PSI REAL ESTATE EXAM PREP 2024–
2025 – PRACTICE QUESTIONS &
STUDY GUIDE
Recently a homeowner suffered damage to their heating and cooling system due to normal wear
and tear through the years. What offers coverage for this type of property damage? - correct
answer-Home Warranty
Which act can a transaction broker not perform? - correct answer-negotiate a sales price
Which of the following forces has an impact on value? - correct answer-both economic and
political
Which category of water is a stream? - correct answer-Watercourse
A building that is valued at $510000 isbeing depreciated over 39 years. After 10 years, how
much will the building have depreciated? - correct answer-$130,769.20
What is generally the cause of an eviction? - correct answer-A failure to perform under the lease
agreement
A broker discovers there is a broken stove in the kitchen. Must they disclose this? - correct
answer-Yes, because it is a material fact.
Mason and nicole are in a lease agreement. Recently Mason excluded Nicole, the tenant, from
the leased property. Which of the following words described what occured? - correct answer-
Physical eviction
A lot has a frontage of 35' and a depth of 60'. What is the area of the lot? - correct answer-2100
sq ft
Which of the following is a defense against performance, and renders an obligation discharged? -
correct answer-Death
Evelyn and Fran are in a lease agreement; Evelyn is the tenant and Fran is the landlord. Evelyn
pays a flat fee for a leased premises and pays for utilities and property taxes. What type of lease
is this? - correct answer-Net Lease
What is a physical measurement of property boundaries? - correct answer-A survey
What is not considered in evaluating comps in the sales comparison approach? - correct answer-
Sales price that the current owner paid for the property
Which of the following best describes a contract that is made with a person under the age of
majority? - correct answer-Voidable
Some jurisdictions require joint tenancy to be created by the 4 unities of title. Which of the
following is not one of the unities? - correct answer-Propriety
Which type of agency is not valid in real estate transactions? - correct answer-Implied agency
What is the owner's equity in a property they purchased for $170,000 if there is a remaining
mortgage of $50,000? - correct answer-$120,000
In which of the following forms may a warranty for fitness be part of the sales contract of a
newly constucted home? - correct answer--In a written contract
-In an orally spoken
-In a contract implied by the circumstances
A buyer purchases a house for $170,000 and it measures 40'x40'. What is the price per square
foot of the house? - correct answer-$106.25
, What determines the quality of materials that may be used in a building that is located within a
commercially zoned area? - correct answer-Building codes
Clyde owns a building that has three units, and Clyde occupies one of the units. Subsequently,
Clyde discriminates against a prospective tenant who is a member of a protected class. May
Clyde do so? - correct answer-Yes, because the building contains four units or less and Clyde
resides in one of the units
While giving a tour to a prospective buyer, the broker says, "You will not find a better house
than this; it's the only one with a pool!" However, there are multiple properties with pools
available in the neighborhood. Which term best describes the broker's statement? - correct
answer-Misrepresentation
A potential home buyer was discriminated against based on their membership in a protected
class. The home buyer was not given information about loans. What body of law was violated in
this discrimination? - correct answer-Fair lending laws
A property manager has found a tenant for a new property, and this property manager collects
the security deposit upon signing the lease. What does the property manager do with the money?
- correct answer-They deposit the entire amount into a trust account to be held until termination
of the lease
If a buyer wanted to cancel a purchase contract because the party was unable to obtain financing,
which type of clause would the buyer want in the contract? - correct answer-Contingency agency
Buyer Robert wants to pay agent Archie a retainer fee to work with him exclusively until a
property is under contract. What does buyer Robert do? - correct answer-He writes a check made
out to agent Archie's brokerage
Mary would like to buy a house. She has a steady income and some money saved, but she has a
low credit score. Which type of loan would she probably expect to qualify for? - correct answer-
Subprime
An agent must keep client information confidential, except in which circumstance? - correct
answer-If required by law
Adam is selling their home to Brooke. During the escrow phase, and two weeks before closing,
Adam's stove breaks and a professional determines that the stove is outdated, unfixable, and in
need of replacement. What kind of claim should Adam most likely pursue to get a replacement
stove? - correct answer-Home warranty claim
An agent who is given broad authority to conduct business on behalf of another entity is known
as what? - correct answer-Universal agent
Amy obtained a title commitment on a property that she just purchased. That transaction has
closed. Who will NOT receive a title policy? - correct answer-Amy's Grantor
What is a broker-in-charge not responsible for? - correct answer-renewing the licenses of the
agents in the brokerage
Does the brokerage have a trust account? - correct answer-Yes
Oliver owns land right next to a stream of water that passes across Oliver's vast land. However,
Oliver does not use the water and just lets the water flow its natural course. Paulo is a cattle
farmer that lives five miles away from the stream but travels to the stream to collect water so that
Paulo may water his cattle. Under a prior appropriation jurisdiction, who has rights in the water?
- correct answer-Paulo
In a certain year, there are more homes for sale than there are people looking to purchase them.
