PSI NATIONAL REAL ESTATE EXAM 2026 | ACTUAL
EXAM QUESTIONS AND CORRECT ANSWERS ||
ALREADY GRADED A+||LATEST
Section 1: Property Ownership (Questions 1–15)
Q1. Ownership of common stock in a corporation gives:
• A) An interest that is classified as real property
• B) An interest that is classified as personal property
• C) A freehold estate
• D) A leasehold interest
Stock ownership represents equity in a corporation, which is considered personal
property (a "chose in action"). The corporation itself owns the real estate as an
entity, not the individual stockholders .
Q2. A landowner has negotiated with a neighbor to obtain the permanent right
to pass over the northern part of the neighbor's land to gain access to the river.
He pays the neighbor $9,000 and receives a deed. This is an easement:
• A) In gross
• B) By necessity
• C) Appurtenant
• D) By prescription
An appurtenant easement attaches to the land and benefits the dominant estate
(the property needing access). It runs with the land and transfers automatically
,when the property is sold. The deed indicates a formal, paid-for, permanent access
right, which is characteristic of an appurtenant easement rather than an easement
in gross .
Q3. Real property can be converted to personal property by:
• A) Annexation
• B) Severance
• C) Accretion
• D) Avulsion
Severance is the process of detaching an item from real property, converting it into
personal property. Examples include cutting down a tree or removing a fixture.
Annexation does the opposite (personal→real). Accretion and avulsion refer to
changes in land due to water movement .
Q4. Timeshare ownership programs MOST often use which of the following
ownership forms?
• A) Joint tenancy
• B) Tenancy in common
• C) Tenancy by the entirety
• D) Severalty
Tenancy in common is most commonly used for timeshare programs because it
allows multiple owners to hold fractional interests, each with the right to use the
property during a specific period. This form of ownership also allows owners to sell
or transfer their interest independently .
Q5. Two lots of the same size are sold on a street. The lot on the corner sells for
$20,000 more than the lot in the middle of the street. Which characteristic
MOST likely explains the price difference?
• A) Accretion
, • B) Avulsion
• C) Situs
• D) Plottage
Situs refers to a property's location and its perceived desirability based on
surrounding amenities, accessibility, and convenience. A corner lot often has
higher value due to better access, visibility, and potentially more usable space
despite having the same dimensions as an interior lot .
Q6. An easement can be terminated by:
• A) Condemnation
• B) Prescription
• C) Escheat
• D) Eminent domain
An easement can be terminated by prescription when the owner of the servient
estate (the land burdened by the easement) uses the property in a way that is
hostile, open, continuous, and exclusive for the statutory period, effectively
extinguishing the easement rights .
Q7. A deed restriction is applicable to the activities of:
• A) The current owner only
• B) The original grantor only
• C) All owners, present and future
• D) Tenants only
Deed restrictions, also known as restrictive covenants, run with the land. This
means they bind all subsequent owners of the property, not just the original
grantee. Violations can be enforced by neighboring property owners who benefit
from the restriction .
Q8. Which of the following is a freehold estate?
, • A) Fee simple absolute
• B) Estate for years
• C) Periodic tenancy
• D) Tenancy at will
Fee simple absolute is the highest form of freehold estate, offering the owner
complete ownership rights for an indefinite duration. The other options are
leasehold estates (non-freehold), which are temporary and do not involve
ownership of the land itself.
Q9. The distinguishing characteristic of joint tenancy is the right of:
• A) Severalty
• B) Survivorship
• C) Partition
• D) Inheritance
The right of survivorship (jus accrescendi) is the defining feature of joint tenancy.
When one joint tenant dies, their interest automatically passes to the surviving
joint tenants, not to their heirs through probate. The four unities (time, title,
interest, possession) are also required to create a joint tenancy.
