PSI National Real Estate Salesperson Practice Exam Flashcards

PSI National Real Estate Salesperson Practice Exam Flashcards An environmental impact statement typically describes the effects of a proposed project on factors such as public health and safety.A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should tell the seller that the buyer will pay more.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.Real property can be converted to personal property byseverance.In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?One.A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called an option contract.A major difference between freehold and nonfreehold estates is that all freehold estates are of indeterminable duration.An investment property returns 12% of its value or $21,000 annually. What is the value of the property?

$175,000

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.When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should have short deadlines.Which of the following real estate contracts is a service contract?a listing agreement A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract.Antitrust laws prohibit competing brokers from all of the following EXCEPT receiving compensation from both the buyer and the seller.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.

A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract. In this situation, if the seller takes the appliances with him, what recourse does the buyer have?The buyer may sue the seller for specific performance.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.Under the common law of agency, licensees owe the broker with whom they are associated all of the following duties EXCEPT indemnification.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.To be valid, every deed mustbe executed by the grantor.An escheat occurs whena property owner dies without heirs or a valid will A deed restriction is applicable to the activities ofall owners, present and future.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.The FHA functions MOST likean insurance company.If leased premises become unusable for the purpose state in the lease, the tenant may have the right to abandon the premises. This action is called constructive eviction.

A commercial property lost value because a recently constructed highway moved traffic away from the property.This is an example of economic or external obsolescence.A couple are moving to a new city. They have decided to rent temporarily before buying a house to see which part of the city they would like to live in. What type of lease would BEST suit the couple's needs?Month-to-month lease.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.If all other factors are equal, in which location is a parking lot likely to bring the highest sales price?Business district zoned for a six story office building.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.A seller signs a listing agreement with a broker. The seller can cancel the listing at any time without legal liability if the broker violates the terms of the contract.Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?Both contracts are valid.A landlord may legally refuse to rent to a prospective tenant if the tenant has ever been convicted of selling illegal drugs.Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the following circumstances would NOT give either party a justifiable reason to insist on a mutual release?The buyer finds a better property for better terms.MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and the sale price.To what party or parties does the broker owe the fiduciary duty of care?the party or parties employing the broker