National PSI EXAM PRACTICE TEST, Questions with answers, 2022/2023

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National PSI EXAM PRACTICE TEST, Questions with answers, 2022/2023 Real Estate law governing advertising applies to all of these EXCEPT: A. In house notes for showing B. Multiple listing servi... ce (MLS) C. communications with consumers D. Social Media - ✔✔A. In-house notes for showing are not seen by consumers an so do not have to follow state or federal laws. A couple accompanies a property inspector during an inspection of a house on which they have a contract. The inspector points to a six-inch crack at the corner of a dining room window. The crack is an example of : A. A structural defect B. A patent Defect C. a latent defect D. an environmental defect - ✔✔B. A patent defect is easily visible when inspecting a property. (another) term for material) An eligible veteran made an offer of $225,000 to purchase a home contingent upon obtaining a no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for the property. In this case, the veteran may: A. withdraw from the sale with a three-point penalty B. withdraw from the sale on payment of a commission to the seller's broker C. purchase the property by making a $3,000 cash payment D. seek secondary funding for the $3,0000 - ✔✔C. When the purchase price of a property is greater than the VA-issued (CRV), the veteran may pay the difference in cash to purchase the property because secondary financing is somewhat restricted under VA regulations. General real estate property taxes levied for the operation of the government are called: A. special taxes B. ad valorem taxes C. improvement taxes D. special assessment taxes - ✔✔B. Under current Regulations, a U.S. department of Veteran Affairs (VA) loan is assumable if: A. The VA approves both the buyer and the assumption agreement B. the veteran agrees not to request a releases of liability for repayment C. the VA approves the buyer only D. the VA approves the assumption of the agreement only - ✔✔A. for VA loans made after March 1, 1988 the VA must approve both the buyer and the assumption agreement before the loan may be assumed. During the period of time after a real estate sales contract is signed, but before title actually passes, the status of the contract is: A. executory B. voidable C. executed D. unilateral - ✔✔A. A contract is in executory status when its terms of agreement have not yet been carried out. If there is a discrepancy between a residential lot size quoted in a listing contract and the actual lot size, the actual lot size that will prevail in a sales transaction will be found in : A. the MLS B. the survey C. the listing contract D. the deed - ✔✔B. The buyers secured a loan at 75% (LTV) ration. The interest rate was 7.125%, and the term was for 30 Years. The first month's interest payment was $477.82. What was the appraised value of the property? A. $103.700 B. $80,475 C. $107,300 D. 79,239 - ✔✔C. $477.82x12=$5,733.84 annual interest $5,733.84/7.125%=$80,475 $80,475/75%=$107,300 A document that protects against hidden risk such as forgeries and loss due to defects in title, subject to specific exclusions, is called: A. a title insurance policy B. an abstract of title C. a chain of title D. a certificate of title - ✔✔A. Last month's loan payment included $412.50 interest on a $60,000 loan balance. What is the annual rate of interest? A. 7.75% B. 8.25% C, 8.5% D. 7.5% - ✔✔B. $412.50 x 12 = $4,950(annual interest amount) $4,950 / $60,000 (loan balance) = 8.25% (0 0825) interest If, upon the receipt of an offer to purchase a property, the seller makes a counteroffer, the prospective buyer is: A. relieved of the original offer, which is terminated B. relieved of the offer which is now void C. bound to accept the counteroffer D. bound by the original offer, which is still active - ✔✔A. Countering an offer terminates the original offer and creates a new offer. The component of an adjustable rate mortgage (ARM) that limits the percentage that the interest rate may increase over a specific time period. usually a year is: A. the margin B. the life-of-the loan rate cap C. the payment cap D. the rate cap - ✔✔D. the rate cap limits the amount an ARM's interest rate may change over a specific period of time, usually a year. In MOST market ares, rents are determined by: A. the local apartment owner's association B. department of housing (HUD) C. a tenants union D. supply and demand factors - ✔✔D. The amount of properties and vacancy determine rental values A couple purchased a home for cash over 25 years ago. Today the receive monthly checks from a lender that supplement their retirement income. The couple MOST likely have: A. a home equity loan B. a reverse mortgage C. an interest -only loan D. an adjustable rate mortgage - ✔✔B. To find the value of a property, of the net operating income (NOI) and the capitalization rate are known, an appraiser using the income approach would : A. divide the NOI by the cap rate B. mulitiply the NOI by the cap rate C. divide the cap rate by the NOI D. mulitiply the effective gross income (EGI) by the cap rate - ✔✔A. Poetenially resonsibke parties (PRP'S) are LEAST likeley to be: A. present owners B. hazard disposal operators C. past owners D. real estate licensees - ✔✔D. A contract that conveys the right to possess the real property of another but does not convey title is : A. a bill of sale B. a lease [Show More]

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