PSI Real Estate State Exam (NJ) Updated
2024/25 NEWEST.
C. an involuntary lien - When a land owner uses his land as security for a loan, the
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encumbrance created is called.
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C. Question the seller to any known defects - If an owner wants to list a property for sale
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"as is," the listing agent should
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A. licensee must hold a timeshare license - According to the New Jersey Real Estate
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Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey,
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all of the following are true EXCEPT that the
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C. Yes, if the broker directs the salesperson not to cooperate - May a New Jersey real
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estate licensee decline to cooperate with other New Jersey licensees
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A. Economic obsolesce - A motel is the subject of an appraisal and it is determined that
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rerouting of a county highway has limited customer access to to the motel. This is an
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example of
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D. The agreement is voidable until a legal description is provided - An exclusive buyer
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representation agreement does not include a legal description of the property. What is the
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result of this omisison?
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D. Unearned rent collections in advance? - Which of the following items would be
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prorated at closing with credit going to the seller?
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A. Yes, because Jones can force any other property owner in the subdivision to comply
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with deed restrictions. - Jones and Halstead lice across the street from each other in a
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subdivision in which homeowners are prohibited by deed restriction from keeping large
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animals on their property. Jones discovers that Halstead is keeping a Shetland pony in the
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backyard. Can Jones take action to enforce the deed restriction?
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The Realty Transfer Fee (RTF) - In New Jersey, the fee which Must be paid when fee
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simple title to a parcel of real estate passes for a consideration from one party to another is
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the:
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The required down payment may be lower than conventional loans - What is the greatest
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ADVANTAGE of using FHA financing when purchasing a home that the buyer plans to
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occupy?
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Seller/ Agent on behalf of the seller - A broker has a single agency relationship with the
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seller. Any REQUIRED property condition disclosure would be completed by the
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, C. The seller agrees to sell at a fixed price within a stipulated time. - Which of the following
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statements is TRUE regarding an option agreement?
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ii C. higher equity in the property. - A low loan-to-value ratio indicated a
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C. This is a negotiation that keeps the original offer alive. - An offer was presented but the
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seller did not accept the offer; instead he suggested different terms that would be more
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acceptable. Which of the following is false?
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Void - A buyer contracted to purchase a vacant lot for $350,000 cash with no
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contingencies. The buyer intends to build a professional office complex on the property.
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However, the buyer did not advise the seller of this intent. Prior to closing, the buyer learns
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that local zoning will not allow an office complex. The buyer's contract may be considered.
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A. Under no circumstances may the licensee inquire as to the legal residency status of the
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prospective tenant. - A licensee representing a landlord is concerned when a prospective
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tenant mentions that she has recently left her homeland to work as a research consultant
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under a grant at a local hospital, and hopes to return to her native country with valuable
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knowledge to share when the project ends. What steps, if any, is the licensee legally able
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to take in protecting her client's interest?
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B. This is the best buy you'll find all year. - Which of the following statements is the BEST
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example of puffing?
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B. 1 month - A complaint must be filed with HUD within what period of time after a fair
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housing violation has occurred?
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B. performance obligations of the parties - Which of the following differentiates a bilateral
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contract from a unilateral contract?
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B. Her equity reaches 22% - A homebuyer received a conventional loan with a down
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payment of 8% of the purchase price. In the future, her mortgage payment (PITI) will be
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reduced automatically without refinancing when which of the following occurs?
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furnish within ninety days of its collection an accounting of how the money was used - A
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broker who charges or collects an advance fee in excess of $25 for services to be rendered
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MUST:
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Personal property - An owner has a freestanding cabinet that was custom-built to fit an
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alcove of the living room. When the owner sells the home, the cabinet will be BEST
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described as
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ii C. It is impossible for one of the parties to perform - A contract is terminated if
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Upon written request of seller - Deposit monies may NOT be disbursed to the seller in
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which circumstance
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2024/25 NEWEST.
