PSI Michigan real estate exam practice test. Flashcards

PSI Michigan real estate exam practice test. Flashcards An environmental impact statement typically describes the effects of a proposed project on factors such as public health and safety.A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?Agency coupled with an interest.Federal Truth-in-Lending laws are also known as Regulation Z.A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when the seller accepts the offer.Building codes areordinances that specify construction standards.A major difference between freehold and nonfreehold estates is that all freehold estates are of indeterminable duration.A broker represents a group of investors who purchase single family residences when they can be found at very low prices. Their offers are typically made with $500 deposits and cash closings within 7 days of acceptance of the offers. When the last property closed, the investors suggested the broker keep the deposit money to be used for their next purchase, as yet not identified. What must the broker do with these deposit funds?Return them to the purchasers.An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

$90,426

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract.A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should tell the seller to disclose the termite treatment on the property disclosure.Three people buy a house as tenants in common.Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house can file an action for partition against the third owner.If the terms of a contract indicate that Party A will be obliged to perform her part of the contract only if Party B chooses to take a certain action, then the contract is a unilateral contract in which only Party A has made a promise to perform.A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest dollar, what is the

difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) $407 A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and

$120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood.The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not?No, because it is appropriate to show any property for which the buyer is qualified.

Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)?

41.2% An agency relationship between a property owner and a property manager is usually created by a management agreement 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?Specify questionable items of property in the written sales contract.When the sellers are lending part of the purchase price, they may secure the debt either with a deed of trust or a mortgage. For the seller, one benefit of the deed of trust is that foreclosure is usually simpler and faster.A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as steering.Antitrust laws prohibit competing brokers from all of the following EXCEPt receiving compensation from both the buyer and the seller.In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT more variety of loan programs available.Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area.The buyer could seek to rescind the contract on the basis of misrepresentation.A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely an exclusive agency listing.A seller's statement in a property disclosure document means the owner is disclosing known latent defects.A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable?The seller is heavily under the influence of alcohol at the time of signing.