PSI National Real Estate 2027 Exam Actual Complete Questions
and 100% Correct Answers (Proven Results)
Question 1.
Which of these situations represents the illegal practice of blockbusting?
Correct Answer: A) Celia, a licensee, distributed a flyer in several
neighborhoods, claiming that gentrification of those neighborhoods will
increase property values.
B) Corbin tells homeowners in Five Points that an impending influx of Asian
immigrants will reduce property values.
C)Estelle, a broker, warns potential clients about the upcoming zoning change
in a neighborhood that is currently zoned as residential.
D) Kian, a mortgage broker, refuses to underwrite mortgage applications from
applicants who are Hispanic or Asian.
Question 2.
When Gillian looked at the legal description of the property she was interested in
purchasing, she read the following: "Beginning at the corner of State Route 61 and
Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what
does "Beginning at the corner of State Route 61 and Hallowell Road" represent?
Correct Answer: A) A benchmark
B) Bounds
C) Metes
D) Monuments
Question 3.
Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid
private mortgage insurance (PMI) on his conventional loan, and he owes 5% of the
purchase price in closing costs. How much money should he bring to closing?
Correct Answer: A) $106,250
B) $156,250
C) $31,250
D) $81,250
Question 4.
If a private individual owner owns fewer than three single-family homes at one time,
which exemption from the Fair Housing Act could apply?
Correct Answer: A) Housing designated for senior use
B) "Mrs. Murphy" exemption
C) Owner-occupied buildings with no more than six units
D) Single-family housing sold or rented without the use of a broker
,Question 5.
A company in Raleigh leased a building so that it could build an escape room
experience. After operating for two years, attendance (and thus its profits) started to
drop significantly, so it decided to close the location. When the workers started taking
down the installation, they realized that some of the structures would damage the walls
if they were to try to remove them. Which of these is true about these trade fixtures?
Correct Answer: A) If the company leaves them in place and the lease expires,
they have three months to remove them.
B) The company is required to leave the fixtures if they're attached.
C) The company is required to take the fixtures and return the premise to its
original condition.
D) The company may take the fixtures as long as he repairs any damage
caused by removal.
Question 6.
A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%.
How much is the buyer financing?
Correct Answer: A) $320,000
B) $360,000
C) $400,000
D) $80,000
Question 7.
A property owner didn't have direct access to the small lake in their subdivision; they
had an easement arranged with their neighbor. Ten months ago, the developer built a
public access road to the lake, so the property owner stopped using the easement. What
type of easement termination is this?
Correct Answer: A) Abandonment
B) Express
C) Merger
D) Necessity
Question 8.
Li Meng purchased a property that had been owned by the same man for more than 40
years. The title search was clean. In the spring, she started seeing traffic on the path to
her dock and discovered that the previous owner had always allowed the locals to use
his path to get to the lake. What covenant may have been breached?
Correct Answer: A) Against encumbrances
B) Quiet enjoyment
C) Right to convey
D) Seisin
, Question 9.
LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was
the place for family holiday gatherings, and LaTonya's sister was even married there.
That's why her family is so upset to learn that she plans to sell the bungalow as soon as
she gets it cleaned out. Which real property right allows her to sell the property?
Correct Answer: A) Control
B) Disposition
C) Exclusion
D) Possession
Question 10.
Alison and Brent are financing their house purchase of $232,500 with an FHA loan. Their
credit score qualifies them for the minimum down payment. What do they need to put
down?
Correct Answer: A) $10,462.50
B) $11,625
C) $6,975
D) $8,137.50
Question 11.
Which one of the following protects the owner against financial loss if the real estate
title has defects?
Correct Answer: A) Abstract of title
B) Chain of title
C) Deed
D) Title insurance
Question 12.
Marion gave her granddaughter Sheila the deed to a brand new home, on the condition
that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got
a job as a greeter at a big box store instead, Marion ______ to regain ownership of the
property.
Correct Answer: A) Had no recourse
B) Had to purchase the property from Sheila
C) Had to take legal action
D) Wasn't required to take any action
Question 13.
A property is purchased for $420,000 and $336,000 of it is financed. The assessed value
of the property is $387,000. The property appraisal came in at $432,000. Which of these
amounts is used in calculating the property tax?
and 100% Correct Answers (Proven Results)
Question 1.
