PSI REAL ESTATE SALESPERSON PRACTICE EXAM
QUESTIONS WITH 100% VERIFIED ANSWERS |2026/2027
UPDATE | A+ GRADED
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 -as disclosed in the contract that offers the warranty
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is
$1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for
taxes? Round to the nearest cent.
1. $225.00
2. $162.50
3. $150.00
4. $112.50 - Answer -$225.00
If an older building cannot be air-conditioned, it is an example of
1. economic obsolescence.
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,2. functional obsolescence.
3. physical deterioration.
4. external deterioration. - Answer -functional obsolescence.
A managing broker can be held responsible for
1. all actions of associated salespersons.
2. all real estate activities of salespersons.
3. only those real estate activities the broker is aware of.
4. no activities of independent contractors. - Answer -all real estate activities of salespersons.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
1. confiscate the borrower's personal assets.
2. demand immediate payment of the entire note.
3. report the borrower to the Federal Housing Administration.
4. force the borrower to vacate the premises. - Answer -demand immediate payment of the
entire note.
An example of a contract terminated due to inability to perform would be one in which the
1. purchaser had suffered financial reverses so that she could not make payment as required by
the contract.
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, 2. seller had died after the contract became binding but before the closing.
3. seller had contracted for sale of the entire property without the knowledge or consent of the
other joint tenant.
4. property had been severely damaged by fire after the contract became binding but before the
closing. - Answer -seller had contracted for sale of the entire property without the knowledge or
consent of the other joint tenant.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the
1. cash price or amount of the loan.
2. amount of down payment required.
3. number, amount, and frequency of payments.
4. prepayment penalties and rebates. - Answer -prepayment penalties and rebates
A competitive market analysis is MOST often used for
1. estate tax purposes.
2. setting a listing price.
3. divorce proceedings.
4. property tax assessment. - Answer -setting a listing price.
A competitive market analysis takes into consideration
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QUESTIONS WITH 100% VERIFIED ANSWERS |2026/2027
UPDATE | A+ GRADED
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 -as disclosed in the contract that offers the warranty
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is
$1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for
taxes? Round to the nearest cent.
1. $225.00
2. $162.50
3. $150.00
4. $112.50 - Answer -$225.00
If an older building cannot be air-conditioned, it is an example of
1. economic obsolescence.
1|Page
,2. functional obsolescence.
3. physical deterioration.
4. external deterioration. - Answer -functional obsolescence.
A managing broker can be held responsible for
1. all actions of associated salespersons.
2. all real estate activities of salespersons.
3. only those real estate activities the broker is aware of.
4. no activities of independent contractors. - Answer -all real estate activities of salespersons.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to
1. confiscate the borrower's personal assets.
2. demand immediate payment of the entire note.
3. report the borrower to the Federal Housing Administration.
4. force the borrower to vacate the premises. - Answer -demand immediate payment of the
entire note.
An example of a contract terminated due to inability to perform would be one in which the
1. purchaser had suffered financial reverses so that she could not make payment as required by
the contract.
2|Page
, 2. seller had died after the contract became binding but before the closing.
3. seller had contracted for sale of the entire property without the knowledge or consent of the
other joint tenant.
4. property had been severely damaged by fire after the contract became binding but before the
closing. - Answer -seller had contracted for sale of the entire property without the knowledge or
consent of the other joint tenant.
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the
following disclosures MUST appear in the ad EXCEPT the
1. cash price or amount of the loan.
2. amount of down payment required.
3. number, amount, and frequency of payments.
4. prepayment penalties and rebates. - Answer -prepayment penalties and rebates
A competitive market analysis is MOST often used for
1. estate tax purposes.
2. setting a listing price.
3. divorce proceedings.
4. property tax assessment. - Answer -setting a listing price.
A competitive market analysis takes into consideration
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