PSI NATIONAL REAL ESTATE ACADEMIC
PREPARATION GUIDANCE 2026
APPLICATION STRATEGY FULL SCENARIOS
AND RELATED RESULTS
◍ Even with title insurance, the policyholder may still suffer losses
arising from Answer: Land use change due to zoning ordinances
◍ An investment property returns 12% of its value or $21,000
annually. What is the value of the property? Answer: $175,000
◍ A company agrees to lease a property to be used as a gambling
casino. State laws prohibit gambling. The particular contract would be
legally defined as Answer: Void
◍ A lawsuit for inverse condemnation may be brought by Answer: A
homeowner
◍ Salesperson Susan was at the local coffee shop with some agents
from other offices. The subject Answer: Advise her friends this could
constitute a violation of Sherman Antitrust Act.
◍ A homeowner has negotiated with a neighbor to obtain the
permanent right to pass over the northern part of the neighbor's land
to gain access to the river. He pays the neighbor $9,000 for the right
, of access and receives a deed. This is an easement Answer:
Appurtenant
◍ A tenant rented an apartment, signing a 15-month lease. After the
lease expired, the tenant paid 1 month's rent and got a receipt. What
kind of leasehold does the tenant have? Answer: Tenancy at will
◍ A major difference between freehold and nonfreehold estates is that
all freehold estates Answer: Are of indeterminable duration.
◍ A legal easement can be created by any of the following EXCEPT
Answer: Merger of the titles.
◍ A homeowner Is willing to let his neighbor park an RV in his
backyard. He does NOT want to make the permission permanent in
case he dislikes others who might move next door in the future. What
should he give his neighbor? Answer: A license
◍ Real property can be converted to personal property by Answer:
Severance
◍ An environmental impact statement typically describes the effects
of a proposed project on factors such as Answer: Public health and
safety.
◍ Ordinances that specify construction standards are Answer:
Building codes
PREPARATION GUIDANCE 2026
APPLICATION STRATEGY FULL SCENARIOS
AND RELATED RESULTS
◍ Even with title insurance, the policyholder may still suffer losses
arising from Answer: Land use change due to zoning ordinances
◍ An investment property returns 12% of its value or $21,000
annually. What is the value of the property? Answer: $175,000
◍ A company agrees to lease a property to be used as a gambling
casino. State laws prohibit gambling. The particular contract would be
legally defined as Answer: Void
◍ A lawsuit for inverse condemnation may be brought by Answer: A
homeowner
◍ Salesperson Susan was at the local coffee shop with some agents
from other offices. The subject Answer: Advise her friends this could
constitute a violation of Sherman Antitrust Act.
◍ A homeowner has negotiated with a neighbor to obtain the
permanent right to pass over the northern part of the neighbor's land
to gain access to the river. He pays the neighbor $9,000 for the right
, of access and receives a deed. This is an easement Answer:
Appurtenant
◍ A tenant rented an apartment, signing a 15-month lease. After the
lease expired, the tenant paid 1 month's rent and got a receipt. What
kind of leasehold does the tenant have? Answer: Tenancy at will
◍ A major difference between freehold and nonfreehold estates is that
all freehold estates Answer: Are of indeterminable duration.
◍ A legal easement can be created by any of the following EXCEPT
Answer: Merger of the titles.
◍ A homeowner Is willing to let his neighbor park an RV in his
backyard. He does NOT want to make the permission permanent in
case he dislikes others who might move next door in the future. What
should he give his neighbor? Answer: A license
◍ Real property can be converted to personal property by Answer:
Severance
◍ An environmental impact statement typically describes the effects
of a proposed project on factors such as Answer: Public health and
safety.
◍ Ordinances that specify construction standards are Answer:
Building codes
