PSI questions WITH ANSWERS*first
followed by questions
Answer : Mortgage or deed of trust lien –
When a land owner uses his land as security for a loan, the encumbrances created is
called ?
A. Special security
B. A mortgage or deed of trust lien
C. A involuntary Lien
D. A gratuitous agreement
*Answer :question the seller as to any know defects.
*If an owner wants to list a property for sale "as is" the listing agent should
A) assume that the owner will accept a relatively low price for the property.
B) conclude that he is relieved of any responsibility if the buyer later discovers defects
that were not disclosed.
C) question the seller as to any know defects.
D) assume that the house is a "fixer-upper."
*Answer : Licensee must hold a timeshare license –
*According to the New Jersey real estate timeshare act, if a licensee is selling a
timeshare located within the state of New Jersey all of the following are true EXCEPT
that the ?
a) license must hold a timeshare sales license
b) timeshare must be approved by the real estate commission
c) licensee must provide the buyer with a copy of the public offering statement
d) contact of sale must provide notice of a seven calendar day recession period
Answer : yes, if the broker directs the salesperson not to cooperate
Can a New Jersey real estate licensee decline to cooperate with other New Jersey
licensees?
A. Yes, if the client directs the licensee according to New Jersey regulations
B. yes, if the client gives verbal direction not to cooperate
C.yes, if the broker directs the salesperson not to cooperate
D.No, licensees are required to cooperate under all circumstances
Answer: Economic Obsolesce –
A motel is the subject of an appraisal and it is determined that rerouting of a county
highway has limited customer access to the motel this is an example of?
A) economic obsolescence
B) regression
C) functional obsolescence
D) landlocked property
, Answer: The agreement is valid; a legal description is not required
An exclusive buyer representation agreement does not include a legal description of the
property. what is the result of this omission ?
A. The agreement is void
B. The agreement is unenforceable
C. The agreement is valid; a legal description is not required
D. The agreement is voidable until a legal description is provided
Answer: yes, because Jones can force any other property owner in the subdivision to
comply with deed restrictions.
Jones and Halstead live 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 ?
A. Yes, because Jones can lore any other property owner In the subdivision to comply
with the deed restrictions.
B. Yes, because Jones is legally bound to report to the subdlvider any violation of the
deed restrictions.
C. No, because only a property cemer with land ad,olning Halstead's can take action
agalnst Halstead.
D. No, because Halsteads onership rights take precedence over deed restrictions.
Answer: Realty Transfer Fee ( RTF) –
In New Jersey, the fee which must be paid when fee simple title to a parcel of real state
passes for a consideration from one party to another is the?
Answer: The required down payment may be lower than conventional loans. –
What is the greatest advantage of using FHA financing when purchasing a home that
the buyer plans to occupy?
A) FHA requires a fixed rate loan so that the buyer can rely on a fixed payment
B) The required down payment may be lower than conventional loans
C) The loan will be automatically assimilate to a future buyer
D) FHA requires the seller to pay the buyers closing costs
*Answer: Seller –
*A broker has a single agency relationship with the seller. Any required property
condition disclosure would be completed by the ?
A. Seller
B. Broker
C. Agent on behalf of broker
D. Agent on behalf of seller
Answer : The seller agrees to sell at a fixed price within a stipulated time –
Which of the following statements is true regarding an option agreement?
A) the buyer must purchase the property at some future time
B) the buyer is given the privilege of occupying the property
,c) the seller agrees to sell at a fixed price with a stipulated time
D) any payments are refunded should the buyer fail to perform on the agreement
Answer: higher equity in the property –
A low loan- to - value ratio indicated a ?
A) lower equity in the property
B) greater risk of foreclosure
C) higher equity in the property
D) greater use of leverage
Answer: This is a negotiation that keeps the original offer alive –
An offer was presented but the seller did not except the offer , instead he suggested
different terms that would be more acceptable, which of the following is false?
A.This is a rejection of the original offer
B.This is a counter offer on the original offer
C.This is a negotiation that keeps the original offer alive
D.This kills the original offer, which can no longer be accepted
Answer: Voidable
A buyer contracted to purchase a vacant lot for $350,000 cash with no contingencies
the buyer intends to build a professional office complex on the property. However the
buyer did not advise the seller of this intent. Prior to closing the buyer learns that local
zoning will not allow an office complex. The buyers contract may be considered?
A) Voidable
B) Breached
C) Void
D) Unenforceble
Answer: Under no circumstances may the licensee inquire as to the legal residency
status of the prospective tenant.