Q10. If a property owner dies intestate (without a will), ownership of their real
property will pass according to:
• A) Federal law
• B) State laws of descent and distribution
• C) The local zoning ordinance
• D) The terms of their mortgage
When a person dies without a valid will (intestate), state intestacy laws determine
how their real property is distributed among surviving heirs. These laws vary by
EXAM QUESTIONS AND CORRECT ANSWERS ||
ALREADY GRADED A+||LATEST
Section 1: Property Ownership (Questions 1–15)
Q1. Ownership of common stock in a corporation gives:
• A) An interest that is classified as real property
• B) An interest that is classified as personal property
• C) A freehold estate
• D) A leasehold interest
Stock ownership represents equity in a corporation, which is considered personal
property (a "chose in action"). The corporation itself owns the real estate as an
entity, not the individual stockholders .
Q2. A landowner has negotiated with a neighbor to obtain the permanent right
to pass over the northern part of the neighbor's land to gain access to the river.
He pays the neighbor $9,000 and receives a deed. This is an easement:
• A) In gross
• B) By necessity
• C) Appurtenant
• D) By prescription
An appurtenant easement attaches to the land and benefits the dominant estate
(the property needing access). It runs with the land and transfers automatically
,when the property is sold. The deed indicates a formal, paid-for, permanent access
right, which is characteristic of an appurtenant easement rather than an easement
in gross .
Q3. Real property can be converted to personal property by:
• A) Annexation
• B) Severance
• C) Accretion
• D) Avulsion
Severance is the process of detaching an item from real property, converting it into
personal property. Examples include cutting down a tree or removing a fixture.
Annexation does the opposite (personal→real). Accretion and avulsion refer to
changes in land due to water movement .
Q4. Timeshare ownership programs MOST often use which of the following
ownership forms?
• A) Joint tenancy
• B) Tenancy in common
• C) Tenancy by the entirety
• D) Severalty
Tenancy in common is most commonly used for timeshare programs because it
allows multiple owners to hold fractional interests, each with the right to use the
property during a specific period. This form of ownership also allows owners to sell
or transfer their interest independently .
Q5. Two lots of the same size are sold on a street. The lot on the corner sells for
$20,000 more than the lot in the middle of the street. Which characteristic
MOST likely explains the price difference?
• A) Accretion
, • B) Avulsion
• C) Situs
• D) Plottage
Situs refers to a property's location and its perceived desirability based on
surrounding amenities, accessibility, and convenience. A corner lot often has
higher value due to better access, visibility, and potentially more usable space
despite having the same dimensions as an interior lot .
Q6. An easement can be terminated by:
• A) Condemnation
• B) Prescription
• C) Escheat
• D) Eminent domain
An easement can be terminated by prescription when the owner of the servient
estate (the land burdened by the easement) uses the property in a way that is
hostile, open, continuous, and exclusive for the statutory period, effectively
extinguishing the easement rights .
Q7. A deed restriction is applicable to the activities of:
• A) The current owner only
• B) The original grantor only
• C) All owners, present and future
• D) Tenants only
Deed restrictions, also known as restrictive covenants, run with the land. This
means they bind all subsequent owners of the property, not just the original
grantee. Violations can be enforced by neighboring property owners who benefit
from the restriction .
Q8. Which of the following is a freehold estate?
, • A) Fee simple absolute
• B) Estate for years
• C) Periodic tenancy
• D) Tenancy at will
Fee simple absolute is the highest form of freehold estate, offering the owner
complete ownership rights for an indefinite duration. The other options are
leasehold estates (non-freehold), which are temporary and do not involve
ownership of the land itself.
Q9. The distinguishing characteristic of joint tenancy is the right of:
• A) Severalty
• B) Survivorship
• C) Partition
• D) Inheritance
The right of survivorship (jus accrescendi) is the defining feature of joint tenancy.
When one joint tenant dies, their interest automatically passes to the surviving
joint tenants, not to their heirs through probate. The four unities (time, title,
interest, possession) are also required to create a joint tenancy.
Q10. If a property owner dies intestate (without a will), ownership of their real
property will pass according to:
• A) Federal law
• B) State laws of descent and distribution
• C) The local zoning ordinance
• D) The terms of their mortgage
When a person dies without a valid will (intestate), state intestacy laws determine
how their real property is distributed among surviving heirs. These laws vary by
