PSI National Real Estate Exam
PSI NATIONAL REAL ESTATE EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |BRAND NEW VERSION!!
A developer intends to subdivide a large parcel of land and is in the process of
land planning. He has determined the geographic boundaries of the individual lots
and how the streets as the development will be signed to give access to each lot,
when can he begin to list this property?
1. after he records prescriptive easements for lots that have no street frontage
2. When local authorities grant him a conditional use permit allowing residential
construction
3. When he has submitted his plat map to local authorities, received approval, and
recorded it
4. Immediately, as long as the current zoning ordinance permits the residential
use he is planning
3. When he has submitted his plat map to local authorities, received approval, and
recorded it
Title insurance has allowed for more accessible loans for buyers. This is because:
1. Lender policies can add exemption to the owner's policy.
2. It reduces the risk of loss due to buyer default.
3. It reduces the risk of loss due to title defects.
4. Lender policies are paid for by buyers
3. It reduces the risk of loss due to title defects.
Which of the following statements is true regarding an option agreement?
1. The buyer must purchase the property at some future time.
2. The buyer is given the privilege of occupying the property.
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, PSI National Real Estate Exam
3. The seller agrees to sell at a fixed price within a stipulated time.
4. Any payments are refunded should the buyer fail to perform on the agreement.
3. The seller agrees to sell at a fixed price within a stipulated time.
What does the mortgage lender most often rely on when deciding how much is
safe to lend on a parcel of real estate?
1. market analysis
2. sales contract
3. appraisal report
4. assessor's determination
3. appraisal report
The lead paint addendum that must be presented with the purchase and sales
contract for certain older homes will:
1. require the removal of all lead paint prior to the closing.
2. provide the buyer with the opportunity to wave the right to a lead paint
inspection.
3. mandate the sellers remove any lead paint only on interior walls.
4. make the sellers liable of the buyer's lead related medical problems
2. provide the buyer with the opportunity to wave the right to a lead paint
inspection.
Zoning ordinances are typically established by:
1. the federal government
2. state governments
3. town and city governments
4. the courts
3. town and city governments
2|Page
, PSI National Real Estate Exam
A motel is the subject of an appraisal and it is determined that a rerouting of a
country highway has limited customer access to the motel. This is an example of:
1. economic obsolescence
2. regression
3. functional obsolescence
4. landlocked property
1. economic obsolescence
The sellers have listed their property for sale because they are its a difficult
financial situation and would like to get the house sold quickly. If one of the other
sellers in the area ask why that client is selling, the listing agent should respond by
explaining what:
1. are motivated
2. need a quick sale
3. are looking to sell their house
4. are in a difficult financial situation
3. are looking to sell their house
Quality Supermarkets has taken occupancy of a retail building and has a long term
lease. As part of the their fit-up, they bolt to the floor their meat and dairy
coolers, and shelves. When Quality Supermarket vacates the property at the end
of the lease, will Quality Supermarkets be legally entitled to remove these
fixtures?
1. no, because they are trade fixtures
2. yes, because they are appurtenances
3. no, because they are bolted to the floor
4. yes, if removed prior to the end of the lease
1. no, because they are trade fixtures
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PSI NATIONAL REAL ESTATE EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |BRAND NEW VERSION!!
A developer intends to subdivide a large parcel of land and is in the process of
land planning. He has determined the geographic boundaries of the individual lots
and how the streets as the development will be signed to give access to each lot,
when can he begin to list this property?
1. after he records prescriptive easements for lots that have no street frontage
2. When local authorities grant him a conditional use permit allowing residential
construction
3. When he has submitted his plat map to local authorities, received approval, and
recorded it
4. Immediately, as long as the current zoning ordinance permits the residential
use he is planning
3. When he has submitted his plat map to local authorities, received approval, and
recorded it
Title insurance has allowed for more accessible loans for buyers. This is because:
1. Lender policies can add exemption to the owner's policy.
2. It reduces the risk of loss due to buyer default.
3. It reduces the risk of loss due to title defects.
4. Lender policies are paid for by buyers
3. It reduces the risk of loss due to title defects.
Which of the following statements is true regarding an option agreement?
1. The buyer must purchase the property at some future time.
2. The buyer is given the privilege of occupying the property.
1|Page
, PSI National Real Estate Exam
3. The seller agrees to sell at a fixed price within a stipulated time.
4. Any payments are refunded should the buyer fail to perform on the agreement.
3. The seller agrees to sell at a fixed price within a stipulated time.
What does the mortgage lender most often rely on when deciding how much is
safe to lend on a parcel of real estate?
1. market analysis
2. sales contract
3. appraisal report
4. assessor's determination
3. appraisal report
The lead paint addendum that must be presented with the purchase and sales
contract for certain older homes will:
1. require the removal of all lead paint prior to the closing.
2. provide the buyer with the opportunity to wave the right to a lead paint
inspection.
3. mandate the sellers remove any lead paint only on interior walls.
4. make the sellers liable of the buyer's lead related medical problems
2. provide the buyer with the opportunity to wave the right to a lead paint
inspection.
Zoning ordinances are typically established by:
1. the federal government
2. state governments
3. town and city governments
4. the courts
3. town and city governments
2|Page
, PSI National Real Estate Exam
A motel is the subject of an appraisal and it is determined that a rerouting of a
country highway has limited customer access to the motel. This is an example of:
1. economic obsolescence
2. regression
3. functional obsolescence
4. landlocked property
1. economic obsolescence
The sellers have listed their property for sale because they are its a difficult
financial situation and would like to get the house sold quickly. If one of the other
sellers in the area ask why that client is selling, the listing agent should respond by
explaining what:
1. are motivated
2. need a quick sale
3. are looking to sell their house
4. are in a difficult financial situation
3. are looking to sell their house
Quality Supermarkets has taken occupancy of a retail building and has a long term
lease. As part of the their fit-up, they bolt to the floor their meat and dairy
coolers, and shelves. When Quality Supermarket vacates the property at the end
of the lease, will Quality Supermarkets be legally entitled to remove these
fixtures?
1. no, because they are trade fixtures
2. yes, because they are appurtenances
3. no, because they are bolted to the floor
4. yes, if removed prior to the end of the lease
1. no, because they are trade fixtures
3|Page
