PSI NATIONAL REAL ESTATE QUESTIONS Flashcards

PSI NATIONAL REAL ESTATE QUESTIONS Flashcards An appraiser would be most likely to rely on the cost

approach in appraising a:

church An appraiser's compensation may be based on.... Time The amount of commission is establishedAgreed upon by seller and broker A broker states "this is the best house in the neighborhood," and the buyer purchases the home. Later the buyer finds out it is not the best house in the neighborhood. Can the buyer sue the broker?No, since the broker was clearly puffing A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. Hepays the neighbor $9,000 for the right of access and receives a deed. This is aneasement Appurtenant If the principal insists that she will not sell her house to black families, the broker must Cancel the listing A buyer and seller have a contract which states the buyer can buy the property for $120,000 and close the sale before 12/31/2014. What type of contract exists?Option

An equal housing opportunity notice must: Be displayed in each office

A tenancy in which the lessee remains in possession of the

property without the lessor's consent is:

An estate at sufferance A purchaser in the secondary mortgage market is Federal National Mortgage Association While performing an analysis of value for listing a house, all of the following would beincluded in the Market Data

Approach except:

Capitalization What should a buyer include in an offer to purchase that gives them the ability to financing is not approved?Contingency A lender who forecloses on a property and sells it later for less than what was owed has the right to obtain a(n) deficiency judgment The renter of a property has recently become disabled and can no longer walk. The tenant needs a ramp to gain access to the property. What must the landlorddo?Permit tenant to install ramp at their expense In order to calm the fears of a buyer who is getting an Adjustable Rate Mortgage, what statement would be the best?There is a limit to the amount of adjustments called a cap Which one of the following governmental rights in property does not allow the government to foreclosure (take') the property if the right is violated?Police power A couple is moving to a new city. They are renting a house temporarily before buying a house. What type of lease would best suit their needs?Month-to-month lease

Mortgage default insuranceIs paid by borrower to protect lender A titleholder of a piece of real estate has passed away and in their will, they are leaving the property to their son. The son wishes to sell the property. What type of deed would the son sign to convey ownership to the new buyer?Personal representative deed

An acre of land contains:43,560 square feet

The words "littoral", "riparian" and "prior appropriation" all refer to Water Rights An appraiser would be most likely to rely on the cost approach in appraising a Church The ways to terminate an Agency Agreement include all

except:

Unilateral cancellatio The Comprehensive Environmental Response

Compensation and Liability Act (CERCLA) created:

a Superfund to clean up hazardous waste sites Fair housing law allows seniors to have separate housing if 80 percent of the units are occupied by at least one person age 55 or older. This exemption allowsfor discrimination based on Familial Status What is the payment difference on a loan amount of $220,000 with a 15 year, 5.5% interest versus a 30 year at 6.5% (use amortization chart) $407 A seller has received an offer at 80% of list price. Seller counter offers at 90% of list the response, an offer of 98% of list price comes in from another buyer. The seller wishes to sell to the second buyer. What is true?Withdraw the first buyer's counter-offer and then accept the second offer A buyer is purchasing a property for $95,000. The seller has an existing mortgage of $65,750 which the buyer is assuming. The buyer has already deposited a $2,500 earnest money check. The seller agreed to pay a listing commission of 6.5% of the sales price. How much cash will the buyer need at the closing?

$26,750

All the following are protected classifications exceptHomosexuals Which of the following Statements BEST identifies the meaning of the term "Recession Contract" A return of all parties to their condition before the contract was executed A potential buyer was turned down for a mortgage loan because of the high crime rate where the property is located. This is an example of Redlining All the following are considered a Common Interest Community EXCEPT Apartments The local governments have authority to ensure that properties are being built properly. Under the authority of

police power, the government can adapt and implement:

Construction standards The owners of a cooperativeapartment and the owners of a condominium apartment both pay assessments

The type of deed that is best for the grantee (buyer) is:Warranty

A commercial property lost value because a recently constructed highway directed traffic away from the property. This is an example of Economic or external obsolesce The figure used by the lender in determining the maximum loan it will make the purchase price or appraised value, whichever is less Seller is selling their property. Their outstanding loan balance is $240,000. The house has a value of $200,000.Assuming the seller pays realty fees, closing fees, state fees, the amount left over is only $180,000 to pay off the loan. What statement Lender may pursue the seller for a deficiency judgment of

$60,000

In order for a property manager to determine the net operating income for the investor/owner, which fees or expenses are subtracted from the effective gross income?Operating expenses A principal broker can be held responsible for All real estate activities of salesperson interest rates on credit cards, loans, car loans, etc. are

established by:

Usury A buyer makes an offer on a property that the seller accepts. While waiting for an inspection, the buyers see another property that they like even better. They draft anoffer on that property which is accepted by that seller.What statement about the offers is true?Both offers are Valid Offers What statement is true about asbestos removal Encapsulation is the safest tactic A legal description in land that includes language like "the old oak tree" or "the big rock" would be Metes and bounds As licensees usually work as independent contractors, a broker will have a contractfor the independent contractor which (for federal purposes) must outline Statement that FICA (taxes) are the associates responsibility When a buyer and a seller enter into a purchase agreement (contract of sale), the legal remedy that each has to force the other transaction is specific performance.An appraisal method that uses adjustments to recent sales to estimate value is the sales comparison approach The listing agreement must contain all the following items except Statement regarding how to earn commission Which one of the following buys mortgages Federal National Mortgage Association (FNMA) In an exclusive right to sell listing, the principal contracts:to pay the broker a commission if the property sells during the contract All of the following are true of the holder of a fee simple

absolute estate EXCEPT:

his estate terminates upon death A prospective buyer makes an offer to buy a house. The owner counter-offers. While the buyers are reviewing the counteroffer, the owner receives a better offer. The owner can accept the second offer if...The owner withdraws the counteroffer before the first buyer accepts-it

An easement isThe right to use another's land when a borrower wishes to obtain a loan in excess of 80%

of the property's value, the lender is likely to require:

Mortgage default insurance The amount to list a property is best determined by:Competitive Market Analysis (CMA)

Racial discrimination is allowed:NEVER

An agent goes door knocking in a subdivision. As part of his presentation, he makesmention of the fact that many families with children are moving into the area and that house prices are rising. He then recommends the owner should sell because he has a nice quiet subdivision of older, mature families that are quiet. Is this discrimination Yes- he is blockbusting by playing on the fears of consumers of protected class.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 FHA functions most likeInsurance Company A married couple owns a property together as tenancy in entirety. Which of the following about selling a property as tenancy in entirety is true?Both spouses must sign the conveyance A property manager would do all the following except:Invest the profits into the building A developer of a subdivision does not want "clotheslines" to be installed in the houses in the subdivision. A way for the developer to have control to limit and fine people who want

to install clotheslines would be:

Covenant At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?Credit seller $300; debit buyer $300 Which of the following is a disadvantage to owning real estate?Liquidity Title insurance premiums are paidOnce, at the time the policy is issued A broker lists a property and begins marketing it. The seller sells the property to a neighbor and pays the broker a full commission, What type of listing agreement was signed?" Exclusive Right to sell A licensee when showing property MUST disclose material facts of which the licensee is aware A seller is listing their $350,000 house. They state their property tax bill is $1,110 per year. What should the agent do?Verify the information with the county A home warranty will typically provide coverage for which

of the following:

Electrical and plumbing systems At the time of listing, the seller tells the listing agent they are moving because the neighbor has loud parties every weekend. The agent should Tell potential buyers The right of an agent to represent a principal is created byfiduciary agreements