Which of these situations represents the illegal practice of blockbusting?
Correct Answer: A) Celia, a licensee, distributed a flyer in several
neighborhoods, claiming that gentrification of those neighborhoods will
increase property values.
B) Corbin tells homeowners in Five Points that an impending influx of Asian
immigrants will reduce property values.
C)Estelle, a broker, warns potential clients about the upcoming zoning change
in a neighborhood that is currently zoned as residential.
D) Kian, a mortgage broker, refuses to underwrite mortgage applications from
applicants who are Hispanic or Asian.
Question 2.
When Gillian looked at the legal description of the property she was interested in
purchasing, she read the following: "Beginning at the corner of State Route 61 and
Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what
does "Beginning at the corner of State Route 61 and Hallowell Road" represent?
Correct Answer: A) A benchmark
B) Bounds
C) Metes
D) Monuments
Question 3.
Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid
private mortgage insurance (PMI) on his conventional loan, and he owes 5% of the
purchase price in closing costs. How much money should he bring to closing?
Correct Answer: A) $106,250
B) $156,250
C) $31,250
D) $81,250
Question 4.
If a private individual owner owns fewer than three single-family homes at one time,
which exemption from the Fair Housing Act could apply?
Correct Answer: A) Housing designated for senior use
B) "Mrs. Murphy" exemption
C) Owner-occupied buildings with no more than six units
D) Single-family housing sold or rented without the use of a broker
,Question 5.
A company in Raleigh leased a building so that it could build an escape room
experience. After operating for two years, attendance (and thus its profits) started to
drop significantly, so it decided to close the location. When the workers started taking
down the installation, they realized that some of the structures would damage the walls
if they were to try to remove them. Which of these is true about these trade fixtures?
Correct Answer: A) If the company leaves them in place and the lease expires,
they have three months to remove them.
B) The company is required to leave the fixtures if they're attached.
C) The company is required to take the fixtures and return the premise to its
original condition.
D) The company may take the fixtures as long as he repairs any damage
caused by removal.
Question 6.
A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%.
How much is the buyer financing?
Correct Answer: A) $320,000
B) $360,000
C) $400,000
D) $80,000
Question 7.
A property owner didn't have direct access to the small lake in their subdivision; they
had an easement arranged with their neighbor. Ten months ago, the developer built a
public access road to the lake, so the property owner stopped using the easement. What
type of easement termination is this?
Correct Answer: A) Abandonment
B) Express
C) Merger
D) Necessity
Question 8.
Li Meng purchased a property that had been owned by the same man for more than 40
years. The title search was clean. In the spring, she started seeing traffic on the path to
her dock and discovered that the previous owner had always allowed the locals to use
his path to get to the lake. What covenant may have been breached?
Correct Answer: A) Against encumbrances
B) Quiet enjoyment
C) Right to convey
D) Seisin
, Question 9.
LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was
the place for family holiday gatherings, and LaTonya's sister was even married there.
That's why her family is so upset to learn that she plans to sell the bungalow as soon as
she gets it cleaned out. Which real property right allows her to sell the property?
Correct Answer: A) Control
B) Disposition
C) Exclusion
D) Possession
Question 10.
Alison and Brent are financing their house purchase of $232,500 with an FHA loan. Their
credit score qualifies them for the minimum down payment. What do they need to put
down?
Correct Answer: A) $10,462.50
B) $11,625
C) $6,975
D) $8,137.50
Question 11.
Which one of the following protects the owner against financial loss if the real estate
title has defects?
Correct Answer: A) Abstract of title
B) Chain of title
C) Deed
D) Title insurance
Question 12.
Marion gave her granddaughter Sheila the deed to a brand new home, on the condition
that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got
a job as a greeter at a big box store instead, Marion ______ to regain ownership of the
property.
Correct Answer: A) Had no recourse
B) Had to purchase the property from Sheila
C) Had to take legal action
D) Wasn't required to take any action
Question 13.
A property is purchased for $420,000 and $336,000 of it is financed. The assessed value
of the property is $387,000. The property appraisal came in at $432,000. Which of these
amounts is used in calculating the property tax?
