PSI NATIONAL EXAM FOR REAL ESTATE EXAM QUESTIONS AND
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS GRADED A+)
LATEST UPDATE 2025/2026
A written agreement in which a purchaser agrees to buy and a seller agrees to sell
is called -- CORRECT ANSWER- a contract
Antitrust laws prohibit competing brokers from all of the following -- CORRECT
ANSWER- 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 -- CORRECT ANSWER- all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about -- CORRECT
ANSWER- a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by -- CORRECT ANSWER-
a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? --
CORRECT ANSWER- Under no circumstances
The real estate broker who is listing a house for sale should personally verify --
CORRECT ANSWER- the number of square feet in the building
,Real property can be converted to personal property by -- CORRECT ANSWER-
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? --
CORRECT ANSWER- 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 -- CORRECT ANSWER- prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is
to -- CORRECT ANSWER- 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.) -- CORRECT ANSWER-
$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to -- CORRECT ANSWER- demand immediate
payment of the entire note
The FHA functions MOST like -- CORRECT ANSWER- 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. -- CORRECT ANSWER-
discount points
When land is conveyed to a trustee, the trustee may -- CORRECT ANSWER- 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 -- CORRECT ANSWER- 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 -- CORRECT ANSWER- the
agreement does not comply with the Statute of Frauds
, Earnest money should be deposited into a trust account -- CORRECT ANSWER-
in a timely manner, according to state laws
A deed restriction is applicable to the activities of -- CORRECT ANSWER- all
owners, present and future
An easement can be terminated by -- CORRECT ANSWER- prescription
Depreciation is calculated based on the -- CORRECT ANSWER- cost of the
building only
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? -- CORRECT ANSWER- Market data
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? -- CORRECT ANSWER- Seller
The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to -- CORRECT ANSWER- IRS
A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of
the following BEST describes this relationship? -- CORRECT ANSWER-
Agency coupled with an interest
ANSWERS (VERIFIED AND WELL DETAILED ANSWERS GRADED A+)
LATEST UPDATE 2025/2026
A written agreement in which a purchaser agrees to buy and a seller agrees to sell
is called -- CORRECT ANSWER- a contract
Antitrust laws prohibit competing brokers from all of the following -- CORRECT
ANSWER- 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 -- CORRECT ANSWER- all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about -- CORRECT
ANSWER- a suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by -- CORRECT ANSWER-
a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? --
CORRECT ANSWER- Under no circumstances
The real estate broker who is listing a house for sale should personally verify --
CORRECT ANSWER- the number of square feet in the building
,Real property can be converted to personal property by -- CORRECT ANSWER-
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? --
CORRECT ANSWER- 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 -- CORRECT ANSWER- prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is
to -- CORRECT ANSWER- 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.) -- CORRECT ANSWER-
$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to -- CORRECT ANSWER- demand immediate
payment of the entire note
The FHA functions MOST like -- CORRECT ANSWER- 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. -- CORRECT ANSWER-
discount points
When land is conveyed to a trustee, the trustee may -- CORRECT ANSWER- 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 -- CORRECT ANSWER- 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 -- CORRECT ANSWER- the
agreement does not comply with the Statute of Frauds
, Earnest money should be deposited into a trust account -- CORRECT ANSWER-
in a timely manner, according to state laws
A deed restriction is applicable to the activities of -- CORRECT ANSWER- all
owners, present and future
An easement can be terminated by -- CORRECT ANSWER- prescription
Depreciation is calculated based on the -- CORRECT ANSWER- cost of the
building only
Which of the following approaches MOST reliably estimates the sales price of a
single-family residence? -- CORRECT ANSWER- Market data
A seller mentions to his agent that the previous owners of his property may have
dumped hazardous waste on the site. Under the Comprehensive Environmental
Response, Compensation, and Liability Act (CERCLA), who is liable for damages
from
the dumping prior to the sale of the property? -- CORRECT ANSWER- Seller
The escrow officer or closing agent MUST give information regarding the sales
price and seller's social security number to -- CORRECT ANSWER- IRS
A broker supplies the financing for a project to build condominiums with the
stipulation that he has the exclusive right to sell the completed condos. Which of
the following BEST describes this relationship? -- CORRECT ANSWER-
Agency coupled with an interest
