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PSI National Exam for Real Estate Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of zoning laws in real estate?✔✔ To regulate land use and promote orderly development
When a buyer signs an offer and the seller agrees without changes, what has occurred?✔✔ A binding contract has been formed
What does the term "fiduciary duty" refer to in a real estate relationship?✔✔ An agent’s obligation to act in the client’s best interest
What is the legal document that transfers property ownership from seller to buyer?✔✔ A deed
What type of property is not considered real property?✔✔ A movable shed
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What is the purpose of a title search in a real estate transaction?✔✔ To verify the legal ownership and check for liens
Who typically pays for the title insurance policy for the lender?✔✔ The buyer
What happens when a lease expires and the tenant stays without the landlord’s consent?✔✔ The tenant is considered a holdover tenant
What is the term for land plus improvements and the legal rights to the land?✔✔ Real estate
What is the role of escrow in a real estate transaction?✔✔ To hold funds and documents until closing conditions are met
What is the process of estimating a property’s market value?✔✔ Appraisal
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What does the term “eminent domain” mean?✔✔ The government’s right to take private land for public use with compensation
What is required to create a legally binding real estate contract?✔✔ Offer, acceptance, consideration, and competent parties
What is the purpose of earnest money in a sales transaction?✔✔ To show the buyer’s good faith intention to buy
What is the term for using someone else’s property continuously and openly for a period of time to gain legal rights?✔✔ Adverse possession
What is the main function of the Real Estate Commission?✔✔ To regulate and license real estate professionals
What is a fixture in real estate?✔✔ Personal property that becomes real property when attached to land or a building 3 / 4
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What type of listing agreement pays a commission regardless of who sells the property?✔✔ Exclusive right-to-sell listing
What is a lien on real estate?✔✔ A legal claim against property for a debt
What is a short sale?✔✔ Selling a home for less than the amount owed on the mortgage
What does the term “principal” refer to in an agency relationship?✔✔ The client who authorizes the agent to act on their behalf
What does “marketable title” mean in real estate?✔✔ A title free from major defects that can be sold or transferred
What is the primary role of an appraiser?✔✔ To provide an unbiased estimate of value
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