A licensee representing a landlord is concerned when a prospective tenant mentions
that she has recently left her homeland to work as a research consultant under a grant
at a local hospital in hopes to return to her native country with valuable knowledge to
share when the project ends. What steps if any is a Licensee legally able to take in
protecting her clients interest?
A.Under no circumstances may the licensee inquire as to the legal residency status of
the prospective tenant.
B. the licensee can do nothing
c.the landlord must rent to the researcher
D.the licensee may ask for documentation
Answer: This is the Best Buy you'll find all year.
Which of the following statements is the best example of puffing?
A. Since the bus stop is only 1 block away, the home has excellent access to public
transportation
B. This is the Best Buy you'll find all year
, C. This home has been fitted with double paned windows, as can be seen in the
brochure.
D. This property has a net property income of $7,500
Answer: 1 year - ANSWERSA complaint must be filed with HUD within what period of
time after the fair housing violation has occurred?
a. 1 month
b. 1 year
c 2 years
d 2 months
Answer: Performance obligations of the parties - ANSWERSWhich of the following
differentiates a bilateral contract from a unilateral contract ?
A.Number of parties involved
B.Performance obligations of the parties
C.Relative value of the object of the contract
D.Type of property specified in the contract
Answer: Broker must give account of how the money is being spent within 90 days -
ANSWERSA broker who charges or collects an advance fee in excess of $25 for
services to be rendered MUST ?
a) deduct the amount collected from the commission or settlememt
b) give the lrincipal reciepts for all expendtures
c) broker must give account of how the money is being spent within 90 days
d) retain the difference between the amount of money collected and the amount spent
Answer: Personal Property - ANSWERSAn owner has a freestanding cabinet that was
custom built to fit an alcove of the living room. When the owner sells the home, the
cabinet will be BEST described as ?
A. Real Property
B. Personal Property
C. A fixture
D. An appurtenance
Answer: it is impossible for one of the parties to perform - ANSWERSA contract is
terminated if ?
A: One of the parties decide not go forward
B: A third party intervenes
C: It is impossible for one of the parties to perform
D: One party assigns their right to another
Answer: upon written request of seller - ANSWERSDeposit monies may NOT be
disbursed to the seller in which circumstance ?
A) At closing of settlement
B) As provided in the sales agreement
C) Upon the written consent of buyer
followed by questions
Answer : Mortgage or deed of trust lien –
When a land owner uses his land as security for a loan, the encumbrances created is
called ?
A. Special security
B. A mortgage or deed of trust lien
C. A involuntary Lien
D. A gratuitous agreement
*Answer :question the seller as to any know defects.
*If an owner wants to list a property for sale "as is" the listing agent should
A) assume that the owner will accept a relatively low price for the property.
B) conclude that he is relieved of any responsibility if the buyer later discovers defects
that were not disclosed.
C) question the seller as to any know defects.
D) assume that the house is a "fixer-upper."
*Answer : Licensee must hold a timeshare license –
*According to the New Jersey real estate timeshare act, if a licensee is selling a
timeshare located within the state of New Jersey all of the following are true EXCEPT
that the ?
a) license must hold a timeshare sales license
b) timeshare must be approved by the real estate commission
c) licensee must provide the buyer with a copy of the public offering statement
d) contact of sale must provide notice of a seven calendar day recession period
Answer : yes, if the broker directs the salesperson not to cooperate
Can a New Jersey real estate licensee decline to cooperate with other New Jersey
licensees?
A. Yes, if the client directs the licensee according to New Jersey regulations
B. yes, if the client gives verbal direction not to cooperate
C.yes, if the broker directs the salesperson not to cooperate
D.No, licensees are required to cooperate under all circumstances
Answer: Economic Obsolesce –
A motel is the subject of an appraisal and it is determined that rerouting of a county
highway has limited customer access to the motel this is an example of?
A) economic obsolescence
B) regression
C) functional obsolescence
D) landlocked property
, Answer: The agreement is valid; a legal description is not required
An exclusive buyer representation agreement does not include a legal description of the
property. what is the result of this omission ?
A. The agreement is void
B. The agreement is unenforceable
C. The agreement is valid; a legal description is not required
D. The agreement is voidable until a legal description is provided
Answer: yes, because Jones can force any other property owner in the subdivision to
comply with deed restrictions.
Jones and Halstead live 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 ?
A. Yes, because Jones can lore any other property owner In the subdivision to comply
with the deed restrictions.
B. Yes, because Jones is legally bound to report to the subdlvider any violation of the
deed restrictions.
