PSI Exam Questions And Solutions

PSI Exam Questions And Solutions A first-year licensee without either a degree in finance or a strong background and reinvestments should generally refrain from? - ANSWER -Giving advice in investing Not a necessary part of the process for changing zoning regulations - ANSWER - Voting A condominium complex is exempt from their housing requirements regarding housing for families with children in it? - ANSWER -If the capacity is 80% seniors 65 and older A sales person just attended a class on using social media to further her real estate sales career. She was so excited about the class that she immediately came home and signed up for Facebook, Twitter, and LinkedIn. She has chosen a listing to market via social networking a residence recently built to resemble and antebellum mansion. Which wording or phrases may she lawfully include in her advertising? - ANSWER - Antebellum style mansion Which of the following is true about a competitive market analysis? - ANSWER - Performed by agent not formal appraisal I buyer received a sellers property condition disclosure in which the buyers agent believes the seller has misrepresented the condition of the property. The buyers agent should? - ANSWER -Point out his or her concerns to the buyer and recommend further inspection or investagation A borrower who is making payments on a loan was required to make a balloon payment at the end of the loan. This is most likely a? - ANSWER -Partially amortized Who pays for you to be fingerprinted? - ANSWER -Real estate agent Which of the following is the best example of the protection offered by fair housing laws to a person with a disability? - ANSWER -Blind man with a dog After making three sales in 6 weeks to growing families with young children in a neighborhood. The agent went door-to-door suggesting that homeowners who enjoyed living in their quiet neighborhood should sell because children are going to be noisy. This is an example of? - ANSWER -Blockbusting Which of the following statements is the BEST example of puffing - ANSWER -This is the Best Buy you'll find all year How is the earnest money deposit usually applied at closing on a settlement statement? - ANSWER -Credit to buyer A property is surveyed to determine a legal description. The surveyor works from a point of beginning, and measures terminal points and angles. What method of land description is he using? - ANSWER -Metes and Bounds A buyer has discovered a defect in the title and has suffered a loss due to the defect. The title company has compensated the buyer for the loss. Subsequently, The buyer is awarded a judgement against the seller. The title company is entitled to a portion of the judgement as a reimbursement for the claim it paid. - ANSWER -Subrogation Prepaid taxes appear as? - ANSWER -Credit to seller / Debit to seller You have someone who is under 18 but will be 18 before the closing is this voidable, executed, executory, or void. - ANSWER -Voidable When a client is requesting law information - ANSWER -Give them website information for them to research A buyer has been looking at homes and is very familiar with the area. She has found a home she really likes. You, the agent finds out that the nearby railroad will be expanding, what should the agent do? - ANSWER -Disclose the information because it may affect buyers decision What is a discount point - ANSWER -Points increase yield to lender If an agent thinks the buyer will probably not get financed what should the agent do? - ANSWER -Refer them to get pre-qualified What type of clause would you put in a contract if a buyer couldn't get approved? - ANSWER -Contingency 30. A woman wants to rent an apartment and move in December 8th. What is most likely to happen? - ANSWER -Move in and pay prorated days Disabled person wants to build a ramp in a rental? - ANSWER -Allow to build at renters expense Taxes on sewer is what? - ANSWER -Special Assessment Tax A drawer for a Aclove being taken after the property is sold? - ANSWER -The drawer is personal property A formal appraisal will ALWAYS be REQUIRED when the? - ANSWER -Lender wants to sell the mortgage to the secondary market A seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. Under the compensation, and liability ACT (CERCLA), who is liable for the damages from dumping prior to the sale of the property? - ANSWER -Seller A prospective Buyer made an offer to purchase a property. The owner responded with the counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. Can the seller accept the better offer and why? - ANSWER -The owner can accept 2nd offer if owner withdraws the counteroffer before it is accepted The following ad appeared in the newspaper" For sale: 4br brick home; redwood school district: excellent elm street location; short walk to ST.John's Church; and right on the bus line. Move-in condition; priced to sell. What should not be mentioned? - ANSWER - The ad should NOT mention St Johns Church In order to file a complaint, the person alleging a problem must? - ANSWER -Suspect discrimnation occurred If a broker hired a property management company to work for an apartment complex and the apartment caught on fire, who would be responsible? - ANSWER -Property Manager and Owner A Buyer has discovered a defect in title and has suffered a loss due to the defect. The title company has compensated the buyer for the loss. Subsequently the buyer is awarded a judgement against the seller. The title company is entitled to a portion of the judgement as a reimbursement for the claim it paid. These actions describe? - ANSWER -Subrogation Competive market analysis is MOST often used for? - ANSWER -Setting a listing price Someone took an 80% loan and paid 15k as a down payment. What is the sales price? 75,000 - ANSWER -75,000 Agent was asked to find a house for a buyer and the agent only put together houses that will produce a higher commission for him. What fiduciary duties has the agent neglected? - ANSWER -Care Listing price on the house was 120,000. An agent was given a limited power of attorney to accept any cash offer of 108,000 or more while the seller was away for 45 days. A buyer made a cash offer of 110,000. What should the agent do? - ANSWER -Accept offer because all offers must be presented, the broker can't proceed with the offer Unilateral or Bilateral: What the difference? - ANSWER -One party promise other two parties promise Competitive market analysis takes into consideration? - ANSWER -Square footage of the subject