PSI National Real Estate Exam Newest 2025/2026
Complete Questions And Correct Detailed Answers
(Verified Answers) |Brand New Version!!
The main floor of Kinsey's home is 1,425 square feet. The
upper level is 875 square feet with one unfinished
bedroom that measures 150 square feet. The finished
basement is 1,425 square feet with 7.5-foot ceilings.
Kinsey's MLS listing includes below-grade square footage
in livable area. What's the reportable square footage for
Kinsey's home?
1,425
2,150
3,575
3,725 - 100 correct answer as-3,575
**Kinsey should exclude the 150-square-foot unfinished
bedroom. This gives us a calculation of: 1,425 + (875 -
150) + 1,425, or 3,575 square feet.
Gunther's gross monthly income is $3,800, and he has no
monthly 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 Gunther can
afford?
$1,064
$1,297
$1,368
,$1,492 - 100 correct answer as-$1064
**Calculate the debt and housing ratios that buyers need
to meet both lending ratios. While Gunther qualifies for a
payment of $1,368 under the total DTI, he only qualifies
for $1,064 under the housing ratio ($3,800 x 28%).
When a buyer finances a newly built home with a Federal
Housing Administration loan, FHA requires the builder to
______.
-Create a fund equaling 20% of the home's cost set aside
to cover construction defects for the next 10 years
-Provide a builder-backed home warranty
-Provide the buyer with a 30% discount on materials and
labor for home repairs
-Purchase a third-party home warranty to protect the buyer
- 100 correct answer as-Purchase a third-party home
warranty to protect the buyer
**The FHA requires builders of new homes to provide a
third-party warranty to buyers.
In what way is a townhome similar to a condominium?
-They are both detached structures.
-They are both multi-family dwellings.
-They both typically have detached garages.
-They both typically have HOA dues. - 100 correct
answer as-They both typically have HOA dues.
,Interest rates determine buying power. Which of the
following is a true statement?
-When interest rates are high, buyers are often priced out
of the market.
-When interest rates are high, buyers will be able to afford
higher-priced homes.
-When interest rates climb, more buyers are encouraged
to buy.
-When interest rates shift higher, buyers can still buy in the
same price range. - 100 correct answer as-When
interest rates are high, buyers are often priced out of the
market.
**Interest rates impact affordability. Higher rates mean
higher mortgage payments, pricing some buyers out of
certain markets.
Easements are a type of encumbrance that can affect a
property. Which of the following is true about easements?
-An easement is a right acquired by one party to use the
land of another party, usually for one day.
-An easement requires the property owner's express
permission.
-Easements are often established by a written agreement
between the parties.
, -They are always permanent. - 100 correct answer
as-Easements are often established by a written
agreement between the parties.
Which of these terms can be defined as what a buyer has
paid for a property and what the seller has accepted?
Appraisal
Cost
Price
Value - 100 correct answer as-Price
Select the statement that accurately describes an abstract
of title.
-A title company representative must certify the abstract of
title.
-Few states require an abstract of title when conveying
property.
-The chain of title documents the information found during
the title abstract process.
-Title abstracts provide data for the title company's title
search. - 100 correct answer as-Few states require
an abstract of title when conveying property.
**The abstract of title process is costly and lengthy; only a
few states require this process when conveying property.
Home inspector Maura was walking Thad through a
property inspection. The frame house, on a slab
Complete Questions And Correct Detailed Answers
(Verified Answers) |Brand New Version!!
The main floor of Kinsey's home is 1,425 square feet. The
upper level is 875 square feet with one unfinished
bedroom that measures 150 square feet. The finished
basement is 1,425 square feet with 7.5-foot ceilings.
Kinsey's MLS listing includes below-grade square footage
in livable area. What's the reportable square footage for
Kinsey's home?
1,425
2,150
3,575
3,725 - 100 correct answer as-3,575
**Kinsey should exclude the 150-square-foot unfinished
bedroom. This gives us a calculation of: 1,425 + (875 -
150) + 1,425, or 3,575 square feet.
Gunther's gross monthly income is $3,800, and he has no
monthly 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 Gunther can
afford?
$1,064
$1,297
$1,368
,$1,492 - 100 correct answer as-$1064
**Calculate the debt and housing ratios that buyers need
to meet both lending ratios. While Gunther qualifies for a
payment of $1,368 under the total DTI, he only qualifies
for $1,064 under the housing ratio ($3,800 x 28%).
When a buyer finances a newly built home with a Federal
Housing Administration loan, FHA requires the builder to
______.
-Create a fund equaling 20% of the home's cost set aside
to cover construction defects for the next 10 years
-Provide a builder-backed home warranty
-Provide the buyer with a 30% discount on materials and
labor for home repairs
-Purchase a third-party home warranty to protect the buyer
- 100 correct answer as-Purchase a third-party home
warranty to protect the buyer
**The FHA requires builders of new homes to provide a
third-party warranty to buyers.
In what way is a townhome similar to a condominium?
-They are both detached structures.
-They are both multi-family dwellings.
-They both typically have detached garages.
-They both typically have HOA dues. - 100 correct
answer as-They both typically have HOA dues.
,Interest rates determine buying power. Which of the
following is a true statement?
-When interest rates are high, buyers are often priced out
of the market.
-When interest rates are high, buyers will be able to afford
higher-priced homes.
-When interest rates climb, more buyers are encouraged
to buy.
-When interest rates shift higher, buyers can still buy in the
same price range. - 100 correct answer as-When
interest rates are high, buyers are often priced out of the
market.
**Interest rates impact affordability. Higher rates mean
higher mortgage payments, pricing some buyers out of
certain markets.
Easements are a type of encumbrance that can affect a
property. Which of the following is true about easements?
-An easement is a right acquired by one party to use the
land of another party, usually for one day.
-An easement requires the property owner's express
permission.
-Easements are often established by a written agreement
between the parties.
, -They are always permanent. - 100 correct answer
as-Easements are often established by a written
agreement between the parties.
Which of these terms can be defined as what a buyer has
paid for a property and what the seller has accepted?
Appraisal
Cost
Price
Value - 100 correct answer as-Price
Select the statement that accurately describes an abstract
of title.
-A title company representative must certify the abstract of
title.
-Few states require an abstract of title when conveying
property.
-The chain of title documents the information found during
the title abstract process.
-Title abstracts provide data for the title company's title
search. - 100 correct answer as-Few states require
an abstract of title when conveying property.
**The abstract of title process is costly and lengthy; only a
few states require this process when conveying property.
Home inspector Maura was walking Thad through a
property inspection. The frame house, on a slab
