Retake Recovery Practice Set Preview

Use the diagnostic categories on your PSI score report to choose the first weak portion, then narrow by official area. A retake set should repair the reason for each miss rather than replay the same mixed mock. Answer this 5-question public preview here, then continue the complete experience in Pass Georgia.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

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Mixed recovery Contracts Agency Practice of Real Estate Property Ownership Financing Valuation Calculations Disclosures Transfer of Title Land Use Property Management State Laws and Rules Real Estate Practice in Georgia Finance and Closing

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Missing rule Georgia distinction Wording or distractor Math setup

5-question public previewNo sign-upExplanations and repair links

1 / 5Study mode: Real Estate Calculations

A jurisdiction taxes only the consideration net of an assumed loan that survives the sale. A $520,000 sale with a $195,000 assumed loan is taxed on:

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34% of the real exam is Georgia law. 52 of 152 questions.

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All 5 questions and explanations

Studying instead of taking a test? Open any question to read its choices, the answer, and the reason each option is right or wrong. The numbering matches the public set above.

For a useful score, finish the test above before opening these answers. These are original practice questions based on published topics and sources.

1. A jurisdiction taxes only the consideration net of an assumed loan that survives the sale. A $520,000 sale with a $195,000 assumed loan is taxed on:Real Estate Calculations. Open choices and explanation.

A.$715,000
B.$520,000
C.$195,000
D.$325,000

Answer D: $325,000

Subtract the surviving encumbrance from the consideration: $520,000 - $195,000 = $325,000. The assumed loan is excluded rather than taxed. Georgia's transfer tax works this way: liens existing before the sale and not removed by it are excluded.

Why each choice works or fails

A. Wrong. $715,000 adds the loan to the price.
B. Wrong. $520,000 ignores the exclusion.
C. Wrong. $195,000 taxes the excluded amount instead.
D. Correct. $520,000 less the $195,000 assumed loan.

Work it through

$520,000 - $195,000 = $325,000 taxable consideration

Rule to remember: When an assumed loan is excluded, the transfer tax base is price minus the loan that survives the sale.

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2. Paying discount points MOST benefits a borrower who:Real Estate Calculations. Open choices and explanation.

A.Expects to sell or refinance within two years
B.Wants to lower the loan's principal balance
C.Wants the lowest possible cash outlay at closing
D.Keeps the loan long enough to recover the cost

Answer D: Keeps the loan long enough to recover the cost

Points are money paid now for a lower rate over time, so there is a break-even point. A borrower who keeps the loan past it comes out ahead; one who sells or refinances first has simply paid more. Divide the cost of the points by the monthly saving to find that month.

Why each choice works or fails

A. Wrong. A short hold rarely recovers the upfront cost.
B. Wrong. Points buy a lower interest rate; they do not reduce principal.
C. Wrong. Points increase, not reduce, cash needed at closing.
D. Correct. Holding past break-even is what makes points worthwhile.

Rule to remember: Points pay off only if the loan is kept past break-even: cost of points divided by monthly saving.

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3. A seller prepaid a $1,200 annual insurance premium and closing falls exactly at the midpoint of the policy year. The buyer assumes the policy. The adjustment is:Real Estate Calculations. Open choices and explanation.

A.A $600 credit to the seller for the unused portion
B.A $1,200 credit to the seller for the full premium
C.A $600 credit to the buyer for the used portion
D.No adjustment, since insurance is not prorated

Answer A: A $600 credit to the seller for the unused portion

The seller paid for coverage she will not use, so the buyer reimburses her for the remaining half: $600 credit to the seller, debit to the buyer. Prepaid items credit the seller; items paid in arrears credit the buyer.

Why each choice works or fails

A. Correct. The unused half of a prepaid premium is reimbursed to the seller.
B. Wrong. $1,200 would repay coverage the seller already used.
C. Wrong. A buyer credit applies to an item the seller has not yet paid.
D. Wrong. A prepaid item the buyer takes over is routinely prorated.

Work it through

$1,200 / 2 = $600 unused
Seller prepaid, so credit seller $600 and debit buyer $600

Rule to remember: Prepaid items credit the seller for the unused portion; items paid in arrears credit the buyer.

