PSI Questions and Answers Latest

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PSI Questions and Answers | Latest Version | 2025/2026 | Correct & Verified

What is the main purpose of a deed?

• To assess property taxes
• To outline loan terms

✔✔ C. To transfer ownership

• To secure a mortgage

Which type of lease automatically renews until proper notice is given?✔✔ A. Periodic tenancy

• Estate for years
• Net lease
• Ground lease

A buyer asks an agent about the racial makeup of a neighborhood. What should the agent do?

• Answer based on personal knowledge
• Share local demographic reports

✔✔ C. Refer the buyer to third-party sources 1 / 4

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• Give an estimate

Which of the following is an example of functional obsolescence?

• A leaky roof

✔✔ B. A house with no indoor plumbing

• A home near a busy airport
• A cracked foundation

Who holds legal title in a land contract until it's paid off?✔✔ A. The seller

• The buyer
• The lender
• The escrow officer

A metes and bounds description relies heavily on:

• Street addresses

✔✔ B. Distances and directions

• Lot numbers 2 / 4

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• Zoning codes

Which of the following best defines market value?

• Price listed by seller
• Property tax value

✔✔ C. Most probable price in a competitive market

• Loan amount

What happens when a joint tenant dies?

• Ownership passes to heirs
• Title goes to the government

✔✔ C. Ownership transfers to surviving joint tenant(s)

• The property is sold automatically

A listing agent must always act in the best interest of:

• The buyer
• The lender

✔✔ C. The seller 3 / 4

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• The closing agent

What type of easement benefits a neighboring parcel of land?

• Easement in gross

✔✔ B. Appurtenant easement

• License
• Prescriptive use

An agent promises a guaranteed profit if a client buys a property. This is an example of:

• Puffing

✔✔ B. Misrepresentation

• Due diligence
• Disclosure

The first step in the appraisal process is to:

✔✔ A. Define the problem

• Conduct a site visit
• Estimate value
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