PSI NJ Real Estate Exam, PSI Practice
Test Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the role of the New Jersey Real Estate Commission?
✔✔ To regulate the real estate industry in New Jersey
What is the purpose of a property disclosure form in a real estate transaction?
✔✔ To inform the buyer of any known defects or issues with the property
What is a fiduciary duty in real estate?
✔✔ The legal obligation of an agent to act in the best interest of their client
What does "equitable title" refer to in real estate?
✔✔ The interest or right to obtain full ownership of property under a contract
What is the meaning of “title insurance”?
✔✔ Insurance that protects the buyer and lender from defects or claims against the title
1
,What is the difference between a buyer’s agent and a seller’s agent?
✔✔ A buyer’s agent represents the buyer’s interests, while a seller’s agent represents the seller’s
interests
What does “eminent domain” mean in real estate?
✔✔ The government's power to take private property for public use with compensation to the
owner
What is a deed of bargain and sale?
✔✔ A deed used to transfer property ownership, typically without warranties
What is a real estate lien?
✔✔ A legal claim or hold on a property as security for a debt or obligation
What does the term “closing” mean in a real estate transaction?
✔✔ The final step in the sale process when ownership is transferred to the buyer
What is a "mortgage contingency clause" in a real estate contract?
2
,✔✔ A provision allowing the buyer to cancel the contract if they cannot secure financing
What is a "comparative market analysis" (CMA)?
✔✔ A method of estimating a property’s value based on the sales of similar properties
What is the difference between a “quitclaim deed” and a “warranty deed”?
✔✔ A quitclaim deed transfers whatever interest the grantor has in the property, while a
warranty deed offers guarantees about the title’s validity
What is the primary function of escrow in a real estate transaction?
✔✔ To hold funds or documents until the terms of the agreement are met
What is a "pre-qualification letter" in real estate?
✔✔ A document from a lender indicating the buyer’s estimated loan eligibility based on initial
financial information
What is a “trustee” in a real estate transaction?
3
, ✔✔ A third party who holds the legal title to property on behalf of the borrower and lender in a
deed of trust
What does the term “judgment lien” mean?
✔✔ A lien placed on a property after a court judgment in favor of a creditor
What is “zoning”?
✔✔ The regulation of land use by local governments to ensure proper development and public
safety
What is a "condominium" in real estate?
✔✔ A type of property ownership where individuals own a unit within a larger complex and
share common areas
What is “gross income multiplier” (GIM)?
✔✔ A method used to estimate the value of an income-producing property by multiplying its
annual gross income by a factor
What is the purpose of a “buyer's agent”?
4
Test Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is the role of the New Jersey Real Estate Commission?
✔✔ To regulate the real estate industry in New Jersey
What is the purpose of a property disclosure form in a real estate transaction?
✔✔ To inform the buyer of any known defects or issues with the property
What is a fiduciary duty in real estate?
✔✔ The legal obligation of an agent to act in the best interest of their client
What does "equitable title" refer to in real estate?
✔✔ The interest or right to obtain full ownership of property under a contract
What is the meaning of “title insurance”?
✔✔ Insurance that protects the buyer and lender from defects or claims against the title
1
,What is the difference between a buyer’s agent and a seller’s agent?
✔✔ A buyer’s agent represents the buyer’s interests, while a seller’s agent represents the seller’s
interests
What does “eminent domain” mean in real estate?
✔✔ The government's power to take private property for public use with compensation to the
owner
What is a deed of bargain and sale?
✔✔ A deed used to transfer property ownership, typically without warranties
What is a real estate lien?
✔✔ A legal claim or hold on a property as security for a debt or obligation
What does the term “closing” mean in a real estate transaction?
✔✔ The final step in the sale process when ownership is transferred to the buyer
What is a "mortgage contingency clause" in a real estate contract?
2
,✔✔ A provision allowing the buyer to cancel the contract if they cannot secure financing
What is a "comparative market analysis" (CMA)?
✔✔ A method of estimating a property’s value based on the sales of similar properties
What is the difference between a “quitclaim deed” and a “warranty deed”?
✔✔ A quitclaim deed transfers whatever interest the grantor has in the property, while a
warranty deed offers guarantees about the title’s validity
What is the primary function of escrow in a real estate transaction?
✔✔ To hold funds or documents until the terms of the agreement are met
What is a "pre-qualification letter" in real estate?
✔✔ A document from a lender indicating the buyer’s estimated loan eligibility based on initial
financial information
What is a “trustee” in a real estate transaction?
3
, ✔✔ A third party who holds the legal title to property on behalf of the borrower and lender in a
deed of trust
What does the term “judgment lien” mean?
✔✔ A lien placed on a property after a court judgment in favor of a creditor
What is “zoning”?
✔✔ The regulation of land use by local governments to ensure proper development and public
safety
What is a "condominium" in real estate?
✔✔ A type of property ownership where individuals own a unit within a larger complex and
share common areas
What is “gross income multiplier” (GIM)?
✔✔ A method used to estimate the value of an income-producing property by multiplying its
annual gross income by a factor
What is the purpose of a “buyer's agent”?
4
