PSI NATIONAL EXAM FOR REAL
ESTATE QUESTIONS AND
ANSWERS
2026
A written agreement in which a purchaser agrees to buy
and a seller agrees to sell is called -correct Answer -a
contract
Antitrust laws prohibit competing brokers from all of the
following -correct Answer -1. 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 -correct Answer -all current
owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know
about -correct Answer -a suicide that occurred in the
house last year.
A lawsuit for inverse condemnation may be brought by -
correct Answer -a homeowner
,When is racial discrimination in the rental of rooms or
apartments permitted? -correct Answer -Under no
circumstances
The real estate broker who is listing a house for sale
should personally verify -correct Answer -the number of
square feet in the building
Real property can be converted to personal property by -
correct Answer -Severance
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? -correct
Answer -Both 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 -
correct Answer -prior appropriation
The purpose of requiring an earnest money deposit in a
real estate sales contract is to -correct Answer -provide
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.) -
correct Answer -$409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to
-correct Answer -demand immediate payment of the entire
note
The FHA functions MOST like -correct Answer -an
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. -correct
Answer -discount points
When land is conveyed to a trustee, the trustee may -
correct Answer -do 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 -
, correct Answer -the 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 -correct
Answer -the agreement does not comply with the Statute
of Frauds
Earnest money should be deposited into a trust account -
correct Answer -in a timely manner, according to state
laws
A deed restriction is applicable to the activities of -correct
Answer -all owners, present and future
An easement can be terminated by -correct Answer -
prescription
Depreciation is calculated based on the -correct Answer -
cost of the building only
Which of the following approaches MOST reliably
estimates the sales price of a single-family residence? -
correct Answer -Market 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,
ESTATE QUESTIONS AND
ANSWERS
2026
A written agreement in which a purchaser agrees to buy
and a seller agrees to sell is called -correct Answer -a
contract
Antitrust laws prohibit competing brokers from all of the
following -correct Answer -1. 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 -correct Answer -all current
owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know
about -correct Answer -a suicide that occurred in the
house last year.
A lawsuit for inverse condemnation may be brought by -
correct Answer -a homeowner
,When is racial discrimination in the rental of rooms or
apartments permitted? -correct Answer -Under no
circumstances
The real estate broker who is listing a house for sale
should personally verify -correct Answer -the number of
square feet in the building
Real property can be converted to personal property by -
correct Answer -Severance
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? -correct
Answer -Both 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 -
correct Answer -prior appropriation
The purpose of requiring an earnest money deposit in a
real estate sales contract is to -correct Answer -provide
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.) -
correct Answer -$409.20.
A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to
-correct Answer -demand immediate payment of the entire
note
The FHA functions MOST like -correct Answer -an
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. -correct
Answer -discount points
When land is conveyed to a trustee, the trustee may -
correct Answer -do 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 -
, correct Answer -the 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 -correct
Answer -the agreement does not comply with the Statute
of Frauds
Earnest money should be deposited into a trust account -
correct Answer -in a timely manner, according to state
laws
A deed restriction is applicable to the activities of -correct
Answer -all owners, present and future
An easement can be terminated by -correct Answer -
prescription
Depreciation is calculated based on the -correct Answer -
cost of the building only
Which of the following approaches MOST reliably
estimates the sales price of a single-family residence? -
correct Answer -Market 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,
