PSI NJ REAL ESTATE EXAM, PSI PRACTICE TEST
EXAM STUDY MATERIALS QUESTION AND
ANSWERS (VERIFIED ANSWERS)
1. **The terms "littoral," "riparian," and "appropriative" refer to:**
- A) Types of property rights
- B) Types of water rights
- C) Types of land use
- D) Types of zoning laws
**Answer: B) Types of water rights**
2. **A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is:**
- A) An agent to the seller only
- B) An agent to the broker and a subagent to the principal
- C) A dual agent to both buyer and seller
- D) An agent to the buyer only
**Answer: B) An agent to the broker and a subagent to the principal**
3. **Depreciation is calculated based on the:**
- A) Cost of the land and building
- B) Market value of the property
- C) Cost of the building only
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- D) Replacement cost of the property
**Answer: C) Cost of the building only**
4. **When a property owner uses his home as collateral for a loan and creates a lien in favor of the
lender, title is held by the:**
- A) Mortgagee
- B) Mortgagor
- C) Lender
- D) Buyer
**Answer: B) Mortgagor**
5. **A competitive market analysis is MOST often used for:**
- A) Determining the property's value for tax purposes
- B) Setting a listing price
- C) Preparing a property management plan
- D) Estimating the cost of repairs
**Answer: B) Setting a listing price**
6. **A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no
termites now. Before listing the property, the agent should:**
- A) Disclose the information to potential buyers
- B) Tell the seller to disclose the information
- C) Tell the seller not to disclose, because the statute of limitations has run out
,ESTUDY
- D) Ignore the information
**Answer: C) Tell the seller not to disclose, because the statute of limitations has run out**
7. **All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT the:**
- A) Square-foot method
- B) Unit-in-place method
- C) Quantity survey method
- D) Straight-line method
**Answer: D) Straight-line method**
8. **The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is
the adjustment made at closing?**
**Answer: A) Credit buyer $110,000; debit seller $110,000**
9. **If conditions for purchase are included in a deed and these conditions are violated, what is the
penalty?**
- A) Monetary fines
- B) Return of the property to the original owner
, ESTUDY
- C) Payment of damages
- D) Loss of the deed
**Answer: B) Return of the property to the original owner**
10. **The purpose of requiring an earnest money deposit in a real estate sales contract is to:**
- A) Cover the cost of repairs
- B) Provide evidence of the buyer's intention to carry out the contract
- C) Secure a loan from the bank
- D) Pay the broker's commission
**Answer: B) Provide evidence of the buyer's intention to carry out the contract**
11. **A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given:**
- A) Actual notice
- B) Constructive notice
- C) Legal notice
- D) Formal notice
**Answer: B) Constructive notice**
12. **What type of map is MOST useful for describing the terrain of a very hilly lot?**
- A) Topographic map
- B) Contour map
- C) Plat map
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