National Real Estate Exam PSI: Achieve Excellence ...
with Expert-Verified Questions & Answers from
Leading Educators Worldwide
Which department typically decides which development projects require a permit or
approval?
Building department
Environmental compliance department
Health department
Housing department - CORRECT ANS- -Building department
Georgina is an escrow agent who's holding funds for several transactions. Which of these
statements about how she'll disburse these funds is true?
-If the transaction closes, Georgina will disburse the earnest money to the listing broker as
part of his commission.
-If the transaction closes, she'll refund the earnest money to the buyer, since the buyer
brings the full amount necessary for the down payment and loan costs to closing.
-If the transaction doesn't close, Georgina will disburse the earnest money as instructed by
the parties or according to state law.
-If the transaction doesn't close, Georgina will refund the earnest money to the buyer. -
CORRECT ANS- -If the transaction doesn't close, Georgina will disburse the earnest money
as instructed by the parties or according to state law.
**If the transaction fails to close, she'll disburse the funds as instructed by the parties, or
until the parties agree to a solution or a court does.
Page 1 of 23 2025/2026
,Wendell just listed Barb's home. Barb told him that there weren't any easements on the
property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility
relative to the disclosure of any easements?
-He only needs to disclose easements if they're known.
-He should commission a survey if an existing one can't be found.
-He should do a title search to confirm any easements.
-He should require his seller to do online research in the county records database. -
CORRECT ANS- -He only needs to disclose easements if they're known.
**Sellers and listing agents must only disclose easements of which they have actual
knowledge. If neither are aware of any easements, then the buyer will typically discover
them during due diligence.
You're working as a buyer's agent for Neil and Sharon, who just found the home of their
dreams. When they ask you about adding contingencies to their offer, what do you tell
them?
-"In order to avoid lawsuits down the line, let's add as many contingencies as possible to
protect our interests."
-"Pick the three contingencies that mean the most to you, and let's go with those."
-"We want the strongest offer possible, so let's remove all of the contingencies."
-"You definitely want to protect your interests, but let's make it as easy for the seller as
possible to choose your offer." - CORRECT ANS- -"You definitely want to protect your
interests, but let's make it as easy for the seller as possible to choose your offer."
**Recommending a specific number of contingencies, either many or few, never makes
sense. An inspection contingency is nearly always a good idea to protect the buyers, but
contingencies should reflect the market and the buyer's risk tolerance.
Page 2 of 23 2025/2026
, Which of the following is an acceptable ad based on Regulation Z?
-Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a
30-year fixed rate with no points.
-Get a low interest rate of 4.75% on a monthly payment of $900.
-Get a low interest rate of 4.75%, with 85% loan to value.
-Get a low interest rate of 4.75% with as little as 3% down. - CORRECT ANS- -Get a low
interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed
rate with no points.
Taxes, insurance, and maintenance are property expenses that are sometimes covered in a
tenant's lease payment. These are collectively referred to as the ________.
-Doubles
-Extras
-Nets
-Utilities - CORRECT ANS- -Nets
**These three items together are known as the nets—or you can use the acronym TIM for
taxes, insurance, and maintenance.
Local authorities lack police power over which of the following?
-Budgeting
-Federal government construction projects
-Subdivision development
-Zoning - CORRECT ANS- -Federal government construction projects
Page 3 of 23 2025/2026
with Expert-Verified Questions & Answers from
Leading Educators Worldwide
Which department typically decides which development projects require a permit or
approval?
Building department
Environmental compliance department
Health department
Housing department - CORRECT ANS- -Building department
Georgina is an escrow agent who's holding funds for several transactions. Which of these
statements about how she'll disburse these funds is true?
-If the transaction closes, Georgina will disburse the earnest money to the listing broker as
part of his commission.
-If the transaction closes, she'll refund the earnest money to the buyer, since the buyer
brings the full amount necessary for the down payment and loan costs to closing.
-If the transaction doesn't close, Georgina will disburse the earnest money as instructed by
the parties or according to state law.
-If the transaction doesn't close, Georgina will refund the earnest money to the buyer. -
CORRECT ANS- -If the transaction doesn't close, Georgina will disburse the earnest money
as instructed by the parties or according to state law.
**If the transaction fails to close, she'll disburse the funds as instructed by the parties, or
until the parties agree to a solution or a court does.
Page 1 of 23 2025/2026
,Wendell just listed Barb's home. Barb told him that there weren't any easements on the
property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility
relative to the disclosure of any easements?
-He only needs to disclose easements if they're known.
-He should commission a survey if an existing one can't be found.
-He should do a title search to confirm any easements.
-He should require his seller to do online research in the county records database. -
CORRECT ANS- -He only needs to disclose easements if they're known.
**Sellers and listing agents must only disclose easements of which they have actual
knowledge. If neither are aware of any easements, then the buyer will typically discover
them during due diligence.
You're working as a buyer's agent for Neil and Sharon, who just found the home of their
dreams. When they ask you about adding contingencies to their offer, what do you tell
them?
-"In order to avoid lawsuits down the line, let's add as many contingencies as possible to
protect our interests."
-"Pick the three contingencies that mean the most to you, and let's go with those."
-"We want the strongest offer possible, so let's remove all of the contingencies."
-"You definitely want to protect your interests, but let's make it as easy for the seller as
possible to choose your offer." - CORRECT ANS- -"You definitely want to protect your
interests, but let's make it as easy for the seller as possible to choose your offer."
**Recommending a specific number of contingencies, either many or few, never makes
sense. An inspection contingency is nearly always a good idea to protect the buyers, but
contingencies should reflect the market and the buyer's risk tolerance.
Page 2 of 23 2025/2026
, Which of the following is an acceptable ad based on Regulation Z?
-Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a
30-year fixed rate with no points.
-Get a low interest rate of 4.75% on a monthly payment of $900.
-Get a low interest rate of 4.75%, with 85% loan to value.
-Get a low interest rate of 4.75% with as little as 3% down. - CORRECT ANS- -Get a low
interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed
rate with no points.
Taxes, insurance, and maintenance are property expenses that are sometimes covered in a
tenant's lease payment. These are collectively referred to as the ________.
-Doubles
-Extras
-Nets
-Utilities - CORRECT ANS- -Nets
**These three items together are known as the nets—or you can use the acronym TIM for
taxes, insurance, and maintenance.
Local authorities lack police power over which of the following?
-Budgeting
-Federal government construction projects
-Subdivision development
-Zoning - CORRECT ANS- -Federal government construction projects
Page 3 of 23 2025/2026
