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PSI Real Estate Salesperson Exam 1 Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the purpose of a "listing agreement" in real estate?
- To transfer ownership of the property
- To create a legally binding contract between the seller and the real estate agent
- To arrange financing for the buyer
- To finalize the sale of the property
✔✔ B) To create a legally binding contract between the seller and the real estate agent
What does "equity" in real estate refer to?
- The loan amount still owed on the property
- The difference between the property’s market value and the amount owed on it
- The amount of the property's original purchase price
- The down payment made on the property
✔✔ B) The difference between the property’s market value and the amount owed on it
Which of the following is typically considered "real property"? 1 / 4
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- A car
- A mobile home
- A condominium unit
- A refrigerator
✔✔ C) A condominium unit
What is the primary purpose of a property appraisal?
- To help the buyer negotiate a better price
- To provide an estimate of the property's market value
- To assess the property's potential for renovation
- To determine the tax amount owed on the property
✔✔ B) To provide an estimate of the property's market value
In a real estate transaction, what is an "earnest money deposit"?
- A fee charged by the listing agent
- A deposit made by the buyer to show good faith in their offer
- A portion of the seller’s proceeds from the sale
- A payment made to cover the closing costs 2 / 4
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✔✔ B) A deposit made by the buyer to show good faith in their offer
What is a "deed of trust"?
- A document that transfers the legal title of a property
- A security agreement that protects the lender in a mortgage transaction
- A contract that finalizes the sale of a property
- A document that outlines the terms of a home inspection
✔✔ B) A security agreement that protects the lender in a mortgage transaction
What does "zoning" refer to in real estate?
- The process of obtaining a mortgage for a property
- The regulation of how land can be used within specific geographic areas
- The division of land into different regions for market purposes
- The legal process of transferring property ownership
✔✔ B) The regulation of how land can be used within specific geographic areas
Which of the following is an example of "personal property" in real estate?
- A home’s built-in appliances 3 / 4
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- A free-standing refrigerator
- The land the property sits on
- A home’s foundation
✔✔ B) A free-standing refrigerator
What is a "mortgage loan originator"?
- A person who helps buyers secure financing by finding them a lender
- A real estate agent who specializes in the sale of new construction homes
- A person responsible for managing the closing process of a real estate transaction
- A lender who provides loans directly to buyers
✔✔ A) A person who helps buyers secure financing by finding them a lender
Which of the following is the main goal of the "Fair Housing Act"?
- To protect buyers from paying excessive property taxes
- To prevent discrimination based on race, color, religion, gender, or national origin in housing
- To regulate mortgage interest rates
- To help lenders secure better interest rates for buyers
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