PSI NJ Real Estate Practice Exam Questions
And Answers
Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price?
-
correct answer ✅The first sold.
When compiling a competitive market analysis, a broker would look
for comparable properties that -
correct answer ✅were located near the property being listed.
If an older building cannot be air-conditioned, it is an example of -
correct answer ✅functional obsolescence.
A prospective seller asks a salesperson to recommend a listing price
for a property. The salesperson should suggest -
correct answer ✅a competitive market analysis to determine the
property's value.
A competitive market analysis is MOST often used for -
correct answer ✅setting a listing price.
,PSI NJ Real Estate Practice Exam Questions
And Answers
Which rule-of-thumb formula for estimating property value is being
offered to an investor who is told that a house renting for $900 a
month should sell for about $90,000? -
correct answer ✅GRM.
(gross rent multiplier)
A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan
Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%.
Based on the TILA-RESPA Integrated Disclosure rule, what action
should the broker take in this situation? -
correct answer ✅Confirm with the seller's broker, the lender and
the closing entity that the closing must be delayed to allow for a
new seven-day waiting period because of the interest rate revision.
When a home is purchased using an ARM, the monthly loan
payment on the mortgage will -
correct answer ✅vary over the life of the loan depending on
fluctuations in the interest rate to which the loan is referenced.
, PSI NJ Real Estate Practice Exam Questions
And Answers
According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the
ad EXCEPT the -
correct answer ✅prepayment penalties and rebates.
A borrower has defaulted on the mortgage. The mortgage contains
an acceleration clause. This permits the lender to -
correct answer ✅demand immediate payment of the entire note.
Which of these Federal laws regulates the advertisement of a
lender's credit terms (rates, payment, etc.)? -
correct answer ✅Regulation Z.
When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the
seller, one benefit of the deed of trust is that -
correct answer ✅foreclosure is usually simpler and faster.
In helping a buyer to select a lender, if the buyer believes he has
good credit and his income is documentable as a salary and by tax
returns, the licensee might recommend a mortgage banker, instead
of a mortgage broker, for all of the following reasons EXCEPT -
correct answer ✅more variety of loan programs available.
And Answers
Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price?
-
correct answer ✅The first sold.
When compiling a competitive market analysis, a broker would look
for comparable properties that -
correct answer ✅were located near the property being listed.
If an older building cannot be air-conditioned, it is an example of -
correct answer ✅functional obsolescence.
A prospective seller asks a salesperson to recommend a listing price
for a property. The salesperson should suggest -
correct answer ✅a competitive market analysis to determine the
property's value.
A competitive market analysis is MOST often used for -
correct answer ✅setting a listing price.
,PSI NJ Real Estate Practice Exam Questions
And Answers
Which rule-of-thumb formula for estimating property value is being
offered to an investor who is told that a house renting for $900 a
month should sell for about $90,000? -
correct answer ✅GRM.
(gross rent multiplier)
A broker and the buyers he represents are anxiously awaiting the
closing on their new home. The closing is scheduled in 4 days. The
buyers inform the broker that they just received revised Loan
Estimate and Closing Disclosure forms from the lender, indicating
the Annual Percentage Rate on their loan has increased by 0.3%.
Based on the TILA-RESPA Integrated Disclosure rule, what action
should the broker take in this situation? -
correct answer ✅Confirm with the seller's broker, the lender and
the closing entity that the closing must be delayed to allow for a
new seven-day waiting period because of the interest rate revision.
When a home is purchased using an ARM, the monthly loan
payment on the mortgage will -
correct answer ✅vary over the life of the loan depending on
fluctuations in the interest rate to which the loan is referenced.
, PSI NJ Real Estate Practice Exam Questions
And Answers
According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the
ad EXCEPT the -
correct answer ✅prepayment penalties and rebates.
A borrower has defaulted on the mortgage. The mortgage contains
an acceleration clause. This permits the lender to -
correct answer ✅demand immediate payment of the entire note.
Which of these Federal laws regulates the advertisement of a
lender's credit terms (rates, payment, etc.)? -
correct answer ✅Regulation Z.
When the sellers are lending part of the purchase price, they may
secure the debt either with a deed of trust or a mortgage. For the
seller, one benefit of the deed of trust is that -
correct answer ✅foreclosure is usually simpler and faster.
In helping a buyer to select a lender, if the buyer believes he has
good credit and his income is documentable as a salary and by tax
returns, the licensee might recommend a mortgage banker, instead
of a mortgage broker, for all of the following reasons EXCEPT -
correct answer ✅more variety of loan programs available.
