PSI Testing Information - MS REALTOR Institute

The real estate licensing exam (administered by PSI) is split into two distinct sections: the National Portion and the State Portion.

- Property Ownership & Land Use: Freehold vs. leasehold estates, encumbrances, water rights, and zoning regulations.
- Valuation & Market Analysis: Appraisals, CMA principles, and economic principles of value.
- Contracts & Financing: General contract law, agency duty fundamentals, mortgages, and federal lending laws (TRID, RESPA).
- Federal Regulations: Fair Housing Act, ADA, and environmental hazards.
- Real Estate Math: Math formulas like commission splits, loan-to-value ratios, transfer taxes, and proration problems.

- Question Format & Study Approach – National (Conceptual & Analytical): Questions present hypothetical scenarios (e.g., “An agent is representing a buyer who wants to write an offer…”). Success relies on understanding core principles, eliminating wrong options logically, and executing basic formulas.

State Licensing Laws: Requirements to obtain/maintain an active license, inactive status, and renewal deadlines.
Commission Powers & Duties: The authority of the state Real Estate Commission, disciplinary actions, fines, and hearings.
State Agency & Disclosures: Local agency disclosures, Property Condition Disclosure statements, and specific agency forms.
Trust / Escrow Accounts: Rules for earnest money handling, commingling, and deposit timelines.
Advertising Rules: State-specific guidelines on team names, social media posting, broker oversight, and clear disclosure.
Question Format & Study Approach – State (Detail & Rule-Based): Questions ask for precise rules and statutory definitions (e.g., “How many days does a broker have to deposit earnest money into an escrow account?”). Success relies on memorizing specific timelines, state forms, and legal requirements.

Feature	National Portion	State Portion
Scope	General principles applicable across the U.S.	Laws, rules, and practices specific to your state
Primary Focus	Broad concepts, real estate math, and federal regulations	Exact legal requirements, timelines, forms, and commission rules
Testing Style	Conceptual & scenario-based problem-solving	Detail-oriented memory recall & strict law compliance
# of Questions	80	40
Time Allowed	2-1/2 Hours	1-1/2 Hours
Passing Scores	70% (56 Points)	75% (30 Points)

- - Both sections are graded independently. You must meet the required passing percentage on both parts to pass the exam overall.
  - If you pass one section (e.g., National) but fail the other (e.g., State), most states allow you to retake only the section you failed within a specific time window.