PSI OKLAHOMA REAL ESTATE
PRACTICE TEST EXAM 2025
QUESTIONS AND ANSWERS
MOST closed real estate transactions should be reported to the IRS. REQUIRED information
includes seller name(s) and social security number(s) and - ANS the sale price
An owner hired a construction company to build a swimming pool at a new home. The owner
failed to pay the bill once the work was completed and the construction company filed a lien to
obtain payment of the debt. The encumbrance created is called - ANS a mechanic's lien.
Legal descriptions using the government survey system are NOT generally used in - ANS the
original 13 states.
Three people buy a house as tenants in common. Subsequently, two of the owners want to sell,
but the third discourages each potential purchaser. The two owners who wish to sell the house
can - ANS file an action for partition against the third owner.
A major difference between freehold and nonfreehold estates is that all freehold estates -
ANS are of indeterminable duration.
A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500.
The property has just been sold at a foreclosure auction to a speculating investor for $88,000.
Assume that all costs of the foreclosure sale are included in these balances. Which of the
following statements is FALSE regarding the distribution of funds? - ANS The second
mortgagee receives nothing unless he forced the foreclosure auction.
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@COPYRIGHT FYNDLAY 2025/2026
, 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 - ANS prior appropriation.
In the sale of property, there is often confusion over whether an item is a fixture or personal
property. What is the best way to avoid this confusion? - ANS Specify questionable items of
property in the written sales contract.
A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for
residential use. Which of the following would MOST likely be used to obtain permission for this
store? - ANS Conditional use permit or zoning variance.
An Environmental Impact Statement (EIS) - ANS projects the impact on the environment of a
proposed project.
A deed restriction is applicable to the activities of - ANS present and future owners.
An escheat occurs when - ANS a property owner dies without heirs or a valid will.
Ordinances that specify construction standards are - ANS building codes.
When preparing a market data estimate of value, which of the following categories of
adjustment is NOT essential? - ANS The original cost of the building.
A competitive market analysis takes into consideration - ANS square footage of the subject
property.
Three identical homes in a neighborhood were listed at the same time in a market where
demand was constant. According to the law of supply and demand, which would have sold for
2
the lowest price? - ANS The first sold.
Page
@COPYRIGHT FYNDLAY 2025/2026
PRACTICE TEST EXAM 2025
QUESTIONS AND ANSWERS
MOST closed real estate transactions should be reported to the IRS. REQUIRED information
includes seller name(s) and social security number(s) and - ANS the sale price
An owner hired a construction company to build a swimming pool at a new home. The owner
failed to pay the bill once the work was completed and the construction company filed a lien to
obtain payment of the debt. The encumbrance created is called - ANS a mechanic's lien.
Legal descriptions using the government survey system are NOT generally used in - ANS the
original 13 states.
Three people buy a house as tenants in common. Subsequently, two of the owners want to sell,
but the third discourages each potential purchaser. The two owners who wish to sell the house
can - ANS file an action for partition against the third owner.
A major difference between freehold and nonfreehold estates is that all freehold estates -
ANS are of indeterminable duration.
A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500.
The property has just been sold at a foreclosure auction to a speculating investor for $88,000.
Assume that all costs of the foreclosure sale are included in these balances. Which of the
following statements is FALSE regarding the distribution of funds? - ANS The second
mortgagee receives nothing unless he forced the foreclosure auction.
1
Page
@COPYRIGHT FYNDLAY 2025/2026
, 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 - ANS prior appropriation.
In the sale of property, there is often confusion over whether an item is a fixture or personal
property. What is the best way to avoid this confusion? - ANS Specify questionable items of
property in the written sales contract.
A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for
residential use. Which of the following would MOST likely be used to obtain permission for this
store? - ANS Conditional use permit or zoning variance.
An Environmental Impact Statement (EIS) - ANS projects the impact on the environment of a
proposed project.
A deed restriction is applicable to the activities of - ANS present and future owners.
An escheat occurs when - ANS a property owner dies without heirs or a valid will.
Ordinances that specify construction standards are - ANS building codes.
When preparing a market data estimate of value, which of the following categories of
adjustment is NOT essential? - ANS The original cost of the building.
A competitive market analysis takes into consideration - ANS square footage of the subject
property.
Three identical homes in a neighborhood were listed at the same time in a market where
demand was constant. According to the law of supply and demand, which would have sold for
2
the lowest price? - ANS The first sold.
Page
@COPYRIGHT FYNDLAY 2025/2026
