PSI National Exam for Real
Estate – practice questions
with answers
A written agreement in which a purchaser agrees to buy
and a seller agrees to sell is called - ANSWER ✔✔a
contract
Antitrust laws prohibit competing brokers from all of the
following - ANSWER ✔✔1. boycotting other brokers in the
marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management
rates.
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
Prospective buyers made an offer on a property. The
seller did NOT accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real
estate agent delivered their acceptance to the seller.
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
,Although states make specific laws governing water
rights and the rights in land that borders water, most
states
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.
A buyer is getting a fully amortized loan for $220,000.
The bank will give the buyer the loan for 15 years at 5
1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the
difference between the monthly payments for these two
loans?
(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
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. -
ANSWER ✔✔discount points
When land is conveyed to a trustee, the trustee may -
ANSWER ✔✔do whatever is permitted under the trust
agreement
A prospective buyer made an offer to purchase a
property. The owner responded with a counteroffer. While
the buyer
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
Estate – practice questions
with answers
A written agreement in which a purchaser agrees to buy
and a seller agrees to sell is called - ANSWER ✔✔a
contract
Antitrust laws prohibit competing brokers from all of the
following - ANSWER ✔✔1. boycotting other brokers in the
marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management
rates.
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
Prospective buyers made an offer on a property. The
seller did NOT accept, but made a counteroffer. The
prospective buyers signed the counteroffer and the real
estate agent delivered their acceptance to the seller.
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
,Although states make specific laws governing water
rights and the rights in land that borders water, most
states
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.
A buyer is getting a fully amortized loan for $220,000.
The bank will give the buyer the loan for 15 years at 5
1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the
difference between the monthly payments for these two
loans?
(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
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. -
ANSWER ✔✔discount points
When land is conveyed to a trustee, the trustee may -
ANSWER ✔✔do whatever is permitted under the trust
agreement
A prospective buyer made an offer to purchase a
property. The owner responded with a counteroffer. While
the buyer
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
