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    2023 Minnesota PSI Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly
    2023 Minnesota PSI Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly
    2023 Minnesota PSI Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly
    Ebook518 pages5 hours

    2023 Minnesota PSI Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly

    By Real Estate Exam Professionals Ltd.

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    About this ebook

    Pass the 2023 Minnesota PSI Real Estate Salesperson Exam effortlessly on your 1st try. In this simple course, which includes both the Minnesota state and PSI question and answer exam prep study guide, not only will you learn to pass the state licensing exam, you will also learn:

    - How to study for the MN exam quickly and effectively.

    - Secrets to Passing the Real Estate Exam even if you do not know the answer to a question.

    - How to tackle hard real estate MATH questions with ease and eliminate your fears.

    - Tips and Tricks from Real Estate Professionals, professional exam writers and test proctors.

    It will also answer questions like:

    - Do I need other course materials from companies like Allied Real Estate School? How about Anthony Real Estate School or Kaplan Real Estate School? Are they even good schools to attend?

    - What kinds of questions are on the Minnesota Real Estate License Exam?

    - Should I use the MN Real Estate License Exams for Dummies Book?

    This Real Estate Study Guide contains over 1200+ real estate exam questions and answers with full explanations. It includes the Minnesota State Specific portion, the PSI portion, real estate MATH ONLY section, and real estate vocabulary only exams. You will receive questions and answers that are similar to those on the Minnesota Department of Real Estate Exam.

    You deserve the BEST real estate exam prep program there is to prepare you to pass, and it gets no better than this. The Minnesota Real Estate Salesperson Exam is one of the hardest state test to pass in the United States. We have compiled this simple exam cram book that quickly and easily prepares you to take your state licensing exam and pass it on the 1st try with the PSI exam. Our Real Estate Exam Review is designed to help you pass the real estate exam in the quickest, easiest and most efficient manner possible. Throw away your real estate course test books and class notes, this is all you need to pass!

    LanguageEnglish
    PublisherFun Science Group
    Release dateDec 27, 2022
    ISBN9781005575199
    2023 Minnesota PSI Real Estate Exam Prep Questions & Answers: Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly
    Author

    Real Estate Exam Professionals Ltd.

    Real Estate Exam Professionals, Ltd. is group consisting of Real Estate Professionals that include Salespersons, Brokers, Real Estate Attorneys and Ex-Exam Proctors and have been providing real estate exam preparation materials since 2002 for thousands of real estate licensees, professionals and real estate schools throughout the United States. Our online real estate exam materials provide you with the knowledge needed to pass your state exam and quickly help you on your way to becoming a successful real estate agent.

    Read more from Real Estate Exam Professionals Ltd.

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      Book preview

      2023 Minnesota PSI Real Estate Exam Prep Questions & Answers - Real Estate Exam Professionals Ltd.

      2023 Minnesota PSI Real Estate Exam Prep. Questions and Answers

      Study Guide to Passing the Salesperson Real Estate License Exam Effortlessly

      Fun Science Group

      Copyright Fun Science Group 2023

      Published by the Fun Science Group at Smashwords

      Written by

      Real Estate Exam Professionals, Ltd.

      © 2023 Copyright Fun Science Group – All Rights Reserved.

      Visit out website at www.funsciencegroup.com for more titles.

      All Rights Reserved. No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise without prior written permission of the copyright holder.

      Disclaimer and Terms of Use: The Author and Publisher has strived to be as accurate and complete as possible in the creation of this book, notwithstanding the fact that he does not warrant or represent at any time that the contents within are accurate due to the rapidly changing nature of the Internet. While all attempts have been made to verify information provided in this publication, the Author and Publisher assumes no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. Any perceived slights of specific persons, peoples, or organizations are unintentional. In practical advice books, like anything else in life, there are no guarantees of income made. This book is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in legal, business, accounting, and finance field.

      First Printing, 2023

      Printed in the United States of America

      Portions of this page are reproduced from work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License.

