PSI EXAM TEST PREP QUESTIONS
WITH CORRECT VERIFIED ANSWERS
LATEST UPDATE (2024/2025)
GUARANTEED PASS
1. 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.
2. 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 - ANS ✅prepayment penalties and rebates.
3. Federal Truth-in-Lending laws are also known as - ANS ✅Regulation
Z
4. Which of the following consumers would be able to derive the most
benefit from a reverse mortgage? - ANS ✅A couple in their late 60?s
who need to tap their home equity to help cover their expenses but do not
want to sell their house.
5. The FHA functions MOST like - ANS ✅an insurance company.
,6. Which of the following real estate contracts is a service contract? -
ANS ✅a listing agreement
7. A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is - ANS ✅an agent to the
broker and a subagent to the principal.
8. The day after a broker's listing on a house expired, it was listed with
another broker and offered in the MLS. Several days later, a third
licensee called the first broker and asked for the key to show the
home. The broker should inform the caller that - ANS ✅he is no
longer the listing agent.
9. When a principal authorizes an agent to perform a particular act or
transaction, it is an example of a - ANS ✅special agency.
10. 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 - ANS ✅the builder.
11. A broker, acting as agent for the seller, presents an offer to buy
from the broker's former college roommate. The broker knows that
the buyer will increase the amount of the offer if the seller turns
, down the offer. When presenting the offer, the broker should - ANS
✅tell the seller that the buyer will pay more.
12. Even after an offer has been accepted and is binding, the buyer
and seller may still choose to sign mutual release papers rather than
proceed to closing. Which of the following circumstances would NOT
give either party a justifiable reason to insist on a mutual release? -
ANS ✅The buyer finds a better property for better terms.
13. To what party or parties does the broker owe the fiduciary
duty of care? - ANS ✅the party or parties employing the broker
14. An agency relationship between a property owner and a
property manager is usually created by - ANS ✅a management
agreement.
15. Under the common law of agency, licensees owe the broker
with whom they are associated all of the following duties EXCEPT -
ANS ✅indemnification
16. State laws differ on whether a buyer is entitled to know about -
ANS ✅a suicide that occurred in the house last year.
17. The Department of Housing and Urban Development estimates
that most private homes built before 1978 contain potentially
WITH CORRECT VERIFIED ANSWERS
LATEST UPDATE (2024/2025)
GUARANTEED PASS
1. 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.
2. 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 - ANS ✅prepayment penalties and rebates.
3. Federal Truth-in-Lending laws are also known as - ANS ✅Regulation
Z
4. Which of the following consumers would be able to derive the most
benefit from a reverse mortgage? - ANS ✅A couple in their late 60?s
who need to tap their home equity to help cover their expenses but do not
want to sell their house.
5. The FHA functions MOST like - ANS ✅an insurance company.
,6. Which of the following real estate contracts is a service contract? -
ANS ✅a listing agreement
7. A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is - ANS ✅an agent to the
broker and a subagent to the principal.
8. The day after a broker's listing on a house expired, it was listed with
another broker and offered in the MLS. Several days later, a third
licensee called the first broker and asked for the key to show the
home. The broker should inform the caller that - ANS ✅he is no
longer the listing agent.
9. When a principal authorizes an agent to perform a particular act or
transaction, it is an example of a - ANS ✅special agency.
10. 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 - ANS ✅the builder.
11. A broker, acting as agent for the seller, presents an offer to buy
from the broker's former college roommate. The broker knows that
the buyer will increase the amount of the offer if the seller turns
, down the offer. When presenting the offer, the broker should - ANS
✅tell the seller that the buyer will pay more.
12. Even after an offer has been accepted and is binding, the buyer
and seller may still choose to sign mutual release papers rather than
proceed to closing. Which of the following circumstances would NOT
give either party a justifiable reason to insist on a mutual release? -
ANS ✅The buyer finds a better property for better terms.
13. To what party or parties does the broker owe the fiduciary
duty of care? - ANS ✅the party or parties employing the broker
14. An agency relationship between a property owner and a
property manager is usually created by - ANS ✅a management
agreement.
15. Under the common law of agency, licensees owe the broker
with whom they are associated all of the following duties EXCEPT -
ANS ✅indemnification
16. State laws differ on whether a buyer is entitled to know about -
ANS ✅a suicide that occurred in the house last year.
17. The Department of Housing and Urban Development estimates
that most private homes built before 1978 contain potentially
