PSI NJ REAL ESTATE EXAM PRACTICE TEST
WELL ELABORATED FINAL PAPER 2026
FULL ANSWERS GRADED A+
⩥ 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
WELL ELABORATED FINAL PAPER 2026
FULL ANSWERS GRADED A+
⩥ 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
