PSI Exam Content Outlines

General Exam Content Outline for Salespersons

  1. Real property characteristics, definitions, ownership, restrictions, and transfer
  2. Definitions, descriptions, and ways to hold title
  3. Elements of real and personal property (1–2)

2.         Property description and area calculations (3–7)

3.         Estates in real property (7–10)

4.         Forms of ownership, rights, interests, and obligations (10–19)

  1. Land use controls and restrictions
  2. Government controls (29–32)

2.         Private controls—non-monetary (32–33)

3.         Private controls—mortgage (deed of trust) and liens (35–37)

  1. Transfer/alienation of title to real properly
  2. Voluntary (43)

2.         Involuntary (43–45)

3.         Protections (will be covered in the new edition)

4.         Partition/severance (voluntary or involuntary) (1–2)

5.         Deeds and warranties: validity, types, and covenants (45–50)

  1. Title and title insurance (51–53)
  2. Property valuation
  3. Principles, types, and estimates of properly value

1.         Valuation definition, purpose, and process (65–68)

2.         Characteristics (67–68)

3.         Valuation principles (66–67)

4.         Approaches to value (69–75)

5.         Depreciation/obsolescence (75–76)

  1. Appraisals and fair market value (65)

7.         Math calculations (69–74)

  1. Influences on property value (67–68)

9.         Competitive Market Analysis (CMA) (70)

  1. Investment analysis
  2. Application of principles (78–84)

2.         Math calculations (78–84)

  1. Contracts and relationships with buyers and sellers
  2. Contract elements
  3. Validity (98–99)

2.         Void/voidable (100–101)

3.         Enforceable/unenforceable (Statute of Frauds) (99–100)

4.         Executory/executed (97–98)

B.        Listing contracts

  1. General purpose/definition of listing (111–112)
  2. Types (112–113)

3.         Required elements (113–114)

  1. Establishing listing price (113)
  2. Responsibilities (111–112)
  3. Compensation arrangement (113)
  4. Buyer Representation Agreements
  5. General purpose (113)
  6. Types (113)
  7. Required elements (113–114)
  8. Responsibilities (111–112)
  9. Compensation arrangement (113)
  10. Sales contracts
  11. Terminology (111–112)

2.         Procedures (113–114)

3.         Standard parts (113–114)

  1. Contingencies and misc. provisions (113–114)
  2. Contractual rights and obligations (111–112)

6.         Disputes and dispute resolution terms (103–104)

7.         Delivery and acceptance (101–102)

  1. Option contracts (102)
  2. Agency relationships and responsibilities
  3. Types of relationships—definitions (106–108)
  4. Relationship powers and obligations (109–110)
  5. Property conditions and disclosures
  6. Federal environmental regulations
  7. Lead-based paint (116)

2.         CERCLA (116–117)

3.         Asbestos (116)

4.         Wetlands and flood plains (118)

  1. Environmental issues
  2. Mold (116)

2.         Radon (116)

  1. Protected species (will be covered in the new edition)

4.         Other (116–118)

  1. Material and other property disclosures (115)
  2. Risk management
  3. Types of insurance
  4. General Liability (194)

2.         Errors and Omissions (195)

3.         Hazard and Flood (118, 195)

4.         Other insurance (194–196)

  1. Record keeping
  2. Contracts (198)
  3. Accounting (199)

3.         Other important documents (199)

  1. Privacy, security, and confidentiality
  2. Security measures and controls (will be covered in the new edition)

2.         Systems and programs (will be covered in the new edition)

3.         Electronic communication and social media (will be covered in the new edition)

  1. Personal safety (will be covered in the new edition)
  2. Scope of expertise (201)
  3. Federal laws governing real estate activities
  4. Anti-Discrimination/Fair Housing Acts

1.         Protected Classes (138)

  1. Advertising (132)
  2. Enforcement/penalties (132–140)
  3. Americans with Disabilities Act (ADA) (136)
  4. Restraint of Trade (Sherman Act, etc.) (131)
  5. Lending (Regulation Z, etc.) (138–139)
  6. Privacy (Privacy Act, etc.) (will be covered in the new edition)

F.         Marketing

  1. Real Estate Settlement Procedures Act (RESPA) (140–141)
  2. Do Not Call (132)
  3. Other regulations that apply (132–141)
  4. Financing the transaction and settlement
  5. Financing components
  6. Financing instruments (153)

2.         Financing sources (primary and secondary mortgage markets, seller financing) (153–154, 169–170)

  1. Types of loans (158–161)

4.         Financing clauses, terminology, and cost of money (calculation) (161–164)

5.         Lending issues (170–171)

  1. Lender requirements and obligations
  2. Private mortgage insurance (PMI) (161–162)

2.         FHA requirements (166–167, 169)

3.         VA requirements (167–169)

4.         Escrow/impound account (164)

  1. Credit report (will be covered in the new edition)

6.         Assumption requirements (162)

7.         Appraisal requirements (65)

8.         Hazard and flood insurance (118, 195)

9.         Federal financing and credit regulation (166)

  1. Settlement/Closing
  2. Procedures and forms (171–173)

2.         Closing costs and calculations (215–222)

3.         Documents, title, and recording (173–174)

  1. Leases, rents, and property management
  2. Types and elements of leases

1.         Leasehold estates (186–187)

2.         Types of leases (187–188)

3.         Lease clauses and provisions (188–190)

  1. Lessor and lessee rights, responsibilities, liabilities, and recourse
  2. Owned and leased inclusions (115)

2.         Reversionary rights of owners (191–193)

3.         Unit-related disclosures (115–119)

4.         Effect of sale/transfer/foreclosure (191)

5.         Evictions (190)

6.         Tenant improvements (189)

7.         Termination of a lease (190–191, 193)

  1. Breach (190)

9.         Security deposit guidelines and procedures (191)

  1. Property management contracts and obligations of parties
  2. Contracts and contractual relationships (187–188)

2.         Manager’s obligations, duties, and liabilities (185–186)

3.         Owner’s obligations, duties, and liabilities (185)

4.         Management/owner math calculations (215–226)

  1. Brokerage operations
  2. Trust Accounts
  3. Earnest money (196–198)

2.         Commingling (197)

3.         Conversion of funds (197)

  1. Advertising (201–202)
  2. Forms of business ownership
  3. Corporation (16)

2.         Partnership (general and limited) (13–15)

  1. Limited liability company (16)

4.         Sole proprietorship (will be covered in the new edition)

  1. Independent contractors vs. employee (200)
  2. Ethical and legal business practices
  3. Misrepresentation issues (100–101, 110)
  4. Implied duty of good faith (97, 110, 196)
  5. Due diligence (78)
  6. Unauthorized practice of law (202–203)