      Table of Contents

      Introduction

      How to Use this Guide Effectively

      Real Estate Vocabulary

      Study Section

      Real Estate Vocabulary Exam

      Minnesota Real Estate Exam #1

      Minnesota Real Estate Exam #2

      Real Estate Math Exam

      Test Section

      Real Estate Vocabulary Exam

      Minnesota Real Estate Exam #1

      Minnesota Real Estate Exam #2

      Real Estate Math Exam

      Secrets to Passing the Real Estate Exam

      Closing

      Limits of Liability

      Introduction

      Thank you for purchasing this Real Estate Exam Prep. book. We hope you will learn a great deal from our study guide and that you will study well and pass your exam. It is our purpose to provide you with the most up to date information for your state real estate exam. We have made every effort to present this material as the closest possible example to what you will see on your actual state exam. At times, it will appear to be exactly what you will see on the exam. We have tried very hard to make this book as error and typo free as possible. However, we are not without our faults. Real estate exam material and the real estate exams change rapidly and we are continuously updating this book as these changes occur. You may find a typo here and there, but do not be alarmed. We assure you that if you find one, it will be obvious and it will not prevent you from being able to tell what the correct answer is.

      You will find that after you have studied this material as instructed in the How to Use this Guide Effectively, you will discover that this is all you need to pass the real estate exam. There are many real estate schools out there such as Allied Real Estate School, Anthony Real Estate School and Kaplan that, although they are good schools, also offer exam cram or exam preparation materials, but are extremely overpriced. Their materials can cost into the $100 and $300 ranges and provide a lot of extra fluff material that will not help you pass the exam and will waste your time. This book offers all the same materials in a condensed and precise manner with no fluff. Once you have taken the department of real estate certified classes and passed them, qualified to for a state exam date then you do not need those classroom materials anymore. All you will need are the answers to the state and national real estate exam questions. Study those, nothing else, memorize them, and you will pass your exam on the 1st try. There is no need to buy expensive materials from other schools, no need to sit in live exam cram courses, and there is no need for the Real Estate Exam for Dummies books. We have been offering this material to thousands of licensees for over 10 years with a tremendous amount of positive reviews and feedback.

      Please be aware that the materials in this book including any bonus item you have received with this book are copyrighted. No part of this book in part or in whole may be duplicated, distributed or resold without consent of the publishers. Our staff actively searches the internet everyday for sales of real estate media on thousands of websites and online auctions. If our program is found being copied, distributed or resold we will prosecute to the fullest extent of the law.

      How To Use This Guide Effectively

      Here you will find tried and true steps to help you use this guide effectively and to get the best results while minimizing your study time. Please understand that as you go through the real estate questions we have prepared for you, you may come across a few that you have never seen before. Do not be alarmed. These are questions that are on the state exam, but were never given to you in the real estate class you took or in your class textbooks. This is why there is such a high failure rate for the real estate exam. The actual questions on the state or national real estate exams are NOT created by the same agency that created the college courses or text books. These college courses are designed by regional college accreditation agencies and the state real estate exams are created by the individual state’s department of real estate or real estate commissions. It is very frustrating, we know. That is why there publishers like us who create exam cram courses and applications to bridge the gap of knowledge for the real estate exams.

      STEP 1: Read and understand the VOCABULARY section first. These are very important terms. The key to successful knowledge of real estate is understanding and knowing the vocabulary used. Review them until you are confident to go onto the questions. Do not continue to the questions until you know these terms well.

      STEP 2: Now go to the STUDY SECTION and read all the real estate questions with their correct answers and explanations in each exam. There are a lot of questions. Pace yourself and allow time to understand and memorize the correct answers.

      STEP 3: Go back to the VOCABULARY section and review. Again, they are VERY important. You must know these forwards and backwards.

      STEP 4: Repeat step 2 until you feel you are scoring 90% or better. Then review the VOCABULARY section again.

