PSI NATIONAL EXAM FOR REAL ESTATE EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+

PSI NATIONAL EXAM FOR REAL ESTATE
EXAM QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GRADED A+

A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
B B B B B B B B B B B B B B B B B B



B ANSWER a contract
B




Antitrust laws prohibit competing brokers from all of the following -
B B B B B B B B B B



B ANSWER 1. boycotting other brokers in the marketplace.
B B B B B B




2. dividing the market to restrict competition.
B B B B B B




3. agreeing to set sales commissions and management rates.
B B B B B B B B




When a sewer line is installed down a rural road, the cost will probably be shared by -
B B B B B B B B B B B B B B B B B



B ANSWER all current owners of real estate fronting on that road
B B B B B B B B B




State laws differ on whether a buyer is entitled to know about -
B B B B B B B B B B B B



B ANSWER a suicide that occurred in the house last year.
B B B B B B B B




A lawsuit for inverse condemnation may be brought by - ANSWER
B B B B B B B B B B a homeowner
B




When is racial discrimination in the rental of rooms or apartments permitted? -
B B B B B B B B B B B B



B ANSWER Under no circumstances B B




The real estate broker who is listing a house for sale should personally verify -
B B B B B B B B B B B B B B



B ANSWER the number of square feet in the building
B B B B B B B




Real property can be converted to personal property by - ANSWER
B B B B B B B B B B Severance




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Wicky

,Prospective buyers made an offer on a property. The seller did NOT accept, but made a counte
B B B B B B B B B B B B B B B B



roffer. The B




prospective buyers signed the counteroffer and the real estate agent delivered their acceptan
B B B B B B B B B B B B B



ce to the seller.
B B B




In the interim, the same buyers had found another house that they liked better and made an
B B B B B B B B B B B B B B B B B B



offer on it, which was accepted. Which of the following is TRUE? -
B B B B B B B B B B B B



B ANSWER Both contracts are valid B B B




Although states make specific laws governing water rights and the rights in land that borders
B B B B B B B B B B B B B B B



water, most states B B B




generally follow one of two basic doctrines regarding water rights. In many states, the commo
B B B B B B B B B B B B B B



n law doctrine of riparian and littoral rights dictates that water rights are automatically convey
B B B B B B B B B B B B B B



ed with property. In others, all water rights are controlled by the state under the doctrine of -
B B B B B B B B B B B B B B B B B



B ANSWER prior appropriation B




The purpose of requiring an earnest money deposit in a real estate sales contract is to -
B B B B B B B B B B B B B B B B



B ANSWER provide evidence of the buyer's intention to carry out the contract.
B B B B B B B B B B




A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
B B B B B B B B B B B B B B B B B B B



15 years at 5 1/2%
B B B B B




or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly pay
B B B B B B B B B B B B B B B B B B



ments for these two loans? B B B B




B (BE SURE TO USE THE AMORTIZATION TABLE.) - ANSWER
B B B B B B B B $409.20.



A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. Thi
B B B B B B B B B B B B B



s permits the lender to - ANSWER
B B B B B B demand immediate payment of the entire note
B B B B B B




The FHA functions MOST like - ANSWER
B B B B B B an insurance company
B B




1. They are used to buy down interest rate.
B B B B B B B B




2. They are a function of the marketplace.
B B B B B B B




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,3. They are paid by either the buyer or the seller. - ANSWER
B B B B B B B B B B B B discount points B




When land is conveyed to a trustee, the trustee may -
B B B B B B B B B B



B ANSWER do whatever is permitted under the trust agreement
B B B B B B B




A prospective buyer made an offer to purchase a property. The owner responded with a count
B B B B B B B B B B B B B B B



eroffer. While the buyer B B B B




was reviewing the counteroffer, the owner received a better offer. The owner can accept the s
B B B B B B B B B B B B B B B



econd offer if - ANSWER B B B B the owner withdraws the counteroffer before it is accepted.
B B B B B B B B




While an agent is showing a listed property, the seller and the buyer enter into an oral agreem
B B B B B B B B B B B B B B B B B



ent for the purchase of the home. If a dispute over the terms arises later, the agreement may b
B B B B B B B B B B B B B B B B B B



e unenforceable because -
B B B



B ANSWER the agreement does not comply with the Statute of Frauds
B B B B B B B B B




Earnest money should be deposited into a trust account -
B B B B B B B B B



B ANSWER in a timely manner, according to state laws
B B B B B B B




A deed restriction is applicable to the activities of -
B B B B B B B B B



B ANSWER all owners, present and future
B B B B




An easement can be terminated by - ANSWER
B B B B B B B prescription



Depreciation is calculated based on the - ANSWER B B B B B B B cost of the building only
B B B B




Which of the following approaches MOST reliably estimates the sales price of a single-
B B B B B B B B B B B B B



family residence? - ANSWER
B B B Market data B




A seller mentions to his agent that the previous owners of his property may have dumped haz
B B B B B B B B B B B B B B B B



ardous waste on the site. Under the Comprehensive Environmental Response, Compensation,
B B B B B B B B B B



and Liability Act (CERCLA), who is liable for damages from
B B B B B B B B B B




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Wicky

, B the dumping prior to the sale of the property? - ANSWER
B B B B B B B B B B Seller



The escrow officer or closing agent MUST give information regarding the sales price and seller'
B B B B B B B B B B B B B B



s social security number to - ANSWER
B B B B B B IRS



A broker supplies the financing for a project to build condominiums with the stipulation that h
B B B B B B B B B B B B B B B



e has the exclusive right to sell the completed condos. Which of the following BEST describes t
B B B B B B B B B B B B B B B B



his relationship? - ANSWER
B B B Agency coupled with an interest B B B B




If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
B B B B B B B B B B B B B B B B B B B



what net income is needed each month? - ANSWER
B B B B B B B B $1,150



Usury laws were enacted to protect the - ANSWER
B B B B B B B B borrower



At the time of listing, the seller tells the listing agent they are moving because the neighbor ha
B B B B B B B B B B B B B B B B B



s loud parties every weekend.
B B B B




B The agent should - ANSWER
B B B B tell potential buyers about the parties
B B B B B




When one of the parties to an agreement fails to perform one of its conditions, that contract is
B B B B B B B B B B B B B B B B B



B deemed to be - ANSWER B B B B breached



Which of the following is NOT a consideration in the definition of market value? -
B B B B B B B B B B B B B B



B ANSWER Buyer and seller must agree to appraised value
B B B B B B B




One common method for controlling the problems created by conflict of interest in dual repre
B B B B B B B B B B B B B B



sentation is - B B



ANSWER
B allowing a broker to designate separate salespeople within the company as le B B B B B B B B B B B



gal representatives of each of the clients.
B B B B B B




Ownership of common stock in a corporation gives - B B B B B B B B



B ANSWER an interest that is classified as personal property
B B B B B B B




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