PSI NATIONAL EXAM FOR REAL ESTATE EXAM
2026 WITH 100% ACCURATE ANSWERS
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
Precise Answer ✔✔a contract
Antitrust laws prohibit competing brokers from all of the following - Precise Answer ✔✔1.
boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will probably be shared by - Precise
Answer ✔✔all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - Precise Answer ✔✔a suicide
that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - Precise Answer ✔✔a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? - Precise Answer
✔✔Under no circumstances
The real estate broker who is listing a house for sale should personally verify - Precise Answer
✔✔the number of square feet in the building
Real property can be converted to personal property by - Precise Answer ✔✔Severance
Prospective buyers made an offer on a property. The seller did NOT accept, but made a
counteroffer. The
prospective buyers signed the counteroffer and the real estate agent delivered their
acceptance to the seller.
In the interim, the same buyers had found another house that they liked better and made an
offer on it, which was accepted. Which of the following is TRUE? - Precise Answer ✔✔Both
contracts are valid
Although states make specific laws governing water rights and the rights in land that borders
water, most states
generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed
with property. In others, all water rights are controlled by the state under the doctrine of -
Precise Answer ✔✔prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is to - Precise
Answer ✔✔provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
,15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - Precise Answer ✔✔$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to - Precise Answer ✔✔demand immediate payment of the entire note
The FHA functions MOST like - Precise Answer ✔✔an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - Precise Answer ✔✔discount points
When land is conveyed to a trustee, the trustee may - Precise Answer ✔✔do whatever is
permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if - Precise Answer ✔✔the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the
agreement may be unenforceable because - Precise Answer ✔✔the agreement does not comply
with the Statute of Frauds
Earnest money should be deposited into a trust account - Precise Answer ✔✔in a timely
manner, according to state laws
A deed restriction is applicable to the activities of - Precise Answer ✔✔all owners, present and
future
An easement can be terminated by - Precise Answer ✔✔prescription
Depreciation is calculated based on the - Precise Answer ✔✔cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a single-family
residence? - Precise Answer ✔✔Market data
A seller mentions to his agent that the previous owners of his property may have dumped
hazardous waste on the site. Under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - Precise Answer ✔✔Seller
The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to - Precise Answer ✔✔IRS
,A broker supplies the financing for a project to build condominiums with the stipulation that he
has the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship? - Precise Answer ✔✔Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month? - Precise Answer ✔✔$1,150
Usury laws were enacted to protect the - Precise Answer ✔✔borrower
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend.
The agent should - Precise Answer ✔✔tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be - Precise Answer ✔✔breached
Which of the following is NOT a consideration in the definition of market value? - Precise
Answer ✔✔Buyer and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest in dual
representation is - Precise Answer ✔✔allowing a broker to designate separate salespeople
within the company as legal representatives of each of the clients.
Ownership of common stock in a corporation gives - Precise Answer ✔✔an interest that is
classified as personal property
At the closing on June 15, the buyer is assuming a mortgage presently on the property, on
which the monthly interest charge
is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage,
what is the adjustment
made at closing? - Precise Answer ✔✔Debit seller $300; credit buyer $300
Too much leverage may result in - Precise Answer ✔✔negative cash flow
A major reason for buying and owning a condominium rather than a detached single-family
home is that - Precise Answer ✔✔a condominium tends to be more affordable
An adjustable rate loan should include all of the following elements - Precise Answer ✔✔1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following - Precise
Answer ✔✔1. loan fees.
2 .the origination fee.
3. the annual percentage rate
, A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an
automatic renewal clause. The couple plans to move out at the end of the lease rather than
renew it. How much notice MUST they give to comply with
the lease term? - Precise Answer ✔✔No notice is required
The relationship in which the agent is placed in the position of trust and confidence to the
principal is known by the term - Precise Answer ✔✔fiduciary
A couple are moving to a new city. They have decided to rent temporarily before buying a
house to see which part of the city
they would like to live in. What type of lease would BEST suit the couple's needs? - Precise
Answer ✔✔Month-to-month lease
A broker says, while showing a rural property, "This property has the world's purest well water."