      STEP 5: Now begin the MATH only portion of the STUDY SECTION. Read the questions with the answers and explanations until you have mastered them just as you did with the regular real estate questions. Make sure you set aside a separate time of the day to ONLY study the math. The reason for this is that the analytical/math function of the human brain works on math problems from different areas of the brain than word problems. When studying it takes approx. 10 min. for the brain to fully switch to a pure analytical/math function. If you are studying word problems and math problems in the same study session, you will be wasting a lot of time and overworking your brain. Time is key here, especially when it comes to the day of the exam, more about that later.

      STEP 6: Repeat the MATH ONLY portion in the STUDY SECTION until you feel you are scoring at least 90% or better.

      STEP 7: Now you are ready to go on to the TEST SECTION of this book. These questions will simulate what you will find on the actual state exam. You will have a limited time to complete the exam. Set a timer to the amount of time that your state allows for you to complete the state exam. Begin taking one of the exams and write your answers on a blank sheet of paper. When you are finished, check your answers with the correct answers shown in the same exams from the STUDY SECTION and score yourself. Now continue to Step 8.

      STEP 8: Did you score 90% or better? If so, congratulations! You are ready to take the actual state exam and pass on your first try. If you did not score 90% or better, review the questions you missed using the STUDY SECTION. Study them, and retake the corresponding exam in the TESTING SECTION. Continue doing this and review the Vocabulary, if needed, until you are scoring 90% or better.

      IMPORTANT!!!

      REMEMBER THIS ON THE DAY YOU TAKE YOUR STATE EXAM…

      DO NOT ANSWER, OR EVEN READ, THE FIRST 5 QUESTIONS OF THE EXAM. DO THOSE SECOND TO LAST AND ANY MATH RELATED QUESTIONS, VERY LAST!!!

      Write the numbers to these questions on a piece of paper to remember to do them later. The reason is that they have placed the hardest questions in the first 5 spots to distract you, make you nervous and frustrated while taking the test. So, do those just before doing the math questions. Do the math questions very last because as we explained earlier, psychologically it takes the brain about 5-10 minutes to go from comprehensive thinking to analytical mathematical thinking. You only have a limited amount of time to complete the real estate exam. Therefore, your time will be very valuable. Do not leave any question unanswered. An unanswered question will be scored as a wrong answer.

      Be sure to read the section Secrets to Passing the Real Estate Exam this section was developed by ex-real estate exam proctors. It will give you more detailed steps and inside information on how to use the above method on the day of your exam. It will also show you how to answer a question correctly even if you have completely forgotten the answer.

      Good luck and study well!

      Real Estate Vocabulary

      Due to the length of this Real Estate Glossary, we have included it as a link below. Please understand these are general real estate terms used in almost every state. This is here for review purposes and reference only.

      http://www.realestateabc.com/glossary/

      You may also download a PDF version here:

      http://tinyurl.com/realestatevocab

      Study Section

      In this section you will have the Real Estate Vocabulary Exam, Minnesota Real Estate Exam and Real Estate Math Exam. Read through all the questions in each exam according to the How to Use this Guide Effectively chapter and ONLY look at the correct answers in each exam. Start with the Vocabulary Exam and read question number one and then read ONLY the correct answer immediately. Continue to do this for each question until you have read all the questions in the first exam. If you go through each exam 3-4 times in this manner, you will then be able to recognize the correct answer right away when it comes to taking the actual exam. If your reading device has the ability to highlight the correct answer in each question, please utilize this feature. It will make it a little easier each time when reading through the exams in this section.

      Real Estate Vocabulary Exam

      Please understand these are general real estate terms used in almost every state. This is here for practice and review purposes only. Some terms may not be on your exam.

      1. Which of the following describes the term appreciation?

      A...Kind words expressed to someone about something they did

      B...An increase in the value of property

      C...An item of value owned by an individual

      D...None of the above

      Answer: B. Appreciation is the increase in the value of a property due to changes in market conditions, inflation, or other causes.

      2. When ownership of a mortgage is transferred from one company or individual to another, it is called

      A...an assumption

      B...an assignment

      C...an assessment

      D...all of the above

      Answer: B. When ownership of a mortgage is transferred (assigned) from one company or individual to another, it is called an assignment.

