PSI NATIONAL EXAM FOR REAL ESTATE
EXAM WITH CORRECT ACTUAL QUESTIONS
AND CORRECTLY WELL DEFINED ANSWERS
LATEST 2025-2026 ALREADY GRADED A+
If the cost of repairs is greater than the resulting increase in value, then we say
the depreciation is - ANSWERS-incurable
Which method of determining value is generally the best one and the most
used? - ANSWERS-Sales Comparison
True or False
The Sales Comparison Approach is not normally used for properties not sold on
the open market
such as churches. - ANSWERS-True
,The principle which states that the difference in value between two similar
properties is attributed
to the location of the land is - ANSWERS-surplus productivity
When depreciating a property you would normally depreciate - ANSWERS-the
building only
The four determinants of value are - ANSWERS-demand, utility scarcity,
transferability
The type of depreciation which is NEVER curable is called - ANSWERS-external
When appraising a special purpose building such as a school or church, the
appraiser would most
likely have to use which approach to value? - ANSWERS-Cost
The gross adjustment is an indication of: - ANSWERS-how good a comparable is.
The process by which the value is derived when using two different approaches
to value is called - ANSWERS-reconciliation
When appraising an older house for which there are no comparables to be
found, what method
,would you most likely use? - ANSWERS-replacement cost
The real estate broker who is listing a house for sale should personally verify -
ANSWERS-the number of square feet in the building
Real property can be converted to personal property by - ANSWERS-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? -
ANSWERS-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 - ANSWERS-prior
appropriation
The purpose of requiring an earnest money deposit in a real estate sales
contract is to - ANSWERS-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.) - ANSWERS-$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERS-demand immediate
payment of the entire note
The FHA functions MOST like - ANSWERS-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. - ANSWERS-discount points
When land is conveyed to a trustee, the trustee may - ANSWERS-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
EXAM WITH CORRECT ACTUAL QUESTIONS
AND CORRECTLY WELL DEFINED ANSWERS
LATEST 2025-2026 ALREADY GRADED A+
If the cost of repairs is greater than the resulting increase in value, then we say
the depreciation is - ANSWERS-incurable
Which method of determining value is generally the best one and the most
used? - ANSWERS-Sales Comparison
True or False
The Sales Comparison Approach is not normally used for properties not sold on
the open market
such as churches. - ANSWERS-True
,The principle which states that the difference in value between two similar
properties is attributed
to the location of the land is - ANSWERS-surplus productivity
When depreciating a property you would normally depreciate - ANSWERS-the
building only
The four determinants of value are - ANSWERS-demand, utility scarcity,
transferability
The type of depreciation which is NEVER curable is called - ANSWERS-external
When appraising a special purpose building such as a school or church, the
appraiser would most
likely have to use which approach to value? - ANSWERS-Cost
The gross adjustment is an indication of: - ANSWERS-how good a comparable is.
The process by which the value is derived when using two different approaches
to value is called - ANSWERS-reconciliation
When appraising an older house for which there are no comparables to be
found, what method
,would you most likely use? - ANSWERS-replacement cost
The real estate broker who is listing a house for sale should personally verify -
ANSWERS-the number of square feet in the building
Real property can be converted to personal property by - ANSWERS-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? -
ANSWERS-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 - ANSWERS-prior
appropriation
The purpose of requiring an earnest money deposit in a real estate sales
contract is to - ANSWERS-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.) - ANSWERS-$409.20.
A borrower has defaulted on the mortgage. The mortgage contains an
acceleration clause. This permits the lender to - ANSWERS-demand immediate
payment of the entire note
The FHA functions MOST like - ANSWERS-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. - ANSWERS-discount points
When land is conveyed to a trustee, the trustee may - ANSWERS-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
