PSI EXAM TEST PREP QUESTIONS & ANSWERS 2024 ( A+
GRADED 100% VERIFIED)
1. A homeowner 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
for the right of access and receives a deed.
This is an easement: appurtenant
2. A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant
paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?: Tenancy at
will
3. The main difference between tenancy in common and joint tenancy is that with tenancy in
common, when a co-owner dies,: his undivided interest passes to his heirs
4. 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. Either
riparian and littoral rights are automatically conveyed with property, or all water rights are
controlled by the state under the doctrine of prior appropriation. The doctrine of prior
appropriation is MOST likely to be followed in states where: water is scarce
5. A legal easement can be created by any of the following EXCEPT: merger of the titles
6. Legal descriptions using the government survey system are NOT generally used in: the original
13 states
7. Real property can be converted to personal property by: severance
8. A lawsuit for inverse condemnation may be brought by: homeowner
9. Building codes are: ordinances that specify construction standards
10. A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store?: Conditional use permit or zoning variance.
11. An environmental impact statement typically describes the effects of a proposed project on
factors such as: public health and safety.
12. A deed restriction is applicable to the activities of: all owners, present and future
13. A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of: economic or external obsolescence.
14. A competitive market analysis is MOST often used fo: setting a listing price.
15. 15. When compiling a competitive market analysis, a broker would look for comparable
properties that: were located near the property being listed.
16. If all other factors are equal, in which location is a parking lot likely to bring the highest sales
price?: Business district zoned for a six-story office building.
17. A formal appraisal will ALWAYS be REQUIRED when the: lender wants to sell the mortgage
to the secondary market.
18. A competitive market analysis takes into consideration: square footage of the subject property.
19. Three identical homes in a neighborhood were listed at the same time in a market where
demand was constant. According to the law of supply and demand, which would have sold
for the lowest price?: The first sold.
1/5
, 20. A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest: a competitive market analysis to determine the property's value.
21. In helping a buyer to select a lender, if the buyer believes he has good credit and his income is
documentable as a salary and by tax returns, the licensee might recommend a mortgage
banker, instead of a mortgage broker, for all of the following reasons EXCEPT: more variety
of loan programs available.
22. A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause.
This permits the lender to: demand immediate payment of the entire note.
23. ccording 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: prepayment penalties and rebates.
24. Federal Truth-in-Lending laws are also known as: Regulation Z
25. Which of the following consumers would be able to derive the most benefit from a reverse
mortgage?: A couple in their late 60?s who need to tap their home equity to help cover their
expenses but do not want to sell their house.
26. The FHA functions MOST like: an insurance company.
27. Which of the following real estate contracts is a service contract?: a listing agreement
28. A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is: an agent to the broker and a subagent to the principal.
29. The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked for
the key to show the home. The broker should inform the caller that: he is no longer the listing
agent.
30. When a principal authorizes an agent to perform a particular act or transaction, it is an
example of a: special agency.
31. A realty firm has just entered into an agreement to represent a home builder in the sale of a
new subdivision. The firm has located several potential buyers and five homes have been sold
to purchasers that the firm's agents have contacted. The realty firm has an agency
relationship with: the builder.
32. 32. A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer if
the seller turns down the offer. When presenting the offer, the broker should: tell the seller
that the buyer will pay more.
33. Even after an offer has been accepted and is binding, the buyer and seller may still choose
to sign mutual release papers rather than proceed to closing. Which of the following
circumstances would NOT give either party a justifiable reason to insist on a mutual release?: The
buyer finds a better property for better terms.
34. To what party or parties does the broker owe the fiduciary duty of care?: the party or
parties employing the broker
35. An agency relationship between a property owner and a property manager is usually
created by: a management agreement.
36. Under the common law of agency, licensees owe the broker with whom they are associated
all of the following duties EXCEPT: indemnification
2/5
GRADED 100% VERIFIED)
1. A homeowner 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
for the right of access and receives a deed.
This is an easement: appurtenant
2. A tenant rented an apartment, signing a 15-month lease. After the lease expired, the tenant
paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?: Tenancy at
will
3. The main difference between tenancy in common and joint tenancy is that with tenancy in
common, when a co-owner dies,: his undivided interest passes to his heirs
4. 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. Either
riparian and littoral rights are automatically conveyed with property, or all water rights are
controlled by the state under the doctrine of prior appropriation. The doctrine of prior
appropriation is MOST likely to be followed in states where: water is scarce
5. A legal easement can be created by any of the following EXCEPT: merger of the titles
6. Legal descriptions using the government survey system are NOT generally used in: the original
13 states
7. Real property can be converted to personal property by: severance
8. A lawsuit for inverse condemnation may be brought by: homeowner
9. Building codes are: ordinances that specify construction standards
10. A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store?: Conditional use permit or zoning variance.
11. An environmental impact statement typically describes the effects of a proposed project on
factors such as: public health and safety.
12. A deed restriction is applicable to the activities of: all owners, present and future
13. A commercial property lost value because a recently constructed highway moved traffic
away from the property. This is an example of: economic or external obsolescence.
14. A competitive market analysis is MOST often used fo: setting a listing price.
15. 15. When compiling a competitive market analysis, a broker would look for comparable
properties that: were located near the property being listed.
16. If all other factors are equal, in which location is a parking lot likely to bring the highest sales
price?: Business district zoned for a six-story office building.
17. A formal appraisal will ALWAYS be REQUIRED when the: lender wants to sell the mortgage
to the secondary market.
18. A competitive market analysis takes into consideration: square footage of the subject property.
19. Three identical homes in a neighborhood were listed at the same time in a market where
demand was constant. According to the law of supply and demand, which would have sold
for the lowest price?: The first sold.
1/5
, 20. A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest: a competitive market analysis to determine the property's value.
21. In helping a buyer to select a lender, if the buyer believes he has good credit and his income is
documentable as a salary and by tax returns, the licensee might recommend a mortgage
banker, instead of a mortgage broker, for all of the following reasons EXCEPT: more variety
of loan programs available.
22. A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause.
This permits the lender to: demand immediate payment of the entire note.
23. ccording 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: prepayment penalties and rebates.
24. Federal Truth-in-Lending laws are also known as: Regulation Z
25. Which of the following consumers would be able to derive the most benefit from a reverse
mortgage?: A couple in their late 60?s who need to tap their home equity to help cover their
expenses but do not want to sell their house.
26. The FHA functions MOST like: an insurance company.
27. Which of the following real estate contracts is a service contract?: a listing agreement
28. A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is: an agent to the broker and a subagent to the principal.
29. The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked for
the key to show the home. The broker should inform the caller that: he is no longer the listing
agent.
30. When a principal authorizes an agent to perform a particular act or transaction, it is an
example of a: special agency.
31. A realty firm has just entered into an agreement to represent a home builder in the sale of a
new subdivision. The firm has located several potential buyers and five homes have been sold
to purchasers that the firm's agents have contacted. The realty firm has an agency
relationship with: the builder.
32. 32. A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer if
the seller turns down the offer. When presenting the offer, the broker should: tell the seller
that the buyer will pay more.
33. Even after an offer has been accepted and is binding, the buyer and seller may still choose
to sign mutual release papers rather than proceed to closing. Which of the following
circumstances would NOT give either party a justifiable reason to insist on a mutual release?: The
buyer finds a better property for better terms.
34. To what party or parties does the broker owe the fiduciary duty of care?: the party or
parties employing the broker
35. An agency relationship between a property owner and a property manager is usually
created by: a management agreement.
36. Under the common law of agency, licensees owe the broker with whom they are associated
all of the following duties EXCEPT: indemnification
2/5