      3. A mortgage loan which requires the remaining balance be paid at a specific point in time is called a/an

      A...balloon mortgage

      B...early due mortgage

      C...mortgage of convenience

      D...promissory note

      Answer: A. A mortgage loan that requires the remaining principal balance be paid at a specific point in time is a balloon mortgage.

      4. The following reason accounts for why bridge loans are not used much anymore:

      A...More second mortgage lenders now will lend at a high loan to value

      B...Sellers would rather accept offers from Buyers who have already sold their property

      C...Neither A or B..

      D...Both A and B

      Answer: D. Bridge loans are not used much anymore because more second mortgage lenders now will lend at a high loan to value and sellers often prefer to accept offers from buyers who have already sold their property...

      5. A title which is free of liens or legal questions as to ownership of the property is called a __________ title.

      A...good

      B...cloudy

      C...clear

      D...free..

      Answer: C. A title free of liens or legal questions as to ownership of the property is called a clear title. It is clear because there can be no challenges made to its legality...

      6. What is the collateral in a home loan?

      A...The property itself

      B...A person’s good name

      C...The amount of savings a person has

      D...The current automobile the person owns

      Answer: A. The property itself is the collateral, and the borrower risks losing it if he does not repay according to the terms of the mortgage or deed of trust.

      7. The adjustment date on an adjustable-rate mortgage is

      A...the date the interest rate changes

      B...the date the stock market goes up

      C...30 days from the date the mortgage was taken out

      D...all of the above

      Answer: A. The adjustment date is the date the interest rate changes (adjusts).

      8. What is the deposit made by a potential buyer to show he is serious about buying a house called?

      A...Serious money deposit

      B...Earnest money deposit

      C...Nothing ventured, nothing gained deposit

      D...Down payment

      Answer: B. The deposit made by a potential buyer to show they are in earnest about purchasing a house is called an earnest money deposit.

      9. A right-of-way which gives persons other than the owner access to or over a property is known as an

      A...easement

      B...ingress

      C...egress

      D...none of the above

      Answer: A. An easement is a right-of-way to persons other than the owner and gives them legal access.

      10. Which best describes a subdivision?

      A...Houses in the same neighborhood similar in style and size

      B...A housing development created by dividing a tract of land into individual lots

      C...A development which is substandard

      D...None of the above

      Answer: B. A subdivision consists of individual lots created from a larger tract (subdivided) and are offered for sale or lease.

      11. When someone contributes to the construction or rehabilitation of a property with labor or services rather than cash, that contribution is called

      A...a personal contribution

      B...sweat equity

      C...a big help to the contractors

      D...toil and labor

      Answer: B. Sweat equity is the contribution to the construction of or rehabilitation of a property in the form of labor or services rather than cash.

      12. A two-step mortgage is defined as

      A...an adjustable rate mortgage with one interest rate for the first five or seven years and a different rate for the remainder of the term.

      B...a mortgage which is both adjustable and fixed

      C...a mortgage which is named after a dance step

      D...all of the above

      Answer: A. A two-step mortgage starts out with one rate for the first five or seven years and then changes to a different rate for the remainder of the term of the mortgage amortization.

      13. A legal document evidencing a person’s right to or ownership of a property is called a:

      A...quitclaim deed..

      B...title

      C...yearly lease

      D...accurate appraisal

      Answer: B. A title is a legal document evidencing a person’s right to or ownership of a property.

      14. If you were buying a house that included furnishings, you would receive a written document transferring title to the personal property. This document is called a/an

      A...title..

      B...deed

      C...bill of sale

      D...evidence of payment

      Answer: C. A bill of sale is a written document that transfers personal property from one owner to another.

      15. An oral or written agreement that is binding in a court of law is called a:

      A...gentlemen’s agreement

      B...contract

      C...business deal

      D...promissory note

      Answer: B. A contract can be oral or written and is binding in a court of law.

