PSI National Real Estate Exam Newest
2025/2026 Complete Questions And Correct
Detailed Answers (Verified Answers) |Brand
New Version.
The loan to value ratio is calculated as - 100 correct answer
as-a percentage of the sale price or the appraised value,
whichever is lower
Charging an interest rate that is higher than the maximum allowed
by law is - 100 correct answer as-usury
RESPA requires disclosure of - 100 correct answer as-
settlement costs
Pledging a property as security for a debt while retaining title is
called - 100 correct answer as-hypothecation
A clause which allows the lender to increase the interest rate
during the term of the loan is called
a/an - 100 correct answer as-escalation clause
FHA insurance protects the - 100 correct answer as-lender
The practice which requires the lender to refund to the borrower
any profit realized on the sale of
the foreclosed property after satisfaction of the debt is - 100
correct answer as-foreclosure by sale
,In a 1031 tax exchange, capital gains tax on the sold property is -
100 correct answer as-deferred
A fee charged for paying off a loan before the end of the
prescribed term is called a - 100 correct answer as-
prepayment penalty
PMI, or Private Mortgage Insurance covers - 100 correct
answer as-the top portion of the loan proceeds over and above
the standard 80%.
The difference between the value of a property and the loan
balance is the - 100 correct answer as-equity
In which type of loan would you generally pay the least amount of
total interest, assuming the
same interest rate? - 100 correct answer as-amortized loan,
ten year term
When obtaining a conventional loan, the borrower must give the
lender a - 100 correct answer as-mortgage and promissory
note
A mortgage that is subordinate to another mortgage is called a -
100 correct answer as-second mortgage
A clause in a loan which calls for immediate payment of the entire
balance if the borrower gets behind on his loan payments is a -
100 correct answer as-acceleration clause
,A partially amortized loan with a balloon payment would have a
____________________ monthly payment than a fully amortized
loan - 100 correct answer as-ower
A type of contract that is both a financing instrument and a sales
contract is a - 100 correct answer as-Trust Deed
A mortgage which is subordinate to other mortgages, but includes
in its payment the payments for
the other mortgage(s) is a - 100 correct answer as-wrap-
around mortgage
What type of payment plan allows for regular payments of interest
only, with the principle paid as a
lump sum at the end of the term? - 100 correct answer as-
straight or term
A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called - 100 correct answer as-a
contract
Antitrust laws prohibit competing brokers from all of the following -
100 correct answer as-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 - 100 correct answer as-all current
owners of real estate fronting on that road
, State laws differ on whether a buyer is entitled to know about -
100 correct answer as-a suicide that occurred in the house
last year.
A lawsuit for inverse condemnation may be brought by - 100
correct answer as-a homeowner
When is racial discrimination in the rental of rooms or apartments
permitted? - 100 correct answer as-Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - 100 correct answer as-the number of
square feet in the building
Real property can be converted to personal property by - 100
correct answer as-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? - 100 correct answer as-
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
2025/2026 Complete Questions And Correct
Detailed Answers (Verified Answers) |Brand
New Version.
The loan to value ratio is calculated as - 100 correct answer
as-a percentage of the sale price or the appraised value,
whichever is lower
Charging an interest rate that is higher than the maximum allowed
by law is - 100 correct answer as-usury
RESPA requires disclosure of - 100 correct answer as-
settlement costs
Pledging a property as security for a debt while retaining title is
called - 100 correct answer as-hypothecation
A clause which allows the lender to increase the interest rate
during the term of the loan is called
a/an - 100 correct answer as-escalation clause
FHA insurance protects the - 100 correct answer as-lender
The practice which requires the lender to refund to the borrower
any profit realized on the sale of
the foreclosed property after satisfaction of the debt is - 100
correct answer as-foreclosure by sale
,In a 1031 tax exchange, capital gains tax on the sold property is -
100 correct answer as-deferred
A fee charged for paying off a loan before the end of the
prescribed term is called a - 100 correct answer as-
prepayment penalty
PMI, or Private Mortgage Insurance covers - 100 correct
answer as-the top portion of the loan proceeds over and above
the standard 80%.
The difference between the value of a property and the loan
balance is the - 100 correct answer as-equity
In which type of loan would you generally pay the least amount of
total interest, assuming the
same interest rate? - 100 correct answer as-amortized loan,
ten year term
When obtaining a conventional loan, the borrower must give the
lender a - 100 correct answer as-mortgage and promissory
note
A mortgage that is subordinate to another mortgage is called a -
100 correct answer as-second mortgage
A clause in a loan which calls for immediate payment of the entire
balance if the borrower gets behind on his loan payments is a -
100 correct answer as-acceleration clause
,A partially amortized loan with a balloon payment would have a
____________________ monthly payment than a fully amortized
loan - 100 correct answer as-ower
A type of contract that is both a financing instrument and a sales
contract is a - 100 correct answer as-Trust Deed
A mortgage which is subordinate to other mortgages, but includes
in its payment the payments for
the other mortgage(s) is a - 100 correct answer as-wrap-
around mortgage
What type of payment plan allows for regular payments of interest
only, with the principle paid as a
lump sum at the end of the term? - 100 correct answer as-
straight or term
A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called - 100 correct answer as-a
contract
Antitrust laws prohibit competing brokers from all of the following -
100 correct answer as-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 - 100 correct answer as-all current
owners of real estate fronting on that road
, State laws differ on whether a buyer is entitled to know about -
100 correct answer as-a suicide that occurred in the house
last year.
A lawsuit for inverse condemnation may be brought by - 100
correct answer as-a homeowner
When is racial discrimination in the rental of rooms or apartments
permitted? - 100 correct answer as-Under no circumstances
The real estate broker who is listing a house for sale should
personally verify - 100 correct answer as-the number of
square feet in the building
Real property can be converted to personal property by - 100
correct answer as-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? - 100 correct answer as-
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
