Page 1 of 154
PSI NATIONAL REAL ESTATE EXAM
2026/2027
PREMIUM PRACTICE QUESTION BANK
250+ QUESTIONS WITH VERIFIED
ANSWERS AND DETAILED RATIONALES
# SECTION I: PROPERTY OWNERSHIP
## A. Estates in Land
### Question 1
A property owner holds a property for the duration of their own life, with the property passing to
a designated individual upon their death. This type of estate is BEST described as:
A. Fee simple absolute
B. Life estate
C. Leasehold estate
D. Defeasible fee
**Correct Answer: B**
**Rationale:** A life estate is an estate that lasts for the duration of a person's life. The life
tenant has possessory rights during their lifetime, but the property reverts to the grantor or passes
,Page 2 of 154
to a remainderman upon the life tenant's death. Fee simple absolute (A) is the highest form of
ownership with no limitations. Leasehold estate (C) is a non-freehold estate based on a lease
agreement. Defeasible fee (D) is a fee simple estate that can be terminated upon the occurrence
of a specified event.
---
### Question 2
Which of the following is a NON-FREEHOLD estate?
A. Fee simple absolute
B. Life estate
C. Leasehold estate
D. Fee tail
**Correct Answer: C**
**Rationale:** Leasehold estates are non-freehold estates because they do not involve
ownership of the land itself—only the right to possess and use the property for a specified period
under a lease agreement. Fee simple absolute (A), life estate (B), and fee tail (D) are all freehold
estates involving ownership interests in real property.
---
### Question 3
A property is conveyed with the condition that it cannot be used for commercial purposes. If the
owner uses the property for commercial purposes, the property automatically reverts to the
grantor. This is an example of a:
A. Fee simple absolute
,Page 3 of 154
B. Life estate
C. Fee simple defeasible
D. Leasehold estate
**Correct Answer: C**
**Rationale:** A fee simple defeasible (also called a qualified fee) is an estate that may be
terminated upon the occurrence of a specified condition. In this case, the condition is that the
property cannot be used for commercial purposes, and violation causes automatic reversion to
the grantor. Fee simple absolute (A) has no conditions. Life estate (B) is duration-based.
Leasehold (D) is a non-freehold estate.
---
### Question 4
The four unities required to create a joint tenancy are:
A. Time, title, interest, and possession
B. Time, title, intent, and possession
C. Time, title, interest, and ownership
D. Time, deed, interest, and possession
**Correct Answer: A**
**Rationale:** The four unities required for a valid joint tenancy are: (1) Unity of Time—all
interests must be acquired at the same time; (2) Unity of Title—all interests must be acquired by
the same title or deed; (3) Unity of Interest—all interests must be equal in nature, extent, and
duration; and (4) Unity of Possession—all co-owners have equal rights to possess the entire
property.
, Page 4 of 154
### Question 5
The right of survivorship is a defining characteristic of which form of co-ownership?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Both B and C
**Correct Answer: D**
**Rationale:** Both joint tenancy and tenancy by the entirety include the right of survivorship,
meaning that when one owner dies, their interest automatically passes to the surviving co-
owner(s) rather than to their heirs. Tenancy in common (A) does NOT include the right of
survivorship—each owner's share passes to their heirs or devisees upon death.
---
### Question 6
Which form of co-ownership is available ONLY to married couples?
A. Joint tenancy
B. Tenancy in common
C. Tenancy by the entirety
D. Community property
**Correct Answer: C**
PSI NATIONAL REAL ESTATE EXAM
2026/2027
PREMIUM PRACTICE QUESTION BANK
250+ QUESTIONS WITH VERIFIED
ANSWERS AND DETAILED RATIONALES
# SECTION I: PROPERTY OWNERSHIP
## A. Estates in Land
### Question 1
A property owner holds a property for the duration of their own life, with the property passing to
a designated individual upon their death. This type of estate is BEST described as:
A. Fee simple absolute
B. Life estate
C. Leasehold estate
D. Defeasible fee
**Correct Answer: B**
**Rationale:** A life estate is an estate that lasts for the duration of a person's life. The life
tenant has possessory rights during their lifetime, but the property reverts to the grantor or passes
,Page 2 of 154
to a remainderman upon the life tenant's death. Fee simple absolute (A) is the highest form of
ownership with no limitations. Leasehold estate (C) is a non-freehold estate based on a lease
agreement. Defeasible fee (D) is a fee simple estate that can be terminated upon the occurrence
of a specified event.
---
### Question 2
Which of the following is a NON-FREEHOLD estate?
A. Fee simple absolute
B. Life estate
C. Leasehold estate
D. Fee tail
**Correct Answer: C**
**Rationale:** Leasehold estates are non-freehold estates because they do not involve
ownership of the land itself—only the right to possess and use the property for a specified period
under a lease agreement. Fee simple absolute (A), life estate (B), and fee tail (D) are all freehold
estates involving ownership interests in real property.
---
### Question 3
A property is conveyed with the condition that it cannot be used for commercial purposes. If the
owner uses the property for commercial purposes, the property automatically reverts to the
grantor. This is an example of a:
A. Fee simple absolute
,Page 3 of 154
B. Life estate
C. Fee simple defeasible
D. Leasehold estate
**Correct Answer: C**
**Rationale:** A fee simple defeasible (also called a qualified fee) is an estate that may be
terminated upon the occurrence of a specified condition. In this case, the condition is that the
property cannot be used for commercial purposes, and violation causes automatic reversion to
the grantor. Fee simple absolute (A) has no conditions. Life estate (B) is duration-based.
Leasehold (D) is a non-freehold estate.
---
### Question 4
The four unities required to create a joint tenancy are:
A. Time, title, interest, and possession
B. Time, title, intent, and possession
C. Time, title, interest, and ownership
D. Time, deed, interest, and possession
**Correct Answer: A**
**Rationale:** The four unities required for a valid joint tenancy are: (1) Unity of Time—all
interests must be acquired at the same time; (2) Unity of Title—all interests must be acquired by
the same title or deed; (3) Unity of Interest—all interests must be equal in nature, extent, and
duration; and (4) Unity of Possession—all co-owners have equal rights to possess the entire
property.
, Page 4 of 154
### Question 5
The right of survivorship is a defining characteristic of which form of co-ownership?
A. Tenancy in common
B. Joint tenancy
C. Tenancy by the entirety
D. Both B and C
**Correct Answer: D**
**Rationale:** Both joint tenancy and tenancy by the entirety include the right of survivorship,
meaning that when one owner dies, their interest automatically passes to the surviving co-
owner(s) rather than to their heirs. Tenancy in common (A) does NOT include the right of
survivorship—each owner's share passes to their heirs or devisees upon death.
---
### Question 6
Which form of co-ownership is available ONLY to married couples?
A. Joint tenancy
B. Tenancy in common
C. Tenancy by the entirety
D. Community property
**Correct Answer: C**
