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PSI Exam (Long & Foster, MD) 2026 Exam
Questions with correct solutions
The difference between the market value of the property and the amount still owed is the homeowner's: Equity
1. a benefit that goes along with ownership of a property and transfers to the new owner when
the property is sold.: Appurtenance
2. Anything man-made that is built onto a property is a(n): Improvement
3. the business of bringing people together in a real estate transaction: Prior Appropriation
4. The process where land is gained by deposits from a river, lake or sea is: Accession
5. The process of changing real property into personal property is: Severance
6. Alexandra owns property along the banks of a river. Her property line would be determined
by the legal concept of: Riparian Rights
7. All of the following are economic characteristics of real property except:
a. Permanence of Investment.
b. Immobility
c. Scarcity
d. Area preference: b. Immobility
8. john rents space in a shopping center to open a restaurant. He installs a stove, dishwasher,
2 / and other restaurant equipment, which he attaches to the building. When the lease expires, he vacates the location without removing the stove and dishwasher. Which of the following is true? a. John can come back at any time and remove the stove and dishwasher.
b. The stove and dishwasher become the real property of the landlord through accession.
c.The restaurant equipment became the real property of the landlord as soon as they were
attached.
d. John can take the dishwasher, but not the stove because a stove is normally considered real property.: b.
The stove and dishwasher become the real property of the landlord through accession.
9. A local auto parts factory has expanded and hired 750 additional workers.
As far as real property in the area is concerned, this will most likely affect
a. Demand Supply
b.Demographics
c. Depreciation: a. Demand
10. Not used in Maryland. Examples would be dower, curtesy and homestead.-
: Legal Life Estate..
11. is permission to use someone else's property for a specific purpose. Can be
withdrawn at any time and does not transfer with the transfer of the property.: A License
12. The right of the government to take property for the public good or for public
usage with fair compensation is: Eminent Domain
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d. Reverter: b. Remainderman
19. Fee simple ownership of an individual unit, with a shared tenancy-in-common interest
in common elements is a: Condominium
20. is sole ownership; owned by one person only.: Severalty Under married couples
are considered equal parties, and any property acquired during the marriage is owned equally.: Community Property
21. he entire development is owned by a corporation. The owners would get a proprietary
lease to give them the right to lease a unit in that development.- : Cooperative
22. Sean and Robin are joint tenants on a property. Sean would like to sell, but Robin will
not agree to the sale of the property. A possible remedy for Sean would be a lawsuit for: Partition
23. Joint tenancy and tenancy by the entirety are not inheritable because of the: Right of
Survivorship
24. All the owners participate in the operation and management and all can be held equally
liable in a: General Partnership
25. A joint tenancy must have all of the following unities except:
a. Possession
b. Inheritability
c. Time
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d. Title: b. Inheritability
26. Which of the following is true about condominiums?
a. A defining feature is that there are multiple units in one building.
b. Owners would get a proprietary lease that gives them the right to lease a unit in that
development.
c. They must be residential.
d. Owners would normally have an undivided interest in common elements.: d. Owners would normally have
an undivided interest in common elements.
27. All of the following can be found in Maryland except:
a. Tenancy in common
b. Tenancy by the entirety
c. Community property
d. Cooperatives: c. Community property
28. The party in a deed that is selling the property or giving it away is the: Grantor
29. the legal or court process that is intended to properly allocate and distribute the assets of
a deceased individual.: Probate Someone who dies with a will is said to have died: Testate
30. General Warranty Deed offers the most protection for a: Grantee
31. When the information of an interest in a property is not only available, but someone is
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d. Further assurances: c. Devise
37. who can represent the principal in a broad range of transactions related to a particular
business: General agent
38. Nationally real estate agency relationships are governed by common law and: Statutory
Law
39. A broker guarantees a seller that when their house sells, they will get
$150,000 at closing. The broker will keep any amount of the purchase price that is above that amount as their commission. This is an example of a(n): Net Listing
40. The six common law fiduciary duties of agency are: care, obedience, loyalty, Disclosure, accounting, and
confidentiality The broker's what is earned when the seller accepts an offer from a ready, willing, and able buyer.: Commission
41. The broker is almost always responsible for all actions of the: Salesperson
42. In MD, earnest money must be deposited no later than how many business days from
contract acceptance.: seven
43. In all MD, what is the designated name/trade name (as it appears on the license)
must be used. The name of the brokerage firm must also be conspicuously displayed.: Advertising
44. An agency relationship created by the actions of the agent or client and not by
agreement is a(n):
a. Expressed agency
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b. Implied agency
c. Dual agency
d. Active agency: b. Implied agency
45. James Buchanan signs three listing agreements on the same property that will be active
at the same time. He tells each agent that he is not working with anyone else. He signs an open listing agreement with Able Real Estate, he signs an exclusive agency listing with Baker Realty, and an exclusive right-to-sell with Charlie Real Estate. What commissions would James owe if the house is sold by Able Real Estate?
