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PSI NJ Real Estate Exam, PSI Practice Test Questions and Complete Solutions Graded A+
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PSI NJ Real Estate Exam, PSI Practice Test Questions and Complete Solutions Graded A+
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PSI NJ Real Estate Exam, PSI PracticeTest Questions and Complete Solutions
Graded A+
Water Rights - Answer: The terms "littoral," "riparian," and "appropriative" refer to
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is - Answer: an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the - Answer: Cost of the building only.
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 - Answer: mortgagor
A competitive market analysis is MOST often used for - Answer: setting a listing price
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 - Answer: tell the seller not to disclose,
because the statute of limitations has run out.
All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT
the - Answer: straight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the
adjustment made at closing? - Answer: Credit buyer $110,000; debit seller $110,000.
If conditions for purchase are included in a deed and these conditions are violated, what is the penalty? -
Answer: Return of the property to the original owner.
The purpose of requiring an earnest money deposit in a real estate sales contract is to - Answer: provide
evidence of the buyer's intention to carry out the contract.
,A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given - Answer: constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot? - Answer: contour map
The Department of Housing and Urban Development estimates that most private homes built before
1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, -
Answer: Require the buyer to acknowledge disclosure of the presence of any known lead paint.
At the time of listing, the seller tells the listing agent they are moving because the neighbor has loud
parties every weekend. The agent should - Answer: tell potential buyers about the parties. (Any social
information expressed to an agent can be shared)
A major reason for buying and owning a condominium rather than a detached single-family home is that
- Answer: a condominium tends to be more affordable.
A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the
seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract.
In this situation, if the seller takes the appliances with him, what recourse does the buyer have? -
Answer: The buyer may sue the seller for specific performance.
A loan which requires the borrower to pay interest only until the maturity date (or due date), and then
to pay the entire principal on the maturity date, is called a - Answer: straight (term) loan (AKA term
loan)
The real estate contract for a specific property for use as an unlicensed whiskey sales operation was
forced to terminate. The termination was the result of - Answer: Impossibility of performance. - - (Key
word: *Unlicensed* whiskey sales operation).
A broker lists a property, with a listing contract allowing subagency and dual agency. One of the broker's
salespersons shows the property. The salesperson would be classified as - Answer: a subagent of the
seller. — (Think - brokerage is the AGENCY, salesperson is working under the agency)
, The relationship in which the agent is placed in the position of trust and confidence to the principal is
known by the term - Answer: fiduciary
An agreement to purchase that has NOT yet closed is - Answer: an executory contract.
When compiling a competitive market analysis, a broker would look for comparable properties that -
Answer: were located near the property being listed.
The power vested in the government to establish legislation to preserve order, protect the public health
and safety, and promote the general welfare is known as - Answer: police power
If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will
make a 30-year loan at 8-1/2%, how large a loan (rounded to the nearest $100) can this buyer afford?
(BE SURE TO USE THE AMORTIZATION TABLE.) - Answer: $130,000
An Environmental Impact Statement (EIS) - Answer: projects the impact on the environment of a
proposed project.
In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers? -
Answer: One
A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer.
While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can
accept the second offer if - Answer: the owner withdraws the counteroffer before it is accepted.
Antitrust laws prohibit competing brokers from all of the following EXCEPT - Answer: receiving
compensation from both the buyer and the seller.
Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a
particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement
and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are
actually among the highest in the area. The buyer could seek to rescind the contract on the basis of -
Answer: misrepresentation
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