PSI REAL ESTATE EXAM (BROKER/SALESPERSON PRACTICE) QUESTIONS AND CORRECT ANSWER WITH EXPLANATION LATEST

PSI REAL ESTATE EXAM (BROKER/SALESPERSON
PRACTICE) QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026

1.

A PSI real estate licensing exam is typically administered to determine:
A. Fitness for real estate practice
B. Tax liability
C. Mortgage approval
D. Insurance eligibility
Answer: A
Rationale: PSI exams test competency for licensing.



2.

A real estate license allows a person to:
A. Legally represent buyers/sellers in real estate transactions
B. Issue loans
C. Appraise property without certification
D. Set tax rates
Answer: A
Rationale: License authorizes real estate practice.



3.

Real property includes:
A. Land and improvements
B. Vehicles
C. Jewelry
D. Cash
Answer: A
Rationale: Real estate includes land and attachments.

,4.

Personal property is:
A. Movable property
B. Land
C. Buildings
D. Fixtures
Answer: A
Rationale: Also called chattel.



5.

A fixture is:
A. Permanently attached property
B. Portable furniture
C. Cash
D. Lease agreement
Answer: A
Rationale: Becomes part of real estate.



6.

A deed is used to:
A. Transfer ownership
B. Approve financing
C. Set taxes
D. Record inspection
Answer: A
Rationale: Transfers title.



7.

The borrower in a mortgage is:
A. Mortgagor
B. Mortgagee
C. Trustee
D. Appraiser

, Answer: A
Rationale: Borrower gives mortgage.



8.

The lender is:
A. Mortgagee
B. Mortgagor
C. Lessee
D. Grantor
Answer: A
Rationale: Lender receives repayment rights.



9.

A lien is:
A. Legal claim against property
B. Lease
C. Insurance policy
D. Deed
Answer: A
Rationale: Secures debt.



10.

Foreclosure is:
A. Legal property seizure for nonpayment
B. Appraisal
C. Lease renewal
D. Tax reduction
Answer: A
Rationale: Lender recovers collateral.



11.