NATIONAL REAL ESTATE SALESPERSON
EXAM 1 (PSI) QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025 Q&A | INSTANT
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1. What is the primary purpose of a deed?
A. To provide evidence of title
B. To transfer title rights in real property
C. To record ownership
D. To show the purchase price
Answer: B
A deed is a written instrument used specifically to transfer title rights from
one party to another.
,2. Which of the following is NOT an essential element of a valid contract?
A. Competent parties
B. Legal purpose
C. Earnest money deposit
D. Consideration
Answer: C
Earnest money is customary but not legally required for a valid contract.
3. A buyer wants to be sure the property has no encroachments. Which
document provides that information?
A. Title insurance policy
B. Warranty deed
C. Survey
D. Abstract of title
Answer: C
A survey shows property boundaries and reveals encroachments, if any.
4. Which of the following is an example of police power?
A. Zoning ordinances
B. Taxation
C. Eminent domain
D. Deed restrictions
Answer: A
, Police power includes the government’s right to regulate property through
zoning, building codes, etc.
5. A lease that automatically renews for another term unless notice is given
is called:
A. Tenancy for years
B. Periodic tenancy
C. Tenancy at will
D. Tenancy at sufferance
Answer: B
Periodic tenancy renews automatically for successive periods.
6. The federal Fair Housing Act does NOT prohibit discrimination based on:
A. Religion
B. Sex
C. Age
D. National origin
Answer: C
Age is not protected under the federal Fair Housing Act (except under
certain senior housing rules).
EXAM 1 (PSI) QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025 Q&A | INSTANT
DOWNLOAD PDF
1. What is the primary purpose of a deed?
A. To provide evidence of title
B. To transfer title rights in real property
C. To record ownership
D. To show the purchase price
Answer: B
A deed is a written instrument used specifically to transfer title rights from
one party to another.
,2. Which of the following is NOT an essential element of a valid contract?
A. Competent parties
B. Legal purpose
C. Earnest money deposit
D. Consideration
Answer: C
Earnest money is customary but not legally required for a valid contract.
3. A buyer wants to be sure the property has no encroachments. Which
document provides that information?
A. Title insurance policy
B. Warranty deed
C. Survey
D. Abstract of title
Answer: C
A survey shows property boundaries and reveals encroachments, if any.
4. Which of the following is an example of police power?
A. Zoning ordinances
B. Taxation
C. Eminent domain
D. Deed restrictions
Answer: A
, Police power includes the government’s right to regulate property through
zoning, building codes, etc.
5. A lease that automatically renews for another term unless notice is given
is called:
A. Tenancy for years
B. Periodic tenancy
C. Tenancy at will
D. Tenancy at sufferance
Answer: B
Periodic tenancy renews automatically for successive periods.
6. The federal Fair Housing Act does NOT prohibit discrimination based on:
A. Religion
B. Sex
C. Age
D. National origin
Answer: C
Age is not protected under the federal Fair Housing Act (except under
certain senior housing rules).
