PSI NATIONAL REAL ESTATE ACTUAL
TEST 2026 QUESTIONS WITH ANSWERS
GRADED A+
>> A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
Answer: a contract
>> When a sewer line is installed down a rural road, the cost will probably be shared by
Answer: all current owners of real estate fronting on that road
>> State laws differ on whether a buyer is entitled to know about
Answer: a suicide that occurred in the house last year.
>> A lawsuit for inverse condemnation may be brought by
Answer: a homeowner
>> When is racial discrimination in the rental of rooms or apartments permitted?
Answer: Under no circumstances
>> The real estate broker who is listing a house for sale should personally verify
Answer: the number of square feet in the building
>> Real property can be converted to personal property by
Answer: Severance
>> In the interim, the same buyers had found another house that they liked better and made an offer
on it, which was accepted. Which of the following is TRUE?
Answer: Both contracts are valid
>> generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with
property. In others, all water rights are controlled by the state under the doctrine of
Answer: prior appropriation
>> The purpose of requiring an earnest money deposit in a real estate sales contract is to
Answer: provide evidence of the buyer's intention to carry out the contract.
>> (BE SURE TO USE THE AMORTIZATION TABLE.)
Answer: $409.20.
,>> A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
Answer: demand immediate payment of the entire note
>> The FHA functions MOST like
Answer: an insurance company
>> When land is conveyed to a trustee, the trustee may
Answer: do whatever is permitted under the trust agreement
>> was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if
Answer: the owner withdraws the counteroffer before it is accepted.
>> While an agent is showing a listed property, the seller and the buyer enter into an oral agreement
for the purchase of the home. If a dispute over the terms arises later, the agreement may be
unenforceable because
Answer: the agreement does not comply with the Statute of Frauds
>> Earnest money should be deposited into a trust account
Answer: in a timely manner, according to state laws
>> A deed restriction is applicable to the activities of
Answer: all owners, present and future
>> An easement can be terminated by
Answer: prescription
>> Depreciation is calculated based on the
Answer: cost of the building only
>> Which of the following approaches MOST reliably estimates the sales price of a single-family
residence?
Answer: Market data
>> the dumping prior to the sale of the property?
Answer: Seller
>> The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to
Answer: IRS
,>> A broker supplies the financing for a project to build condominiums with the stipulation that he has
the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship?
Answer: Agency coupled with an interest
>> If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month?
Answer: $1,150
>> Usury laws were enacted to protect the
Answer: borrower
>> The agent should
Answer: tell potential buyers about the parties
>> When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be
Answer: breached
>> Which of the following is NOT a consideration in the definition of market value?
Answer: Buyer and seller must agree to appraised value
>> One common method for controlling the problems created by conflict of interest in dual
representation is
Answer: allowing a broker to designate separate salespeople within the company as legal
representatives of each of the clients.
>> Ownership of common stock in a corporation gives
Answer: an interest that is classified as personal property
>> made at closing?
Answer: Debit seller $300; credit buyer $300
>> Too much leverage may result in
Answer: negative cash flow
>> A major reason for buying and owning a condominium rather than a detached single-family home
is that
Answer: a condominium tends to be more affordable
>> the lease term?
Answer: No notice is required
, >> The relationship in which the agent is placed in the position of trust and confidence to the principal
is known by the term
Answer: fiduciary
>> they would like to live in. What type of lease would BEST suit the couple's needs?
Answer: Month-to-month lease
>> A broker says, while showing a rural property, "This property has the world's purest well water."
This would be an example of
Answer: an expression of opinion, or puffing, which could lead to misrepresentation
>> $22,000 on or before December 31st. This is called
Answer: an option contract
>> Errors and Omissions insurance covers the broker for
Answer: unintentional misrepresentations
>> The land description T3N, R4W Principal Meridian refers to what method of property description?
Answer: Rectangular survey.
>> All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT
Answer: straight-line method
>> The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is
the adjustment made at closing?
Answer: Credit buyer $110,000; debit seller $110,000
>> A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is
Answer: an agent to the broker and a subagent to the principal.
>> The amount of commission to be paid is
Answer: agreed upon by the seller and agent on the contract.
