PSI Study Guide 2026
Everything you need to pass the PSI exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 PSI Exam Format at a Glance
📚 PSI Topics to Study (21)
✍️ Sample PSI Questions & Answers
1. A couple advertised their house with a broker. The sale ended when the seller found a buyer after two months. The seller did not have to pay the broker a commission. This listing was probably:
In an exclusive agency listing, the seller grants one broker the exclusive right to sell the property, but the seller retains the right to find a buyer themselves without owing a commission to the broker. If the seller finds the buyer, as in this scenario, no commission is paid. This differs from an exclusive right to sell listing, where the broker earns a commission regardless of who finds the buyer.
2. Depreciation, defined as a decrease in value from any cause, is usually classified into three categories. The loss of a property's value due to normal wear and tear is called ______.
Physical deterioration is the loss of value that comes from the wear and tear that buildings go through as they age. Floods, earthquakes, fire, UV rays, wind, etc. can cause physical damage.
3. Which of the following actions would constitute a breach of the agent's duty of disclosure?
An agent has a duty to disclose all known material facts that could affect a buyer's decision; concealing a structural defect is a breach of that duty.
4. Which of the following criteria must be met by a policy in order to AVOID being labeled as a MEC?
The 7-Pay Test is a crucial criterion used to determine if a life insurance policy is classified as a Modified Endowment Contract (MEC). If the cumulative premiums paid into a policy during its first seven years exceed the 'seven-pay limit' (the amount that would have paid up the policy in seven years), it becomes a MEC, which alters its tax treatment for withdrawals and loans.
5. The Civil Rights Act of 1866 forbids discrimination of any kind based on:
The Civil Rights Act of 1866 was a landmark federal law that specifically prohibits discrimination based on race in all real estate transactions. It declared that all persons born in the U.S. were citizens and had the same rights as white citizens, including the right to own, purchase, lease, sell, hold, and convey real and personal property. This act is foundational in combating racial discrimination in housing.
6. What is the term for an easement that benefits one parcel of land and burdens another?
An easement appurtenant attaches to and benefits a dominant estate, while burdening a servient estate, and transfers with the land.