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Question 1
When a primary lender uses all its funds for home mortgages and ends up with a number of notes and mortgages, what is the normal procedure to free capital for new lending?
Correct Answer:
Sell mortgages and notes to the secondary market
Explanation:
Freeing capital for new lending comes from converting the existing mortgage assets into cash by selling them to the secondary market. When a lender sells the mortgages and notes, investors provide immediate cash, which the lender can reuse to fund more loans. This is a standard, efficient way to maintain liquidity because it transfers ownership of the notes and often allows the lender to continue servicing them for a fee, while not bearing the ongoing risk of those loans. Holding the notes until they mature keeps funds tied up and doesn’t provide current liquidity. Refinancing into one loan would restructure debt but still leaves the original assets on the books in some form and may not free the needed capital. Borrowing from the bank to convert to cash shifts the liability onto the lender and doesn’t directly turn the existing assets into usable funds for new lending.
Question 2
If three brokers are involved in an open listing and one broker sells the property, who receives the commission?
Correct Answer:
Only the broker who sold the property
Explanation:
In an open listing, the seller may work with multiple brokers, and the fee is earned only by the broker who actually brings a buyer who closes the deal. Since one broker was the one who sold the property, that broker is the one entitled to the commission. The other brokers didn’t procure the sale, so they don’t receive a commission under this type of listing.
Question 3
When a person dies intestate and there are no heirs, the property goes to the state. This is called:
Correct Answer:
Escheat
Explanation:
When someone dies without a will and there are no heirs to inherit the property, there’s no one left to claim it. The law provides that the property reverts to the state in this situation—that transfer is called escheat. Escheat ensures property isn’t left ownerless and keeps it within the state system for potential resale or use. This differs from abandonment (voluntarily leaving property behind), devise (a transfer of property by a will), and abatement (reducing gifts in a will due to insufficient assets). Escheat specifically describes the state taking ownership when there are no heirs or will to transfer the property.
Question 4
In co-ownership, if owners take title at different times, the form of ownership is called:
Correct Answer:
Tenants in common
Explanation:
When co-owners acquire title at different times, there is no unity of time, which is essential for a joint tenancy. That situation points to tenants in common. In this form, each owner holds an undivided right to possess the whole property but with a distinct, potentially unequal, ownership interest. Because there’s no right of survivorship, a co-owner’s share passes to heirs or through a will at death, not automatically to the other co-owners. Other forms involve specific conditions: joint tenancy requires all four unities (time, title, interest, possession) and includes survivorship; community property relates to marriage in certain states and how property acquired during marriage is treated; tenants by the entirety is a form for married couples with survivorship. So when title is taken at different times, the appropriate form is tenants in common.
Question 5
An imaginary line running in a North-South direction and intersects with the base line is:
Correct Answer:
The Meridian line
Explanation:
In the Public Land Survey System, the grid that helps describe land is built from a north–south line called the principal meridian and an east–west line called the baseline. The line described here runs north–south and crosses the baseline, which makes it the principal meridian. Contour lines, by contrast, show elevation on a map and aren’t part of the survey grid. The baseline itself runs east–west, not north–south. There isn’t a standard term “principal parallel” used in this surveying context.
Question 1
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About this Exam

Prepare with the Michigan Salesperson PSI Practice Exam practice quiz. This question bank includes 10 questions covering buyer, land, mortgages, property, and called. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Michigan Salesperson PSI Practice Exam

This practice set contains 10 questions from the matching question bank and focuses on buyer, land, mortgages, property, and called. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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