PSI Test Practice Questions and answers, 2022/2023. Graded A+. Questions bank

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PSI Test Practice Questions and answers, 2022/2023. Graded A+ Agency disclosure requirements apply in all of the following transactions EXCEPT A) resale of foreclosed properties B) commercial... leases C) new construction D) multifamily sales - ✔✔B) commercial leases The period of time over which an improvement to the property will remain useful for its original purpose is known as its a. amortized life. b. chronological life. c. actual life. d. economic life. - ✔✔d. economic life The SC Real Estate Commission may investigate for all of the following reasons EXCEPT A) its own initiative B) a written complaint submitted by an agent about a cooperative commission arrangement C) the director has reason to believe that a licensee is affiliated to practice a written complaint submitted by a disgruntled customer - ✔✔B) a written complaint submitted by an agent about a cooperative commission arrangement Buyer agency contracts in SC A) must be in writing to be enforceable B) must be on specific forms C) are not regulated under the license laws D) are illegal - ✔✔A) must be in writing to be enforceable Deed restrictions are NOT created by which of the following? a. deed b. statute c. written agreement d. general plan of a subdivision - ✔✔b. statute If you are representing a seller as a single-agency client what forms should be used? A) an agency-disclosure brochure and a buyer-agency agreement B) a listing agreement and a buyer-agency agreement C) an agency-disclosure brochure and a designated agency consent agreement D) an agency-disclosure brochure and a listing agreement - ✔✔D) an agency-disclosure brochure and a listing agreement A SC real estate salesperson may lawfully collect compensation from A) either a buyer or a seller B) his or her employing broker only C) any party to the transaction or the party's representative D) a licensed real estate broker only - ✔✔B) his or her employing broker only A lender's interest in a mortgage loan is protected by obtaining additional security from A) Private mortgage insurance B) Title insurance C) The borrower's note D) Impound accounts - ✔✔A) Private mortgage insurance A broker is convicted on May 1st of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the SC Real Estate Commission and leaves a message informing them of the conviction. Based on these facts, which of the following is TRUE? A) The broker has properly informed the SC Real Estate Commission within 60 days after the conviction, and the broker's license may be renewed. B) Both the conviction and the broker's failure to notify the SC Real Estate Commission with 10 days violate the Commission regulations. C) Because the conviction did not occur in state, it is not evidence of unworthy conduct. D) The conviction is evidence of both improper dealing and fraud. - ✔✔B) Both the conviction and the broker's failure to notify the SC Real Estate Commission with 10 days violate the Commission regulations. A promissory note A) May not be executed in connection with a real estate loan B) Is an agreement to perform or not to perform certain acts C) Makes the borrower personally liable for the debt D) Is a guarantee by a government agency - ✔✔C) Makes the borrower personally liable for the debt Which of the following has the authority to carry out the eviction of a tenant? a. Sheriff's Department b. SLED c. Courts d. Landlord - ✔✔c. Courts **** A special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed A) applies only to a definite limited time B) covers the time back to the original title C) is implied and is not written in full D) protects all subsequent owners of the property - ✔✔A) applies only to a definite limited time Disclosed Dual Agency would most likely occur in a A) company that does not provide customer-level services B) company that only practices buyer agency C) cooperative sale situation D) it would not occur because it is prohibited by SC law - ✔✔A) company that does not provide customer-level services A void contract is one that a. was not in writing b. was never legally enforceable c. was rescindable by agreement d. was voidable by only one of the parties - ✔✔b. was never legally enforceable **** A lease with an escalator clause is an example of what type of lease? a. Graduated b. Net c. Gross d. Percentage - ✔✔a. Graduated Steering is A) guiding prospective homeowners to or away from certain neighborhoods B) refusing to make loans on properties located in certain areas C) a requirement for the broker to join MLS D) a practice of standardizing commission rates - ✔✔A) guiding prospective homeowners to or away from certain neighborhoods The on-site property manager for Acme Apartments is responsible for "negotiating"leases for the apartments. In this position the on-site manager A) is exempt from the licensing requirements B) must have a broker's license C) must have a real estate or property manager's license D) may negotiate but not sign leases without a license - ✔✔C) must have a real estate or property manager's license How is a broker's commission determined in a real estate sales transaction? A) it must be stated in the listing agreement and is negotiated between the broker and seller B) it is determined according to the standard rates set by agreement of local real estate brokers C) if under dispute, it will be determined through arbitration by the SC Real Estate Commission D) It must be paid with cash or a cashier's check upon closing - ✔✔A) it must be stated in the listing agreement and is negotiated between the broker and seller **** A buyer agency agreement must contain all of the following EXCEPT A) method of compensation B) explanation of compensation to participating brokers C) description of agent's duties D) notification of intent to cancel after expiration date - ✔✔D) notification of intent to cancel after expiration date The condemnation of private property for public use is allowed under the state's right of A) police power B) escheat C) eminent domain D) confiscation - ✔✔C) eminent domain A tenant vacated the property because the landlord refused to fix the hot water heater. This is called A) constructive eviction B) actual eviction C) partial eviction D) legal ejectment - ✔✔A) constructive eviction The purpose of the Real Estate Commission is to A) enact real estate license law legislation B) protect the interest of the public when involved with real estate transactions C) administer the real estate license state exam D) resolve commission disputes between licensees - ✔✔B) protect the interest of the public when involved with real estate transactions A seller and a buyer agree that a property condition disclosure statement need not be completed for a specific transaction. In SC A) this is permitted if both parties agree in writing B) this is prohibited under law C) this is permitted if the property is being sold "as is" D) this is prohibited if the property conveyed is new construction - ✔✔A) this is permitted if both parties agree in writing An eligible veteran made a purchase offer