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PSI Colorado Real Estate |2025-2026 LATEST UPDATED|REAL EXAM
QUESTIONS AND ANSWERS | 100% RATED CORRECT | 100% VERFIED
SOLUTIONS | ALREADY GRADED A+
1. A lease that permits the landlord to increase the rent annually by a predetermined
amount
is called: a graduated lease
2. The amount of commission to be paid in a real estate transaction is determined by:
negotiation between the seller and the broker
3. If a lessor does not sign a lease with a tenant but allows her to move in and accepts
her rental payments, which of the following is true about the tenant?: She is a legal tenant.
4. Ms. Jones pays Mr. Smith $1,000 for an option to purchase a building for $150,000
within 6 months. After 2 months, Ms. Jones offers Mr. Smith a lower price forthe property.
Which of the following is true?: Mr. Smith may accept the lower offer.
5. If a prospective buyer gives a broker an offer on May 10 and allows 15 days for the
seller to accept, which of the following statements is true?: The buyer may withdraw the offer
any time prior to its acceptance.
6. A broker does not have to show that he wasthe procuring cause of a sale to earn a
commission under: an exclusive right to sell listing
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7. A contract that binds one party but not the other is referred to as: a unilateral
contract
8. Which of the following statements is true about a contract for the sale of real
estate?: It must include an offer, acceptance, and consideration.
9. If a buyer withdraws an offer to purchase before the seller accepts it, which of the
following will occur?: The broker will not receive a commission
10. A contract of sale that has been signed by the buyer and the seller, but under which
title has not yet passed, is called which of the following?: Executory 11. Under an executed
contract, which of the following statements is true?: All parties to the contract have
performed their duties under the contract. 12. A contract of sale that is based on an unlawful
purpose is: void
13. All of the following statements about real estate contracts are true EXCEPT:: A
lease signed under duress is void.
14. A lease under which the tenant pays a fixed rent during the lease and the lessor pays
all other expenses related to the rented space is a: gross lease 15. The procedure under
which a party to a contract is discharged and another party takes her place by agreement
of both parties is known as: novation
16. . Under the Statute of Frauds, a verbal lease for 6 months is: valid
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17 The clause in a contract of sale that states the buyer will forfeit the earnest money
deposit in the event of his default provides for which of the following types of damages?:
liquidated
18. Which of the following amounts equals the taxes on a house worth $92,000, if
the assessment ratio is 20 percent and the tax rate is $6 per $100 of assessed value?:
$1,104
19. Because of a drop in real estate values, a seller lost 20 percent of her purchase
price when she sold her house for $65,000. What did the house originally cost her:
$81,250
20. What is the approximate market value of a commercial building with
projected annual gross income of $84,000 if estimated operating expenses are
$38,000,the vacancy factor is 3 percent, and the capitalization rate is 10.5 percent?:
$425000
21. The cost of replacing a 2,400-square-foot house is $40 per square foot. The
house is 14 years old and had an expected life of 40 years when new. The lot has a
present value of $38,000. What is the present value of the house and lot using the cost
approach to value?: $100,400
22. Which of the following establishes a fiduciary relationship between broker
and seller?: A listing agreement
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23. A property manager is NOT responsible for: reinvesting profits from the rents
received
24. A property is being sold and closing is to take place on September 15.
Taxes for the year are $1,440. What is the seller's pro rata share of the taxes?: $1,020
25. A salesperson selling a property listed by another broker is directly under the
control of: his employing broker
26. Which of the following is true if a listing broker presents an offer to purchase
that is accepted, but the seller later refuses to close the transaction?: The seller owes
the broker a commission
27. A buyer is told by a broker that a property is served by city water at the time
that she signs a sales contract to buy it. The buyer then discovers that the water source
is actually a well and she refuses to close. In this situation, which of the following is
true?: The buyer may rescind the contract of sale.
