PSI PRACTICE EXAM QUESTIONS AND
DETAILED SOLUTIONS 2026
▶ When compiling a competitive market analysis, a broker would look for
comparable properties that. Answer: were located near the property being
listed.
▶ If all other factors are equal, in which location is a parking lot likely to
bring the highest sales price?. Answer: Business district zoned for a six-
story office building.
▶ A formal appraisal will ALWAYS be REQUIRED when the. Answer:
lender wants to sell the mortgage to the secondary market.
▶ A competitive market analysis takes into consideration. Answer: square
footage of the subject property.
▶ Three identical homes in a neighborhood were listed at the same time in
a market where demand was constant. According to the law of supply and
demand, which would have sold for the lowest price?. Answer: The first
sold.
▶ A prospective seller asks a salesperson to recommend a listing price for
a property. The salesperson should suggest. Answer: a competitive market
analysis to determine the property's value.
▶ In helping a buyer to select a lender, if the buyer believes he has good
credit and his income is documentable as a salary and by tax returns, the
licensee might recommend a mortgage banker, instead of a mortgage
broker, for all of the following reasons EXCEPT. Answer: more variety of
loan programs available.
▶ A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to. Answer: demand
immediate payment of the entire note.
, ▶ ccording 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.
Answer: prepayment penalties and rebates.
▶ Federal Truth-in-Lending laws are also known as. Answer: Regulation Z
▶ Which of the following consumers would be able to derive the most
benefit from a reverse mortgage?. Answer: 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.
▶ The FHA functions MOST like. Answer: an insurance company.
▶ Which of the following real estate contracts is a service contract?.
Answer: a listing agreement
▶ A salesperson lists a property with a contract that allows for subagency
and dual agency. The salesperson is. Answer: an agent to the broker and
a subagent to the principal.
▶ 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. Answer: he is no longer the listing agent.
▶ When a principal authorizes an agent to perform a particular act or
transaction, it is an example of a. Answer: special agency.
▶ 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. Answer: the builder.
▶ 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.
DETAILED SOLUTIONS 2026
▶ When compiling a competitive market analysis, a broker would look for
comparable properties that. Answer: were located near the property being
listed.
▶ If all other factors are equal, in which location is a parking lot likely to
bring the highest sales price?. Answer: Business district zoned for a six-
story office building.
▶ A formal appraisal will ALWAYS be REQUIRED when the. Answer:
lender wants to sell the mortgage to the secondary market.
▶ A competitive market analysis takes into consideration. Answer: square
footage of the subject property.
▶ Three identical homes in a neighborhood were listed at the same time in
a market where demand was constant. According to the law of supply and
demand, which would have sold for the lowest price?. Answer: The first
sold.
▶ A prospective seller asks a salesperson to recommend a listing price for
a property. The salesperson should suggest. Answer: a competitive market
analysis to determine the property's value.
▶ In helping a buyer to select a lender, if the buyer believes he has good
credit and his income is documentable as a salary and by tax returns, the
licensee might recommend a mortgage banker, instead of a mortgage
broker, for all of the following reasons EXCEPT. Answer: more variety of
loan programs available.
▶ A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to. Answer: demand
immediate payment of the entire note.
, ▶ ccording 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.
Answer: prepayment penalties and rebates.
▶ Federal Truth-in-Lending laws are also known as. Answer: Regulation Z
▶ Which of the following consumers would be able to derive the most
benefit from a reverse mortgage?. Answer: 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.
▶ The FHA functions MOST like. Answer: an insurance company.
▶ Which of the following real estate contracts is a service contract?.
Answer: a listing agreement
▶ A salesperson lists a property with a contract that allows for subagency
and dual agency. The salesperson is. Answer: an agent to the broker and
a subagent to the principal.
▶ 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. Answer: he is no longer the listing agent.
▶ When a principal authorizes an agent to perform a particular act or
transaction, it is an example of a. Answer: special agency.
▶ 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. Answer: the builder.
▶ 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.
