PSI Real Estate Salesperson Exam 1
Questions and Answers | Latest Version
| 2025/2026 | Correct & Verified
What is the purpose of a "listing agreement" in real estate?
A) To transfer ownership of the property
B) To create a legally binding contract between the seller and the real estate agent
C) To arrange financing for the buyer
D) To finalize the sale of the property
✔✔ B) To create a legally binding contract between the seller and the real estate agent
What does "equity" in real estate refer to?
A) The loan amount still owed on the property
B) The difference between the property’s market value and the amount owed on it
C) The amount of the property's original purchase price
D) The down payment made on the property
✔✔ B) The difference between the property’s market value and the amount owed on it
Which of the following is typically considered "real property"?
1
,A) A car
B) A mobile home
C) A condominium unit
D) A refrigerator
✔✔ C) A condominium unit
What is the primary purpose of a property appraisal?
A) To help the buyer negotiate a better price
B) To provide an estimate of the property's market value
C) To assess the property's potential for renovation
D) To determine the tax amount owed on the property
✔✔ B) To provide an estimate of the property's market value
In a real estate transaction, what is an "earnest money deposit"?
A) A fee charged by the listing agent
B) A deposit made by the buyer to show good faith in their offer
C) A portion of the seller’s proceeds from the sale
D) A payment made to cover the closing costs
2
,✔✔ B) A deposit made by the buyer to show good faith in their offer
What is a "deed of trust"?
A) A document that transfers the legal title of a property
B) A security agreement that protects the lender in a mortgage transaction
C) A contract that finalizes the sale of a property
D) A document that outlines the terms of a home inspection
✔✔ B) A security agreement that protects the lender in a mortgage transaction
What does "zoning" refer to in real estate?
A) The process of obtaining a mortgage for a property
B) The regulation of how land can be used within specific geographic areas
C) The division of land into different regions for market purposes
D) The legal process of transferring property ownership
✔✔ B) The regulation of how land can be used within specific geographic areas
Which of the following is an example of "personal property" in real estate?
A) A home’s built-in appliances
3
, B) A free-standing refrigerator
C) The land the property sits on
D) A home’s foundation
✔✔ B) A free-standing refrigerator
What is a "mortgage loan originator"?
A) A person who helps buyers secure financing by finding them a lender
B) A real estate agent who specializes in the sale of new construction homes
C) A person responsible for managing the closing process of a real estate transaction
D) A lender who provides loans directly to buyers
✔✔ A) A person who helps buyers secure financing by finding them a lender
Which of the following is the main goal of the "Fair Housing Act"?
A) To protect buyers from paying excessive property taxes
B) To prevent discrimination based on race, color, religion, gender, or national origin in housing
C) To regulate mortgage interest rates
D) To help lenders secure better interest rates for buyers
4
Questions and Answers | Latest Version
| 2025/2026 | Correct & Verified
What is the purpose of a "listing agreement" in real estate?
A) To transfer ownership of the property
B) To create a legally binding contract between the seller and the real estate agent
C) To arrange financing for the buyer
D) To finalize the sale of the property
✔✔ B) To create a legally binding contract between the seller and the real estate agent
What does "equity" in real estate refer to?
A) The loan amount still owed on the property
B) The difference between the property’s market value and the amount owed on it
C) The amount of the property's original purchase price
D) The down payment made on the property
✔✔ B) The difference between the property’s market value and the amount owed on it
Which of the following is typically considered "real property"?
1
,A) A car
B) A mobile home
C) A condominium unit
D) A refrigerator
✔✔ C) A condominium unit
What is the primary purpose of a property appraisal?
A) To help the buyer negotiate a better price
B) To provide an estimate of the property's market value
C) To assess the property's potential for renovation
D) To determine the tax amount owed on the property
✔✔ B) To provide an estimate of the property's market value
In a real estate transaction, what is an "earnest money deposit"?
A) A fee charged by the listing agent
B) A deposit made by the buyer to show good faith in their offer
C) A portion of the seller’s proceeds from the sale
D) A payment made to cover the closing costs
2
,✔✔ B) A deposit made by the buyer to show good faith in their offer
What is a "deed of trust"?
A) A document that transfers the legal title of a property
B) A security agreement that protects the lender in a mortgage transaction
C) A contract that finalizes the sale of a property
D) A document that outlines the terms of a home inspection
✔✔ B) A security agreement that protects the lender in a mortgage transaction
What does "zoning" refer to in real estate?
A) The process of obtaining a mortgage for a property
B) The regulation of how land can be used within specific geographic areas
C) The division of land into different regions for market purposes
D) The legal process of transferring property ownership
✔✔ B) The regulation of how land can be used within specific geographic areas
Which of the following is an example of "personal property" in real estate?
A) A home’s built-in appliances
3
, B) A free-standing refrigerator
C) The land the property sits on
D) A home’s foundation
✔✔ B) A free-standing refrigerator
What is a "mortgage loan originator"?
A) A person who helps buyers secure financing by finding them a lender
B) A real estate agent who specializes in the sale of new construction homes
C) A person responsible for managing the closing process of a real estate transaction
D) A lender who provides loans directly to buyers
✔✔ A) A person who helps buyers secure financing by finding them a lender
Which of the following is the main goal of the "Fair Housing Act"?
A) To protect buyers from paying excessive property taxes
B) To prevent discrimination based on race, color, religion, gender, or national origin in housing
C) To regulate mortgage interest rates
D) To help lenders secure better interest rates for buyers
4
