PSI NATIONAL REAL ESTATE 2026 TEST PAPER QUESTIONS
AND ANSWERS GRADED A+
✔✔At the time of listing, the seller tells the listing agent they are moving because the
neighbor has loud parties every weekend. The agent should - ✔✔Tell potential buyers
✔✔An appraisal method that uses adjustments to recent sales to estimate value is the -
✔✔sales comparison approach
✔✔A lender who forecloses on a property and sells it later for less than what was owed
has the right to obtain a(n) - ✔✔deficiency judgment
✔✔What is the payment difference on a loan amount of $220,000 with a 15 year, 5.5%
interest versus a 30 year at 6.5% (use amortization chart) - ✔✔$407
✔✔A buyer and seller have a contract which states the buyer can buy the property for
$120,000 and close the sale before 12/31/2014. What type of contract exists? -
✔✔Option
✔✔A buyer wants to have a home business in a residential neighborhood. The broker
should advise the buyer to - ✔✔Check to see whether zoning will allow the business
use.
✔✔Which of the following is a disadvantage to owning real estate? - ✔✔Liquidity
✔✔A broker lists a property and begins marketing it. The seller sells the property to a
neighbor and pays the broker a full commission, What type of listing agreement was
signed?" - ✔✔Exclusive Right to sell
✔✔A potential buyer was turned down for a mortgage loan because of the high crime
rate where the property is located. This is an example of - ✔✔Redlining
✔✔Fair housing law allows seniors to have separate housing if 80 percent of the units
are occupied by at least one person age 55 or older. This exemption allows
for discrimination based on - ✔✔Familial Status
✔✔A property manager would do all the following except: - ✔✔Invest the profits into the
building
✔✔The listing agreement must contain all the following items except - ✔✔Statement
regarding how to earn commission
, ✔✔The renter of a property has recently become disabled and can no longer walk. The
tenant needs a ramp to gain access to the property. What must the landlord
do? - ✔✔Permit tenant to install ramp at their expense
✔✔The right of an agent to represent a principal is created by - ✔✔fiduciary agreements
✔✔A tenancy in which the lessee remains in possession of the property without the
lessor's consent is: - ✔✔An estate at sufferance
✔✔All of the following are true of the holder of a fee simple absolute estate EXCEPT: -
✔✔his estate terminates upon death
✔✔when a borrower wishes to obtain a loan in excess of 80% of the property's value,
the lender is likely to require: - ✔✔Mortgage default insurance
✔✔The figure used by the lender in determining the maximum loan it will make the -
✔✔purchase price or appraised value, whichever is less
✔✔In an exclusive right to sell listing, the principal contracts: - ✔✔to pay the broker a
commission if the property sells during the contract
✔✔Which of the following Statements BEST identifies the meaning of the term
"Recession Contract" - ✔✔A return of all parties to their condition before the contract
was executed
✔✔All the following are considered a Common Interest Community EXCEPT -
✔✔Apartments
✔✔An appraiser would be most likely to rely on the cost approach in appraising a -
✔✔Church
✔✔Title insurance premiums are paid - ✔✔Once, at the time the policy is issued
✔✔A seller is selling their house for $300,000. They agreed to pay a
commission. How much will the seller net if there are no other costs of selling? -
✔✔$279,000
✔✔A buyer is purchasing a property for $95,000. The seller has an existing mortgage of
$65,750 which the buyer is assuming. The buyer has already deposited a $2,500
earnest money check. The seller agreed to pay a listing commission of 6.5% of the
sales price. How much cash will the buyer need at the closing? - ✔✔$26,750
✔✔Mortgage default insurance - ✔✔Is paid by borrower to protect lender
AND ANSWERS GRADED A+
✔✔At the time of listing, the seller tells the listing agent they are moving because the
neighbor has loud parties every weekend. The agent should - ✔✔Tell potential buyers
✔✔An appraisal method that uses adjustments to recent sales to estimate value is the -
✔✔sales comparison approach
✔✔A lender who forecloses on a property and sells it later for less than what was owed
has the right to obtain a(n) - ✔✔deficiency judgment
✔✔What is the payment difference on a loan amount of $220,000 with a 15 year, 5.5%
interest versus a 30 year at 6.5% (use amortization chart) - ✔✔$407
✔✔A buyer and seller have a contract which states the buyer can buy the property for
$120,000 and close the sale before 12/31/2014. What type of contract exists? -
✔✔Option
✔✔A buyer wants to have a home business in a residential neighborhood. The broker
should advise the buyer to - ✔✔Check to see whether zoning will allow the business
use.
✔✔Which of the following is a disadvantage to owning real estate? - ✔✔Liquidity
✔✔A broker lists a property and begins marketing it. The seller sells the property to a
neighbor and pays the broker a full commission, What type of listing agreement was
signed?" - ✔✔Exclusive Right to sell
✔✔A potential buyer was turned down for a mortgage loan because of the high crime
rate where the property is located. This is an example of - ✔✔Redlining
✔✔Fair housing law allows seniors to have separate housing if 80 percent of the units
are occupied by at least one person age 55 or older. This exemption allows
for discrimination based on - ✔✔Familial Status
✔✔A property manager would do all the following except: - ✔✔Invest the profits into the
building
✔✔The listing agreement must contain all the following items except - ✔✔Statement
regarding how to earn commission
, ✔✔The renter of a property has recently become disabled and can no longer walk. The
tenant needs a ramp to gain access to the property. What must the landlord
do? - ✔✔Permit tenant to install ramp at their expense
✔✔The right of an agent to represent a principal is created by - ✔✔fiduciary agreements
✔✔A tenancy in which the lessee remains in possession of the property without the
lessor's consent is: - ✔✔An estate at sufferance
✔✔All of the following are true of the holder of a fee simple absolute estate EXCEPT: -
✔✔his estate terminates upon death
✔✔when a borrower wishes to obtain a loan in excess of 80% of the property's value,
the lender is likely to require: - ✔✔Mortgage default insurance
✔✔The figure used by the lender in determining the maximum loan it will make the -
✔✔purchase price or appraised value, whichever is less
✔✔In an exclusive right to sell listing, the principal contracts: - ✔✔to pay the broker a
commission if the property sells during the contract
✔✔Which of the following Statements BEST identifies the meaning of the term
"Recession Contract" - ✔✔A return of all parties to their condition before the contract
was executed
✔✔All the following are considered a Common Interest Community EXCEPT -
✔✔Apartments
✔✔An appraiser would be most likely to rely on the cost approach in appraising a -
✔✔Church
✔✔Title insurance premiums are paid - ✔✔Once, at the time the policy is issued
✔✔A seller is selling their house for $300,000. They agreed to pay a
commission. How much will the seller net if there are no other costs of selling? -
✔✔$279,000
✔✔A buyer is purchasing a property for $95,000. The seller has an existing mortgage of
$65,750 which the buyer is assuming. The buyer has already deposited a $2,500
earnest money check. The seller agreed to pay a listing commission of 6.5% of the
sales price. How much cash will the buyer need at the closing? - ✔✔$26,750
✔✔Mortgage default insurance - ✔✔Is paid by borrower to protect lender
