PSI National Exam for Real Estate Flashcards

PSI National Exam for Real Estate Flashcards Usury laws were enacted to protect theborrower Which of the following is usually prorated at closing?1. Homeowners association fees.2. Property taxes.3.Transferred homeowner's insurance.Which of the following is NOT a consideration in the definition of market value?Buyer and seller must agree to appraised value The land description T3N, R4W Principal Meridian refers to what method of property description?Rectangular survey.All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT straight-line method Antitrust laws prohibit competing brokers from all of the following

• boycotting other brokers in the marketplace.2. dividing

the market to restrict competition.3. agreeing to set sales commissions and management rates.Too much leverage may result innegative cash flow In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers One When one of the parties to an agreement fails to perform one of its conditions, that contract is deemed to be breached 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 he is no longer the listing agent For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?Mortgage loan interest, local property taxes, mortgage loan origination fees A seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), who is liable for damages fromthe dumping prior to the sale of the property?Seller When preparing a market data estimate of value, which of the following categories of adjustment is essential?

• the date of sale of the comparables2. the amount of

square footage3. the location of the property A lawsuit for inverse condemnation may be brought bya homeowner The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, require the buyer to acknowledge disclosure of the presence of any known lead paint A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract

A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to demand immediate payment of the entire note 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 cent, what is the difference between the monthly payments for these two loans?(BE SURE TO USE THE AMORTIZATION TABLE.)

$409.20.

A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an automatic renewal clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply withthe lease term?No notice is required How does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay?Writ of execution Timeshare ownership programs MOST often use which of the following ownership forms?tenancy in common Which of the following approaches MOST reliably estimates the sales price of a single-family residence?Market data While an agent is showing a listed property, the seller and the buyer enter into an oral agreement for the purchase of the home. If a dispute over the terms arises later, the agreement may be unenforceable because the agreement does not comply with the Statute of Frauds A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined therecord or not, have been given constructive notice

• They are used to buy down interest rate.2. They are a

function of the marketplace.3. They are paid by either the buyer or the seller.discount points The purpose of requiring an earnest money deposit in a real estate sales contract is to provide evidence of the buyer's intention to carry out the contract.Parcels A, B, and C are located side by side and owned by three different owners. A is worth $20,000, B is worth $27,000, and C is worth $16,000 for a total of $63,000. A developer believes that if all three can be purchased, the larger parcel would be worth $85,000. By assembling these under one owner they would be worth $22,000 more than their individual values. This demonstrates which principle of value?plottage Which of the following BEST illustrates the concept and intent of a buffer zone?Garden apartments located between a single-family residential neighborhood and a shopping center.An agency relationship between a property owner and a property manager is usually created by management agreement At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest chargeis currently $600. The seller has made the

payment due on June 1. Assuming a VA mortgage, what is the adjustmentmade at closing?Debit seller $300; credit buyer $300 The sellers have agreed to give the buyer a carpet allowance to replace the family room carpet. They will allow

$19.95 per square yard for carpet plus $5 per square yard for pad and installation. If the family room is 22'6"x 15', how much will it cost the sellers (to the nearest cent)?

$935.63