PSI REAL ESTATE SALESPERSON EXAM
2026 FULL QUESTIONS WITH SOLUTIONS
◉What critical aspect of the property inspection process MUST
licensees convey to prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the
contract.
4. Likelihood that the inspection will generate a list of items sellers
must repair. Answer: Need for inspections to be completed within
the time stated in the contract.
◉An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. Answer: defects that
clearly appear in the title search.
◉If a borrower can afford to make monthly principal and interest
payments of $1,000 and the lender will make a 30-year loan at 5-
,1/2%, or a 20-year loan at 4-1/2%, what is the largest loan
(rounded to the nearest $100) this buyer can afford? (BE SURE TO
USE THE AMORTIZATION TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 Answer: $176,100
◉State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. Answer: a suicide
that occurred in the house last year.
◉Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given Answer: The first sold.
,◉A property management plan may serve different purposes for
different owners, and generally has to strike a balance between
preservation of the property's value and generation of income.
Which of the following owners would MOST likely prefer a property
manager who emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several apartment
buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. Answer: The
Department of Housing and Urban Development.
◉Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. Answer: Regulation Z.
◉The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
, 3. an investment group.
4. an insurance company. Answer: an insurance company.
◉In the sale of property, there is often confusion over whether an
item is a fixture or personal property. What is the best way to avoid
this confusion?
1. Apply the legal tests of a fixture.
2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales
contract.
4. Use the legal definition of a fixture as any permanently attached
item. Answer: Specify questionable items of property in the written
sales contract.
◉A salesperson in a branch office is sued for damages by a buyer
after the salesperson misrepresents a property. Who has the
ultimate responsibility for the salesperson's actions?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson Answer: the supervising broker
2026 FULL QUESTIONS WITH SOLUTIONS
◉What critical aspect of the property inspection process MUST
licensees convey to prospective buyers?
1. Difficulty of finding competent inspectors.
2. Appropriate fee splitting between inspectors and brokers.
3. Need for inspections to be completed within the time stated in the
contract.
4. Likelihood that the inspection will generate a list of items sellers
must repair. Answer: Need for inspections to be completed within
the time stated in the contract.
◉An exception to title insurance coverage is
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. Answer: defects that
clearly appear in the title search.
◉If a borrower can afford to make monthly principal and interest
payments of $1,000 and the lender will make a 30-year loan at 5-
,1/2%, or a 20-year loan at 4-1/2%, what is the largest loan
(rounded to the nearest $100) this buyer can afford? (BE SURE TO
USE THE AMORTIZATION TABLE.)
1. $158,100
2. $158,300
3. $175,900
4. $176,100 Answer: $176,100
◉State laws differ on whether a buyer is entitled to know about
1. a suicide that occurred in the house last year.
2. possible lead paint in the property.
3. the flooding of the basement every spring.
4. the fact that the sellers are getting a divorce. Answer: a suicide
that occurred in the house last year.
◉Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price?
1. The first sold.
2. The second sold.
3. The last sold.
4. Cannot tell from the information given Answer: The first sold.
,◉A property management plan may serve different purposes for
different owners, and generally has to strike a balance between
preservation of the property's value and generation of income.
Which of the following owners would MOST likely prefer a property
manager who emphasizes maintenance of value over profitability?
1. An individual entrepreneur who owns several apartment
buildings.
2. The Department of Housing and Urban Development.
3. The investment division of a bank.
4. A corporate Real Estate Investment Trust. Answer: The
Department of Housing and Urban Development.
◉Federal Truth-in-Lending laws are also known as
1. the Freedom of Information Act.
2. the Equal Credit Opportunity Act.
3. Regulation Z.
4. Title VIII. Answer: Regulation Z.
◉The FHA functions MOST like
1. a bank or savings and loan association.
2. a mortgage company.
, 3. an investment group.
4. an insurance company. Answer: an insurance company.
◉In the sale of property, there is often confusion over whether an
item is a fixture or personal property. What is the best way to avoid
this confusion?
1. Apply the legal tests of a fixture.
2. Apply local court decisions dealing with similar items.
3. Specify questionable items of property in the written sales
contract.
4. Use the legal definition of a fixture as any permanently attached
item. Answer: Specify questionable items of property in the written
sales contract.
◉A salesperson in a branch office is sued for damages by a buyer
after the salesperson misrepresents a property. Who has the
ultimate responsibility for the salesperson's actions?
1. the owner of the property
2. the supervising broker
3. the branch manager
4. the salesperson Answer: the supervising broker
