PSI exam Flashcards
Should flooding occur and cause damage to the property, the Parkers should seek payment from
A. their homeowners insurance policy.
B. the federally subsidized flood insurance policy.
the federally subsidized flood insurance policy.
A property owner died, having willed his real property to his two daughters. There is still a chance that they could lose the land for a variety of reasons, but it CANNOT be taken through
escheat.
A broker is showing a buyer one of his residential listings. The buyer says he wants to establish a day care center for seniors in the property. The property has been used as a day care center for no more than five children. How should the broker advise this buyer?
Provide the buyer with contact information for the local planning and zoning office to confirm the zoning and determine whether it permits his use.
A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?
Conditional use permit or zoning variance.
If conditions for property use are included in a deed and these conditions are violated, what is the most severe potential penalty?
A court may order the return of the property to the original owner.
A formal appraisal will ALWAYS be REQUIRED when the
lender wants to sell the mortgage to the secondary market.
When preparing a market data estimate of value, which of the following categories of adjustment is NOT essential?
The original cost of the building.
A competitive market analysis is MOST often used for
setting a listing price
When compiling a competitive market analysis, a broker would look for comparable properties that
were located near the property being listed
A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of
anticipation.
When a home is purchased using an ARM, the monthly loan payment on the mortgage will
vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced.
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT
more variety of loan programs available.
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.
The FHA functions MOST like
an insurance company
Which of the following consumers would be able to derive the most benefit from a reverse mortgage?
A couple in their late 60?s who need to tap their home equity to help cover their expenses but do not want to sell their house.
A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the broker that they just received a revised Good Faith Estimate and Truth in Lending disclosure from the lender indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on the Mortgage Disclosure Improvement Act of 2009, what action should the broker take in this situation?
Confirm with the seller’s broker, the lender and the closing entity that the closing must be delayed to allow for the seven-day waiting period after the final GFE and TIL statements are received.
Even if a loan applicant’s current income seems adequate to qualify for a certain loan, the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the applicant’s main source of income is
commission sales.
A home buyer is obtaining a fully amortized loan in the amount of $140,000. The savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the nearest dollar, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)
$267
The contract provided that the heating oil would be prorated. As of the close of sale, what dollar amount will be owed to the seller?
$682
If you own a building free and clear that is worth $115,000 and want an annual return of 12%, what net income is needed each month?
$1,150
An owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68,000 and the broker’s commission. To the nearest dollar, what should the selling price be to net her $45,000?
$121,505
Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)?
41.2%
Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. In many states, the common law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with property. In others, all water rights are controlled by the state under the doctrine of
prior appropriation.
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
Since the Garcias wish to retain the automatic garage door opener, it
should be specifically excluded in the contract since it is a fixture.
Tenants are still in their rental property even though their lease has expired. The landlord has given them written notice to quit and refused to accept rent. They are
tenants at sufferance.
An easement can be terminated by
merger of titles.
A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm’s agents have contacted. The realty firm has an agency relationship with
the builder
A real estate salesperson is representing only the buyer in a transaction. Which of the following actions would be a violation of the salesperson’s agency duties to the client?
disclosing the highest price the buyer is willing to pay
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 the buyer is willing to pay more