of $80,000 on a home he wants to finance with a VA-guaranteed loan. Four weeks after the offer was accepted, a certificate of reasonable value (CRV) for $77,000 was issued for the property. In this situation the veteran could "NOT" do which of the following? A) Withdraw from the transaction without penalty B) Purchase the property with a $3,000 cash down payment C) Negotiate with the seller to reduce the price $3,000 D) Borrow the $3,000 for the cash down payment - ✔✔D) Borrow the $3,000 for the cash down payment Upon completing Fundamentals of Real Estate (60 hour Pre-license training) and passing the state exam, one must complete 30 hours of Unit II training A) prior to receiving a real estate license B) within one year of completing the licensing course C) within one year of passing the state exam D) within one year of joining a real estate brokerage firm - ✔✔A) prior to receiving a real estate license The purpose of a licensee presenting the agency disclosure form in SC is to A) establish an agency relationship with a client B) provide a meaningful explanation of agency relationships offered in SC C) avoid discrimination under SC fair housing laws D) provide proof of representation to the other party in a transaction - ✔✔B) provide a meaningful explanation of agency relationships offered in SC **** Under SC law, which of the following is exempt from continuing education requirements for license renewal? A) a licensee who is 65 and has been in the real estate business 20 years B) a licensee who has completed a property management course C) a licensee in a referral company D) a licensee who wishes to change from inactive to active status - ✔✔B) a licensee who has completed a property management course All of the following may be grounds for disciplinary action by the SC Real Estate Commission EXCEPT A) inducing a party to break a contract B) interfering with the agency relationship of another agent and client C) conviction of violating state fair housing laws D) failure to disclose the death of a seller due to cancer - ✔✔D) failure to disclose the death of a seller due to cancer If the potential gross rental income from a property is $20,000, the vacancy rate is 5 percent, and the additional income from the laundry facilities and extra storage is $700, what is the effective gross income? a. $19,000 b. $19,700 c. $20,000 d. $20,700 - ✔✔b. $19,700 After revocation of a license, a new license may not be issued to the same individual within a period of A) five years from the date of revocation or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. B) one year from the date of revocation or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. C) two years from the date of revocation or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. D) three years from the date of revocation or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. - ✔✔D) three years from the date of revocation or at any time thereafter except upon an affirmative vote of a majority of the members of the commission. Prior to putting a house on the market for sale, an owner has a home inspection completed on the property. The inspection report reveals there is mold in the air ducts. The seller indicates to the listing agent that this is confidential information and should NOT be disclosed because the mold is not visible, but is a latent defect. What obligation does the listing agent have? A) no obligation. The listing agent is required to keep confidential information the seller has requested be kept confidential B) the listing agent must only notify a buyer if a buyer is a client C) no obligation. The buyer is required to inspect the property prior to submitting an offer D) the listing agent is required to notify a buyer, whether customer or client, of the mold problem - ✔✔D) the listing agent is required to notify a buyer, whether customer or client, of the mold problem **** Provisions under the SC Vacation Time Sharing Plan Act A) require that funds from a time share sale be placed in an escrow fund for a certain period B) require that anyone selling a time share must have a real estate license C) mandate a four day right of rescission D) are enforced by HUD - ✔✔A) require that funds from a time share sale be placed in an escrow fund for a certain period The federal Fair Housing Act does NOT prohibit A) blockbusting B) discriminatory advertising C) redlining D) unlawful discrimination - ✔✔D) unlawful discrimination In SC, a reduction in real property taxes for a personal residence may be available to all but which of the following individuals? a. 78 year old retiree b. 26 year old single parent c. 34 year old visually impaired person d. 41 year old disabled veteran - ✔✔b. 26 year old single parent The duties and powers of the SC Real Estate Commission include all of the following EXECPT A) promulgating regulations to protect the public B) conducting disciplinary hearings C) determining the standards for licensure D) conducting investigations of a real estate office based on an irate phone call - ✔✔D) conducting investigations of a real estate office based on an irate phone call A building sold for $157,000. The broker charged 6 percent commission and divided it as follows: 10 percent to the salesperson who took the listing, one-half of the balance to the salesperson who made the sale, and the remainder to the broker. What was the listing salesperson's commission? A) $239 B) $942 C) $1,570 D) $4,239 - ✔✔B) $942 Last month broker Wanda took a listing on a property. She now learns that her client has been declared incompetent by the court. Her listing now is A) binding as the broker was acting in good faith B) still valid C) the basis for commission if the broker produces a buyer D) void - ✔✔D) void Which of the following is the most important in the appraisal process? A) asking price of the property B) highest and best use of the property C) original cost of the property D) selling prices of similar properties - ✔✔B) highest and best use of the property All the following statements are true concerning the Real Estate Commission EXCEPT: A) determine candidates to serve on the Real Estate Commission B) the commission may not be involved in the resolution of disputes between licensees over the payment or division of commission C) the department may conduct periodic inspections of the offices of licensees in order to assist with and to ensure compliance with this chapter D) it is the responsibility of a licensee to keep on file with the department a current mailing address - ✔✔A) determine candidates to serve on the Real Estate Commission A rental property has been appraised at $92,500. If the millage rate is 127 mills, what are the property taxes? A) $704.85 B) $469.90 C) $1,174.75 D) $1,957.91 - ✔✔A) $704.85 A listing contract in which payment of the commission is contingent on the broker's being able to produce a buyer before the property is sold by the owner or another broker is called a (n) A) open listing B) net listing C) exclusive-right-to-sell listing D) exclusive-agency listing - ✔✔A) open listing uwe [Show More]

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