FREE PSI Knowledge Exam Questions and Answers
When a buyer gives a seller a purchase-money mortgage and the seller take it back:
The seller agrees to collect the buyer's payments directly from the lender.
Which law says that any advertisement that talks about mortgage financing terms must include certain information?
Mortgage financing trigger phrases are required under the Truth in Lending Act.
A mortgage's discount points are calculated as a percentage of:
Mortgage discount points are calculated as a percentage of the amount borrowed. To reduce the interest rate by one eighth of a percent or one quarter of a percent, you can pay one point, or one percent of the loan amount. Depending on how many points a borrower pays, the lender will offer different rates and payment plans.
A debtor's real and personal property is affected by this lien:
A general lien covers all of a debtor's real and personal possessions, unlike a specialized lien.
A contract that gives another the right to hold real property but not title is:
Landlords and tenants enter into leases when one party agrees to let the other occupy property for a certain period of time in exchange for regular payments. A lease is a type of transfer because it gives someone the right to live in a property but doesn't give them ownership.
Rents in MOST market areas are based on:
This refers to the average rent paid in the neighborhood, as well as the prices charged by competing property owners. The size, type, and location of the property also affect how much the rent is.
The rent for a building with nine units is as follows: Three apartments will cost you $550, three apartments will cost you $600, and three apartments will cost you $650. There are 4% empty rooms, $2,400 in extra income, and $5,000 in annual costs. How much should the buyer pay for this property if the capitalization rate is 9%?
Divide the net operating income by the capitalization rate.
A developer gives permission to a local power company to put in transmission lines. This right demonstrates _______.
A company's right to utilize another's land is an easement in gross.
All of these are important parts of a contract, except:
Required is a competent grantor.
When a seller returns a buyer's purchase money mortgage:
The terms and conditions, including principle and interest, must be clearly put down in writing in order for the purchase money mortgage to be upheld.
Depreciation, defined as a decrease in value from any cause, is usually classified into three categories. The loss of a property's value due to normal wear and tear is called ______.
Physical deterioration is the loss of value that comes from the wear and tear that buildings go through as they age. Floods, earthquakes, fire, UV rays, wind, etc. can cause physical damage.
Carbon Monoxide (CO) is NOT the following: Carbon Monoxide (CO) is NOT the following:
Because it's odorless and colorless, CO is hard to smell.
The price paid for a building was $157,000. The 6% commission paid to the broker was split as follows: 10% to the listing agent and 50% to the selling agent. What was the commission of the listing booker?
157,000 X 6% = 9420
9420 / 10% = 942 (listing booker's commission)
When a person has full control over a piece of land, they are said to:
Fee simple or fee simple absolute estate is the highest interest in real estate that the law recognizes.
Property managers need to know and understand a lot of different things. When a manager thinks about asbestos, radon, and urea formaldehyde, they should know that all three are:
Asbestos, Radon, and Urea Formaldehyde are all dangerous to the environment.
How much is a property worth if its gross rent multiplier is 112 and its monthly rent is $600?
112 x 600 = $67,200 (value of the property)