the time period set by state law, and without the owners permission A church owns a retirement home and restricts the rental of the units to church members regardless of age, sex, race, color, or national origin. Is this policy a violation of federal fair housing laws? - Precise Answer ✔✔No, because religious organizations may limit occupancy of dwelling units they own to persons of the same religion. The best way to determine whether or not there is an encroachment of a boundary line is to - Precise Answer ✔✔Have a survey done. A survey may reveal easements or encroachments that public records do not reveal. Real property taxes are taxes on - Precise Answer ✔✔A house and the land on which it sits. Which of the following is the most important element for a property manager to consider when selecting rental rates? - Precise Answer ✔✔The rental rates for similar units in the area A licensee who finds a buyer a house with his own firm and is paid a fee by the buyer for finding a suitable house has what type of agency? - Precise Answer ✔✔Dual agency A licensee has a property under contract with a financing contingency. The mortgage lender calls the licensee and asks if the contract price on a property can be decreased by $5,000. The mortgage lender explains that this will help the buyer qualify for a loan and help the seller close. Which of the following should the licensee do? - Precise Answer ✔✔Explain that she is not authorized to make this change without written consent to the parties A pest inspection is ordered and an infestation is found. Who pays to correct the problem? - Precise Answer ✔✔The party specified in the contract. A buyer bought a home from an owner. The owners green to owner-finance the property. The parties agreed to amortize the loan over 15-year period. the buyer became the owner of record of the property, and the seller had a lien against the property. What type of instrument was used to purchase the Less than free hold estate: Definite, limited time, leases Types of Less than Freehold Estates - Precise Answer ✔✔1. Estate for years - limited period of time - two dates - Ex. Summer rental 2. Periodic Tenancy - Recurring timeframe (month to month) 3. Estate at Will - Can end at any time 4. Estate at Sufferance - also known as holdover lease - tenant stays beyond end of lease without approval of landlord Types of Freehold Estates - Precise Answer ✔✔1. Fee Simple Absolute - Highest degree of ownership - Has encumbrances like taxes 2. Fee Simple Defeasible - Has conditions and can lose ownership 3. Life Estate - Own property based on someone else's life Government Powers - Precise Answer ✔✔P.E.T.E - Police power: tell you how to use property (ex: building codes, rent control, zoning) - Eminent domain: gov condemns property + pays you - Taxation - Escheat: no heirs so property goes to state Types of Ownership - Precise Answer ✔✔1. Severalty: sole ownership 2. Concurrent: own with others - Joint Tenancy: time, title, interest, possession; right of survivorship (doesn't go to heirs) - Tenancy in common: possession, no right of survivorship, can go to heirs Essential Elements of Value - Precise Answer ✔✔1. Scarcity: how much of it is there? 2. Transferability: Can you sell it? 3. Utility: Can you use it? 4. Demand: Do people even want it? Types of depreciation - Precise Answer ✔✔1. Economic Obsolescence - Outside of property (ex. crime, train tracks, airport) 2. Functional Obsolescence - Poor design (5 bed, 1 bath) 3. Physical Deterioration - Falling apart Appraisal Methods - Precise Answer ✔✔1. Market Data: uses comps in area 2. Cost Replacement: uses how much it would cost to replace brand new (ex: libraries, schools, police stations) 3. Capitalization Income: More income = more value Deed VS Title - Precise Answer ✔✔Deed = evidence of transfer (receipt) Title = proof of ownership Types of Liens - Precise Answer ✔✔1. Specific Lien - mortgage, property tax, mechanics lien - If you don't pay, they take something specific 2. General Lien - Income tax, lost judgement lien - If you don't pay, they can take everything Fair Housing Laws - Precise Answer ✔✔prohibit housing discrimination based on sex, race, color, religion, national origin, disabilities, or familial status 1968 1. Steering: Telling people what neighborhood they should be in 2. Blockbusting/panic peddling/panic selling: Convincing people to sell their house because of the type of people moving to the neighborhood 3. Redlining: Refusing to lend to people from certain areas