PSI NATIONAL REAL ESTATE VIEW AHEAD
EXAM WITH TESTED QUESTIONS AND
ANSWERS 2026
‣ What is the duration of a home warranty's coverage?
1. the expected life of the purchaser
2. the expected life of the product or system covered
3. as disclosed in the contract that offers the warranty
4. a minimum of 5 years or the duration of the purchaser's ownership,
whichever is shorter . Answer: 3
‣ The Civil Rights Act of 1866 prohibits any type of discrimination
based on:
1. gender.
2. race.
3. race and gender.
4. religion. . Answer: 2
‣ An exception to title insurance coverage is:
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. . Answer: 4
,‣ A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of:
1. substitution.
2. contribution.
3. conformity.
4. anticipation. . Answer: 4
‣ A seller's statement in a property disclosure document means:
1. the owner is disclosing known latent defects.
2. nothing, because the seller will not be responsible for any defects.
3. the property is fully suitable for the uses contemplated by the buyer.
4. the owner creates a warranty that there are no defects in the property. .
Answer: 1
‣ A major difference between freehold and nonfreehold estates is that all
freehold estates:
1. are of indeterminable duration.
2. terminate upon the death of the person on whose life they are based.
3. are inheritable by the holder's heirs.
4. are estates for a fixed term. . Answer: 1
‣ Which of the following real estate contracts is a service contract?
, 1. a purchase agreement
2. a listing agreement
3. an option contract
4. a mortgage . Answer: 2
‣ A realty firm has just entered into an agreement to represent a home
builder in the sale of a new subdivision. The firm has located several
potential buyers and five homes have been sold to purchasers that the
firm's agents have contacted. The realty firm has an agency relationship
with:
1. the builder.
2. the buyers.
3. the builder and the buyers.
4. neither the builder nor the buyers. . Answer: 1
‣ When a home is purchased using an ARM, the monthly loan payment
on the mortgage will:
1. rise slightly in each adjustment period until the cap is reached.
2. be adjusted automatically to ensure that negative amortization does
not occur.
3. be based on a very low interest rate to begin with, but will rise to the
market rate at the first adjustment.
4. vary over the life of the loan depending on fluctuations in the interest
rate to which the loan is referenced. . Answer: 4
EXAM WITH TESTED QUESTIONS AND
ANSWERS 2026
‣ What is the duration of a home warranty's coverage?
1. the expected life of the purchaser
2. the expected life of the product or system covered
3. as disclosed in the contract that offers the warranty
4. a minimum of 5 years or the duration of the purchaser's ownership,
whichever is shorter . Answer: 3
‣ The Civil Rights Act of 1866 prohibits any type of discrimination
based on:
1. gender.
2. race.
3. race and gender.
4. religion. . Answer: 2
‣ An exception to title insurance coverage is:
1. forged documents.
2. defects found in public newspapers.
3. incorrect records of marital status.
4. defects that clearly appear in the title search. . Answer: 4
,‣ A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of:
1. substitution.
2. contribution.
3. conformity.
4. anticipation. . Answer: 4
‣ A seller's statement in a property disclosure document means:
1. the owner is disclosing known latent defects.
2. nothing, because the seller will not be responsible for any defects.
3. the property is fully suitable for the uses contemplated by the buyer.
4. the owner creates a warranty that there are no defects in the property. .
Answer: 1
‣ A major difference between freehold and nonfreehold estates is that all
freehold estates:
1. are of indeterminable duration.
2. terminate upon the death of the person on whose life they are based.
3. are inheritable by the holder's heirs.
4. are estates for a fixed term. . Answer: 1
‣ Which of the following real estate contracts is a service contract?
, 1. a purchase agreement
2. a listing agreement
3. an option contract
4. a mortgage . Answer: 2
‣ A realty firm has just entered into an agreement to represent a home
builder in the sale of a new subdivision. The firm has located several
potential buyers and five homes have been sold to purchasers that the
firm's agents have contacted. The realty firm has an agency relationship
with:
1. the builder.
2. the buyers.
3. the builder and the buyers.
4. neither the builder nor the buyers. . Answer: 1
‣ When a home is purchased using an ARM, the monthly loan payment
on the mortgage will:
1. rise slightly in each adjustment period until the cap is reached.
2. be adjusted automatically to ensure that negative amortization does
not occur.
3. be based on a very low interest rate to begin with, but will rise to the
market rate at the first adjustment.
4. vary over the life of the loan depending on fluctuations in the interest
rate to which the loan is referenced. . Answer: 4
