PSI NATIONAL REAL ESTATE 2026 ACTUAL EXAM QUESTIONS AND ANSWERS
PROFESSOR VERIFIED ALREADY, Exams of Business and Labour Law
A written agreement in which a purchaser agrees to buy and a seller agrees
to sell is called - ANSWERa contract
Antitrust laws prohibit competing brokers from all of the following -
ANSWER1. 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 - ANSWERall current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - ANSWERa
suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - ANSWERa
homeowner
When is racial discrimination in the rental of rooms or apartments permitted?
- ANSWERUnder no circumstances
,The real estate broker who is listing a house for sale should personally verify -
ANSWERthe number of square feet in the building
Real property can be converted to personal property by - ANSWERSeverance
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? - ANSWERBoth 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 - ANSWERprior
appropriation
The purpose of requiring an earnest money deposit in a real estate sales
contract is to - ANSWERprovide 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.) - ANSWER$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERdemand immediate
payment of the entire note
The FHA functions MOST like - ANSWERan 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. - ANSWERdiscount points
When land is conveyed to a trustee, the trustee may - ANSWERdo 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 - ANSWERthe 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 -
ANSWERthe agreement does not comply with the Statute of Frauds
, Earnest money should be deposited into a trust account - ANSWERin a timely
manner, according to state laws
A deed restriction is applicable to the activities of - ANSWERall owners,
present and future
An easement can be terminated by - ANSWERprescription
Depreciation is calculated based on the - ANSWERcost of the building only
Which of the following approaches MOST reliably estimates the sales price of
a single-family residence? - ANSWERMarket data
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? - ANSWERSeller
The escrow officer or closing agent MUST give information regarding the
sales price and seller's social security number to - ANSWERIRS
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? - ANSWERAgency
coupled with an interest
PROFESSOR VERIFIED ALREADY, Exams of Business and Labour Law
A written agreement in which a purchaser agrees to buy and a seller agrees
to sell is called - ANSWERa contract
Antitrust laws prohibit competing brokers from all of the following -
ANSWER1. 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 - ANSWERall current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - ANSWERa
suicide that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - ANSWERa
homeowner
When is racial discrimination in the rental of rooms or apartments permitted?
- ANSWERUnder no circumstances
,The real estate broker who is listing a house for sale should personally verify -
ANSWERthe number of square feet in the building
Real property can be converted to personal property by - ANSWERSeverance
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? - ANSWERBoth 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 - ANSWERprior
appropriation
The purpose of requiring an earnest money deposit in a real estate sales
contract is to - ANSWERprovide 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.) - ANSWER$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERdemand immediate
payment of the entire note
The FHA functions MOST like - ANSWERan 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. - ANSWERdiscount points
When land is conveyed to a trustee, the trustee may - ANSWERdo 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 - ANSWERthe 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 -
ANSWERthe agreement does not comply with the Statute of Frauds
, Earnest money should be deposited into a trust account - ANSWERin a timely
manner, according to state laws
A deed restriction is applicable to the activities of - ANSWERall owners,
present and future
An easement can be terminated by - ANSWERprescription
Depreciation is calculated based on the - ANSWERcost of the building only
Which of the following approaches MOST reliably estimates the sales price of
a single-family residence? - ANSWERMarket data
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? - ANSWERSeller
The escrow officer or closing agent MUST give information regarding the
sales price and seller's social security number to - ANSWERIRS
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? - ANSWERAgency
coupled with an interest