C. No, because only a property cemer with land ad,olning Halstead's can take action
agalnst Halstead.
D. No, because Halsteads onership rights take precedence over deed restrictions.
Answer: Realty Transfer Fee ( RTF) –
In New Jersey, the fee which must be paid when fee simple title to a parcel of real state
passes for a consideration from one party to another is the?
Answer: The required down payment may be lower than conventional loans. –
What is the greatest advantage of using FHA financing when purchasing a home that
the buyer plans to occupy?
A) FHA requires a fixed rate loan so that the buyer can rely on a fixed payment
B) The required down payment may be lower than conventional loans
C) The loan will be automatically assimilate to a future buyer
D) FHA requires the seller to pay the buyers closing costs
*Answer: Seller –
*A broker has a single agency relationship with the seller. Any required property
condition disclosure would be completed by the ?
A. Seller
B. Broker
C. Agent on behalf of broker
D. Agent on behalf of seller
Answer : The seller agrees to sell at a fixed price within a stipulated time –
Which of the following statements is true regarding an option agreement?
A) the buyer must purchase the property at some future time
B) the buyer is given the privilege of occupying the property
,c) the seller agrees to sell at a fixed price with a stipulated time
D) any payments are refunded should the buyer fail to perform on the agreement
Answer: higher equity in the property –
A low loan- to - value ratio indicated a ?
A) lower equity in the property
B) greater risk of foreclosure
C) higher equity in the property
D) greater use of leverage
Answer: This is a negotiation that keeps the original offer alive –
An offer was presented but the seller did not except the offer , instead he suggested
different terms that would be more acceptable, which of the following is false?
A.This is a rejection of the original offer
B.This is a counter offer on the original offer
C.This is a negotiation that keeps the original offer alive
D.This kills the original offer, which can no longer be accepted
Answer: Voidable
A buyer contracted to purchase a vacant lot for $350,000 cash with no contingencies
the buyer intends to build a professional office complex on the property. However the
buyer did not advise the seller of this intent. Prior to closing the buyer learns that local
zoning will not allow an office complex. The buyers contract may be considered?
A) Voidable
B) Breached
C) Void
D) Unenforceble
Answer: Under no circumstances may the licensee inquire as to the legal residency
status of the prospective tenant.
A licensee representing a landlord is concerned when a prospective tenant mentions
that she has recently left her homeland to work as a research consultant under a grant
at a local hospital in hopes to return to her native country with valuable knowledge to
share when the project ends. What steps if any is a Licensee legally able to take in
protecting her clients interest?
A.Under no circumstances may the licensee inquire as to the legal residency status of
the prospective tenant.
B. the licensee can do nothing
c.the landlord must rent to the researcher
D.the licensee may ask for documentation
Answer: This is the Best Buy you'll find all year.
Which of the following statements is the best example of puffing?
A. Since the bus stop is only 1 block away, the home has excellent access to public
transportation
B. This is the Best Buy you'll find all year
, C. This home has been fitted with double paned windows, as can be seen in the
brochure.
D. This property has a net property income of $7,500
Answer: 1 year - ANSWERSA complaint must be filed with HUD within what period of
time after the fair housing violation has occurred?
a. 1 month
b. 1 year
c 2 years
d 2 months
Answer: Performance obligations of the parties - ANSWERSWhich of the following
differentiates a bilateral contract from a unilateral contract ?
A.Number of parties involved
B.Performance obligations of the parties
C.Relative value of the object of the contract
D.Type of property specified in the contract
Answer: Broker must give account of how the money is being spent within 90 days -
ANSWERSA broker who charges or collects an advance fee in excess of $25 for
services to be rendered MUST ?
a) deduct the amount collected from the commission or settlememt
b) give the lrincipal reciepts for all expendtures
c) broker must give account of how the money is being spent within 90 days
d) retain the difference between the amount of money collected and the amount spent
Answer: Personal Property - ANSWERSAn owner has a freestanding cabinet that was
custom built to fit an alcove of the living room. When the owner sells the home, the
cabinet will be BEST described as ?
A. Real Property
B. Personal Property
C. A fixture
D. An appurtenance
Answer: it is impossible for one of the parties to perform - ANSWERSA contract is
terminated if ?
A: One of the parties decide not go forward
B: A third party intervenes
C: It is impossible for one of the parties to perform
D: One party assigns their right to another
Answer: upon written request of seller - ANSWERSDeposit monies may NOT be
disbursed to the seller in which circumstance ?
A) At closing of settlement
B) As provided in the sales agreement
C) Upon the written consent of buyer
