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(NJ) PSI REAL ESTATE STATE EXAM
(NJ) 2026 QUESTIONS AND ANSWERS
| A+ GRADED | WITH EXPERT
SOLUTIONS
When a land owner uses his land as security for a loan, the
encumbrance created is called. - correct answer-C. an involuntary
lien
If an owner wants to list a property for sale "as is," the listing
agent should - correct answer-C. Question the seller to any
known defects
According to the New Jersey Real Estate Time Share Act, if a
licensee is selling a timeshare located within the state of New
Jersey, all of the following are true EXCEPT that the - correct
answer-A. licensee must hold a timeshare license
May a New Jersey real estate licensee decline to cooperate with
other New Jersey licensees - correct answer-C. Yes, if the broker
directs the salesperson not to cooperate
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A motel is the subject of an appraisal and it is determined that
rerouting of a county highway has limited customer access to to
the motel. This is an example of - correct answer-A. Economic
obsolesce
An exclusive buyer representation agreement does not include a
legal description of the property. What is the result of this
omisison? - correct answer-D. The agreement is voidable until a
legal description is provided
Which of the following items would be prorated at closing with
credit going to the seller? - correct answer-D. Unearned rent
collections in advance?
Jones and Halstead lice across the street from each other in a
subdivision in which homeowners are prohibited by deed
restriction from keeping large animals on their property. Jones
discovers that Halstead is keeping a Shetland pony in the
backyard. Can Jones take action to enforce the deed restriction? -
correct answer-A. Yes, because Jones can force any other
property owner in the subdivision to comply with deed restrictions.
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In New Jersey, the fee which Must be paid when fee simple title to
a parcel of real estate passes for a consideration from one party
to another is the: - correct answer-The Realty Transfer Fee (RTF)
What is the greatest ADVANTAGE of using FHA financing when
purchasing a home that the buyer plans to occupy? - correct
answer-The required down payment may be lower than
conventional loans
A broker has a single agency relationship with the seller. Any
REQUIRED property condition disclosure would be completed by
the - correct answer-Seller/ Agent on behalf of the seller
Which of the following statements is TRUE regarding an option
agreement? - correct answer-C. The seller agrees to sell at a
fixed price within a stipulated time.
A low loan-to-value ratio indicated a - correct answer-C. higher
equity in the property.
(NJ) PSI REAL ESTATE STATE EXAM
(NJ) 2026 QUESTIONS AND ANSWERS
| A+ GRADED | WITH EXPERT
SOLUTIONS
When a land owner uses his land as security for a loan, the
encumbrance created is called. - correct answer-C. an involuntary
lien
If an owner wants to list a property for sale "as is," the listing
agent should - correct answer-C. Question the seller to any
known defects
According to the New Jersey Real Estate Time Share Act, if a
licensee is selling a timeshare located within the state of New
Jersey, all of the following are true EXCEPT that the - correct
answer-A. licensee must hold a timeshare license
May a New Jersey real estate licensee decline to cooperate with
other New Jersey licensees - correct answer-C. Yes, if the broker
directs the salesperson not to cooperate
, Page | 2
A motel is the subject of an appraisal and it is determined that
rerouting of a county highway has limited customer access to to
the motel. This is an example of - correct answer-A. Economic
obsolesce
An exclusive buyer representation agreement does not include a
legal description of the property. What is the result of this
omisison? - correct answer-D. The agreement is voidable until a
legal description is provided
Which of the following items would be prorated at closing with
credit going to the seller? - correct answer-D. Unearned rent
collections in advance?
Jones and Halstead lice across the street from each other in a
subdivision in which homeowners are prohibited by deed
restriction from keeping large animals on their property. Jones
discovers that Halstead is keeping a Shetland pony in the
backyard. Can Jones take action to enforce the deed restriction? -
correct answer-A. Yes, because Jones can force any other
property owner in the subdivision to comply with deed restrictions.
, Page | 3
In New Jersey, the fee which Must be paid when fee simple title to
a parcel of real estate passes for a consideration from one party
to another is the: - correct answer-The Realty Transfer Fee (RTF)
What is the greatest ADVANTAGE of using FHA financing when
purchasing a home that the buyer plans to occupy? - correct
answer-The required down payment may be lower than
conventional loans
A broker has a single agency relationship with the seller. Any
REQUIRED property condition disclosure would be completed by
the - correct answer-Seller/ Agent on behalf of the seller
Which of the following statements is TRUE regarding an option
agreement? - correct answer-C. The seller agrees to sell at a
fixed price within a stipulated time.
A low loan-to-value ratio indicated a - correct answer-C. higher
equity in the property.