What is this an example of? - correct answer-Buyer's Market
Who determines the property tax amount? - correct answer-Assessor
2025 – PRACTICE QUESTIONS &
STUDY GUIDE
Recently a homeowner suffered damage to their heating and cooling system due to normal wear
and tear through the years. What offers coverage for this type of property damage? - correct
answer-Home Warranty
Which act can a transaction broker not perform? - correct answer-negotiate a sales price
Which of the following forces has an impact on value? - correct answer-both economic and
political
Which category of water is a stream? - correct answer-Watercourse
A building that is valued at $510000 isbeing depreciated over 39 years. After 10 years, how
much will the building have depreciated? - correct answer-$130,769.20
What is generally the cause of an eviction? - correct answer-A failure to perform under the lease
agreement
A broker discovers there is a broken stove in the kitchen. Must they disclose this? - correct
answer-Yes, because it is a material fact.
Mason and nicole are in a lease agreement. Recently Mason excluded Nicole, the tenant, from
the leased property. Which of the following words described what occured? - correct answer-
Physical eviction
A lot has a frontage of 35' and a depth of 60'. What is the area of the lot? - correct answer-2100
sq ft
Which of the following is a defense against performance, and renders an obligation discharged? -
correct answer-Death
Evelyn and Fran are in a lease agreement; Evelyn is the tenant and Fran is the landlord. Evelyn
pays a flat fee for a leased premises and pays for utilities and property taxes. What type of lease
is this? - correct answer-Net Lease
What is a physical measurement of property boundaries? - correct answer-A survey
What is not considered in evaluating comps in the sales comparison approach? - correct answer-
Sales price that the current owner paid for the property
Which of the following best describes a contract that is made with a person under the age of
majority? - correct answer-Voidable
Some jurisdictions require joint tenancy to be created by the 4 unities of title. Which of the
following is not one of the unities? - correct answer-Propriety
Which type of agency is not valid in real estate transactions? - correct answer-Implied agency
What is the owner's equity in a property they purchased for $170,000 if there is a remaining
mortgage of $50,000? - correct answer-$120,000
In which of the following forms may a warranty for fitness be part of the sales contract of a
newly constucted home? - correct answer--In a written contract
-In an orally spoken
-In a contract implied by the circumstances
A buyer purchases a house for $170,000 and it measures 40'x40'. What is the price per square
foot of the house? - correct answer-$106.25
, What determines the quality of materials that may be used in a building that is located within a
commercially zoned area? - correct answer-Building codes
Clyde owns a building that has three units, and Clyde occupies one of the units. Subsequently,
Clyde discriminates against a prospective tenant who is a member of a protected class. May
Clyde do so? - correct answer-Yes, because the building contains four units or less and Clyde
resides in one of the units
While giving a tour to a prospective buyer, the broker says, "You will not find a better house
than this; it's the only one with a pool!" However, there are multiple properties with pools
available in the neighborhood. Which term best describes the broker's statement? - correct
answer-Misrepresentation
A potential home buyer was discriminated against based on their membership in a protected
class. The home buyer was not given information about loans. What body of law was violated in
this discrimination? - correct answer-Fair lending laws
A property manager has found a tenant for a new property, and this property manager collects
the security deposit upon signing the lease. What does the property manager do with the money?
- correct answer-They deposit the entire amount into a trust account to be held until termination
of the lease
If a buyer wanted to cancel a purchase contract because the party was unable to obtain financing,
which type of clause would the buyer want in the contract? - correct answer-Contingency agency
Buyer Robert wants to pay agent Archie a retainer fee to work with him exclusively until a
property is under contract. What does buyer Robert do? - correct answer-He writes a check made
out to agent Archie's brokerage
Mary would like to buy a house. She has a steady income and some money saved, but she has a
low credit score. Which type of loan would she probably expect to qualify for? - correct answer-
Subprime
An agent must keep client information confidential, except in which circumstance? - correct
answer-If required by law
Adam is selling their home to Brooke. During the escrow phase, and two weeks before closing,
Adam's stove breaks and a professional determines that the stove is outdated, unfixable, and in
need of replacement. What kind of claim should Adam most likely pursue to get a replacement
stove? - correct answer-Home warranty claim
An agent who is given broad authority to conduct business on behalf of another entity is known
as what? - correct answer-Universal agent
Amy obtained a title commitment on a property that she just purchased. That transaction has
closed. Who will NOT receive a title policy? - correct answer-Amy's Grantor
What is a broker-in-charge not responsible for? - correct answer-renewing the licenses of the
agents in the brokerage
Does the brokerage have a trust account? - correct answer-Yes
Oliver owns land right next to a stream of water that passes across Oliver's vast land. However,
Oliver does not use the water and just lets the water flow its natural course. Paulo is a cattle
farmer that lives five miles away from the stream but travels to the stream to collect water so that
Paulo may water his cattle. Under a prior appropriation jurisdiction, who has rights in the water?
- correct answer-Paulo
In a certain year, there are more homes for sale than there are people looking to purchase them.
What is this an example of? - correct answer-Buyer's Market
Who determines the property tax amount? - correct answer-Assessor
