National PSI Exam Practice Test

1

National PSI Exam Practice Test Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

A seller signs a listing agreement giving only one broker the right to sell, but the seller can also find a buyer independently and not owe a commission. What kind of listing is this?

• Open listing
• Exclusive right to sell

✔✔ C. Exclusive agency

• Net listing

Which of the following actions would terminate an offer?

• Counteroffer
• Lapse of time
• Revocation

✔✔ D. All of the above

A real estate agent receives two offers at the same time. One is higher than the other. What must the agent do? 1 / 4

2

• Present the higher offer only
• Reject the lower offer

✔✔ C. Present both offers to the seller

• Choose the one they think the seller prefers

What is the purpose of earnest money?

• To pay for inspections
• To cover down payment

✔✔ C. To show the buyer's good faith

• To pay the commission

A licensee exaggerates the benefits of a property without intent to deceive. This is an example

of:

• Fraud

✔✔ B. Puffing

• Misrepresentation
• Breach of duty
• / 4

3

Which document transfers ownership of real property?

• Lease
• Deed of trust
• Mortgage

✔✔ D. Deed

When a loan payment includes principal, interest, taxes, and insurance, it is called a:

• Interest-only loan
• Balloon mortgage

✔✔ C. PITI loan

• Reverse mortgage

Zoning laws are primarily established to:

• Raise property taxes
• Control inflation

✔✔ C. Promote public health and safety

• Reduce development costs
• / 4

4

Which type of lien takes priority over all others?

• Judgment lien
• Mechanic’s lien

✔✔ C. Property tax lien

• Mortgage lien

What is the most common type of deed used in residential real estate?

• Quitclaim deed
• Bargain and sale deed

✔✔ C. General warranty deed

• Special warranty deed

A property manager’s primary duty is to:

• Buy properties for the owner

✔✔ B. Protect the owner’s investment

• Refinance the building
• Sell the building
• / 4