PSI National Real Estate 2027 Exam Authentic Complete
Questions and 100% Correct Answers (Top Performance Guide)
Question 1.
Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is
this okay?
-No, because he's not an attorney, he shouldn't prepare contracts. -No, he should have
his client complete any forms. -Yes, licensees can use standard forms originally created
or approved by an attorney. -Yes, real estate licensees may draft contracts and fill in
blanks on existing contracts.
Correct Answer: Yes, licensees can use standard forms originally created or
approved by an attorney.
Question 2.
Derrick was thrilled to find out that the land he purchased includes several small caves.
He's been spelunking for about three years and looks forward to exploring the caves on
weekends. Which real property right allows him to do so?
-Disposition -Enjoyment -Exclusion -Possession
Correct Answer: Enjoyment
Question 3.
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He
receives a Loan Estimate from his lender. What's the purpose of this document?
-To detail the amount Lawrence needs to bring to closing -To detail the estimated
closing costs for Lawrence's loan -To disclose the interest rates available on this lender's
various loan programs -To disclose the lender's source of loan funds
Correct Answer: To detail the estimated closing costs for Lawrence's loan
Question 4.
**The Loan Estimate, which the lender must provide within three days of loan
application, provides an estimate of mortgage loan costs.
Claire rents 1,100 square feet of office space in a new professional building. Her rent
payment includes all utilities and property taxes, but she pays separately for custodial
services. What kind of lease does Claire have?
-Full-service lease -Modified gross lease -Percentage lease -Triple-net lease
Correct Answer: Modified gross lease **A modified gross lease typically
includes all the nets in the base rent, but not utilities and/or janitorial
services.
Question 5.
Marlon and Leah are interested in buying a home in a new homeowner opportunity area.
,The 100-year-old row house was renovated and is like new on the inside. The property
taxes decreased by more than $5,000 last year. What's the likely reason for this?
-Introductory rates -Seller error -Tax abatement -Tax reassessment
Correct Answer: Tax abatement
Question 6.
**A tax abatement program will lower the property taxes on a given property for a set
amount of time. This is typically in response to some sort of improvement or
rehabilitation, or for some new construction properties.
Which of the following is an example of price fixing?
-A brokerage requires all licensees to offer a fair cooperative brokerage fee. -Three
brokerages agree to purchase office supplies together to obtain a bulk discount. -Twelve
brokerages discuss compensation of associated independent contractor licensees. -Two
brokerages determine a standard commission rate.
Correct Answer: Two brokerages determine a standard commission rate.
Question 7.
**Collusion must occur on pricing for the public in order for price fixing to occur.
Which legislative act prohibits certain types of electronic communication?
-CAN-SPAM -NO-SPAM -SPAM-CAN -SPAM-JAM
Correct Answer: CAN-SPAM
Question 8.
**The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-
SPAM) prohibits junk email and requires an "unsubscribe" option in any email marketing
messages.
Tracy is looking in the MLS and sees a listing marked "REO." Which of these statements
regarding REOs is correct?
-An REO property is one that the lender is trying to help the owner sell before beginning
foreclosure proceedings. -Banks acquire REOs through failed foreclosure sales or deed in
lieu of foreclosure actions. -REOs are properties that the lender has given permission to
sell for less than the loan amount. -REOs refer to investment properties a bank owns.
Correct Answer: Banks acquire REOs through failed foreclosure sales or deed
in lieu of foreclosure actions.
Question 9.
**Failed foreclosure sales and deed in lieu of foreclosure actions result in lenders taking
title to properties they previously had mortgage loans on. These properties are called
real estate owned, or REOs.
Shakira is attending an association meeting when, in a small group breakout, her group
begins discussing how to deal with the new kid in town: a real estate firm that charges a
flat $500 to list properties, then lets the sellers fend for themselves. Shakira should
,leave the discussion because _______.
-She needs to get to work developing this model for herself -The group seems bent on
creating a tie-in arrangement -This conversation seems to be turning into a discussion of
market allocation -This conversation sounds like it might become an antitrust violation
Correct Answer: This conversation sounds like it might become an antitrust
violation
Question 10.
**This conversation sounds like it could lead to group boycotting, an antitrust violation.
Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the
features, even the spot in the attic where a previous owner's ghost likes to come back
and visit. Jason asks Rebecca if buyers should be told about this. Which response is
best?
-"All states require sellers to disclose any undesirable feature of a house, which includes
ghosts." -"The presence of spirits stigmatizes the property. Many states don't consider
this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check
our laws." -"We can tell prospective buyers that the property comes with a roommate."
-"You can't mention this, because it would be a fair housing violation."
Correct Answer: "The presence of spirits stigmatizes the property. Many
states don't consider this a material fact requiring disclosure, but this is my
first ghost encounter, so I'll check our laws."
Question 11.
Which one of the following types of ownership termination allows each tenant to have a
specific, divided portion (partition) of the property exclusively?
