National Real Estate Exam (PSI) practice questions
205 free questions with answers and explanations.
- 1.A home sells for $180,000. The listing brokerage earns $10,800 in commission on the sale. What commission rate was charged?Real Estate Calculations
- 2.A seller is listing a home built in 1965 for sale. Under federal law, what must the seller provide to the buyer regarding potential hazards in the home?Land Use Controls and Regulations
- 3.A buyer is purchasing a home for $250,000 and obtains a loan of $200,000. What is the loan-to-value (LTV) ratio?Financing
- 4.A buyer asks the listing agent whether anyone has died in a house the buyer is considering purchasing. The prior owner passed away from natural causes in the home two years ago. How should the agent generally respond under most state disclosure laws?Property Disclosures
- 5.A real estate ad states 'Beautiful 3BR home, $250,000' but does not include the Equal Housing Opportunity logo or slogan. Which statement is most accurate regarding this omission?Practice of Real Estate
- 6.A tenant with three years remaining on a five-year commercial lease transfers the entire remaining lease term to a new party but remains secondarily liable to the landlord if the new party defaults. This transaction is best described as:Contracts
- 7.Two unrelated investors, Sam and Priya, purchase a duplex together but Sam contributes 70% of the purchase price and Priya contributes 30%. They want ownership shares to reflect their investment and want each to be able to leave their share to heirs. Which form of ownership best fits their goals?Property Ownership
- 8.A loan applicant has a gross monthly income of $6,000 and total monthly debt obligations (including proposed housing payment) of $2,100. The lender's maximum allowable back-end debt-to-income ratio is 36%. Does the applicant meet this qualifying ratio?Financing
- 9.A seller breaches a signed purchase agreement by refusing to convey title to a unique historic property, even though the buyer is ready, willing, and able to close. What remedy would most likely allow the buyer to force the seller to complete the sale?Contracts
- 10.A deed conveys land 'to the City so long as the property is used as a public library.' If the city stops using the property as a library, what happens to title?Property Ownership
- 11.A buyer's agent is helping a client find a home. During the search, the agent discovers a property listed by their own brokerage that would earn the agent a significantly higher commission split than other comparable listings. The agent begins steering the buyer toward this listing despite it not being the best fit for the buyer's stated needs. Which fiduciary duty is the agent violating?General Principles of Agency
- 12.A land developer obtains a blanket mortgage covering five newly platted lots to finance subdivision development. The mortgage includes a partial release clause. Why is this clause essential to the developer's business plan?Financing
- 13.An owner who lives in one unit of a duplex rents out the other unit and personally decides not to rent to families with children, without using any advertising or agent assistance. Under the Federal Fair Housing Act, this situation is best described as:Practice of Real Estate
- 14.A real estate agent consistently shows homes in a particular neighborhood only to buyers of a certain race, while showing homes in other neighborhoods to buyers of different races. This practice is known as:Practice of Real Estate
- 15.A property owner tells a neighbor, in front of a potential buyer, that a certain individual is her authorized agent to sell the property, even though no formal agency agreement was ever signed with that individual. The buyer relies on this statement and negotiates with the individual as the owner's agent. If the owner later denies the agency existed, what legal doctrine would likely prevent her from doing so?General Principles of Agency
- 16.A buyer works with Agent A over several weeks, viewing multiple homes and receiving substantial guidance, but never signs a buyer representation agreement. The buyer then contacts Agent B directly, tours a home with Agent B, and ultimately submits an offer through Agent B that is accepted. Agent A claims to be the procuring cause of the sale and demands a commission. Which factor is MOST important in determining whether Agent A is entitled to a commission?General Principles of Agency
- 17.A seller and a listing broker both agree in writing to cancel their listing agreement before its expiration date, with no sale having occurred. What method of agency termination does this represent?General Principles of Agency
- 18.A buyer and seller mutually agree to cancel their signed purchase agreement and return each other to their original positions before the contract was formed, with the earnest money refunded to the buyer. This action is known as:Contracts
- 19.A trapezoidal lot has parallel sides of 200 feet and 260 feet, with a depth of 175 feet. If the land sells for $1.15 per square foot, what is the total price of the lot?Real Estate Calculations
- 20.A listing agreement expires after the home fails to sell. Two months later, the former agent runs into a friend at a social event and mentions that the former seller is getting divorced and desperately needs to sell quickly, which the friend then uses to negotiate an aggressively low offer when purchasing the home directly from the seller. Which duty has the former agent most clearly violated?General Principles of Agency
- 21.A homeowner installs custom-built bookshelves that are screwed into the wall studs, intending them to remain permanently as part of the room's design. When the home is later sold, the buyer expects the shelves to be included. How should the shelves be classified?Property Ownership
- 22.A buyer purchases a commercial property and later discovers soil contamination caused entirely by a dry-cleaning business that operated on the site decades before the buyer's ownership. Under federal environmental law, who can be held liable for cleanup costs?Land Use Controls and Regulations
- 23.A real estate ad for a rental property states, 'Perfect for a Christian family, walking distance to church.' Under the federal Fair Housing Act, this advertisement is most likely:Practice of Real Estate
