PSI ACTUAL EXAM QUESTIONS AND
COMPLETE STUDY GUIDE 2026
▶ 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. Answer: tell the seller that the
buyer will pay more.
▶ 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?. Answer: The buyer finds
a better property for better terms.
▶ To what party or parties does the broker owe the fiduciary duty of care?.
Answer: the party or parties employing the broker
▶ An agency relationship between a property owner and a property
manager is usually created by. Answer: a management agreement.
▶ Under the common law of agency, licensees owe the broker with whom
they are associated all of the following duties EXCEPT. Answer:
indemnification
▶ State laws differ on whether a buyer is entitled to know about. Answer: a
suicide that occurred in the house last year.
▶ The Department of Housing and Urban Development estimates that
most private homes built before 1978 contain potentially dangerous levels
of lead. Because of this, some Federal agencies, such as FHA,. Answer:
require the buyer to acknowledge disclosure of the presence of any known
lead paint.
▶ Unrepresented buyers ask the licensee who listed the home whether
they should order a property inspection as a part of their due diligence for
, the purchase of the home. Which of the following would be the most
appropriate way for the listing agent to respond?. Answer: If you feel it is in
your best interest, please do so.
▶ A licensee is listing a property in a known flood plain. The seller flatly
denies that the structure and the property have ever been flooded. What is
the licensee required to do in this situation?. Answer: Inform the seller of
the legal obligation to disclose facts regarding flood plains.
▶ A seller's statement in a property disclosure document means. Answer:
the owner is disclosing known latent defects.
▶ What critical aspect of the property inspection process MUST licensees
convey to prospective buyers?. Answer: Need for inspections to be
completed within the time stated in the contract.
▶ What is the duration of a home warranty's coverage?. Answer: as
disclosed in the contract that offers the warranty
▶ A seller tells the listing agent that her home was treated for termites 10
years ago, so there are no termites now. Before listing the property, the
agent should. Answer: tell the seller to disclose the termite treatment on
the property disclosure.
▶ A written agreement in which a purchaser agrees to buy and a seller
agrees to sell is called. Answer: contract
▶ A buyer was negotiating the purchase of a house for himself. During a
conversation with the seller, the seller agreed to include all kitchen
appliances in the sale, and this fact was included in the sales contract. In
this situation, if the seller takes the appliances with him, what recourse
does the buyer have?. Answer: The buyer may sue the seller for specific
performance.
▶ A gross lease can be best defined as one where the tenant pays, as a
part of the rent,. Answer: no operating expenses of the leased space.
▶ A broker has brought a ready, willing, and able buyer to a seller. In
MOST listing contracts, the broker has earned his commission when.
Answer: the seller accepts the offer.
COMPLETE STUDY GUIDE 2026
▶ 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. Answer: tell the seller that the
buyer will pay more.
▶ 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?. Answer: The buyer finds
a better property for better terms.
▶ To what party or parties does the broker owe the fiduciary duty of care?.
Answer: the party or parties employing the broker
▶ An agency relationship between a property owner and a property
manager is usually created by. Answer: a management agreement.
▶ Under the common law of agency, licensees owe the broker with whom
they are associated all of the following duties EXCEPT. Answer:
indemnification
▶ State laws differ on whether a buyer is entitled to know about. Answer: a
suicide that occurred in the house last year.
▶ The Department of Housing and Urban Development estimates that
most private homes built before 1978 contain potentially dangerous levels
of lead. Because of this, some Federal agencies, such as FHA,. Answer:
require the buyer to acknowledge disclosure of the presence of any known
lead paint.
▶ Unrepresented buyers ask the licensee who listed the home whether
they should order a property inspection as a part of their due diligence for
, the purchase of the home. Which of the following would be the most
appropriate way for the listing agent to respond?. Answer: If you feel it is in
your best interest, please do so.
▶ A licensee is listing a property in a known flood plain. The seller flatly
denies that the structure and the property have ever been flooded. What is
the licensee required to do in this situation?. Answer: Inform the seller of
the legal obligation to disclose facts regarding flood plains.
▶ A seller's statement in a property disclosure document means. Answer:
the owner is disclosing known latent defects.
▶ What critical aspect of the property inspection process MUST licensees
convey to prospective buyers?. Answer: Need for inspections to be
completed within the time stated in the contract.
▶ What is the duration of a home warranty's coverage?. Answer: as
disclosed in the contract that offers the warranty
▶ A seller tells the listing agent that her home was treated for termites 10
years ago, so there are no termites now. Before listing the property, the
agent should. Answer: tell the seller to disclose the termite treatment on
the property disclosure.
▶ A written agreement in which a purchaser agrees to buy and a seller
agrees to sell is called. Answer: contract
▶ A buyer was negotiating the purchase of a house for himself. During a
conversation with the seller, the seller agreed to include all kitchen
appliances in the sale, and this fact was included in the sales contract. In
this situation, if the seller takes the appliances with him, what recourse
does the buyer have?. Answer: The buyer may sue the seller for specific
performance.
▶ A gross lease can be best defined as one where the tenant pays, as a
part of the rent,. Answer: no operating expenses of the leased space.
▶ A broker has brought a ready, willing, and able buyer to a seller. In
MOST listing contracts, the broker has earned his commission when.
Answer: the seller accepts the offer.
