PSI NATIONAL REAL ESTATE COMPLETE 2026-2027 EXAM PAPER-
REVISION QUESTIONS & SOLUTIONS
When someone has living heirs but dies without leaving a will, the estate is distributed
according to the
statue of descent
The Civil Rights Act of 1866 prohibits any type of discrimination based on
race
An agent shows a home to a couple and mentions that it has a lovely fireplace in the living
room. After buying the home, the buyers and agent discover that the brick fireplace is just a
decorative fireplace and is not "wood burning." Which of the following would BEST protect the
agent from financial loss?
E&O coverage
The sellers have agreed to give the buyers an allowance of $16.95 per square yard to retile the
kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the nearest
dollar)?
$264
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is
$1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for
taxes? Round to the nearest cent
$225.00
The economic characteristics of land are
scarcity, location, and durability
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to
make the permission permanent in case he dislikes others who might move next door in the
future. What should he give his neighbor?
A license
Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)?
Regulation Z
,Which of the following may be considered prima facie evidence of discrimination by a broker?
Failure to display the equal housing opportunity poster at the broker's place of business
An agency relationship based on a formal agreement between the parties, either written or
verbal, is
express agency
An agency relationship based on the actions of the parties is
implied agency
An agent has a fiduciary relationship with the
client or principle
The type of agency that exists between the real estate agent and his client is usually
special agency
In Louisiana, the law states that, unless there is a written agreement to the contrary, the agent
represents
the person he is with
Representing two principals to a transaction without the knowledge and consent of both is
undisclosed dual agency
What is grounds for termination of an agency relationship
1. mutual agreement
2. destruction or condemnation of the property
3. death or incapacity of either party
An agency relationship in which the agent is given an interest in the subject of the agency, such
as the property being sold is called
agency coupled with an interest
An example of price fixing would be
two brokers agreeing to set the same fee structure.
An agent representing both the buyer and seller in a transaction with the written consent
a disclosed dual agent.
,An agent for a seller must disclose his agency relationship to the buyer when?
at the first substantive contact
The person who is represented by the licensee is the
principle
A vendor wants to give you, the agent, a gift for services. What should you do?
Tell your broker
Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a commission
because of the principle of
procuring cause
A buyer makes an offer on a house. Before the listing agent has had a chance to present the
offer to the seller, a better offer comes in. What should the agent do with the first offer
present it along with the second offer
When an agent should have known that a statement about a material fact was false, this is
called:
negligent misrepresentation
There are three basic types of buyer agency agreements. In which type is the agent guaranteed
a commission regardless of who sells the property?
exclusive buyer agency
The intentional misrepresentation of a material fact is:
fraud
Which of the following is NOT required to have a real estate license?
1. anyone selling his own property
2. attorneys selling property as part of their professional duties for a client.
3. appraisers, trustees, and escrow clerks
When the commission is shared between the listing broker and the selling broker, this is known
as:
broker cooperation
If an agent is working as an independent contractor for the broker:
, the agent is responsible for paying his own Social Security and income taxes
A hidden structural defect that would not be discovered by ordinary inspection
latent defect
Which of the following is an agent required to disclose to a potential buyer?
the property contains asbestos insulation
An owner agrees to pay a commission if his property is sold but doesn't want to sign a listing
agreement. What type of agency is this?
Express
Which of the following is NOT a valid reason for terminating an agency relationship
The seller decides he would rather sell the house himself
Which duty is easiest to perform as a dual agent?
disclosure
The agent owes only honesty and truthfulness to the
customer
A salesperson working with a co-operating broker has a fiduciary relationship to all EXCEPT:
the buyer
The agent who is appointed by the broker to represent a particular client is known as the
designated agent
A protection clauses in a listing allows for
payment of the commission if the buyer was secured by the broker even if the sale takes
place after the expiration of the contract
An express contract must be
written or spoken
If a contract is not legal and is not binding on either party it is said to be
void
A contract in which only one party is obligated is called a
unilateral contract.
