PSI NATIONAL REAL ESTATE EXAM
QUESTIONS WITH CORRECT
ANSWERS
Which of these professional activities is NOT covered by the Fair Housing Act? -
Answer-A) Jonah's real estate firm provides single-agency brokerage services to clients.
B) Marsha, a landlord, owns several multi-unit buildings and rents one or more units
daily.
C) Michael is in charge of marketing for his real estate brokerage firm.
D) Vickie's staging company works with investor clients to stage vacant properties.
Which of the following describes a listing agreement termination by
completion/performance? - Answer-A) Dean lists his property on August 1. After just a
few showings, he accepts an offer on August 12. The closing takes place on September
22.
B) Margaret listed her property on April 1. She receives and accepts an offer on April 3.
On closing day, the buyers back out.
C) On December 15, Kevin lists his property for three months. On March 16, he
declines to extend the listing agreement.
D) Wendall lists his property on January 1. His agent fails to show or market the
property, and Wendall revokes the listing agreement on March 1.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing
debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for
the total DTI ratio. What's the maximum housing payment she can afford? - Answer-A)
$1,075
B) $1,152
C) $1,176
D)$1,512
Which of the following would NOT likely be a location issue of concern to buyers? -
Answer-A) The house sits in a historic preservation district.
,B) The house was built in 1985.
C) The property borders a wetland.
D) The property sits in a flood plain.
Your client, Eric, is interested in purchasing an industrial property to start a new
business. You've recommended that soil, air, and water testing be done, but Eric is on a
tight budget and doesn't feel these tests are necessary. What should you do? - Answer-
A) Keep records of your recommendations and a written response from Eric.
B) Perform the tests yourself.
C) Refuse to be a part of the transaction.
D) Support Eric in his decision and do nothing further.
An agent's client requested a recommendation for a mortgage broker. The agent gave
the name of the best mortgage broker. Later, the agent received a referral check from
the mortgage broker. Is this legal or illegal under the Real Estate Settlement Procedures
Act? - Answer-A) It is illegal under RESPA because it's considered a kickback between
settlement service providers.
B) It is illegal under RESPA because it's considered a partnership.
C) It is legal under RESPA because the broker has proven experience with the
mortgage broker referred, so it's an honest transaction.
D) It is legal under RESPA because the referral fee didn't involve the credit grantor.
Lawrence is a buyer closing on a home for which he's obtaining financing. Which
document will give Lawrence an estimate of the costs he'll likely pay at closing? -
Answer-A) Buyer Worksheet
B) Closing Disclosure
C) Loan Estimate
D) Mortgage Disclosure
Which of the following is the price a lender believes the property will bring at a
foreclosure sale? - Answer-A) Insured value
B) Investment value
, C) Mortgage value
D) Value in use
When completing a CMA, what might be indicated if a comparable property had a quick
sale? - Answer-A) It's a buyer's market.
B) The market for similar homes is good.
C) The other agent was incompetent.
D) The property was priced too high.
Joan and Martha are entering into an 18-month lease with landlord Roger. Which of
these statements is true? - Answer-A) All lease agreements must be in writing to be
enforceable.
B) An 18-month oral lease is enforceable.
C) It's illegal for leases to cover terms of more than one year.
D) Leases for periods of more than one year must be in writing.
If a buyer agrees to pay earnest money and have the property inspected within a certain
time period and does so before the time period expires, what action has happened for
this part of the contract? - Answer-A) Partial performance
B) Performance
C) Purposeful voiding
D) Termination
Fair housing laws give homeseekers a legal right to which of the following? - Answer-A)
Access to a "rent to own" program for properties when they can't pay the required down
payments
B) Complaint process for rejected home offers, even if the offer is significantly below list
price
C) Credit to purchase the home of their choice, regardless of ability to repay
D) No discriminatory limitations on communities or locations of housing
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely
used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for
QUESTIONS WITH CORRECT
ANSWERS
Which of these professional activities is NOT covered by the Fair Housing Act? -
Answer-A) Jonah's real estate firm provides single-agency brokerage services to clients.
B) Marsha, a landlord, owns several multi-unit buildings and rents one or more units
daily.
C) Michael is in charge of marketing for his real estate brokerage firm.
D) Vickie's staging company works with investor clients to stage vacant properties.
Which of the following describes a listing agreement termination by
completion/performance? - Answer-A) Dean lists his property on August 1. After just a
few showings, he accepts an offer on August 12. The closing takes place on September
22.
B) Margaret listed her property on April 1. She receives and accepts an offer on April 3.
On closing day, the buyers back out.
C) On December 15, Kevin lists his property for three months. On March 16, he
declines to extend the listing agreement.
D) Wendall lists his property on January 1. His agent fails to show or market the
property, and Wendall revokes the listing agreement on March 1.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing
debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for
the total DTI ratio. What's the maximum housing payment she can afford? - Answer-A)
$1,075
B) $1,152
C) $1,176
D)$1,512
Which of the following would NOT likely be a location issue of concern to buyers? -
Answer-A) The house sits in a historic preservation district.
,B) The house was built in 1985.
C) The property borders a wetland.
D) The property sits in a flood plain.
Your client, Eric, is interested in purchasing an industrial property to start a new
business. You've recommended that soil, air, and water testing be done, but Eric is on a
tight budget and doesn't feel these tests are necessary. What should you do? - Answer-
A) Keep records of your recommendations and a written response from Eric.
B) Perform the tests yourself.
C) Refuse to be a part of the transaction.
D) Support Eric in his decision and do nothing further.
An agent's client requested a recommendation for a mortgage broker. The agent gave
the name of the best mortgage broker. Later, the agent received a referral check from
the mortgage broker. Is this legal or illegal under the Real Estate Settlement Procedures
Act? - Answer-A) It is illegal under RESPA because it's considered a kickback between
settlement service providers.
B) It is illegal under RESPA because it's considered a partnership.
C) It is legal under RESPA because the broker has proven experience with the
mortgage broker referred, so it's an honest transaction.
D) It is legal under RESPA because the referral fee didn't involve the credit grantor.
Lawrence is a buyer closing on a home for which he's obtaining financing. Which
document will give Lawrence an estimate of the costs he'll likely pay at closing? -
Answer-A) Buyer Worksheet
B) Closing Disclosure
C) Loan Estimate
D) Mortgage Disclosure
Which of the following is the price a lender believes the property will bring at a
foreclosure sale? - Answer-A) Insured value
B) Investment value
, C) Mortgage value
D) Value in use
When completing a CMA, what might be indicated if a comparable property had a quick
sale? - Answer-A) It's a buyer's market.
B) The market for similar homes is good.
C) The other agent was incompetent.
D) The property was priced too high.
Joan and Martha are entering into an 18-month lease with landlord Roger. Which of
these statements is true? - Answer-A) All lease agreements must be in writing to be
enforceable.
B) An 18-month oral lease is enforceable.
C) It's illegal for leases to cover terms of more than one year.
D) Leases for periods of more than one year must be in writing.
If a buyer agrees to pay earnest money and have the property inspected within a certain
time period and does so before the time period expires, what action has happened for
this part of the contract? - Answer-A) Partial performance
B) Performance
C) Purposeful voiding
D) Termination
Fair housing laws give homeseekers a legal right to which of the following? - Answer-A)
Access to a "rent to own" program for properties when they can't pay the required down
payments
B) Complaint process for rejected home offers, even if the offer is significantly below list
price
C) Credit to purchase the home of their choice, regardless of ability to repay
D) No discriminatory limitations on communities or locations of housing
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely
used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for