C. an involuntary lien - When a land owner uses his land as security for a loan, the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
encumbrance created is called.
ii ii ii ii
C. Question the seller to any known defects - If an owner wants to list a property for sale
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
"as is," the listing agent should
ii ii ii ii ii ii
A. licensee must hold a timeshare license - According to the New Jersey Real Estate
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey,
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
all of the following are true EXCEPT that the
ii ii ii ii ii ii ii ii ii
C. Yes, if the broker directs the salesperson not to cooperate - May a New Jersey real
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
estate licensee decline to cooperate with other New Jersey licensees
ii ii ii ii ii ii ii ii ii ii
A. Economic obsolesce - A motel is the subject of an appraisal and it is determined that
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
rerouting of a county highway has limited customer access to to the motel. This is an
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
example of
ii ii
D. The agreement is voidable until a legal description is provided - An exclusive buyer
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
representation agreement does not include a legal description of the property. What is the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
result of this omisison?
ii ii ii ii
D. Unearned rent collections in advance? - Which of the following items would be
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
prorated at closing with credit going to the seller?
ii ii ii ii ii ii ii ii ii
A. Yes, because Jones can force any other property owner in the subdivision to comply
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
with deed restrictions. - Jones and Halstead lice across the street from each other in a
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
subdivision in which homeowners are prohibited by deed restriction from keeping large
ii ii ii ii ii ii ii ii ii ii ii ii
animals on their property. Jones discovers that Halstead is keeping a Shetland pony in the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
backyard. Can Jones take action to enforce the deed restriction?
ii ii ii ii ii ii ii ii ii ii
The Realty Transfer Fee (RTF) - In New Jersey, the fee which Must be paid when fee
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
simple title to a parcel of real estate passes for a consideration from one party to another is
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
the:
ii
The required down payment may be lower than conventional loans - What is the greatest
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
ADVANTAGE of using FHA financing when purchasing a home that the buyer plans to
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
occupy?
ii
Seller/ Agent on behalf of the seller - A broker has a single agency relationship with the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
seller. Any REQUIRED property condition disclosure would be completed by the
ii ii ii ii ii ii ii ii ii ii ii
, C. The seller agrees to sell at a fixed price within a stipulated time. - Which of the following
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
statements is TRUE regarding an option agreement?
ii ii ii ii ii ii ii
ii C. higher equity in the property. - A low loan-to-value ratio indicated a
ii ii ii ii ii ii ii ii ii ii ii ii ii ii
C. This is a negotiation that keeps the original offer alive. - An offer was presented but the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
seller did not accept the offer; instead he suggested different terms that would be more
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
acceptable. Which of the following is false?
ii ii ii ii ii ii ii
Void - A buyer contracted to purchase a vacant lot for $350,000 cash with no
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
contingencies. The buyer intends to build a professional office complex on the property.
ii ii ii ii ii ii ii ii ii ii ii ii ii
However, the buyer did not advise the seller of this intent. Prior to closing, the buyer learns
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
that local zoning will not allow an office complex. The buyer's contract may be considered.
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
A. Under no circumstances may the licensee inquire as to the legal residency status of the
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
prospective tenant. - A licensee representing a landlord is concerned when a prospective
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
tenant mentions that she has recently left her homeland to work as a research consultant
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
under a grant at a local hospital, and hopes to return to her native country with valuable
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
knowledge to share when the project ends. What steps, if any, is the licensee legally able
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
to take in protecting her client's interest?
ii ii ii ii ii ii ii
B. This is the best buy you'll find all year. - Which of the following statements is the BEST
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
example of puffing?
ii ii ii
B. 1 month - A complaint must be filed with HUD within what period of time after a fair
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
housing violation has occurred?
ii ii ii ii
B. performance obligations of the parties - Which of the following differentiates a bilateral
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
contract from a unilateral contract?
ii ii ii ii ii
B. Her equity reaches 22% - A homebuyer received a conventional loan with a down
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
payment of 8% of the purchase price. In the future, her mortgage payment (PITI) will be
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
reduced automatically without refinancing when which of the following occurs?
ii ii ii ii ii ii ii ii ii ii
furnish within ninety days of its collection an accounting of how the money was used - A
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
broker who charges or collects an advance fee in excess of $25 for services to be rendered
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
MUST:
ii
Personal property - An owner has a freestanding cabinet that was custom-built to fit an
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
alcove of the living room. When the owner sells the home, the cabinet will be BEST
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
described as
ii ii
ii C. It is impossible for one of the parties to perform - A contract is terminated if
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
Upon written request of seller - Deposit monies may NOT be disbursed to the seller in
ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii ii
which circumstance
ii ii