-Termination by division -Termination of co-ownership by partition -Termination of estate
in severalty -Termination of joint tenancies
Correct Answer: Termination of co-ownership by partition **Termination of
tenancy in common by partition allows each tenant to have a specific, divided
portion of the property exclusively. If the property can't be divided, the court
may rule that the property be sold and the proceeds divided by the tenants.
Question 12.
Which of these would void a deed intended to convey property?
-The grantee is not mentally competent. -The grantee's signature is not acknowledged.
-The grantor is not mentally competent. -The transfer includes no monetary
consideration.
Correct Answer: The grantor is not mentally competent.
Question 13.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
, Desmond a commission. What type of agreement do Desmond and the Harpers have?
-Bilateral -Executed -Mutual -Unilateral
Correct Answer: Bilateral
Question 14.
**A contract involving an exchange of promises or other consideration between two
parties is a bilateral contract.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing
debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for
the total DTI ratio. What's the maximum housing payment she can afford?
-$1,075 -$1,152 -$1,176 -$1,512
Correct Answer: $1,176
Question 15.
**The maximum house payment is the lesser of the amounts calculated using both
ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28
= $1,176. Phoebe's maximum payment is $1,152.
Which of these is an example of agency coupled with interest?
-A listing agent agrees to accept a commission of 2.5% upon sale of the property. -A
listing agent agrees to split the commission on the sale of a property with a cooperating
agent who brings the buyer to the table. -An agent foregoes buyer agent commission,
provided the purchasing developer gives the agent the listings on the developed lots.
-An agent is interested a property the agent has listed.
Correct Answer: An agent foregoes buyer agent commission, provided the
purchasing developer gives the agent the listings on the developed lots.
Question 16.
**Agency coupled with interest means the agent holds an estate (or interest) in a
property that is the subject of the agency relationship. Forgoing commission now in turn
for listings down the road is an example.
Juan has decided to invest his small inheritance in real estate. He is drawn to the fact
that he can add a building where there wasn't one previously and immediately increase
the value of his investment. Which economic characteristic of real property is this?
-Area preference -Improvements -Permanence -Scarcity
Correct Answer: Improvements
Question 17.
**The economic characteristic of improvements says that a land's value can be
influenced by changes that are made to it.
What does the Federal Trade Commission consider to be an unfair ad?
-Any ad or business practice that causes or is likely to cause injury -Any ad that is likely
to mislead consumers acting reasonably under the circumstances -Any ad that makes a
Questions and 100% Correct Answers (Top Performance Guide)
Question 1.
Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is
this okay?
-No, because he's not an attorney, he shouldn't prepare contracts. -No, he should have
his client complete any forms. -Yes, licensees can use standard forms originally created
or approved by an attorney. -Yes, real estate licensees may draft contracts and fill in
blanks on existing contracts.
Correct Answer: Yes, licensees can use standard forms originally created or
approved by an attorney.
Question 2.
Derrick was thrilled to find out that the land he purchased includes several small caves.
He's been spelunking for about three years and looks forward to exploring the caves on
weekends. Which real property right allows him to do so?
-Disposition -Enjoyment -Exclusion -Possession
Correct Answer: Enjoyment
Question 3.
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He
receives a Loan Estimate from his lender. What's the purpose of this document?
-To detail the amount Lawrence needs to bring to closing -To detail the estimated
closing costs for Lawrence's loan -To disclose the interest rates available on this lender's
various loan programs -To disclose the lender's source of loan funds
Correct Answer: To detail the estimated closing costs for Lawrence's loan
Question 4.
**The Loan Estimate, which the lender must provide within three days of loan
application, provides an estimate of mortgage loan costs.
Claire rents 1,100 square feet of office space in a new professional building. Her rent
payment includes all utilities and property taxes, but she pays separately for custodial
services. What kind of lease does Claire have?
-Full-service lease -Modified gross lease -Percentage lease -Triple-net lease
Correct Answer: Modified gross lease **A modified gross lease typically
includes all the nets in the base rent, but not utilities and/or janitorial
services.
Question 5.
Marlon and Leah are interested in buying a home in a new homeowner opportunity area.
,The 100-year-old row house was renovated and is like new on the inside. The property
taxes decreased by more than $5,000 last year. What's the likely reason for this?
-Introductory rates -Seller error -Tax abatement -Tax reassessment
Correct Answer: Tax abatement
Question 6.
**A tax abatement program will lower the property taxes on a given property for a set
amount of time. This is typically in response to some sort of improvement or
rehabilitation, or for some new construction properties.
Which of the following is an example of price fixing?
-A brokerage requires all licensees to offer a fair cooperative brokerage fee. -Three
brokerages agree to purchase office supplies together to obtain a bulk discount. -Twelve
brokerages discuss compensation of associated independent contractor licensees. -Two
brokerages determine a standard commission rate.
Correct Answer: Two brokerages determine a standard commission rate.
Question 7.
