PSI Salesperson Real Estate Practice Exam Version 1 (2023/ 2024 Update) | Questions and Verified Answers|100% Correct

PSI Salesperson Real Estate Practice Exam Version 1 (2023/ 2024 Update) | Questions and Verified Answers|100% Correct

PSI Salesperson Real Estate Practice Exam
Version 1 (2023/ 2024 Update) | Questions
and Verified Answers|100% Correct
Q: Federal Truth-in-Lending laws are also known as

1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII.
   Answer:
   Regulation Z.
   Q: The FHA functions MOST like
5. a bank or savings and loan association.
6. a mortgage company.
7. an investment group.
8. an insurance company.
   Answer:
   an insurance company.
   Q: 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?
9. Apply the legal tests of a fixture.
10. Apply local court decisions dealing with similar items.
11. Specify questionable items of property in the written sales contract.
12. Use the legal definition of a fixture as any permanently attached item.
    Answer:
    Specify questionable items of property in the written sales contract.

Q: 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?

1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson
   Answer:
   the supervising broker
   Q: A seller’s statement in a property disclosure document means
5. the owner is disclosing known latent defects.
6. nothing, because the seller will not be responsible for any defects.
7. the property is fully suitable for the uses contemplated by the buyer.
8. the owner creates a warranty that there are no defects in the property.
   Answer:
   the owner is disclosing known latent defects.
   Q: When compiling a competitive market analysis, a broker would look for comparable
   properties that
9. were sold for all cash.
10. had been extensively advertised.
11. were offered by owner with no broker.
12. were located near the property being listed.
    Answer:
    were located near the property being listed.
    Q: A prospective seller asks a salesperson to recommend a listing price for a property. The
    salesperson should suggest
13. listing the property at the price the owner believes it is worth.
14. listing the property at least 30% above the current mortgage.
15. a competitive market analysis to determine the property’s value.
16. setting the price at the value of the most recent sale in the neighborhood.
    Answer:
    a competitive market analysis to determine the property’s value.
    Q: 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?
17. The contract on the first house is not enforceable.
18. Neither contract is enforceable.
19. Only the first contract is valid.
    Answer:
    Both contracts are valid.
    Q: Under the common law of agency, licensees owe the broker with whom they are associated
    all of the following duties EXCEPT
20. loyalty.
21. competence.
22. indemnification.
23. full disclosure.
    Answer:
    indemnification.
    Q: 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
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