FREE AND STUDY GAMES ABOUT PSI EXAM PREP

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FREE AND STUDY GAMES ABOUT PSI EXAM PREP

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -27 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: The rights of ownership of real preoprty do NOT include the right of:

• exclusivity
• compatibility
• control
• disposition

Answer:

B compatibility. within the context or real property, applies to the transaction process but not the property itself. That is, buyers and sellers have reached compatibility when they mutually agree to all terms of an agreement.Question 2: If Carol wishes to sell her own house, does she need a real estate license?

• she does not need a license
• she must have a license issued yb the real estate commission
• she may obtain a temporary license to do this

Answer:

A An owner selling her own property is exempt from real estate licensing requirements.

Question 3: What do liens and easements have in common?:

• neither can be done w/o consent of owner
• both are money claims against property
• both must be on public recor 2b valid
• both are encumbrances

Answer:

D liens are of course, serious in that they indicate the owner has failed to pay a debt secured directly or indirectly by the property. Easements on the other hand are a partial necessity for many residential properties.Question 4: "Intestate Succession" occurs when:

• the deceased leaves only holographic will
• not all heirs are named in a formal ill
• there is no will
• there is a will

Answer:

C Interstate succession occurs when someone dies w/o leaving a will, or leaving an invalid will so that the property of the estate passes by the laws of succession rather than by the direction of the deceased Question 5: A real estate broker should regard himself/herself as a:

• principal
• legal advisor
• fiduciary
• substitute for attorney

Answer:

• Fiduciary means you put your client's interest above your own. These are the highest duties known

to law.

Question 6: Insurance for a mortgage loan may be provided by:

• FNMA
• VA
• FHA or PMI
• GNMA

Answer:

C FHA insures lenders against loss in event of default.Question 7: An optioner & optionee make a contract for an option on a commercial piece of property. If the optioneeedecides to exercise his option, when must he perform?

• Under terms of option contract
• whenever he wants
• within 6 moths
• when demands

Answer:

A options are generally concerned with on ly 2 things, the time and price. Whategver the parties agree to in those regards defines the terms of the option and the obligations of the parties.Question 8: A family rents a house from January 1st to June 30th. This is considered a(n):

• periodic tenancy
• tenancy at will
• estate for years
• tenancy at sufferance

Answer:

C an estate for years is a leashold created by landlord and tenant for a particular period of time. This could be a fixed number of years, months, weeks or even days. An estate for years will always have a definite term date.

Question 9: Unless otherwise specified, the rights to minerals which lie benath the surface of

land:

• cannot be conveyed apart from real estate surrounding the minerals
• automatically transferred w/ sale of real property
• kep by original grantor

Answer:

B Appurtenances are said to run with the land & require no separate conveyance. Appurtenances include easements, stock in a mutual water co., covenants and minerals. They are considered real property.Question 10: Under federal income tax law, the "basis" of real property's:

• cost
• purchase price minus any existing assumed loans
• assessed value prior to sale
• fair market value

Answer:

A The cost basis of a property is the purchase price or investment amount including commission and other expenses. Cost basis is used to determine capital gains and capital losses for tax purchases.Question 11: Statements by a real estate licensee that somewhat exaggerate the intangibles of a

property w/o committing fraude are called:

• polishing
• marketing
• puffing
• prospecting

Answer:

C Puffing is gernerally an expression or exaggeration made by a salesperson or found in an advertisement that concerns the quality of goods offered for sale. It presents opinions rather than facts and is usually not considered a legally binding promise.