Free PSI Real Estate Financing MCQ Test Questions and Answers

Question 1

Federal laws about truth-in-lending are also called _____.

Accepted Answer

Regulation Z

Answer

Title VIII

Answer

the Equal Credit Opportunity Act

Answer

the Freedom of Information Act

Question 2

What does the underwriter do?

Accepted Answer

Ensuring the borrower is capable of paying the mortgage

Answer

Researching the history of the property's title

Answer

Providing the funds for the mortgage

Answer

Making sure the value of the house is greater than the mortgage amount

Question 3

Who ensures the property has good title before closing?

Accepted Answer

Title agent

Answer

Mortgage Broker

Answer

Appraiser

Answer

Underwriter

Question 4

FHA acts most like:

Accepted Answer

an insurance company

Answer

an investment group

Answer

bank or savings and loan association

Answer

mortgage company

Question 5

Usury laws were made to protect the:

Accepted Answer

borrower

Answer

broker

Answer

lender

Answer

seller

Question 6

It is common practice for a property owner and management to get into an agency partnership by ______.

Accepted Answer

management agreement

Answer

payment of a management fee

Answer

an exclusive agency agreement

Answer

an independent contractor agreement

Question 7

The agreement that defines the legal rights of the buyer and seller in a real estate transaction is called the ______.

Accepted Answer

purchase contract

Answer

listing agreement

Answer

abstract of title

Answer

deed

Question 8

Condominiums are better than detached single-family homes because:

Accepted Answer

a condominium tends to be more affordable

Answer

a condominium requires no maintenance

Answer

condominium ownership has more tax advantages

Answer

a condominium is easier to resell

Question 9

A borrower has failed to pay the mortgage. There is an acceleration clause in the mortgage. This gives the lender the chance to:

Accepted Answer

demand immediate payment of the entire note

Answer

confiscate the borrower's personal assets

Answer

force the borrower to vacate the premises

Answer

report the borrower to the Federal Housing Administration

Question 10

A couple advertised their house with a broker. The sale ended when the seller found a buyer after two months. The seller did not have to pay the broker a commission. This listing was probably:

Accepted Answer

an exclusive agency listing

Answer

an exclusive right to sell listing

Answer

an advance fee listing

Answer

a net listing