      16. The part of the purchase price of a property that the buyer pays in cash and does not finance with the mortgage is called the

      A...deposit..

      B...second mortgage

      C...down payment..

      D...deed of trust

      Answer: C. The down payment is the amount paid down in cash as the initial upfront portion of the total amount due. It is usually given in cash at the time of finalizing the transaction.

      17. A female named in a will to administer an estate is called an..

      A...executor

      B...executrix

      C...individual representative

      D...able inheritor

      Answer: B. The female executor named in a will to administer an estate is called an executrix.

      18. The greatest possible interest a person can have in real estate is called

      A...fee complex

      B...fee simple

      C...no additional fees

      D...ownership

      Answer: B. The greatest possible interest a person can have in real estate is called fee simple...

      19. Required for properties located in federally designated flood areas, this type of insurance compensates for physical property damage resulting from flooding. It is called

      A...water damage insurance

      B...hurricane insurance

      C...there’s no such thing

      D...flood insurance

      Answer: D. Flood insurance is required in federally designated flood areas and does compensate for physical property damage resulting from flooding.

      20. The following is true of a government loan:

      A...It is guaranteed by the Department of Veterans Affairs (VA)

      B...It is guaranteed by the Rural Housing Service (RHS)

      C...It is insured by the Federal Housing Administration (FHA)

      D...All of the above

      Answer: D. Government loans are either insured by FHA, guaranteed by VA or RHS. Mortgages that are not government loans are called conventional loans.

      21. The person conveying an interest in real property is called

      A...the buyer

      B...the grantee

      C...the grantor

      D...the mortgagor

      Answer: C. The grantor is the person conveying an interest in real property to another party.

      22. Insurance that covers in the event of physical damage to a property from fire, wind, vandalism, or other hazards is called

      A...act of God insurance

      B...hazardous insurance

      C...hazard insurance

      D...there is no such insurance

      Answer: C. Insurance covering physical damage to a property from fire, wind, vandalism, or other hazards is called hazard insurance...

      23. A liquid asset is

      A...an asset which is not in solid form

      B...an asset which cannot be frozen

      C...a cash asset or an asset easily turned into cash..

      D...an asset that is hard to get to

      Answer: C. A liquid asset is either cash or something easily turned into cash.

      24. Another term for the lender in a mortgage agreement is the

      A...banker

      B...mortgagee

      C...mortgagor

      D...private mortgage company

      Answer: B. The mortgagee is the lender.

      25. If you are buying a house and asking the Seller to provide all or part of the financing, you are asking for _________ financing.

      A...special

      B...owner

      C...personal..

      D...non-bank

      Answer: B. When the Seller provides all or part of the financing it is called owner financing.

      26. A point is

      A...the part of the pen you sign a contract with

      B...a score in a basketball game

      C...the reason for telling the story

      D...1% of the amount of the mortgage

      Answer: D. A point is 1% of the amount of the mortgage.

      27. What does a power of attorney grant someone?

      A...The ability to attend law school

      B...Complete or limited authority on behalf of someone else

      C...Complete control over which medical facility someone uses..

      D...The right to inherit an estate

      Answer: B. A power of attorney derives power from a legal document and grants someone complete or limited authority on behalf of someone.

      28. The principal is

      A...the amount borrowed or remaining unpaid

      B...part of the monthly payment that reduces the remaining balance of a mortgage

      C...an ethic or value

      D...both A and B

      Answer: D. The principal is the amount borrowed or remaining unpaid, as well as the part of the monthly payment that reduces the remaining balance of a mortgage.

      29. A promissory note is

      A...a written promise to repay a specified amount over a specified period of time

      B...an oral promise to repay a specified amount over a specified period of time..

      C...a note passed back and forth in class

      D...a note you deliver to another telling them of your intentions..

      Answer: A. A promissory note is a written promise to repay a specific amount over a specified period of time.

