NATIONAL PSI BROKER EXAM

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NATIONAL PSI BROKER EXAM

PREP WITH 100% CORRE CT

ANSWERS

Question : Real Estate law governing advertising applies

to all of these EXCEPT:

• In house notes for showing
• Multiple listing service (MLS)
• communications with consumers
• Social Media

Correct answer: A. In-house notes for showing are not

seen by consumers an so do not have to follow state or federal laws.

Question : A couple accompanies a property inspector

during an inspection of a house on which they have a contract. The inspector points to a six-inch crack at the corner of a dining room window. The crack is an example

of :

• A structural defect
• A patent Defect

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• a latent defect
• an environmental defect

Correct answer: B. A patent defect is easily visible when

inspecting a property. (another) term for material)

Question : An eligible veteran made an offer of $225,000

to purchase a home contingent upon obtaining a no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after the offer was accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for the property. In this case, the

veteran may:

• withdraw from the sale with a three-point penalty
• withdraw from the sale on payment of a commission to

the seller's broker

• purchase the property by making a $3,000 cash

payment

• seek secondary funding for the $3,0000

Correct answer: C. When the purchase price of a property

is greater than the VA-issued (CRV), the veteran may pay the difference in cash to purchase the property because

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secondary financing is somewhat restricted under VA regulations.

Question : General real estate property taxes levied for the

operation of the government are called:

• special taxes
• ad valorem taxes
• improvement taxes
• special assessment taxes

Correct answer: B.

Question : Under current Regulations, a U.S. department

of Veteran Affairs (VA) loan is assumable if:

• The VA approves both the buyer and the assumption

agreement

• the veteran agrees not to request a releases of liability

for repayment

• the VA approves the buyer only

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• the VA approves the assumption of the agreement only

Correct answer: A.

for VA loans made after March 1, 1988 the VA must approve both the buyer and the assumption agreement before the loan may be assumed.

Question : During the period of time after a real estate

sales contract is signed, but before title actually passes,

the status of the contract is:

• executory
• voidable
• executed
• unilateral

Correct answer: A.

A contract is in executory status when its terms of agreement have not yet been carried out.

Question : If there is a discrepancy between a residential

lot size quoted in a listing contract and the actual lot size,