Exam (elaborations)
The CE Shop National Exam (PSI) PART 1
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The CE Shop National Exam (PSI) PART 1
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The CE Shop National Exam (PSI) PART 1Addendum - -When Dashiell received the purchase offer for his bungalow, he
was surprised to see a page added to the contract requesting that an
attorney review the contract. What is Dashiell looking at?
-Place a lien on the property
Unpaid taxes become a lien on real estate. - -What might the government
do if property owners fail to pay taxes on their property?
-Ajit may be liable if he operates in a state that requires licensees to make a
reasonable effort to discover adverse material facts.
Licensees must follow state laws regarding disclosure of all material facts,
but typically there's no distinction between disclosure of material facts or
adverse material facts. Ajit may be liable even if the seller didn't disclose the
fact, depending on state law. - -A former client has filed a formal complaint
against Ajit, claiming he failed to properly disclose a material fact that the
seller didn't disclose. Which of these statements about Ajit's liability is true?
-1,425
Only finished above-ground space should be counted in Bonnie's MLS listing.
That means the square footage of the upper floor plus the main floor (minus
the unfinished laundry area). Bonnie should report 1,425 square feet (450 +
1,200 - 225). - -Bonnie is calculating the square footage of a listing. The
upper level of the home is 450 square feet. The main floor is 1,200 square
feet, including an unfinished laundry area that's 225 square feet. The 1,200-
square-foot basement is finished. Bonnie's MLS system disregards below-
grade square footage. What square footage will Bonnie mention in her MLS
listing and marketing materials?
-Indestructibility
Indestructibility is the physical characteristic that states that while
improvements may deteriorate, land can't be destroyed. - -Sander and
Ginny bought an old industrial site and plan to get grant money to put an
environmental education center on the site. There are a few structures on
the property, but they are in disrepair, and it will likely be less expensive to
tear them down and build new than to rehabilitate them. However, the new
owners are sure that they've made a great investment because the land is in
great shape. This reflects which physical characteristic of real property?
-$367,687.80
, To find the total amount paid back, multiply the monthly payment
($2,042.71) by the total number of payments (180 = 12 payments/year x 15
years). The total paid back is $367,687.80. - -A buyer with a 15-year,
$250,000 loan at a 5.5% interest rate has a monthly principal and interest
payment totaling $2,042.71. What's the total amount the borrower will pay
back over the life of the loan?
-lower initial interest rate - -What attracts borrowers to adjustable rate
mortgages?
-98,000
Minimum rent = Operating expenses + Owner expenses + ROI Margin. ROI
margin is the owner's initial investment x ROI. In this example $32,000
($400,000 x .08). The minimum rent to achieve the owner's goals is $98,000.
- -A rental property owner purchased a property for $400,000 and pays
$36,000 in ownership expenses, plus $30,000 in operating expenses. The
owner would like to achieve an ROI of 8%. What's the minimum annual rent
that would accomplish this?
-Reduced consumer confidence makes new buyers wary of purchasing and
homeowners hesitant to trade up. - -Many market conditions impact housing
prices. Which of the following is a true statement?
-Identify data needed.
The first step is to state the problem so the appraiser can then identify the
data that is needed. - -Identifying the purpose of the appraisal leads the
appraiser to do what next?
-$52,500 - -An owner purchased a rental property for $750,000. What
annual cash flow would result in a return on investment (ROI) of 7%?
-Rescind
When two parties agree to back out of a contract, they're agreeing to rescind
the contract. - -Stan decides to not sell his property to Crandall, even after
they've signed a legal sales contract. Crandall found a property he likes
better, so they mutually agree to ______ the contract.
-Develop, implement, and train firm members on policies and procedures.
Having policies and procedures in place and training staff on them may be
the best preventive measure. - -You're a real estate broker supervising 24
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