Comprehensive PSI Real Estate Exam Preparation for 2024-2025

Comprehensive PSI Real Estate Exam Preparation for 2024-2025 Flashcards Which of the following is considered a material matter and would require disclosure by a licensee?An environmental issue A buyer purchases a house for $170,000 and it measures 40'x40'. What is the price per square foot of the house?

$106.25

A developer recently developed land and homes to be sold on the market. In the covenants they recorded into record, they stated that the homes may only be used as single-family homes for families without children. Is this lawful exercise of private regulation on land?No Mason and nicole are in a lease agreement. Recently Mason excluded Nicole, the tenant, from the leased property. Which of the following words described what occured?Physical eviction Zoey is buying a property. Zoey's annual income is $350,000. Subsequently, a lender determines that Zoey is able to qualify for payments that constitute 20% of Zoey's income. What is the value of the monthly payment?

$5,833.33

Recently, Kirk rented a condo to Liam. Liam required installation of a modification to accommodate a disability, and kirk allowed the installation for Liam's accommodation inside the unit. Additionally, kirk required that Liam would be responsible for restoring the interior of the unit. Which of the following would Liam be responsible for restoring?Holes in the wall A lot has a frontage of 35' and a depth of 60'. What is the area of the lot?2100 sq ft Some jurisdictions require joint tenancy to be created by the 4 unities of title. Which of the following is not one of the unities?Propriety Oliver owns land right next to a stream of water that passes across Oliver's vast land. However, Oliver does not use the water and just lets the water flow its natural course. Paulo is a cattle farmer that lives five miles away from the stream but travels to the stream to collect water so that Paulo may water his cattle. Under a prior appropriation jurisdiction, who has rights in the water?Paulo In a certain year, there are more homes for sale than there are people looking to purchase them. What is this an example of?Buyer's Market Which statement does not describe a mortgage? It is the money that is lent in exchange for promise of future repayment

Reagan and Tomas want to own property together, preferably on the coast but they want to use it at different times of the year. What type of property should Reagan and Tomas purchase?Timeshare Which of the following is another term for a gross lease?Fixed lease An agent who is given broad authority to conduct business on behalf of another entity is known as what?Universal agent Which statements about commissions earned by a licensee in a real estate transaction is true?These commissions are determined by agreement between the licensee and the client Recently a homeowner suffered damage to their heating and cooling system due to normal wear and tear through the years. What offers coverage for this type of property damage?Home Warranty Orville and Paul enter into an agreement to raise money for a foundation by selling other people's personal items that Orville and Paul find in said people's homes without consent. Which type of contract have Orville and Paul created?There is no contract A property sold for $200,000. The selling agent earned a 3% commission and has a 60/40 split with the agent's sponsoring brokerage (with the brokerage receiving the 40%). What amount will the brokerage receive?

$2,400

Amy obtained a title commitment on a property that she just purchased. That transaction has closed. Who will NOT receive a title policy?Amy's Grantor Stella and Toby contract for the sale of Stella's land to Toby, but then, when Toby says they will dig up the pool in the backyard after closing, Stella decides to refuse to sell.Based on the facts provided, what is Toby's proper remedy?Specific performance Olaf is buying real property from peter. Olaf would also like to add Peter's kitchen table to the transaction. Which of the following legal documents must be completed for the addition?Bill of sale What is an entity's brand, reputation, or notoriety called?Goodwill What is a broker-in-charge not responsible for? renewing the licenses of the agents in the brokerage What is the owner's equity in a property they purchased for $170,000 if there is a remaining mortgage of $50,000?

$120,000

Buyer Robert wants to pay agent Archie a retainer fee to work with him exclusively until a property is under contract.What does buyer Robert do?He writes a check made out to agent Archie's brokerage A broker secured a buyer for their client and the seller accepted. Under which of the following agreements is it possible for the client to pay the broker no commission for this sale?Net Listing

While giving a tour to a prospective buyer, the broker says, "You will not find a better house than this; it's the only one with a pool!" However, there are multiple properties with pools available in the neighborhood. Which term best describes the broker's statement?Misrepresentation Does the brokerage have a trust account? Yes Diana's grandparent became deceased. Subsequently, Diana acquired the grandparent's primary residence under the probated will. What did Diana recieve?Devise What is the term used to describe the conclusion of a real estate transaction?Closing To determine if a property has value, these four elements

are considered: supply, transferability, utility, and what

other element?Demand When is the cost approach most commonly used? When the property does not produce income or have any comps available Adam is selling their home to Brooke. During the escrow phase, and two weeks before closing, Adam's stove breaks and a professional determines that the stove is outdated, unfixable, and in need of replacement. What kind of claim should Adam most likely pursue to get a replacement stove?Home warranty claim Which of the following forces has an impact on value?both economic and political What is a physical measurement of property boundaries?A survey In a listing agreement, the agent and the principal have duties to one another. Which of the following scenarios shows that the principal has respect for these duties?The seller quickly accepts a last-minute showing request even though they must get their dog and two children into the car to leave the house in under 15 minutes.What determines the quality of materials that may be used in a building that is located within a commercially zoned area?Building codes Which category of water is a stream?Watercourse What is not considered in evaluating comps in the sales comparison approach?Sales price that the current owner paid for the property As a disabled person, Esther is a protected under fair housing laws. Fyodor is renting an older property with an available unit on the second floor. The property has stairs that lead up to the unit. Esther is unable to use the stairs and may need an elevator, but this would be very costly to Fyodor. If Fyodor rents to Esther, would Fyodor be required to install an elevator?No A broker discovers there is a broken stove in the kitchen.Must they disclose this?Yes, because it is a material fact.Which of the following does the lender hold the borrower responsible for?-Payment of taxes-Maintenance of property insurance

With what type of institution do mortgage brokers originate loans?Multiple institutions A building that is valued at $510000 isbeing depreciated over 39 years. After 10 years, how much will the building have depreciated?

$130,769.20

Clyde owns a building that has three units, and Clyde occupies one of the units. Subsequently, Clyde discriminates against a prospective tenant who is a member of a protected class. May Clyde do so?Yes, because the building contains four units or less and Clyde resides in one of the units If the potential gross rental income from a property is $20,000, the vacancy rate is 5%, additional income from laundry and storage facilities is $700, and the operating expenses are $5000, what is the net operating income

(NOI)?

$14,700

A buyer has entered a purchase agreement for the sale of a home and farmland. Which of the following will not be conveyed to the buyer?Furniture in the home Which of the following is not a type of concurrent ownership?Landlord and tenant Which of the following is a defense against performance, and renders an obligation discharged?Death Who is not required to be licensed as a real estate agent?Someone reselling a personal mobile home A retirement community recently received a rental application from a 35-year-old single parent with three children. The retirement community subsequently denied the rental application because the applicant has children.Under fair housing laws, this is permissible. Why is this permissible?Because the property is designated senior housing Which statement is an example of steering? "I think you and your family will be more comfortable on the second floor with the rest of the families" Evelyn and Fran are in a lease agreement; Evelyn is the tenant and Fran is the landlord. Evelyn pays a flat fee for a leased premises and pays for utilities and property taxes.What type of lease is this?Net Lease An agent must keep client information confidential, except in which circumstance?If required by law How can a borrower get the property back from the lender before a foreclosure sale happens?The borrower can pay the loan in full, with interest.What is generally the cause of an eviction? A failure to perform under the lease agreement A physician would like to open an office in a renovated home near the town center. Which approach to value will they ask their agent to use to help them determine which property is the best investment?Income approach Who determines the property tax amount?Assessor