- 24.A landlord refuses to rent a two-bedroom apartment to a family with three young children, stating that the unit is 'too small for kids.' Under the Federal Fair Housing Act, this refusal is most likely illegal because it discriminates based on:Practice of Real Estate
- 25.A tenant signs a commercial lease requiring a flat monthly rent that covers the base rent as well as property taxes, insurance, and maintenance, all paid by the landlord. What type of lease is this?Contracts
- 26.A seller's disclosure statement is silent about mold, but the seller previously experienced a basement flood that caused visible mold growth, which was later painted over. The seller says nothing to the buyer. What is the most accurate statement about this situation?Property Disclosures
- 27.A tenant leasing retail space transfers only the back storage room of the leased premises to another business for the remaining lease term, while the tenant continues occupying and paying rent on the rest of the space. What has the tenant created?Contracts
- 28.A homeowner wants to build a garage that would extend 5 feet into the required side-yard setback under current zoning. What must the homeowner obtain from the zoning board to proceed?Land Use Controls and Regulations
- 29.Under the federal Fair Housing Act, which of the following is a protected class?Practice of Real Estate
- 30.A homeowner in a subdivision governed by recorded restrictive covenants builds a fence that violates the height limit stated in the covenants. The local government has no zoning rule about fence height. Who has the legal standing to enforce the covenant?Land Use Controls and Regulations
- 31.A city council rezones a single lot in the middle of an established residential block to allow a gas station, benefiting only that lot's owner and with no relation to a broader zoning plan. This action is most likely an example of:Land Use Controls and Regulations
- 32.A property owner discovers that someone forged her signature on a deed and then sold the property to an innocent third-party buyer who paid full value and had no knowledge of the forgery. What is the legal status of the title held by the innocent buyer?Transfer of Title
- 33.A broker keeps a small amount of personal funds in the trust account solely to cover bank service charges and avoid the account dropping below the minimum balance required by the bank. This practice is generally:Practice of Real Estate
- 34.A synagogue owns rental housing and, in accordance with its bylaws, gives preference to members of the Jewish faith when renting available units. Under the federal Fair Housing Act, this practice is:Practice of Real Estate
- 35.A triangular lot has a base of 150 feet and a height of 80 feet. If the land sells for $2.50 per square foot, what is the total price of the lot?Real Estate Calculations
- 36.A 55-and-older community wishes to legally restrict residency to seniors under the Housing for Older Persons Act (HOPA) exemption. Which requirement must it meet?Practice of Real Estate
- 37.A landlord gives a tenant a right of first refusal on an adjacent parcel the landlord owns. What must occur before the tenant can exercise this right?Contracts
- 38.A broker uses funds from the trust account to pay for a personal vacation, intending to replace the money before the client notices. This act is best classified as:Practice of Real Estate
- 39.A seller who listed a home for sale dies unexpectedly before closing on an accepted offer. What is the effect on the listing agreement?General Principles of Agency
- 40.A qualified veteran wants to purchase a home using a VA-guaranteed loan. What is a key advantage of this loan program compared to a conventional loan?Financing
- 41.A listing agent secretly helps the buyer negotiate a lower purchase price and shares confidential seller information with the buyer, all without the seller's knowledge. The seller believes the agent is working exclusively on their behalf. This situation is an example of:General Principles of Agency
- 42.During a showing, a buyer directly asks the seller's listing agent whether the basement has ever flooded. The agent knows it flooded twice last year but says nothing, hoping the buyer won't ask again. Which duty owed to the buyer, a non-client third party, has the agent violated?General Principles of Agency
- 43.A borrower defaults on a loan secured by a deed of trust that grants the trustee 'power of sale.' Because of this clause, the lender can foreclose without filing a lawsuit. What type of foreclosure process is this?Financing
- 44.For a deed to transfer legal title from grantor to grantee, which two actions must both occur, beyond simply signing the document?Transfer of Title
- 45.A contractor begins construction work on a home addition on March 1. The homeowner obtains a new mortgage that is recorded on March 15. After a payment dispute, the contractor records a mechanic's lien on June 1. Which lien has priority?Property Ownership
- 46.A lender forecloses judicially on a defaulted borrower. The property sells at the foreclosure sale for $180,000, but the borrower still owed $210,000 on the note. The court grants the lender a personal judgment against the borrower for the $30,000 shortfall. What is this court order called?Financing
- 47.A grantor executes a deed stating: 'To Bob for life, then to Carla and her heirs.' Bob later dies. What best describes Carla's interest and what happens to the property at Bob's death?Property Ownership
- 48.A buyer records her deed on Monday. On Tuesday, a second buyer who had no knowledge of the first sale records a deed to the same property from the same seller. The jurisdiction follows a race-notice recording statute. Who has priority?Transfer of Title
- 49.A tenant pays rent monthly with no specified lease termination date. The tenancy automatically continues from month to month until either party gives proper notice to terminate. What type of leasehold estate is this?Property Ownership
- 50.A seller lists a property with Broker A under an exclusive-agency listing agreement. Before the listing expires, the seller finds a buyer entirely on their own, without help from any broker. What commission, if any, is owed to Broker A?Contracts