National PSI EXAM PRACTICE TEST Flashcards

National PSI EXAM PRACTICE TEST Flashcards

A section in the rectangular survey system contains:A. 160

acres per sectionB. 640 acres per sectionC. 160 government lotsD. 36 townships B The four unities of possession, interest, time, and title are associated with which of the following?A. joint tenancyB.severalty ownershipC. Community propertyD. Tenants in common 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% (00825) interest 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

marginB. the life-of-the loan rate capC. the payment capD.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.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 MLSB. the surveyC. the listing contractD.

the deed B.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. executoryB. voidableC. executedD. unilateral

A.A contract is in executory status when its terms of agreement have not yet been carried out.Discount points on a mortgage are computed as a

percentage of :A. the closing costB. the selling priceC. the

down paymentD. the amount borrowed D.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 rateB. mulitiply the NOI by the cap rateC. divide the cap rate by the NOID. mulitiply the effective gross income (EGI) by the cap rate A.After closing expenses of $550 and a 6% commission was paid, the seller received a check for $149850. What was the sale price of the property?A. $160,000B. $159,424C.

$155,424D. $150,400

A.100% - 6% = 94%$149,850 + 550 =$150,400 (needed before commission$150,400 / 94% = $160,000 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

defectB. A patent DefectC. a latent defectD. an

environmental defect

• A patent defect is easily visible when inspecting a

property. (another) term for material) 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 loanB. a reverse mortgageC.

an interest -only loanD. an adjustable rate mortgage B.The N 1/2 of the SW 1/2 of a section contains how many

acres:A. 20B. 60C. 40D. 80

80

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 terminatedB. relieved of the offer which is now voidC. bound to accept the counterofferD. bound by the original offer, which is still active A.Countering an offer terminates the original offer and creates a new offer.If the gross rent multiplier of a property is 112 and the rent is $600 monthly, what is the value of the property?A.

$67,200B. $62,700C. $76,200D. $27,600

A.112 x 600=$67,200 Real Estate law governing advertising applies to all of

these EXCEPT:A. In house notes for showingB. Multiple

listing service (MLS)C. communications with consumersD.Social Media

• In-house notes for showing are not seen by consumers

an so do not have to follow state or federal laws.A real estate broker was responsible for a chain of events that resulted in the sale of one of his clients properties. The

broker's efforts are called:A. procuring causeB. proffered

offerC. pro formaD. private offering A When a seller takes back a purchase money mortgage

from a buyer:A. the seller agrees to collect the buyer's

payments directly from the lender.B.the terms and conditions of the mortgage are included in the borrowers first mortgage.C. the terms and conditions of the mortgage must be set forth in writing.D. the seller and the buyer may enter into an enforceable oral agreement.C.In order for the purchase money mortgage to be enforceable, the terms and conditions, such as principal and interest, must be set forth in detail in writing.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 penaltyB. withdraw from the sale on payment of a commission to the seller's brokerC.purchase the property by making a $3,000 cash paymentD.seek secondary funding for the $3,0000

• 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.MOST states require that listing and buyer representation

contracts contain:A. a MLS clauseB. a broker protection

clauseC. a definite contract termination dateD. an automatic extension clause C Poetenially resonsibke parties (PRP'S) are LEAST likeley

to be:A. present ownersB. hazard disposal operatorsC.

past ownersD. real estate licensees D.Property mangers must be aware and knowledgeable of a variety of issues. When considering asbestos, radon, and urea formaldehyde, the manager should be aware they are

all:A. classified as environmental hazardsB. produced as a