>> An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than
Answer: $250,000
>> An odorless, radioactive gas that can cause cancer
Answer: Radon
TEST 2026 QUESTIONS WITH ANSWERS
GRADED A+
>> A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
Answer: a contract
>> When a sewer line is installed down a rural road, the cost will probably be shared by
Answer: all current owners of real estate fronting on that road
>> State laws differ on whether a buyer is entitled to know about
Answer: a suicide that occurred in the house last year.
>> A lawsuit for inverse condemnation may be brought by
Answer: a homeowner
>> When is racial discrimination in the rental of rooms or apartments permitted?
Answer: Under no circumstances
>> The real estate broker who is listing a house for sale should personally verify
Answer: the number of square feet in the building
>> Real property can be converted to personal property by
Answer: Severance
>> In the interim, the same buyers had found another house that they liked better and made an offer
on it, which was accepted. Which of the following is TRUE?
Answer: Both contracts are valid
>> generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed with
property. In others, all water rights are controlled by the state under the doctrine of
Answer: prior appropriation
>> The purpose of requiring an earnest money deposit in a real estate sales contract is to
Answer: provide evidence of the buyer's intention to carry out the contract.
>> (BE SURE TO USE THE AMORTIZATION TABLE.)
Answer: $409.20.
,>> A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
Answer: demand immediate payment of the entire note
>> The FHA functions MOST like
Answer: an insurance company
>> When land is conveyed to a trustee, the trustee may
Answer: do whatever is permitted under the trust agreement
>> was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if
Answer: the owner withdraws the counteroffer before it is accepted.
>> While an agent is showing a listed property, the seller and the buyer enter into an oral agreement
for the purchase of the home. If a dispute over the terms arises later, the agreement may be
unenforceable because
Answer: the agreement does not comply with the Statute of Frauds
>> Earnest money should be deposited into a trust account
Answer: in a timely manner, according to state laws
>> A deed restriction is applicable to the activities of
Answer: all owners, present and future
>> An easement can be terminated by
Answer: prescription
>> Depreciation is calculated based on the
Answer: cost of the building only
>> Which of the following approaches MOST reliably estimates the sales price of a single-family
residence?
Answer: Market data
>> the dumping prior to the sale of the property?
Answer: Seller
>> The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to
Answer: IRS
,>> A broker supplies the financing for a project to build condominiums with the stipulation that he has
the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship?
Answer: Agency coupled with an interest
>> If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month?
Answer: $1,150
>> Usury laws were enacted to protect the
Answer: borrower
>> The agent should
Answer: tell potential buyers about the parties
>> When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be
Answer: breached
>> Which of the following is NOT a consideration in the definition of market value?
Answer: Buyer and seller must agree to appraised value
>> One common method for controlling the problems created by conflict of interest in dual
representation is
Answer: allowing a broker to designate separate salespeople within the company as legal
representatives of each of the clients.
>> Ownership of common stock in a corporation gives
Answer: an interest that is classified as personal property
>> made at closing?
Answer: Debit seller $300; credit buyer $300
>> Too much leverage may result in
Answer: negative cash flow
>> A major reason for buying and owning a condominium rather than a detached single-family home
is that
Answer: a condominium tends to be more affordable
>> the lease term?
Answer: No notice is required
, >> The relationship in which the agent is placed in the position of trust and confidence to the principal
is known by the term
Answer: fiduciary
>> they would like to live in. What type of lease would BEST suit the couple's needs?
Answer: Month-to-month lease
>> A broker says, while showing a rural property, "This property has the world's purest well water."
This would be an example of
Answer: an expression of opinion, or puffing, which could lead to misrepresentation
>> $22,000 on or before December 31st. This is called
Answer: an option contract
>> Errors and Omissions insurance covers the broker for
Answer: unintentional misrepresentations
>> The land description T3N, R4W Principal Meridian refers to what method of property description?
Answer: Rectangular survey.
>> All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT
Answer: straight-line method
>> The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is
the adjustment made at closing?
Answer: Credit buyer $110,000; debit seller $110,000
>> A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is
Answer: an agent to the broker and a subagent to the principal.
>> The amount of commission to be paid is
Answer: agreed upon by the seller and agent on the contract.
>> An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than
Answer: $250,000
>> An odorless, radioactive gas that can cause cancer
Answer: Radon