This would be an example of - Precise Answer ✔✔an expression of opinion, or puffing, which
could lead to misrepresentation
A contract has been drawn which obliges the sellers to convey title to their land to the buyers if
the buyers come up with
$22,000 on or before December 31st. This is called - Precise Answer ✔✔an option contract
Errors and Omissions insurance covers the broker for - Precise Answer ✔✔unintentional
misrepresentations
The land description T3N, R4W Principal Meridian refers to what method of property
description? - Precise Answer ✔✔Rectangular survey.
All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT - Precise Answer ✔✔straight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What
is the adjustment made at closing? - Precise Answer ✔✔Credit buyer $110,000; debit seller
$110,000
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is - Precise Answer ✔✔an agent to the broker and a subagent to the principal.
The amount of commission to be paid is - Precise Answer ✔✔agreed upon by the seller and
agent on the contract.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than - Precise Answer ✔✔$250,000
An odorless, radioactive gas that can cause cancer - Precise Answer ✔✔Radon
The document used in a real estate sale that establishes the legal rights of the buyer and seller
2026 WITH 100% ACCURATE ANSWERS
A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called -
Precise Answer ✔✔a contract
Antitrust laws prohibit competing brokers from all of the following - Precise Answer ✔✔1.
boycotting other brokers in the marketplace.
2. dividing the market to restrict competition.
3. agreeing to set sales commissions and management rates.
When a sewer line is installed down a rural road, the cost will probably be shared by - Precise
Answer ✔✔all current owners of real estate fronting on that road
State laws differ on whether a buyer is entitled to know about - Precise Answer ✔✔a suicide
that occurred in the house last year.
A lawsuit for inverse condemnation may be brought by - Precise Answer ✔✔a homeowner
When is racial discrimination in the rental of rooms or apartments permitted? - Precise Answer
✔✔Under no circumstances
The real estate broker who is listing a house for sale should personally verify - Precise Answer
✔✔the number of square feet in the building
Real property can be converted to personal property by - Precise Answer ✔✔Severance
Prospective buyers made an offer on a property. The seller did NOT accept, but made a
counteroffer. The
prospective buyers signed the counteroffer and the real estate agent delivered their
acceptance to the seller.
In the interim, the same buyers had found another house that they liked better and made an
offer on it, which was accepted. Which of the following is TRUE? - Precise Answer ✔✔Both
contracts are valid
Although states make specific laws governing water rights and the rights in land that borders
water, most states
generally follow one of two basic doctrines regarding water rights. In many states, the common
law doctrine of riparian and littoral rights dictates that water rights are automatically conveyed
with property. In others, all water rights are controlled by the state under the doctrine of -
Precise Answer ✔✔prior appropriation
The purpose of requiring an earnest money deposit in a real estate sales contract is to - Precise
Answer ✔✔provide evidence of the buyer's intention to carry out the contract.
A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for
,15 years at 5 1/2%
or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly
payments for these two loans?
(BE SURE TO USE THE AMORTIZATION TABLE.) - Precise Answer ✔✔$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This
permits the lender to - Precise Answer ✔✔demand immediate payment of the entire note
The FHA functions MOST like - Precise Answer ✔✔an insurance company
1. They are used to buy down interest rate.
2. They are a function of the marketplace.
3. They are paid by either the buyer or the seller. - Precise Answer ✔✔discount points
When land is conveyed to a trustee, the trustee may - Precise Answer ✔✔do whatever is
permitted under the trust agreement
A prospective buyer made an offer to purchase a property. The owner responded with a
counteroffer. While the buyer
was reviewing the counteroffer, the owner received a better offer. The owner can accept the
second offer if - Precise Answer ✔✔the owner withdraws the counteroffer before it is accepted.