      30. Which of the following best describes a real estate agent?

      A...A licensed person who negotiates and transacts the sale of real estate

      B...The owner of a real estate firm

      C...A person who negotiates and transacts the sale of real estate but is not licensed

      D...A person who sells both property and insurance

      Answer: A. A real estate agent is a licensed person who negotiates and transacts the sale of real estate.

      31. When does an assumption take place?

      A...When someone believes something and it turns out to be true

      B...When the buyer assumes the seller’s mortgage

      C...When the seller assumes the buyer’s mortgage

      D...All of the above

      Answer: B. When the buyer assumes the seller’s mortgage is a transaction called an assumption.

      32. A legal document conveying title to a property is called a/an

      A...sales contract

      B...option to purchase

      C...deed

      D...contract for deed

      Answer: C. A deed is a legal document conveying title to property.

      33. If you have a loan and transfer the title to another individual without informing the lender, it is likely that the lender will demand payment of the outstanding loan balance. He is able to do this because of a clause in your mortgage called the

      A...due on demand clause

      B...acceleration clause

      C...amortization schedule

      D...both A and B

      Answer: B. An acceleration clause allows the lender to demand payment, most commonly if the borrower defaults on the loan or transfers title to someone without informing the lender.

      34. The most common type of bankruptcy is called

      A...Chapter 11 bankruptcy

      B...Chapter 11 no asset bankruptcy

      C...Chapter 7 no asset bankruptcy

      D...Chapter 7 bankruptcy

      Answer: C. The most common type for an individual is a Chapter 7 No Asset bankruptcy, which relieves the borrower of most types of debts.

      35. Which of the following best describes a broker?

      A...Someone who owns a real estate firm..

      B...Some real estate agents working for brokers

      C...Someone who acts as an agent and brings two parties together for a transaction and earns a fee for this

      D...All of the above..

      Answer: D. A broker can own a real estate firm, work for another broker who owns the firm, broker loans in the mortgage industry, but basically is defined as anyone who acts as an agent, bringing two parties together for any type of transaction and earns a fee.

      36. A normal contingency in a real estate contract would be that the

      A...purchaser is able to obtain a satisfactory home inspection from a qualified inspector.

      B...seller is allowed to come back and spend 2 weeks in the house each year..

      C...purchaser is able to have occupancy as soon as the sales contract is signed..

      D...seller is allowed to dig up some of the landscaping and take it with him..

      Answer: A. A normal contingency in a sales contract would be that the purchaser is able to obtain a satisfactory home inspection from a qualified inspector. This condition has to be met before the contract is legally binding...

      37. If you go to a bank or mortgage company to apply for a home, what type of mortgage would you be applying for?..

      A...Government

      B...Conventional

      C...American

      D...Adjustable rate

      Answer: B. Home loans which are not VA or FHA are called conventional loans.

      38. A report of someone’s credit history which is prepared by a credit bureau and used by a lender in the loan qualification process is called a

      A...personal affidavit

      B...credit card history

      C...savings account history

      D...credit report

      Answer: D. A report of an individual’s credit prepared by a credit bureau and used by a lender in determining a loan applicant’s creditworthiness is called a credit report.

      39. If you have not made your mortgage payment within 30 days of the due date, the mortgage is considered to be in

      A...arrears

      B...default

      C...trouble

      D...bankruptcy

      Answer: B. Failure to make the mortgage payment within a specified period of time, usually 30 days for first mortgages or first trust deeds, causes the loan to be in default.

      40. A term used by appraisers to estimate the physical condition of a building. It may be different from the building’s actual age.

      A...Estimated age

      B...Longevity

      C...Preferred age

      D...Effective age

      Answer: D. An appraiser’s estimate of the physical condition of a building is called effective age. Its actual age may be shorter or longer than the effective age.

      41. The difference between the fair market value of a property and the amount still owed on the mortgage and other liens is the owner’s financial interest in the property and is called his

      A...equity

      B...balance due

      C...indebtedness

      D...none of the above

      Answer: A. A homeowner’s financial interest in a property is called his equity. It is the difference between fair market value and what is still owed on the mortgage and any other

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