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4. At closing, a buyer must bring $54,000 after an $8,500 earnest money deposit and a $2,500 lender credit have been applied. What were the buyer's total charges before those credits?Real Estate Calculations. Open choices and explanation.

A.$65,000
B.$43,000
C.$45,500
D.$62,500

Answer A: $65,000

Work backwards by adding the credits back: $54,000 + $8,500 + $2,500 = $65,000. Reversing a settlement figure is a good check, because the numbers must reconcile in both directions.

Why each choice works or fails

A. Correct. $54,000 plus both credits totals $65,000.
B. Wrong. $43,000 subtracts the credits a second time.
C. Wrong. $45,500 subtracts the earnest money instead of adding it back.
D. Wrong. $62,500 adds back only the earnest money and misses the lender credit.

Work it through

Credits: $8,500 + $2,500 = $11,000
$54,000 + $11,000 = $65,000 total buyer charges

Rule to remember: Cash to close equals buyer debits minus credits, so debits equal cash to close plus credits.

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5. A property bought for $280,000 is now worth $238,000 with a $260,000 balance. The owner has:Real Estate Calculations. Open choices and explanation.

A.Negative equity of $42,000
B.Negative equity of $22,000
C.Positive equity of $20,000
D.Positive equity of $22,000

Answer B: Negative equity of $22,000

Equity is current value minus debt: $238,000 - $260,000 = -$22,000. The purchase price is extra information. Owing more than the property is worth is called being underwater.

Why each choice works or fails

A. $42,000 is the drop in value since purchase, not equity.
B. Correct. Debt exceeds current value by $22,000.
C. $20,000 uses the purchase price instead of current value.
D. The sign is reversed; the owner is underwater.

Work it through

$238,000 - $260,000 = -$22,000

Rule to remember: Equity equals current market value minus current debt; purchase price does not enter the formula.

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What does this assessment cover?

PSI says a failing score report includes diagnostic strengths and weaknesses by examination type. Translate that evidence into the closest published area, then gather a larger fresh sample before the next attempt.

Question coverage in this assessment
Official content area	Published weight	Questions here	Complete lesson
Real Estate Calculations	7% of the national portion	5	Study Calculations

The Georgia-specific distinction

Keep the national and Georgia subtotals separate. If Georgia is weak, split the work again into Laws and Rules, Georgia Practice, and Finance and Closing rather than reading one general state summary.

Worked result example

If the report points to Georgia and review notes show national-instinct errors, build a Georgia-only set, read the Georgia distinction after each item, and follow with a fresh 52-question simulation.

Common exam traps

Retaking a full practice exam before repairing anything.
Studying only the lowest raw score without considering sample size.
Memorizing questions from the failed attempt.
Booking again because the average improved while one group stayed weak.

Ready to move on?

Score the set before opening notes.
Explain the winning rule without repeating the answer choice.
Classify every miss as knowledge, distinction, wording, math setup, or timing.
Repair the weakest official area, then answer a fresh set on another day.
Move on only when the result is stable and guesses are being marked as gaps.

Recommended next lesson

Use the complete retake recovery plan. Use the result above to choose the first lesson or drill rather than following a generic order.

Assessment integrity

The questions are original and mapped to the current PSI outline. This preview introduces the assessment; the complete version is in Pass Georgia. PSI says practice exams help candidates become familiar with general question types, but they do not replace education and a good practice score does not guarantee an examination outcome. This page reports evidence, not a pass probability.

About this practice set

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Are these actual PSI exam questions?

No. Every item is original, written from the current published outline and primary sources. No question is copied, recalled, reconstructed, or represented as a live PSI item.

Does this score predict whether I will pass?

No. One practice result is evidence about this question sample. Use the area breakdown, review guesses as well as misses, and confirm improvement with fresh questions on another day.

What should I do after the result?

Open the explanation for every miss and guess, restate the rule, use the linked repair lesson, then continue with the next lesson: Use the complete retake recovery plan.

Is the assessment free?

Yes. This 5-question preview has no email gate, account requirement, or card. The complete assessment, saved mastery, spaced review, and adaptive recommendations are in Pass Georgia.