While an agent is showing a listed property, the seller and the buyer enter into an oral
agreement for the purchase of the home. If a dispute over the terms arises later, the
agreement may be unenforceable because - Precise Answer ✔✔the agreement does not comply
with the Statute of Frauds
Earnest money should be deposited into a trust account - Precise Answer ✔✔in a timely
manner, according to state laws
A deed restriction is applicable to the activities of - Precise Answer ✔✔all owners, present and
future
An easement can be terminated by - Precise Answer ✔✔prescription
Depreciation is calculated based on the - Precise Answer ✔✔cost of the building only
Which of the following approaches MOST reliably estimates the sales price of a single-family
residence? - Precise Answer ✔✔Market data
A seller mentions to his agent that the previous owners of his property may have dumped
hazardous waste on the site. Under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), who is liable for damages from
the dumping prior to the sale of the property? - Precise Answer ✔✔Seller
The escrow officer or closing agent MUST give information regarding the sales price and seller's
social security number to - Precise Answer ✔✔IRS
,A broker supplies the financing for a project to build condominiums with the stipulation that he
has the exclusive right to sell the completed condos. Which of the following BEST describes this
relationship? - Precise Answer ✔✔Agency coupled with an interest
If you own a building free and clear that is worth $115,000 and want an annual return of 12%,
what net income is needed each month? - Precise Answer ✔✔$1,150
Usury laws were enacted to protect the - Precise Answer ✔✔borrower
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend.
The agent should - Precise Answer ✔✔tell potential buyers about the parties
When one of the parties to an agreement fails to perform one of its conditions, that contract is
deemed to be - Precise Answer ✔✔breached
Which of the following is NOT a consideration in the definition of market value? - Precise
Answer ✔✔Buyer and seller must agree to appraised value
One common method for controlling the problems created by conflict of interest in dual
representation is - Precise Answer ✔✔allowing a broker to designate separate salespeople
within the company as legal representatives of each of the clients.
Ownership of common stock in a corporation gives - Precise Answer ✔✔an interest that is
classified as personal property
At the closing on June 15, the buyer is assuming a mortgage presently on the property, on
which the monthly interest charge
is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage,
what is the adjustment
made at closing? - Precise Answer ✔✔Debit seller $300; credit buyer $300
Too much leverage may result in - Precise Answer ✔✔negative cash flow
A major reason for buying and owning a condominium rather than a detached single-family
home is that - Precise Answer ✔✔a condominium tends to be more affordable
An adjustable rate loan should include all of the following elements - Precise Answer ✔✔1.
margin
2. life-of-the-loan cap
3. index
Regulation Z requires that the borrower be fully informed of all of the following - Precise
Answer ✔✔1. loan fees.
2 .the origination fee.
3. the annual percentage rate
, A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an
automatic renewal clause. The couple plans to move out at the end of the lease rather than
renew it. How much notice MUST they give to comply with
the lease term? - Precise Answer ✔✔No notice is required
The relationship in which the agent is placed in the position of trust and confidence to the
principal is known by the term - Precise Answer ✔✔fiduciary
A couple are moving to a new city. They have decided to rent temporarily before buying a
house to see which part of the city
they would like to live in. What type of lease would BEST suit the couple's needs? - Precise
Answer ✔✔Month-to-month lease
A broker says, while showing a rural property, "This property has the world's purest well water."
This would be an example of - Precise Answer ✔✔an expression of opinion, or puffing, which
could lead to misrepresentation
A contract has been drawn which obliges the sellers to convey title to their land to the buyers if
the buyers come up with
$22,000 on or before December 31st. This is called - Precise Answer ✔✔an option contract
Errors and Omissions insurance covers the broker for - Precise Answer ✔✔unintentional
misrepresentations
The land description T3N, R4W Principal Meridian refers to what method of property
description? - Precise Answer ✔✔Rectangular survey.
All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT - Precise Answer ✔✔straight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What
is the adjustment made at closing? - Precise Answer ✔✔Credit buyer $110,000; debit seller
$110,000
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is - Precise Answer ✔✔an agent to the broker and a subagent to the principal.
The amount of commission to be paid is - Precise Answer ✔✔agreed upon by the seller and
agent on the contract.
An appraiser MUST be licensed or certified to handle Federally related work on residential
property valued at more than - Precise Answer ✔✔$250,000
An odorless, radioactive gas that can cause cancer - Precise Answer ✔✔Radon
The document used in a real estate sale that establishes the legal rights of the buyer and seller
