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PSI National Real Estate Exam Review
2026/2027 | Updated Study Guide |
Comprehensive Practice Questions &
Detailed Answer Explanations | Real Estate
License Exam
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
a contract
Antitrust laws prohibit competing brokers from all of the following
1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will probably be shared by
all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about
a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by
a homeowner
,/////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
When is racial discrimination in the rental of rooms or apartments permitted?
Under no circumstances
The real estate broker who is listing a house for sale should personally verify
the number of square feet in the building
Real property can be converted to personal property by
Severance
Prospective buyers made an offer on a property. The seller did NOT accept, but made a
counteroffer. The
prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to
the seller.
In the interim, the same buyers had found another house that they liked better and made an offer
on it, which was accepted. Which of the following is TRUE?
Both contracts are valid
Although states make specific laws governing water rights and the rights in land that borders
water, most states
generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed
with property. In others, all water rights are controlled by the state under the doctrine of
prior appropriation
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The purpose of requiring an earnest money deposit in a real estate sales contract is to
provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.)
$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
demand immediate payment of the entire note
The FHA functions MOST like
an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller.
discount points
, /////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
When land is conveyed to a trustee, the trustee may
do whatever is permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if
the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral agreement
for the purchase of the home. If a dispute over the terms arises later, the agreement may be
unenforceable because
the agreement does not comply with the Statute of Frauds
Earnest money should be deposited into a trust account
in a timely manner, according to state laws
A deed restriction is applicable to the activities of
all owners, present and future
An easement can be terminated by
prescription
PSI National Real Estate Exam Review
2026/2027 | Updated Study Guide |
Comprehensive Practice Questions &
Detailed Answer Explanations | Real Estate
License Exam
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
a contract
Antitrust laws prohibit competing brokers from all of the following
1. boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will probably be shared by
all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about
a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by
a homeowner
,/////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
When is racial discrimination in the rental of rooms or apartments permitted?
Under no circumstances
The real estate broker who is listing a house for sale should personally verify
the number of square feet in the building
Real property can be converted to personal property by
Severance
Prospective buyers made an offer on a property. The seller did NOT accept, but made a
counteroffer. The
prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to
the seller.
In the interim, the same buyers had found another house that they liked better and made an offer
on it, which was accepted. Which of the following is TRUE?
Both contracts are valid
Although states make specific laws governing water rights and the rights in land that borders
water, most states
generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed
with property. In others, all water rights are controlled by the state under the doctrine of
prior appropriation
,/////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
The purpose of requiring an earnest money deposit in a real estate sales contract is to
provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.)
$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
demand immediate payment of the entire note
The FHA functions MOST like
an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller.
discount points
, /////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
When land is conveyed to a trustee, the trustee may
do whatever is permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if
the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral agreement
for the purchase of the home. If a dispute over the terms arises later, the agreement may be
unenforceable because
the agreement does not comply with the Statute of Frauds
Earnest money should be deposited into a trust account
in a timely manner, according to state laws
A deed restriction is applicable to the activities of
all owners, present and future
An easement can be terminated by
prescription