a. Full commission to Able
b. Full commission to Charlie
c. Half a commission to Able and half to Charlie
d. Full commissions to Able, Baker and Charlie: d. Full commissions to Able, Baker and Charlie
46. A person who is represented is the: Client
47. A broker represents the buyer and seller in the same transaction: Customer
48. In Maryland, only the broker or broker's designee (an office manager) can be a dual
agent. In this situation the law requires that the broker appoint two persons (other than the broker) to be: Dual Agency
49. Salesperson Suzy has prepared a written offer for her client. As part of the offer, she has
included her signed brokerage agreement. This is an appropriate action for Suzy to take.
10 / the following is true?
a. If the salesperson finds a buyer client who is interested in the property, he/she must
disclose the seller's job transfer.
b. The salesperson must keep the seller's job transfer confidential, even from a buyer client.
c. The salesperson has no obligation to the seller, since the seller did not hire them.
d. The salesperson must disclose the seller's transfer to any buyer, since it is a material fact.: b. The
salesperson must keep the seller's job transfer confidential, even from a buyer client.
54. A ministerial act is one that is:
a. Performed on behalf of a client before and after the execution of a contract of sale or lease
b.Assists another (unrepresented) person to complete or fulfill a contract of sale or lease with
the client of the licensee Does not involve discretion or the exercise of the licensee's own judgement
c. All of the above: d. All of the above
55. What must be at an open house?
a. License
b. Cookies
c. Open House Disclosure Sign
d. Sign-in sheet: c. Open House Disclosure Sign
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56. Under a what is a property owner may be able to continue using a property for a usage
no longer allowed by zoning laws.: a Non-Conforming Use
57. what sets material and construction standards: Building Codes
58. In order to open a day care facility in a residential neighborhood, you need to apply for a:
Conditional Use permit
59. If a vacant property cannot be developed due to existing zoning regulations the owner
might apply for a: Variance.
60. When construction is finished on a new house a will be issued after all inspections
are completed.: Certificate of Occupancy
61. are examples of private land use controls: Covenants, Conditions and Restrictions
62. is a long term guide for development of a community.: Master Plan/Comprehensive Plan
63. might affect the maximum height of a new building.: Zoning Ordinances
64. might be used to transition from a commercial area to a residential area.: -
Butter Zones
65. is an area that is designated for mixed use purposes and is heavily regulated.: Planned Unit
Development (PUD)
66. In MD, charging interest at a rate higher than 24% on second mortgages and land
installments is called: Usury
67. The borrower is the: Mortgagor
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71. A what requires the lender to execute a release or discharge that is recorded when the
loan is paid off.: Defeasance Clause
72. A builder buys a piece of land with a first trust but then wants to obtain a
construction loan. The construction lender asks that the first trust be put in a junior position to the construction loan. If this happens it is an example of: Subordination
73. When more is owed on a property than it is likely to sell for a what
may be agreed to by the lender.: Short Sale
74. Typically 1/12 of a property's real estate taxes and insurance are paid to the bank on a
monthly basis and held in an what account: Escrow
75. what provides that if, after default but before the foreclosure sale, the borrower pays
the lender the amount in default the borrower can redeem their property.: Equitable Right of Redemption
