PSI NATIONAL REAL ESTATE ACTUAL
REVIEW PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of. Answer: anticipation.
⩥ A commercial property lost value because a recently constructed
highway moved traffic away from the property. This is an example of.
Answer: economic or external obsolescence.
⩥ According to the principle of progression, a three-bedroom, one-story
home is MOST likely to bring the highest sales price if located in a
neighborhood in which. Answer: most homes are larger than the sale
home.
⩥ 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.
⩥ 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.
,⩥ When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the seller,
one benefit of the deed of trust is that. Answer: foreclosure is usually
simpler and faster.
⩥ Even if a loan applicant's current income seems adequate to qualify
for a certain loan, the Equal Credit Opportunity Act allows a lender to
refuse the loan as a high risk if the applicant's main source of income is.
Answer: commission sales.
⩥ A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan Estimate
and Closing Disclosure forms from the lender, indicating the Annual
Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker
take in this situation?. Answer: Confirm with the seller's broker, the
lender and the closing entity that the closing must be delayed to allow
for a new seven-day waiting period because of the interest rate revision.
⩥ The FHA functions MOST like. Answer: an insurance company.
⩥ Federal Truth-in-Lending laws are also known as. Answer: Regulation
Z.
, ⩥ Which of these Federal laws regulates the advertisement of a lender's
credit terms (rates, payment, etc.)?. Answer: Regulation Z.
⩥ 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.
⩥ According 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.
⩥ An owner hired a construction company to build a swimming pool at a
new home. The owner failed to pay the bill once the work was
completed and the construction company filed a lien to obtain payment
of the debt. The encumbrance created is called. Answer: a mechanic's
lien.
⩥ Three people buy a house as tenants in common. Subsequently, two of
the owners want to sell, but the third discourages each potential
purchaser. The two owners who wish to sell the house can. Answer: file
an action for partition against the third owner.
⩥ A legal easement can be created by any of the following EXCEPT.
Answer: merger of the titles.
REVIEW PAPER 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ A couple owns an older home in a neighborhood that is becoming a
commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of. Answer: anticipation.
⩥ A commercial property lost value because a recently constructed
highway moved traffic away from the property. This is an example of.
Answer: economic or external obsolescence.
⩥ According to the principle of progression, a three-bedroom, one-story
home is MOST likely to bring the highest sales price if located in a
neighborhood in which. Answer: most homes are larger than the sale
home.
⩥ 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.
⩥ 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.
,⩥ When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the seller,
one benefit of the deed of trust is that. Answer: foreclosure is usually
simpler and faster.
⩥ Even if a loan applicant's current income seems adequate to qualify
for a certain loan, the Equal Credit Opportunity Act allows a lender to
refuse the loan as a high risk if the applicant's main source of income is.
Answer: commission sales.
⩥ A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan Estimate
and Closing Disclosure forms from the lender, indicating the Annual
Percentage Rate on their loan has increased by 0.3%. Based on the
TILA-RESPA Integrated Disclosure rule, what action should the broker
take in this situation?. Answer: Confirm with the seller's broker, the
lender and the closing entity that the closing must be delayed to allow
for a new seven-day waiting period because of the interest rate revision.
⩥ The FHA functions MOST like. Answer: an insurance company.
⩥ Federal Truth-in-Lending laws are also known as. Answer: Regulation
Z.
, ⩥ Which of these Federal laws regulates the advertisement of a lender's
credit terms (rates, payment, etc.)?. Answer: Regulation Z.
⩥ 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.
⩥ According 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.
⩥ An owner hired a construction company to build a swimming pool at a
new home. The owner failed to pay the bill once the work was
completed and the construction company filed a lien to obtain payment
of the debt. The encumbrance created is called. Answer: a mechanic's
lien.
⩥ Three people buy a house as tenants in common. Subsequently, two of
the owners want to sell, but the third discourages each potential
purchaser. The two owners who wish to sell the house can. Answer: file
an action for partition against the third owner.
⩥ A legal easement can be created by any of the following EXCEPT.
Answer: merger of the titles.
