THE CODE, Oregon Real Estate Exam PSI Questions Flashcards

THE CODE, Oregon Real Estate Exam (PSI) Questions Flashcards A competitive market analysis takes into considerationsquare footage of a subject property In a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on the Promissory note A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this?alienation clause In an exclusive buyer representation agreement does not include a legal description of the property. What is the result of this omission?The agreement is voidable until a legal description is provided How long must real estate documents be kept? 6 years, from the date the transaction was accepted, rejected, or withdrawn Purpose of a reverse mortgage is to?Permit the mortgagor to borrow additional funds as the mortgage is paid down The buyer wrote an offer to purchase a property and gave the broker $10000 earnest money. The offer required the seller to respond within six days. Three days later the buyer decided to terminate the offer has asked for the earnest money to be refunded. What will normally happen to the earnest money in this situation?Until the seller has accepted the offer, the buyer has right to terminate and receive a refund of deposit Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines?Female seeking female roomate

An important function of zoning law is to: Ensure conforming land use.

A low loan-to-value ratio indicated ahigher equity in property Which of the following is least likely to be considered in establishing the value of a property by the sales comparison approach?capitalization rate An owner signed a contract to sell an apartment building.Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A

lawsuit filed by the buyers would be for:

Specific Performance What does the mortgage lender MOST often rely on when deciding how much is safe to lend on a parcel of real estate?appraisal report Two unmarried people purchased a property together with unequal interests in the property. Which statement is true?Either owner may sell her interest without permission of the other owner The lead paint addendum that must be presented with the

purchase and sales contract for certain older homes will:

provide the buyer with the opportunity to wave the right to a lead paint inspection.A buyer's agent is working with a couple who have decided on a particular property. They are concerned about the

boundaries as it appears the fence from a neighboring

property encroaches. The buyer's agent should:

recommend the buyers get a survey

A real estate licensee representing a buyer may do all of the following EXCEPT disclose the highest price the buyer is willing to pay.The sellers have listed their property for sale because they are in a difficult financial situation and would like to get the house sold quickly. If one of the other sellers in the area ask why that client is selling, the listing agent should

respond by explaining what:

Because they are looking to sell their house

Market price is:What the property sells for

What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate?Appraisal report The purchase and sales agreement provides for release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker should Release the earnest money on the buyer's verbal approval A tax against a specific property resulting from a public improvement that benefits that property is known as special assessment A broker lists a property stating that it is offered "as is." This broker still MUST disclose which Existence of a leaking oil tank During a broker meeting, a broker states that a competitor is NOT charging enough commission. The other brokers should remove themselves Which of the following is the BEST example of the protection offered by Fair Housing laws to a person with a disability?A person who is blind and uses a seeing eye dog must be allowed to rent in a building that does not allow pets.In a jurisdiction where the common law of agency governs real estate activities, a broker has a single agency relationship with his buyer. They pass "For Sale by Owner" property that the buyer is interested in viewing. The broker secures a commission agreement with the seller as his customer. The seller tells the broker that he needs to sell the house quickly and will accept less for a quick closing.The agent must tell the buyer About this information because the buyer is his principal A sales licensee is working with a minority couple to find a home for them. The licensee is only showing the buyers

homes in minority neighborhoods. The licensee is guilty of:

steering In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for ensuring that the buyer receives the property disclosure before the contract is finalized A salesperson has the opportunity to list a 6-plex that is 100 percent rented. The salesperson does NOT need to account for any expenses ---- The method used to predict the price at which the building will sell is known as Gross Income Multiplier What is one way that a lender can reduce the buyer's total monthly payment amount so the buyer is able to afford it?Reducing the interest rate by charging an extra point

Quality Supermarkets has taken occupancy of a retail building and has a long term lease. As part of the their fit-up, they bolt to the floor their meat and dairy coolers, and shelves. When Quality Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures?Yes, if removed prior to the end of the lease 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.In general option contracts must bein writing A broker maintains a Property Management Trust (Escrow) Account which has the clients' funds in it. The broker has negative $1,000 balance in it whereas client Jones has $2,000 balance in his account.this is a violation of real estate license laws Which of the following is NOT a characteristic of negative amortization?it occurs in every interest only loan According to the Can Spam Act, every email advertisement for real estate services must do all the following except Advise the recipient that it will take 180 days to remove the recipient's name from the email list Which of the following types of deeds provides the purchaser of real estate the greatest protection?General Warranty Deed The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to

$500,000

The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response

would be to:

give the buyer the website address so the buyer can look up that information For the borrower, the major advantage of private mortgage

insurance (PMI) for a home mortgage loan is that:

the entire amount of the loan is insured A property was listed with a broker, but the owners advertising the property found a buyer and negotiated the same themselves------ commission still goes to the broker.The broker MUST have had an exclusive right to sell

Building codes are:ordinances that specify construction standards

Which of the following statements is the BEST example of puffing?this is the best buy you'll find all year A licensee listed a property that had an unfinished garage.The licensee received an offer subject to the garage being finished. Was a contractual obligation created?No, because the seller has not accepted the offer What term is used when a seller is in default and is allowed to pay off a mortgage before the foreclosure sale?foreclosure avoidance A real estate licensee is assisting her buyer client in determining the feasibility of purchasing a restaurant that was built in 1965, and observes that the flooring is a checkerboard pattern of black and cream colored 9 by 9 tiles, worn but not broken or cracked. Which of the following would be the most appropriate action for the