PSI Real Estate State Exam (NJ) 2025
QUESTIONS AND ANSWERS
When a land owner uses his land as security for a loan, the encumbrance created is called. -
ANS C. an involuntary lien
If an owner wants to list a property for sale "as is," the listing agent should - ANS C. Question
the seller to any known defects
According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare
located within the state of New Jersey, all of the following are true EXCEPT that the - ANS A.
licensee must hold a timeshare license
May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees -
ANS C. Yes, if the broker directs the salesperson not to cooperate
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, A motel is the subject of an appraisal and it is determined that rerouting of a county highway
has limited customer access to to the motel. This is an example of - ANS A. Economic
obsolesce
An exclusive buyer representation agreement does not include a legal description of the
property. What is the result of this omisison? - ANS D. The agreement is voidable until a legal
description is provided
Which of the following items would be prorated at closing with credit going to the seller? -
ANS D. Unearned rent collections in advance?
Jones and Halstead lice 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? - ANS A. Yes, because Jones can force any other property owner in the
subdivision to comply with deed restrictions.
In New Jersey, the fee which Must be paid when fee simple title to a parcel of real estate passes
for a consideration from one party to another is the: - ANS The Realty Transfer Fee (RTF)
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, What is the greatest ADVANTAGE of using FHA financing when purchasing a home that the
buyer plans to occupy? - ANS The required down payment may be lower than conventional
loans
A broker has a single agency relationship with the seller. Any REQUIRED property condition
disclosure would be completed by the - ANS Seller/ Agent on behalf of the seller
Which of the following statements is TRUE regarding an option agreement? - ANS C. The
seller agrees to sell at a fixed price within a stipulated time.
A low loan-to-value ratio indicated a - ANS C. higher equity in the property.
An offer was presented but the seller did not accept the offer; instead he suggested different
terms that would be more acceptable. Which of the following is false? - ANS C. This is a
negotiation that keeps the original offer alive.
A buyer contracted to purchase a vacant lot for $350,000 cash with no contingencies. The buyer
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intends to build a professional office complex on the property. However, the buyer did not
@COPYRIGHT BRAINBARTER 2025/2026
QUESTIONS AND ANSWERS
When a land owner uses his land as security for a loan, the encumbrance created is called. -
ANS C. an involuntary lien
If an owner wants to list a property for sale "as is," the listing agent should - ANS C. Question
the seller to any known defects
According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare
located within the state of New Jersey, all of the following are true EXCEPT that the - ANS A.
licensee must hold a timeshare license
May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees -
ANS C. Yes, if the broker directs the salesperson not to cooperate
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, A motel is the subject of an appraisal and it is determined that rerouting of a county highway
has limited customer access to to the motel. This is an example of - ANS A. Economic
obsolesce
An exclusive buyer representation agreement does not include a legal description of the
property. What is the result of this omisison? - ANS D. The agreement is voidable until a legal
description is provided
Which of the following items would be prorated at closing with credit going to the seller? -
ANS D. Unearned rent collections in advance?
Jones and Halstead lice 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? - ANS A. Yes, because Jones can force any other property owner in the
subdivision to comply with deed restrictions.
In New Jersey, the fee which Must be paid when fee simple title to a parcel of real estate passes
for a consideration from one party to another is the: - ANS The Realty Transfer Fee (RTF)
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Page
@COPYRIGHT BRAINBARTER 2025/2026
, What is the greatest ADVANTAGE of using FHA financing when purchasing a home that the
buyer plans to occupy? - ANS The required down payment may be lower than conventional
loans
A broker has a single agency relationship with the seller. Any REQUIRED property condition
disclosure would be completed by the - ANS Seller/ Agent on behalf of the seller
Which of the following statements is TRUE regarding an option agreement? - ANS C. The
seller agrees to sell at a fixed price within a stipulated time.
A low loan-to-value ratio indicated a - ANS C. higher equity in the property.
An offer was presented but the seller did not accept the offer; instead he suggested different
terms that would be more acceptable. Which of the following is false? - ANS C. This is a
negotiation that keeps the original offer alive.
A buyer contracted to purchase a vacant lot for $350,000 cash with no contingencies. The buyer
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Page
intends to build a professional office complex on the property. However, the buyer did not
@COPYRIGHT BRAINBARTER 2025/2026