28. A broker who has a listing contract to sell a parcel of land for an owner is
considered which of the following types of agent?: General
29. If a broker receives a commission of $9,500 on a property sale on the basis of
6 percent of the first $100,000 of the sales price and 4 percent of the remainder, what
is the sales price?: $187,500
PSI Colorado Real Estate |2025-2026 LATEST UPDATED|REAL EXAM
QUESTIONS AND ANSWERS | 100% RATED CORRECT | 100% VERFIED
SOLUTIONS | ALREADY GRADED A+
1. A lease that permits the landlord to increase the rent annually by a predetermined
amount
is called: a graduated lease
2. The amount of commission to be paid in a real estate transaction is determined by:
negotiation between the seller and the broker
3. If a lessor does not sign a lease with a tenant but allows her to move in and accepts
her rental payments, which of the following is true about the tenant?: She is a legal tenant.
4. Ms. Jones pays Mr. Smith $1,000 for an option to purchase a building for $150,000
within 6 months. After 2 months, Ms. Jones offers Mr. Smith a lower price forthe property.
Which of the following is true?: Mr. Smith may accept the lower offer.
5. If a prospective buyer gives a broker an offer on May 10 and allows 15 days for the
seller to accept, which of the following statements is true?: The buyer may withdraw the offer
any time prior to its acceptance.
6. A broker does not have to show that he wasthe procuring cause of a sale to earn a
commission under: an exclusive right to sell listing
,2|Page
7. A contract that binds one party but not the other is referred to as: a unilateral
contract
8. Which of the following statements is true about a contract for the sale of real
estate?: It must include an offer, acceptance, and consideration.
9. If a buyer withdraws an offer to purchase before the seller accepts it, which of the
following will occur?: The broker will not receive a commission
10. A contract of sale that has been signed by the buyer and the seller, but under which
title has not yet passed, is called which of the following?: Executory 11. Under an executed
contract, which of the following statements is true?: All parties to the contract have
performed their duties under the contract. 12. A contract of sale that is based on an unlawful
purpose is: void
13. All of the following statements about real estate contracts are true EXCEPT:: A
lease signed under duress is void.
14. A lease under which the tenant pays a fixed rent during the lease and the lessor pays
all other expenses related to the rented space is a: gross lease 15. The procedure under
which a party to a contract is discharged and another party takes her place by agreement
of both parties is known as: novation
16. . Under the Statute of Frauds, a verbal lease for 6 months is: valid
,3|Page
17 The clause in a contract of sale that states the buyer will forfeit the earnest money
deposit in the event of his default provides for which of the following types of damages?:
liquidated
18. Which of the following amounts equals the taxes on a house worth $92,000, if
the assessment ratio is 20 percent and the tax rate is $6 per $100 of assessed value?:
$1,104
19. Because of a drop in real estate values, a seller lost 20 percent of her purchase
price when she sold her house for $65,000. What did the house originally cost her:
$81,250
20. What is the approximate market value of a commercial building with
projected annual gross income of $84,000 if estimated operating expenses are
$38,000,the vacancy factor is 3 percent, and the capitalization rate is 10.5 percent?:
$425000
21. The cost of replacing a 2,400-square-foot house is $40 per square foot. The
house is 14 years old and had an expected life of 40 years when new. The lot has a
present value of $38,000. What is the present value of the house and lot using the cost
approach to value?: $100,400
22. Which of the following establishes a fiduciary relationship between broker
and seller?: A listing agreement
, 4|Page
23. A property manager is NOT responsible for: reinvesting profits from the rents
received
24. A property is being sold and closing is to take place on September 15.
Taxes for the year are $1,440. What is the seller's pro rata share of the taxes?: $1,020
25. A salesperson selling a property listed by another broker is directly under the
control of: his employing broker
26. Which of the following is true if a listing broker presents an offer to purchase
that is accepted, but the seller later refuses to close the transaction?: The seller owes
the broker a commission
27. A buyer is told by a broker that a property is served by city water at the time
that she signs a sales contract to buy it. The buyer then discovers that the water source
is actually a well and she refuses to close. In this situation, which of the following is
true?: The buyer may rescind the contract of sale.
28. A broker who has a listing contract to sell a parcel of land for an owner is
considered which of the following types of agent?: General
29. If a broker receives a commission of $9,500 on a property sale on the basis of
6 percent of the first $100,000 of the sales price and 4 percent of the remainder, what
is the sales price?: $187,500
