PSI National Exam for Real Estate:
COMPILED FINAL EXAMS *Q&A* (100%
Correct) 2024/2025/2026 |VERIFIED|
An agency relationship between a property owner and a property manager is typically established
through a management agreement. management agreement
On January 15, a seller pays $960 in property taxes for the current year. The closing for the house sale is
set for March 1. What will be the seller's credit for the already paid property taxes, assuming the buyer is
responsible for the closing day? Use a 360-day year and 30-day months. $800
Which of the following is typically not prorated during closing? Special tax assessments
Which of the following is usually prorated at closing? 1. Homeowners association fees. 2. Property
taxes. 3. Transferred homeowner's insurance.
In most states, foreclosed properties are typically sold through a public auction. public auction
A commercial property’s value decreased because a newly built highway redirected traffic away from it.
This is an example of economic or external obsolescence. economic or external obsolescence
A managing broker is responsible for overseeing all real estate activities conducted by their salespeople.
all real estate activities of salespersons.
What is the term for the person or entity that acts as an intermediary to help obtain financing?
Mortgage broker
According to the Truth-in-Lending Act, if any "trigger terms" appear in an advertisement, the following
disclosures must also be included: 1. cash price or loan amount 2. required down payment 3.
number, amount, and frequency of payments
1
,In an exclusive right-to-sell listing agreement, how many brokers are involved in listing the property?
One
If a seller informs the listing agent that their home was treated for termites 10 years ago and no termites
are present now, the agent should advise the seller to disclose the termite treatment on the property
disclosure. tell the seller to disclose the termite treatment on the property disclosure
When a principal authorizes an agent to complete a specific task or transaction, it is referred to as a
special agency. special agency
The day after a broker’s listing on a property expired, the property was relisted with another broker and
offered in the MLS. A few days later, a third agent requested the key to show the property. The first
broker should inform the agent that they are no longer the listing agent. he is no longer the listing
agent
If a deed contains conditions for purchase and these conditions are violated, the penalty is the return of
the property to the original owner. Return of the property to the original owner
Which statement applies to both special assessments and ad valorem taxes? Delinquent payment
is grounds for sale of property
Why was the Jones v. Mayer decision of 1968 significant? By affirming the Civil Rights Act of 1866,
the Supreme Court eliminated all exceptions to racial discrimination in housing.
An Environmental Impact Statement (EIS) assesses the potential environmental effects of a proposed
project. projects the impact on the environment of a proposed project.
Which of the following best represents the purpose of a buffer zone? Garden apartments situated
between a residential neighborhood and a shopping center.
When a broker introduces a ready, willing, and able buyer to a seller, the broker typically earns a
commission when the seller accepts the offer. the seller accepts the offer
2
,What is the rule-of-thumb method for an investor who is told that a property renting for $900 per month
should be worth approximately $90,000? GRM
Once a judgment has been officially recorded, any subsequent buyers, whether they examine the record
or not, are considered to have received constructive notice. constructive notice
When a property owner uses their home as collateral for a loan, a lien is created in favor of the lender,
and the title is held by the mortgagor. mortgagor
If a buyer wants to make their purchase contingent on a complex mortgage arrangement, the buyer’s
agent should recommend that the buyer consult with a lawyer to ensure the proper wording in the
contract. suggest the buyer ask a lawyer to furnish the wording
The practice of inducing panic selling in a neighborhood for financial gain is known as blockbusting.
blockbusting
A real estate contract for a property intended for an illegal whiskey operation was terminated due to the
impossibility of performance. impossibility of performance
The sellers have agreed to offer the buyer a carpet allowance of $19.95 per square yard for the carpet
and $5 per square yard for the pad and installation. If the family room measures 22'6" x 15', the total
cost to the sellers will be $935.63. $935.63
The Department of Housing and Urban Development warns that most private homes built before 1978
may contain hazardous lead levels. As a result, certain Federal agencies, such as FHA, require the buyer
to acknowledge any known lead paint presence. require the buyer to acknowledge disclosure of
the presence of any known lead paint
A tenant signed a 15-month lease and, after its expiration, paid a month's rent and received a receipt.
What type of leasehold does the tenant have? Holdover tenancy
How does a creditor with a judgment get satisfaction from a debtor who refuses to pay? Writ of
execution
3
, Timeshare ownership programs typically use which of the following types of ownership? tenancy
in common
Every real estate transaction must include a legal description of the property. In most cases, the legal
description used should be the same as the one from previous transfers, verified by a surveyor.
the same one used in prior transfers of the parcel, verified by a surveyor
A landowner wants to build a grocery store in a residentially zoned area. The most likely way to get
permission would be through a conditional use permit or zoning variance. Conditional use permit
or zoning variance
An Environmental Impact Statement usually describes how a proposed project will affect factors such as
public health and safety. public health and safety
In states with water scarcity, the doctrine of prior appropriation is more likely to be followed regarding
water rights. water is scarce
When multiple approaches to valuing a property produce different results, how should the final value
estimate be determined? Reconciliation
When preparing a market data estimate of property value, essential adjustments include the sale date,
square footage, and location of comparables. 1. the date of sale of the comparables 2. the
amount of square footage 3. the location of the property
Where is a parking lot most likely to fetch the highest sale price? business district zoned for a six-
story office building
Parcels A, B, and C are owned by different people and valued at $20,000, $27,000, and $16,000,
respectively, for a total of $63,000. A developer believes that if the parcels are combined, their value
would be $85,000, showing an increase in value of $22,000. This demonstrates the principle of plottage.
plottage
4
