PSI NATIONAL EXAM FOR REAL
ESTATE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
ANS a contract
Antitrust laws prohibit competing brokers from all of the following - ANS 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 - ANS all
current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - ANS a suicide that occurred
in the house last year.
A lawsuit for inverse condemnation may be brought by - ANS a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? - ANS Under
no circumstances
@2026/2027 ALLRIGHTS RESERVED.
,The real estate broker who is listing a house for sale should personally verify - ANS the
number of square feet in the building
Real property can be converted to personal property by - ANS 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? - ANS 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 under the doctrine of -
ANS prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is to -
ANS provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - ANS $409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to - ANS demand immediate payment of the entire note
@2026/2027 ALLRIGHTS RESERVED.
,The FHA functions MOST like - ANS an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - ANS discount points
When land is conveyed to a trustee, the trustee may - ANS do whatever is permitted under
the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if - ANS the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the agreement
may be unenforceable because - ANS the agreement does not comply with the Statute of
Frauds
Earnest money should be deposited into a trust account - ANS in a timely manner, according
to state laws
A deed restriction is applicable to the activities of - ANS all owners, present and future
An easement can be terminated by - ANS prescription
Depreciation is calculated based on the - ANS cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a single-family
residence? - ANS Market data
@2026/2027 ALLRIGHTS RESERVED.
, A seller mentions to his agent that the previous owners of his property may have dumped
hazardous waste on the site. Under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - ANS Seller
The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to - ANS IRS
A broker supplies the financing for a project to build condominiums with the stipulation that he
has the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship? - ANS Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month? - ANS $1,150
Usury laws were enacted to protect the - ANS borrower
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend.
The agent should - ANS tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be - ANS breached
Which of the following is NOT a consideration in the definition of market value? - ANS Buyer
and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest in dual
representation is - ANS allowing a broker to designate separate salespeople within the
company as legal representatives of each of the clients.
@2026/2027 ALLRIGHTS RESERVED.
ESTATE EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
ANS a contract
Antitrust laws prohibit competing brokers from all of the following - ANS 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 - ANS all
current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - ANS a suicide that occurred
in the house last year.
A lawsuit for inverse condemnation may be brought by - ANS a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? - ANS Under
no circumstances
@2026/2027 ALLRIGHTS RESERVED.
,The real estate broker who is listing a house for sale should personally verify - ANS the
number of square feet in the building
Real property can be converted to personal property by - ANS 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? - ANS 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 under the doctrine of -
ANS prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is to -
ANS provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - ANS $409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to - ANS demand immediate payment of the entire note
@2026/2027 ALLRIGHTS RESERVED.
,The FHA functions MOST like - ANS an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - ANS discount points
When land is conveyed to a trustee, the trustee may - ANS do whatever is permitted under
the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if - ANS the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the agreement
may be unenforceable because - ANS the agreement does not comply with the Statute of
Frauds
Earnest money should be deposited into a trust account - ANS in a timely manner, according
to state laws
A deed restriction is applicable to the activities of - ANS all owners, present and future
An easement can be terminated by - ANS prescription
Depreciation is calculated based on the - ANS cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a single-family
residence? - ANS Market data
@2026/2027 ALLRIGHTS RESERVED.
, A seller mentions to his agent that the previous owners of his property may have dumped
hazardous waste on the site. Under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - ANS Seller
The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to - ANS IRS
A broker supplies the financing for a project to build condominiums with the stipulation that he
has the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship? - ANS Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month? - ANS $1,150
Usury laws were enacted to protect the - ANS borrower
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend.
The agent should - ANS tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be - ANS breached
Which of the following is NOT a consideration in the definition of market value? - ANS Buyer
and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest in dual
representation is - ANS allowing a broker to designate separate salespeople within the
company as legal representatives of each of the clients.
@2026/2027 ALLRIGHTS RESERVED.
