PSI Real Estate Broker Exam Review Test Mississippi. Questions & Answers. Rated A+

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PSI Real Estate Broker Exam Review Test Mississippi. Questions & Answers. Rated A+ Included among legal requirements of taking title to real property as tenants in common is that? - ✔✔-Each c... o-owner's interest may be conveyed separately. A homeowner employed a contractor to build a swimming pool. The owner did not pay, what time of lien is NOT represented by this lien? -✔✔-General Lien Legal seizure of property to be held for payment of money pending the outcome of a suit to enforce collections is? -✔✔-Attachment A woman build a fence that intended beyond the boundary of her property onto her neighbor's land. This is an example of? -✔✔-Encroachment The owner of a life estate in property? -✔✔-Is entitled to possession of the property A land description that begins at a specific point and proceeds around the boundary of a parcel of real estate by reference to linear measurements and directions is? -✔✔-Metes-and-Bounds Which of the following provides for money compensation to an owner whose land is taken for a new road? -✔✔-A lien of encumbrance A buyer made an offer on a building subject to an inspection. Disintegrating airborne asbestos fibers were discovered. This condition is called? -✔✔-Friable Strict Liability means that? -✔✔-An owner is responsible to an injured party without excuse. A building housing an insurance company existed before the property was rezoned residential. The building is now allowed because of? -✔✔-A nonconforming Use A property is appraised at $300,000.00. The body uses a 52% assessment and 40 mills is the tax rate. What is the monthly rate? -✔✔-$520 - 300,000.00 x 52% = 156,000 x .40 = 6240 divided by 12 months. divided by .09 = 222,222.00 -✔✔-The annual net income for an office building is $20k. If an owner realized a 9% return on her investment, the value of the building would be? Depreciation generally applies to? -✔✔-The building ONLY You look at four houses for sale in the same area and choose the house with the lowest asking price. You're probably easing your decision on the principle of? -✔✔-Substitution, no one wants to pay more than what they want for an equal property. A homes value is increased because of it's proximity to schools, parks, and transportation. These neighborhood sites are referred to as? -✔✔-Amenities Which of the following reflects the stages through which a neighborhood passes? -✔✔-Growth, Stability, Decline, Revitalization An appraiser is estimating the value of a building that has a net income of $5k per quarter and a cap rate of 8% What is the value of the property? -✔✔-5,000 x 4 = 20,000.00 20,000 divided by 8% = $250k Which of the following does NOT apply to the definition of market value? -✔✔-Market value is the average sales price, NOT an average. A comparable property sold for 250k and it has 200 more square feet than the subject property. If square footage contributes $30 per square foot, what is the adjusted value of the comparable? -✔✔- $256,000.00 All of the following statements concerning real estate financing are correct EXECPT? -✔✔-A promissory note is a mortgage security On the FHA loan, the buyer would NOT be required to? -✔✔-Make a 20% down payment on the loan A buyer purchased a home and asked the seller to pay 2 1/2 discount points which equaled $4k. How much money did the buyer want to borrow? -✔✔-4k divided .025 = 160k Pledging property as security for a loan without losing possession of it is? -✔✔-Hypothecation The insurance report that tells about previous insurance claims is? -✔✔-CLUE - Comprehensive Loss Underwriting Exchange A mortgage on four lots with partial release clause would be? -✔✔-Blanket Mortgage If a buyer can afford a P&I payment of $1,200 and the amortization rate for 5 1/4% 30 year mortgage is $5.68 per thousand, how much money can the buyer afford to borrow? -✔✔-You don't use 5/14 at 30 year, $1,200 divided by 5.68 = 211.27. 211.27 x1000 = $211,267.61 A Real Estate Broker is usually a what kind of agent? -✔✔-Special Agent A home is listed for $100k and sells for $90k. The broker's commission is 7% of the selling price. The commission is? -✔✔-90,000 x .07% = $6,300 A broker has listed a home under an exclusive right to sell listing agreement. The broker's commission is earned when? -✔✔-He finds a buyer, ready, willing and able to buy on the listed terms. What is the listing broker's responsibility to a prospective purchaser? -✔✔-A broker must not use fraud or deceit A salesperson has written an offer and was given a check for earnest money. How should the check be handled? -✔✔-Give the check to their broker for deposit in the broker's trust account. A broker's license can be revoked if they? -✔✔-Negotiate a commissions based on the rate set by the local board of Realtors. A broker has received several offers for a property he has listed. The broker must present each offer to the seller by when? -✔✔-Promptly upon receipt of the offer A doctor listed his home for sale under an exclusive right to sell agreement. What will terminate the listing agreement? -✔✔-If the salesperson dies, the listing contract will be terminated. Can Brokers place blind ads? -✔✔-NO The buyers signs a contract for $123,000 and deposits $12,300 earnest money. The seller can't deliver good title. the buyer wants the deposit back. What does the broker do? -✔✔-Return the entire amount to the buyer If the BUYERS agent knows that the house her buyer wants has been the site of a murder suicide what should the agent do? -✔✔-Disclose it to the buyer before writing the offer, the buyer's agent is required to disclose even though it may be non material. A sellers agent does not have to disclose what? -✔✔-If seller has HIV/AIDS because it is a protected class and is not a threat to buyers. What is not a material fact to be disclosed by a buyer's agent? -✔✔-Disclose provisions of the offer that are not favorable to the buyer. Is a large crack in the living room wall a latent defect? -✔✔-No, it is visible. The Residential Lead-Based Paint Hazard Reduction Act of 1992 requires licensees to do what? -✔✔- Licensees must ensure that all parties comply with the laws? CERCLA is a law that deals with? -✔✔-Environmental Legislation - COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION LIABILITY ACT What does dual agency require? -✔✔-Dual agency must be agreed to by all parties In an option contract, the optionee has 30 days to exercise his option. The option is what kind of contract? -✔✔-Unilateral Contract What would not legally terminate a listing with a broker? -✔✔-Death of the salesperson A broker sold a property in "as is" condition. Both seller and broker knew the plumbing was in disrepair. Would an action by the buyer for fraud be successful? -✔✔-Yes, the duty to disclose a material fact can't be avoided by an "as is" provision. An implied contract is? -✔✔-A contract in which the intentions of the parties are shown by their actions? What type of listing is prohibited or discouraged? -✔✔-Net Listings If a buyer offers to purchase a home for $350k subject to the sale of the buyer's home, what is the subject to sale called? -✔✔-contingency A buyer has contracted with a seller to buy property. The contract was dated January 1. The closing was on March 31. What is the status of the contract on April 1? -✔✔-Executed A salesperson listed an owner's home under an exclusive right to sell listing contract. What is true about who the listing belongs to? -✔✔-Only to the Broker What is NOT an essential to a contract? -✔✔-Earnest Mone [Show More]

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