**Collusion must occur on pricing for the public in order for price fixing to occur.
Which legislative act prohibits certain types of electronic communication?
-CAN-SPAM -NO-SPAM -SPAM-CAN -SPAM-JAM
Correct Answer: CAN-SPAM
Question 8.
**The Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-
SPAM) prohibits junk email and requires an "unsubscribe" option in any email marketing
messages.
Tracy is looking in the MLS and sees a listing marked "REO." Which of these statements
regarding REOs is correct?
-An REO property is one that the lender is trying to help the owner sell before beginning
foreclosure proceedings. -Banks acquire REOs through failed foreclosure sales or deed in
lieu of foreclosure actions. -REOs are properties that the lender has given permission to
sell for less than the loan amount. -REOs refer to investment properties a bank owns.
Correct Answer: Banks acquire REOs through failed foreclosure sales or deed
in lieu of foreclosure actions.
Question 9.
**Failed foreclosure sales and deed in lieu of foreclosure actions result in lenders taking
title to properties they previously had mortgage loans on. These properties are called
real estate owned, or REOs.
Shakira is attending an association meeting when, in a small group breakout, her group
begins discussing how to deal with the new kid in town: a real estate firm that charges a
flat $500 to list properties, then lets the sellers fend for themselves. Shakira should
,leave the discussion because _______.
-She needs to get to work developing this model for herself -The group seems bent on
creating a tie-in arrangement -This conversation seems to be turning into a discussion of
market allocation -This conversation sounds like it might become an antitrust violation
Correct Answer: This conversation sounds like it might become an antitrust
violation
Question 10.
**This conversation sounds like it could lead to group boycotting, an antitrust violation.
Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the
features, even the spot in the attic where a previous owner's ghost likes to come back
and visit. Jason asks Rebecca if buyers should be told about this. Which response is
best?
-"All states require sellers to disclose any undesirable feature of a house, which includes
ghosts." -"The presence of spirits stigmatizes the property. Many states don't consider
this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check
our laws." -"We can tell prospective buyers that the property comes with a roommate."
-"You can't mention this, because it would be a fair housing violation."
Correct Answer: "The presence of spirits stigmatizes the property. Many
states don't consider this a material fact requiring disclosure, but this is my
first ghost encounter, so I'll check our laws."
Question 11.
Which one of the following types of ownership termination allows each tenant to have a
specific, divided portion (partition) of the property exclusively?
-Termination by division -Termination of co-ownership by partition -Termination of estate
in severalty -Termination of joint tenancies
Correct Answer: Termination of co-ownership by partition **Termination of
tenancy in common by partition allows each tenant to have a specific, divided
portion of the property exclusively. If the property can't be divided, the court
may rule that the property be sold and the proceeds divided by the tenants.
Question 12.
Which of these would void a deed intended to convey property?
-The grantee is not mentally competent. -The grantee's signature is not acknowledged.
-The grantor is not mentally competent. -The transfer includes no monetary
consideration.
Correct Answer: The grantor is not mentally competent.
Question 13.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for
helping the Harpers list, market, and sell their home, the Harpers have agreed to pay
, Desmond a commission. What type of agreement do Desmond and the Harpers have?
-Bilateral -Executed -Mutual -Unilateral
Correct Answer: Bilateral
Question 14.
**A contract involving an exchange of promises or other consideration between two
parties is a bilateral contract.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing
debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for
the total DTI ratio. What's the maximum housing payment she can afford?
-$1,075 -$1,152 -$1,176 -$1,512
Correct Answer: $1,176
Question 15.
**The maximum house payment is the lesser of the amounts calculated using both
ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28
= $1,176. Phoebe's maximum payment is $1,152.
Which of these is an example of agency coupled with interest?
-A listing agent agrees to accept a commission of 2.5% upon sale of the property. -A
listing agent agrees to split the commission on the sale of a property with a cooperating
agent who brings the buyer to the table. -An agent foregoes buyer agent commission,
provided the purchasing developer gives the agent the listings on the developed lots.
-An agent is interested a property the agent has listed.
Correct Answer: An agent foregoes buyer agent commission, provided the
purchasing developer gives the agent the listings on the developed lots.
Question 16.
**Agency coupled with interest means the agent holds an estate (or interest) in a
property that is the subject of the agency relationship. Forgoing commission now in turn
for listings down the road is an example.
Juan has decided to invest his small inheritance in real estate. He is drawn to the fact
that he can add a building where there wasn't one previously and immediately increase
the value of his investment. Which economic characteristic of real property is this?
-Area preference -Improvements -Permanence -Scarcity
Correct Answer: Improvements
Question 17.
**The economic characteristic of improvements says that a land's value can be
influenced by changes that are made to it.
What does the Federal Trade Commission consider to be an unfair ad?
-Any ad or business practice that causes or is likely to cause injury -Any ad that is likely
to mislead consumers acting reasonably under the circumstances -Any ad that makes a
