PSI NATIONAL REAL ESTATE EXAM WITH 125+ REALISTIC PRACTICE QUESTIONS & DETAILED RATIONALES (2026 EDITION)

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PSI Real Estate National Exam 2026|PSI

NATIONAL REAL ESTATE EXAM PREP

TESTBANK|500+Qs&As|A+GRADE

1. Which of the following is considered a "freehold estate"?

 A) Estate for years

 B) Periodic tenancy

 C) Fee simple absolute

 D) Tenancy at will

 Answer: C

 Rationale: Freehold estates are ownership interests of

indefinite duration. Fee simple absolute is the highest form

of ownership. Leasehold estates (estate for years, periodic

tenancy, tenancy at will) are non-freehold.

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2. A property owner grants a neighbor the right to use a

pathway across their land. This is an example of a(n):

 A) Easement appurtenant

 B) Easement in gross

 C) License

 D) Encroachment

 Answer: A

 Rationale: An easement appurtenant benefits a specific

parcel of land (the dominant estate) and runs with the land.

It transfers automatically with the property.

3. Which of the following is a "police power" used by local

governments to regulate land use?

 A) Eminent domain

 B) Zoning ordinances

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 C) Taxation

 D) Escheat

 Answer: B

 Rationale: Police power is the government's right to enact

laws to protect public health, safety, and welfare. Zoning,

building codes, and subdivision regulations are examples.

4. Scenario: A developer buys a parcel of land with a deed

restriction that prohibits any commercial use. After 15 years,

the developer wants to build a retail store. The neighbor has

not enforced the restriction. Can the developer proceed?

 A) Yes, because the restriction expired after 10 years

 B) No, because deed restrictions run with the land and can

be enforced by any affected property owner

 C) Yes, because the neighbor abandoned the right

 D) No, but the developer can petition the zoning board

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 Answer: B

 Rationale: Deed restrictions (private covenants) are

perpetual unless a termination date is stated.

Non-enforcement does not automatically void the restriction.

5. The legal concept of "littoral rights" applies to ownership of

property adjacent to:

 A) A river

 B) A stream

 C) A lake or ocean (non-flowing water)

 D) An underground aquifer

 Answer: C

 Rationale: Littoral rights apply to still water (lakes, seas).

Riparian rights apply to flowing water (rivers, streams).