Step2Study

National Real Estate Exam (PSI) practice questions

205 free questions with answers and explanations.

Practice test
  1. 151.A business owner sells his warehouse to an investor for cash and, as part of the same transaction, signs an agreement to lease the warehouse back from the investor so the business can continue operating in the space. This type of arrangement is known as a:Contracts
  2. 152.A buyer pays a seller $5,000 in option consideration for a 6-month option to purchase a property for $250,000, with the option money to be credited toward the purchase price if exercised. If the buyer exercises the option on time, how much additional money must the buyer pay at closing to complete the purchase?Contracts
  3. 153.A seller signs a 60-day listing agreement for a single-family home. Thirty days into the listing, the home is completely destroyed by a fire before any offer is accepted. What is the legal effect on the listing agreement?General Principles of Agency
  4. 154.A tenant signs a five-year graduated lease for retail space. Rent is $1,800 per month for the first two years, increases by $200 per month for years three and four, and increases by an additional $300 per month for year five. What is the tenant's total rent obligation over the entire five-year lease term?Contracts
  5. 155.A broker's trust account, which holds multiple clients' earnest money deposits, earns monthly interest from the bank. According to standard trust account handling rules, what should the broker do with this interest?Practice of Real Estate
  6. 156.A large brokerage firm represents both the buyer and the seller in the same transaction, but instead of one agent representing both parties, the firm assigns one salesperson to represent the seller exclusively and a different salesperson to represent the buyer exclusively, with each owing full fiduciary duties only to their own client. What is this arrangement called?General Principles of Agency
  7. 157.An adjustable-rate mortgage (ARM) has a margin of 2.75% and is tied to an index currently at 3.5%. What is the fully indexed interest rate?Financing
  8. 158.An investor purchases a property for $160,000. The property appreciates at a rate of 4% per year, compounded annually. What is the property's value at the end of 2 years?Real Estate Calculations
  9. 159.A developer plans to fill in a wetland area on a parcel to build a shopping center. Which federal law and permitting agency primarily govern this activity?Land Use Controls and Regulations
  10. 160.A buyer obtains a $240,000 loan and is charged 1.5 discount points by the lender. How much will the buyer pay for these points at closing?Real Estate Calculations
  11. 161.A property owner is going abroad for two years and grants a trusted friend broad power of attorney to manage all of the owner's business affairs, including buying, selling, and leasing real estate. What type of agency has been created?General Principles of Agency
  12. 162.A grantor wants to convey whatever interest she may have in a property to clear up a boundary dispute, without making any promises about the quality of her title. Which deed should she use?Transfer of Title
  13. 163.A seller sends a buyer a written offer to sell a property for $400,000, stating the offer 'will remain open for 10 days.' No option consideration is paid by the buyer. Two days later, before the buyer accepts, the seller sells the property to a third party and immediately notifies the buyer in writing that the offer is withdrawn. Is the seller's revocation effective?Contracts
  14. 164.A property sells for $415,000. Total commission is 6%, split 50/50 between the listing and selling brokerages. The listing agent gets 60% of the listing brokerage's share, and the selling agent gets 70% of the selling brokerage's share. How much more does the selling agent earn than the listing agent?Real Estate Calculations
  15. 165.A developer leases a vacant parcel of land from its owner for 50 years, intending to construct a shopping center on the site at the developer's own expense. What type of lease arrangement is this?Contracts
  16. 166.An agent tells a homeowner that property values will decline because a minority family recently moved into the neighborhood, urging the homeowner to sell quickly. This is an example of:Practice of Real Estate
  17. 167.A buyer purchases a unit in a residential building that is legally organized as a cooperative. What does the buyer actually receive as their ownership interest?Property Ownership
  18. 168.A home is valued at $400,000. The buyer already has a first mortgage of $280,000 and wants to take out a second mortgage (HELOC). If the lender allows a maximum combined loan-to-value (CLTV) of 80%, what is the maximum amount of the second mortgage?Real Estate Calculations
  19. 169.A buyer purchases an owner's title insurance policy at closing. Which statement best describes the protection this policy provides?Transfer of Title
  20. 170.A property sells for $340,000 with a total commission rate of 5.5%, split 50/50 between the two brokerages. The listing agent receives 70% of the listing brokerage's share. How much commission does the listing agent receive?Real Estate Calculations
  21. 171.A tenant who is deaf requests that her landlord allow her to keep a hearing-assistance dog in a 'no pets' apartment building. Under the Fair Housing Act, this request is best characterized as a request for:Practice of Real Estate
  22. 172.A homeowner hires a real estate broker solely to sell one specific property. The broker has no authority to handle any of the owner's other business or property matters. What type of agency relationship is this?General Principles of Agency
  23. 173.A developer sells lots and, as part of the financing arrangement, appoints the lender's agent to also collect payments and release deeds, giving that agent a personal financial interest in the property itself as security for a debt. Even if the developer later tries to cancel this arrangement, it cannot be revoked unilaterally. What type of agency is this?General Principles of Agency
  24. 174.A buyer and seller have both fully performed all obligations under a real estate purchase contract, including closing and transfer of title. This contract is now classified as:Contracts
  25. 175.An appraiser is valuing a property using the sales comparison approach. They have identified three comparable sales. Comparable A sold for $320,000 with a superior garage (worth $10,000) but an inferior kitchen (worth -$5,000). Comparable B sold for $310,000 with an inferior lot size (worth -$8,000) and an inferior patio (worth -$2,000). Comparable C sold for $330,000 with a superior view (worth $15,000) and a superior fireplace (worth $3,000). What is the adjusted sales price for Comparable B?Valuation and Market Analysis
  26. 176.A commercial property has an annual potential gross income of $150,000. It is estimated to have a 5% vacancy and collection loss. Operating expenses for the year are projected to be $45,000. What is the property's Net Operating Income (NOI)?Valuation and Market Analysis
