PSI Cheat Sheet 2026

The 30 highest-yield PSI facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A developer gives permission to a local power company to put in transmission lines. This right demonstrates _______. → conditional use permit
2. A managing broker is accountable for _____. → all real estate activities of salespersons
3. What identification is typically required at a PSI testing center? → One or two forms of valid, unexpired government-issued photo identification
4. Appraiser independence requirements under federal law prohibit: → A mortgage lender's loan production staff from selecting or pressuring appraisers
5. A landlord enters a tenant's apartment without notice to make a non-emergency repair. This could constitute: → Breach of the covenant of quiet enjoyment
6. What is a biweekly mortgage's main benefit? → quicker loan repayment
7. Usury laws were made to protect the: → borrower
8. In the income approach, net operating income (NOI) is calculated as: → Effective gross income minus operating expenses (excluding debt service)
9. What is the key distinction between a tenant at will and a tenant at sufferance? → A tenant at will has the landlord's permission to stay; a tenant at sufferance does not
10. A contract is _____ when one party fails to fulfill a condition. → breached
11. All of these are important parts of a contract, except: → competent grantor
12. In contract law, what is the term for the value (such as money, services, or a promise) that each party gives to the other to make an agreement legally binding? → Consideration
13. Most of the time, a competitive market analysis is used to _____. → setting a listing price
14. Direct capitalization converts a single year's income into a value estimate by: → Dividing NOI by the overall capitalization rate
15. Which of the following requires a covered employee to consent to a pay cut so that the money can be used to pay for medical costs? → Flexible Spending Account (FSA)
16. General property taxes on real estate that pay for government operations are called: → ad valorem taxes
17. What is the primary purpose of a property management agreement? → To define the scope of the manager's authority and responsibilities
18. This life insurance policy protects the insured against death for the rest of his or her life, but premiums are not paid for the whole time. → 20-pay life
19. Which of the following is a fraternal benefit society? → provides life insurance benefits to its members
20. In the sales comparison approach, an upward adjustment is made to a comparable sale when: → The comparable is inferior to the subject property in that feature
21. When a buyer gives a seller a purchase-money mortgage and the seller take it back: → the terms and conditions of the mortgage must be set forth in writing
22. Which of the following is an example of an involuntary alienation of real property? → Losing property through foreclosure
23. Generally, speaking, only which of the following types of injuries are covered by short-term disability insurance? → Non-work-related injuries
24. How much is the annual real estate tax on a $135,000 property assessed at $47,250 with an equalization factor of 125% and a 2.5% tax rate? → $1,477
25. Effective gross income (EGI) is defined as: → Potential gross income minus vacancy and collection loss, plus other income
26. What is remote proctoring offered by PSI? → The ability to take exams from home or office with a live proctor monitoring via webcam
27. A debtor's real and personal property is affected by this lien: → General
28. An encumbrance that makes property security for the repayment of a debt is called a: → Lien
29. A property manager who collects rents and security deposits must keep these funds in a: → Trust account separate from operating funds
30. The Uniform Standards of Professional Appraisal Practice (USPAP) are developed and interpreted by: → The Appraisal Standards Board of The Appraisal Foundation