National Real Estate Exam Practice (PSI): Complete ...
Exam Solutions with Expert-Verified Questions
Customized for Top Academic Performance
The economic principle that tells us that when supply goes up, price goes down is
commonly referred to as what? - CORRECT ANS- -Supply and demand
Which of these situations is addressed by the fiduciary duty of disclosure? - CORRECT
ANS- -The seller's agent fails to disclose a conflict of interest.
Which of these statements accurately represents one of the required elements in a deed? -
CORRECT ANS- -The deed includes an act of conveyance.
Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's
closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear
on the settlement statement? - CORRECT ANS- -This is an accrued expense, and will
appear as a seller debit and a buyer credit.
Richard is interested in purchasing some rural land and included outbuildings. When
reviewing the legal description, he sees the name of a principal meridian. What type of
legal description is this? - CORRECT ANS- -Rectangular government survey
A group of 26 different families have shared ownership of a vacation condominium. Each
family spends two weeks annually at the condominium. Legally, the condominium is
considered a _______. - CORRECT ANS- -Timeshare property
Which of the following statements about the number of contingencies in a sales contract is
true? - CORRECT ANS- -The inclusion of numerous contingencies makes it less likely that
the buyer's offer will be accepted.
Page 1 of 24 2025/2026
,Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina
decides to _________ Martha from the purchase contract. - CORRECT ANS- -Release
What type of insurance protects a lender's collateral interest in a property that's being
financed? - CORRECT ANS- -Title insurance
Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's
family has kept cows and goats on the 120-acre property. The deed came with a caveat:
Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her
brother. What did Sophie's grandmother create? - CORRECT ANS- -Condition
Which body of law contains the rules governing the relationship between a real estate
professional and the person being represented? - CORRECT ANS- -Law of agency
What is put at risk if a buyer misses a contingency deadline? - CORRECT ANS- -The buyer's
earnest money
Connor was the seller and Duke was the buyer when Connor sold his property. Who
conveyed the title? - CORRECT ANS- -Connor, as grantor
When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives
them the name of the best mortgage broker she knows, Gary Jones. Later, she always
receives a check from Gary as payment for the referral. Is this legal or illegal under the Real
Estate Settlement Procedures Act? - CORRECT ANS- -This is illegal under RESPA because
it's considered a kickback between settlement service providers.
Which act created an agency to investigate antitrust practices? - CORRECT ANS- -Federal
Trade Commission Act
Page 2 of 24 2025/2026
, Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an
earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing
a cashier's check for $35,025 comprising the balance of her 20% down payment and
closing costs. What's the amount of her total down payment? - CORRECT ANS- -54,150
Lenore's offer is $270,750 which is 95% of the list price ($285,000 x .95 = $270,750 ). Her
total down payment is 20% of her accepted offer of $270,750, which is $54,150 (or
$270,750 x .2).
Juan has finalized his comparables and is ready to determine a property's appraised value.
How does he do this? - CORRECT ANS- -He reviews his process and places more weight on
the most similar comparables that he believes to be the most valid.
Alluvion describes new deposits of land that are the result of what natural process? -
CORRECT ANS- -Accretion
The owner of a six-unit apartment building is worried that there may be some electrical
issues. The owner's leasing agent, Katrina, meets with him to discuss his concerns. What's
her responsibility to the owner? - CORRECT ANS- -Advise him to consult an expert.
Charlene shares one wall with her neighbors to the side, but her home has three levels and
she has no upstairs or downstairs neighbors nor a neighbor on the other side. What type of
dwelling does Charlene own? - CORRECT ANS- -Townhome
Basement wall cracks and leaks can be indicators of ______ problems. - CORRECT ANS- -
Foundation
A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-
value ratio? - CORRECT ANS- -75
Page 3 of 24 2025/2026
Exam Solutions with Expert-Verified Questions
Customized for Top Academic Performance
The economic principle that tells us that when supply goes up, price goes down is
commonly referred to as what? - CORRECT ANS- -Supply and demand
Which of these situations is addressed by the fiduciary duty of disclosure? - CORRECT
ANS- -The seller's agent fails to disclose a conflict of interest.
Which of these statements accurately represents one of the required elements in a deed? -
CORRECT ANS- -The deed includes an act of conveyance.
Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's
closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear
on the settlement statement? - CORRECT ANS- -This is an accrued expense, and will
appear as a seller debit and a buyer credit.
Richard is interested in purchasing some rural land and included outbuildings. When
reviewing the legal description, he sees the name of a principal meridian. What type of
legal description is this? - CORRECT ANS- -Rectangular government survey
A group of 26 different families have shared ownership of a vacation condominium. Each
family spends two weeks annually at the condominium. Legally, the condominium is
considered a _______. - CORRECT ANS- -Timeshare property
Which of the following statements about the number of contingencies in a sales contract is
true? - CORRECT ANS- -The inclusion of numerous contingencies makes it less likely that
the buyer's offer will be accepted.
Page 1 of 24 2025/2026
,Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina
decides to _________ Martha from the purchase contract. - CORRECT ANS- -Release
What type of insurance protects a lender's collateral interest in a property that's being
financed? - CORRECT ANS- -Title insurance
Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's
family has kept cows and goats on the 120-acre property. The deed came with a caveat:
Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her
brother. What did Sophie's grandmother create? - CORRECT ANS- -Condition
Which body of law contains the rules governing the relationship between a real estate
professional and the person being represented? - CORRECT ANS- -Law of agency
What is put at risk if a buyer misses a contingency deadline? - CORRECT ANS- -The buyer's
earnest money
Connor was the seller and Duke was the buyer when Connor sold his property. Who
conveyed the title? - CORRECT ANS- -Connor, as grantor
When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives
them the name of the best mortgage broker she knows, Gary Jones. Later, she always
receives a check from Gary as payment for the referral. Is this legal or illegal under the Real
Estate Settlement Procedures Act? - CORRECT ANS- -This is illegal under RESPA because
it's considered a kickback between settlement service providers.
Which act created an agency to investigate antitrust practices? - CORRECT ANS- -Federal
Trade Commission Act
Page 2 of 24 2025/2026
, Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an
earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing
a cashier's check for $35,025 comprising the balance of her 20% down payment and
closing costs. What's the amount of her total down payment? - CORRECT ANS- -54,150
Lenore's offer is $270,750 which is 95% of the list price ($285,000 x .95 = $270,750 ). Her
total down payment is 20% of her accepted offer of $270,750, which is $54,150 (or
$270,750 x .2).
Juan has finalized his comparables and is ready to determine a property's appraised value.
How does he do this? - CORRECT ANS- -He reviews his process and places more weight on
the most similar comparables that he believes to be the most valid.
Alluvion describes new deposits of land that are the result of what natural process? -
CORRECT ANS- -Accretion
The owner of a six-unit apartment building is worried that there may be some electrical
issues. The owner's leasing agent, Katrina, meets with him to discuss his concerns. What's
her responsibility to the owner? - CORRECT ANS- -Advise him to consult an expert.
Charlene shares one wall with her neighbors to the side, but her home has three levels and
she has no upstairs or downstairs neighbors nor a neighbor on the other side. What type of
dwelling does Charlene own? - CORRECT ANS- -Townhome
Basement wall cracks and leaks can be indicators of ______ problems. - CORRECT ANS- -
Foundation
A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-
value ratio? - CORRECT ANS- -75
Page 3 of 24 2025/2026