  27. 177.A buyer is interested in purchasing a property that is significantly larger and more luxurious than other homes in the immediate neighborhood. An appraiser conducting a valuation for this property would likely apply which principle of value due to the surrounding, less valuable homes?Valuation and Market Analysis
  28. 178.Which of the following scenarios best exemplifies the Principle of Contribution in real estate valuation?Valuation and Market Analysis
  29. 179.A newly constructed home is located in a neighborhood where most of the surrounding homes are 30-40 years old and feature outdated architectural styles and smaller floor plans. The new home's value may be negatively impacted by the older homes around it. This situation is an example of which type of depreciation?Valuation and Market Analysis
  30. 180.A real estate agent is preparing a Comparative Market Analysis (CMA) for a seller. They have identified three comparable properties that recently sold. Which of the following factors is MOST likely to require an upward adjustment to the comparable property's sales price when comparing it to the subject property?Valuation and Market Analysis
  31. 181.A developer plans to build a 150-unit apartment complex on a parcel of land. The developer projects a net operating income (NOI) of $1,200,000 per year from the completed complex. If a potential investor typically seeks a capitalization rate of 8% for similar investments, what is the estimated value of the apartment complex using the income capitalization approach?Valuation and Market Analysis
  32. 182.An appraiser is tasked with valuing a vacant lot that is zoned for commercial development. There are no recent sales of identical vacant commercial lots in the immediate area. However, there are numerous sales of improved commercial properties nearby. Which appraisal method would be most appropriate for valuing this vacant lot?Valuation and Market Analysis
  33. 183.A buyer is evaluating two similar income-producing properties. Property X has a higher Gross Rent Multiplier (GRM) than Property Y. Assuming all other factors are equal, what does this typically indicate about Property X compared to Property Y?Valuation and Market Analysis
  34. 184.An appraiser determines that a residential property suffers from 'curable physical deterioration' due to a worn-out roof that needs replacement. In the cost approach, how would the appraiser typically account for this type of depreciation?Valuation and Market Analysis
  35. 185.A real estate agent is preparing a Comparative Market Analysis (CMA) for a seller. They have identified three comparable properties that recently sold. Which of the following factors is generally adjusted LAST when comparing properties in a CMA?Valuation and Market Analysis
  36. 186.A homeowner is considering selling their property, which is located next to a newly approved municipal landfill. The presence of the landfill is expected to negatively impact property values in the immediate vicinity. This situation best illustrates which principle of value?Valuation and Market Analysis
  37. 187.An appraiser is using the cost approach to value a unique, historic church property. Given the age and specialized construction of the building, which method of estimating construction costs would be MOST appropriate for the appraiser to use?Valuation and Market Analysis
  38. 188.An appraiser is valuing a single-family home using the cost approach. The estimated cost to rebuild the home today is $300,000. The land value is $75,000. The appraiser estimates that the total accrued depreciation is 15% of the replacement cost. What is the estimated value of the property using the cost approach?Valuation and Market Analysis
  39. 189.A homeowner installs a luxurious, custom-built swimming pool in their backyard, spending $100,000. Similar homes in the neighborhood without pools typically sell for $400,000, while similar homes with standard pools sell for $420,000. After the installation, the appraiser estimates the home's value increased by only $15,000 due to the pool. This scenario best illustrates which principle of value?Valuation and Market Analysis
  40. 190.What is the primary purpose of reconciliation in the appraisal process?Valuation and Market Analysis
  41. 191.A tenant is leasing a commercial property under a triple net (NNN) lease. Which of the following expenses would the tenant MOST LIKELY be solely responsible for under this type of agreement?Leasing and Property Management
  42. 192.A landlord and tenant agree to a lease where the rent for the initial year is $1,200 per month, with a 3% increase scheduled for the start of the second year, and another 3% increase for the third year. What type of lease is this?Leasing and Property Management
  43. 193.A landlord owns a multi-unit apartment building and wants to ensure that all common areas, such as hallways, lobbies, and laundry rooms, are regularly cleaned and maintained. Which of the following clauses would typically be included in tenant leases to cover the costs associated with these services?Leasing and Property Management
  44. 194.A tenant's lease for a commercial property states that the tenant is responsible for paying property taxes, insurance, and maintenance costs in addition to the base rent. What type of leasehold is this?Leasing and Property Management
  45. 195.A landlord wishes to evict a tenant for non-payment of rent. Before filing an unlawful detainer action, the landlord must typically provide the tenant with a formal notice to pay rent or quit. What is the primary purpose of this notice?Leasing and Property Management
  46. 196.A landlord and tenant agree to a lease for a fixed term of one year. The lease specifies an exact start and end date and contains no provisions for automatic renewal. This type of leasehold estate is known as a(n):Leasing and Property Management
  47. 197.A property manager is compiling a budget for an apartment building. Which of the following would be classified as a variable expense?Leasing and Property Management
  48. 198.A tenant signs a lease for a retail space in a shopping mall. The lease agreement stipulates a base rent of $2,000 per month, plus an additional 5% of gross sales exceeding $50,000 per month. What is the total rent due for a month in which the tenant generates $80,000 in gross sales?Leasing and Property Management
  49. 199.A landlord has a tenant whose lease expired three months ago, but the tenant continues to occupy the property and pay rent, which the landlord accepts without a new written agreement. This situation is BEST described as a(n):Leasing and Property Management
  50. 200.A homeowner, while cleaning out their garage, permanently attaches a new, custom-built workbench to the concrete floor using anchor bolts. The workbench was specifically designed for the space and is difficult to remove without causing damage. Later, the homeowner sells the property. What is the most likely classification of this workbench?Property Ownership