Free PSI Knowledge Exam Questions and Answers

Question 1

Rents in MOST market areas are based on:

Accepted Answer

supply and demand factors

Answer

Rents in most market areas are primarily determined by the fundamental economic principles of supply and demand. When the demand for rental properties is high and the supply is low, rents tend to increase. Conversely, if supply exceeds demand, rents may decrease, reflecting the dynamic balance of the local housing market.

Question 2

A contract that gives another the right to hold real property but not title is:

Accepted Answer

a lease

Answer

A lease is a contract that grants a tenant the right to possess and use real property for a specified period, but it does not transfer ownership (title) of the property. The landlord retains title, while the tenant gains exclusive possession and the right to quiet enjoyment. This arrangement allows for the temporary transfer of property use without conveying permanent ownership.

Question 3

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%?

Accepted Answer

$661,244

Answer

Divide the net operating income by the capitalization rate.

Question 4

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:

Accepted Answer

classified as environmental hazards

Answer

Asbestos, Radon, and Urea Formaldehyde are all dangerous to the environment.

Question 5

When a buyer gives a seller a purchase-money mortgage and the seller take it back:

Accepted Answer

the terms and conditions of the mortgage must be set forth in writing

Answer

The seller agrees to collect the buyer's payments directly from the lender.

PSI - Exams Practice Test

PSI - Exams Practice Test

Free PSI Knowledge Exam Questions and Answers