National PSI EXAM PRACTICE TEST With 50 Questions and answers Newest RATED A+ 2025/2026

National PSI EXAM PRACTICE TEST With 50 Questions
and answers Newest RATED A+ 2025/2026
Real Estate law governing advertising applies to all of these EXCEPT:
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




A. In house notes for showing
Il` Il` Il` Il` Il`




B. Multiple listing service (MLS)
Il` Il` Il` Il`




C. communications with consumers
Il` Il` Il`




D. Social Media - Correct Answers A. In-house notes for showing are not seen by consumers an
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




so do not have to follow state or federal laws.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` A couple accompanies a property inspector during an inspection of a house on which they have a
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` contract. The inspector points to a six-inch crack at the corner of a dining room window. The crack
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` is an example of :
Il` Il` Il` Il` Il`




A. A structural defect
Il` Il` Il` Il`




B. A patent Defect
Il` Il` Il` Il`




C. a latent defect
Il` Il` Il` Il`




D. an environmental defect - Correct Answers B. A patent defect is easily visible when inspecting
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




a property. (another) term for material)
Il` Il` Il` Il` Il` Il`




Il` An eligible veteran made an offer of $225,000 to purchase a home contingent upon obtaining a
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` no-down payment U.S department of Veterans Affairs (VA) guaranteed loan. Three weeks after
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` the offer was accepted, the VA issued a certificate of reasonable value (CRV) for the $222,000 for
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` the property. In this case, the veteran may:
Il` Il` Il` Il` Il` Il` Il` Il`




A. withdraw from the sale with a three-point penalty
Il` Il` Il` Il` Il` Il` Il` Il` Il`




B. withdraw from the sale on payment of a commission to the seller's broker
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




C. purchase the property by making a $3,000 cash payment
Il` Il` Il` Il` Il` Il` Il` Il` Il`




D. seek secondary funding for the $3,0000 - Correct Answers C. When the purchase price of a
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




property is greater than the VA-issued (CRV), the veteran may pay the difference in cash to
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




purchase the property because secondary financing is somewhat restricted under VA regulations.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`

,Il` General real estate property taxes levied for the operation of the government are called:
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




A. special taxes
Il` Il`




B. ad valorem taxes
Il` Il` Il`




C. improvement taxes
Il` Il` Il`




D. special assessment taxes - Correct Answers B.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` Under current Regulations, a U.S. department of Veteran Affairs (VA) loan is assumable if:
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




A. The VA approves both the buyer and the assumption agreement
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




B. the veteran agrees not to request a releases of liability for repayment
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




C. the VA approves the buyer only
Il` Il` Il` Il` Il` Il` Il`




D. the VA approves the assumption of the agreement only - Correct Answers A.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




for VA loans made after March 1, 1988 the VA must approve both the buyer and the assumption
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




agreement before the loan may be assumed.
Il` Il` Il` Il` Il` Il` Il`




Il` During the period of time after a real estate sales contract is signed, but before title actually
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` passes, the status of the contract is: Il` Il` Il` Il` Il` Il`




A. executory Il` Il`




B. voidable Il`




C. executed Il`




D. unilateral - Correct Answers A.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




A contract is in executory status when its terms of agreement have not yet been carried out.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`

, Il` If there is a discrepancy between a residential lot size quoted in a listing contract and the actual
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` lot size, the actual lot size that will prevail in a sales transaction will be found in :
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




A. the MLS
Il` Il` Il`




B. the survey
Il` Il` Il`




C. the listing contract
Il` Il` Il` Il`




D. the deed - Correct Answers B.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` The buyers secured a loan at 75% (LTV) ration. The interest rate was 7.125%, and the term was for
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` 30 Years. The first month's interest payment was $477.82. What was the appraised value of the
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` property?



A. $103.700
Il`




B. $80,475
Il`




C. $107,300
Il`




D. 79,239 - Correct Answers C.
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




$477.82x12=$5,733.84 annual interest Il` Il` Il`




$5,733.84/7.125%=$80,475

$80,475/75%=$107,300



Il` A document that protects against hidden risk such as forgeries and loss due to defects in title,
Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il` Il`




Il` subject to specific exclusions, is called:Il` Il` Il` Il` Il`




A. a title insurance policy
Il` Il` Il` Il` Il`




B. an abstract of title
Il` Il` Il` Il` Il`




C. a chain of title
Il` Il` Il` Il` Il`