PSI National Real Estate Exam Actual
Complete Questions and 100% Correct
Answers (Proven Results)
• Which of these situations represents the illegal practice of blockbusting? -✓✓A) Celia,
a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of
those neighborhoods will increase property values.
B) Corbin tells homeowners in Five Points that an impending influx of Asian immigrants
will reduce property values.
C)Estelle, a broker, warns potential clients about the upcoming zoning change in a
neighborhood that is currently zoned as residential.
D) Kian, a mortgage broker, refuses to underwrite mortgage applications from
applicants who are Hispanic or Asian.
• When Gillian looked at the legal description of the property she was interested in
purchasing, she read the following: "Beginning at the corner of State Route 61 and
Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what
does "Beginning at the corner of State Route 61 and Hallowell Road" represent? -✓✓A)
A benchmark
B) Bounds
C) Metes
D) Monuments
• Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to
avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% of
the purchase price in closing costs. How much money should he bring to closing? -
✓✓A) $106,250
B) $156,250
C) $31,250
D) $81,250
• If a private individual owner owns fewer than three single-family homes at one time,
which exemption from the Fair Housing Act could apply? -✓✓A) Housing designated for
senior use
,B) "Mrs. Murphy" exemption
C) Owner-occupied buildings with no more than six units
D) Single-family housing sold or rented without the use of a broker
• A company in Raleigh leased a building so that it could build an escape room
experience. After operating for two years, attendance (and thus its profits) started to
drop significantly, so it decided to close the location. When the workers started taking
down the installation, they realized that some of the structures would damage the walls
if they were to try to remove them. Which of these is true about these trade fixtures? -
✓✓A) If the company leaves them in place and the lease expires, they have three
months to remove them.
B) The company is required to leave the fixtures if they're attached.
C) The company is required to take the fixtures and return the premise to its original
condition.
D) The company may take the fixtures as long as he repairs any damage caused by
removal.
• A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%.
How much is the buyer financing? -✓✓A) $320,000
B) $360,000
C) $400,000
D) $80,000
• A property owner didn't have direct access to the small lake in their subdivision; they
had an easement arranged with their neighbor. Ten months ago, the developer built a
public access road to the lake, so the property owner stopped using the easement.
What type of easement termination is this? -✓✓A) Abandonment
B) Express
C) Merger
D) Necessity
• Li Meng purchased a property that had been owned by the same man for more than
40 years. The title search was clean. In the spring, she started seeing traffic on the path
to her dock and discovered that the previous owner had always allowed the locals to
, use his path to get to the lake. What covenant may have been breached? -✓✓A)
Against encumbrances
B) Quiet enjoyment
C) Right to convey
D) Seisin
• LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was
the place for family holiday gatherings, and LaTonya's sister was even married there.
That's why her family is so upset to learn that she plans to sell the bungalow as soon as
she gets it cleaned out. Which real property right allows her to sell the property? -✓✓A)
Control
B) Disposition
C) Exclusion
D) Possession
• Alison and Brent are financing their house purchase of $232,500 with an FHA loan.
Their credit score qualifies them for the minimum down payment. What do they need to
put down? -✓✓A) $10,462.50
B) $11,625
C) $6,975
D) $8,137.50
• Which one of the following protects the owner against financial loss if the real estate
title has defects? -✓✓A) Abstract of title
B) Chain of title
C) Deed
D) Title insurance
• Marion gave her granddaughter Sheila the deed to a brand new home, on the
condition that Sheila complete her PhD in astronautics. When Sheila dropped out of
school and got a job as a greeter at a big box store instead, Marion ______ to regain
ownership of the property. -✓✓A) Had no recourse
B) Had to purchase the property from Sheila
Complete Questions and 100% Correct
Answers (Proven Results)
• Which of these situations represents the illegal practice of blockbusting? -✓✓A) Celia,
a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of
those neighborhoods will increase property values.
B) Corbin tells homeowners in Five Points that an impending influx of Asian immigrants
will reduce property values.
C)Estelle, a broker, warns potential clients about the upcoming zoning change in a
neighborhood that is currently zoned as residential.
D) Kian, a mortgage broker, refuses to underwrite mortgage applications from
applicants who are Hispanic or Asian.
• When Gillian looked at the legal description of the property she was interested in
purchasing, she read the following: "Beginning at the corner of State Route 61 and
Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what
does "Beginning at the corner of State Route 61 and Hallowell Road" represent? -✓✓A)
A benchmark
B) Bounds
C) Metes
D) Monuments
• Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to
avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% of
the purchase price in closing costs. How much money should he bring to closing? -
✓✓A) $106,250
B) $156,250
C) $31,250
D) $81,250
• If a private individual owner owns fewer than three single-family homes at one time,
which exemption from the Fair Housing Act could apply? -✓✓A) Housing designated for
senior use
,B) "Mrs. Murphy" exemption
C) Owner-occupied buildings with no more than six units
D) Single-family housing sold or rented without the use of a broker
• A company in Raleigh leased a building so that it could build an escape room
experience. After operating for two years, attendance (and thus its profits) started to
drop significantly, so it decided to close the location. When the workers started taking
down the installation, they realized that some of the structures would damage the walls
if they were to try to remove them. Which of these is true about these trade fixtures? -
✓✓A) If the company leaves them in place and the lease expires, they have three
months to remove them.
B) The company is required to leave the fixtures if they're attached.
C) The company is required to take the fixtures and return the premise to its original
condition.
D) The company may take the fixtures as long as he repairs any damage caused by
removal.
• A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%.
How much is the buyer financing? -✓✓A) $320,000
B) $360,000
C) $400,000
D) $80,000
• A property owner didn't have direct access to the small lake in their subdivision; they
had an easement arranged with their neighbor. Ten months ago, the developer built a
public access road to the lake, so the property owner stopped using the easement.
What type of easement termination is this? -✓✓A) Abandonment
B) Express
C) Merger
D) Necessity
• Li Meng purchased a property that had been owned by the same man for more than
40 years. The title search was clean. In the spring, she started seeing traffic on the path
to her dock and discovered that the previous owner had always allowed the locals to
, use his path to get to the lake. What covenant may have been breached? -✓✓A)
Against encumbrances
B) Quiet enjoyment
C) Right to convey
D) Seisin
• LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was
the place for family holiday gatherings, and LaTonya's sister was even married there.
That's why her family is so upset to learn that she plans to sell the bungalow as soon as
she gets it cleaned out. Which real property right allows her to sell the property? -✓✓A)
Control
B) Disposition
C) Exclusion
D) Possession
• Alison and Brent are financing their house purchase of $232,500 with an FHA loan.
Their credit score qualifies them for the minimum down payment. What do they need to
put down? -✓✓A) $10,462.50
B) $11,625
C) $6,975
D) $8,137.50
• Which one of the following protects the owner against financial loss if the real estate
title has defects? -✓✓A) Abstract of title
B) Chain of title
C) Deed
D) Title insurance
• Marion gave her granddaughter Sheila the deed to a brand new home, on the
condition that Sheila complete her PhD in astronautics. When Sheila dropped out of
school and got a job as a greeter at a big box store instead, Marion ______ to regain
ownership of the property. -✓✓A) Had no recourse
B) Had to purchase the property from Sheila
