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PSI National Real Estate (Often Missed) Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of a "real estate escrow account"?
- To pay for repairs and maintenance of the property
- To hold funds or documents during the closing process
- To provide emergency funds for the buyer after closing
- To pay the agent's commission
✔✔ B) To hold funds or documents during the closing process
Which of the following would be considered a "general lien"?
- Mortgage lien
- Judgment lien
- Vendor lien
- Specific lien
✔✔ B) Judgment lien
In a "seller’s market," what typically happens to home prices? 1 / 4
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- Prices increase
- Prices decrease
- Prices remain stable
- Prices fluctuate wildly
✔✔ A) Prices increase
What is the term for a mortgage that includes both real property and personal property as collateral?
- Conventional mortgage
- Package mortgage
- Reverse mortgage
- Blanket mortgage
✔✔ B) Package mortgage
When is a "closing disclosure" required to be given to the borrower under the TILA-RESPA Integrated Disclosure (TRID) rule?
- At least 3 days before closing
- At least 5 days before closing
- The day of closing 2 / 4
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- Within 7 days of loan approval
✔✔ A) At least 3 days before closing
Which of the following is NOT a characteristic of an "agency relationship" in real estate?
- Fiduciary duty
- Confidentiality
- Conflict of interest
- Duty of loyalty
✔✔ C) Conflict of interest
What does a "mortgage broker" do?
- Lends money to borrowers
- Buys and sells real estate
- Acts as an intermediary between lenders and borrowers
- Sets interest rates for loans
✔✔ C) Acts as an intermediary between lenders and borrowers
Which of the following is an example of "economic obsolescence"? 3 / 4
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- A house with outdated appliances
- A neighborhood affected by environmental pollution
- A building with poor interior design
- A property with outdated electrical wiring
✔✔ B) A neighborhood affected by environmental pollution
What is the primary purpose of a "home inspection" in a real estate transaction?
- To negotiate the final sales price
- To determine the market value of the property
- To identify issues that could affect the property’s condition
- To arrange for the buyer’s financing
✔✔ C) To identify issues that could affect the property’s condition
Which type of ownership allows two or more individuals to own a property with the right of survivorship?
- Tenancy in common
- Joint tenancy
- Tenancy by the entirety
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