REVISION QUESTIONS & SOLUTIONS
When someone has living heirs but dies without leaving a will, the estate is distributed
according to the
statue of descent
The Civil Rights Act of 1866 prohibits any type of discrimination based on
race
An agent shows a home to a couple and mentions that it has a lovely fireplace in the living
room. After buying the home, the buyers and agent discover that the brick fireplace is just a
decorative fireplace and is not "wood burning." Which of the following would BEST protect the
agent from financial loss?
E&O coverage
The sellers have agreed to give the buyers an allowance of $16.95 per square yard to retile the
kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the nearest
dollar)?
$264
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is
$1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for
taxes? Round to the nearest cent
$225.00
The economic characteristics of land are
scarcity, location, and durability
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to
make the permission permanent in case he dislikes others who might move next door in the
future. What should he give his neighbor?
A license
Which of these Federal laws regulates the advertisement of a lender's credit terms (rates,
payment, etc.)?
Regulation Z
,Which of the following may be considered prima facie evidence of discrimination by a broker?
Failure to display the equal housing opportunity poster at the broker's place of business
An agency relationship based on a formal agreement between the parties, either written or
verbal, is
express agency
An agency relationship based on the actions of the parties is
implied agency
An agent has a fiduciary relationship with the
client or principle
The type of agency that exists between the real estate agent and his client is usually
special agency
In Louisiana, the law states that, unless there is a written agreement to the contrary, the agent
represents
the person he is with
Representing two principals to a transaction without the knowledge and consent of both is
undisclosed dual agency
What is grounds for termination of an agency relationship
1. mutual agreement
2. destruction or condemnation of the property
3. death or incapacity of either party
An agency relationship in which the agent is given an interest in the subject of the agency, such
as the property being sold is called
agency coupled with an interest
An example of price fixing would be
two brokers agreeing to set the same fee structure.
An agent representing both the buyer and seller in a transaction with the written consent
a disclosed dual agent.
,An agent for a seller must disclose his agency relationship to the buyer when?
at the first substantive contact
The person who is represented by the licensee is the
principle
A vendor wants to give you, the agent, a gift for services. What should you do?
Tell your broker
Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a commission
because of the principle of
procuring cause
A buyer makes an offer on a house. Before the listing agent has had a chance to present the
offer to the seller, a better offer comes in. What should the agent do with the first offer
present it along with the second offer
When an agent should have known that a statement about a material fact was false, this is
called:
negligent misrepresentation
There are three basic types of buyer agency agreements. In which type is the agent guaranteed
a commission regardless of who sells the property?
exclusive buyer agency
The intentional misrepresentation of a material fact is:
fraud
Which of the following is NOT required to have a real estate license?
1. anyone selling his own property
2. attorneys selling property as part of their professional duties for a client.
3. appraisers, trustees, and escrow clerks
When the commission is shared between the listing broker and the selling broker, this is known
as:
broker cooperation
If an agent is working as an independent contractor for the broker:
, the agent is responsible for paying his own Social Security and income taxes
A hidden structural defect that would not be discovered by ordinary inspection
latent defect
Which of the following is an agent required to disclose to a potential buyer?
the property contains asbestos insulation
An owner agrees to pay a commission if his property is sold but doesn't want to sign a listing
agreement. What type of agency is this?
Express
Which of the following is NOT a valid reason for terminating an agency relationship
The seller decides he would rather sell the house himself
Which duty is easiest to perform as a dual agent?
disclosure
The agent owes only honesty and truthfulness to the
customer
A salesperson working with a co-operating broker has a fiduciary relationship to all EXCEPT:
the buyer
The agent who is appointed by the broker to represent a particular client is known as the
designated agent
A protection clauses in a listing allows for
payment of the commission if the buyer was secured by the broker even if the sale takes
place after the expiration of the contract
An express contract must be
written or spoken
If a contract is not legal and is not binding on either party it is said to be
void
A contract in which only one party is obligated is called a
unilateral contract.
