PSI NJ REAL ESTATE EXAM, PSI PRACTICE TEST QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+

PSI NJ REAL ESTATE EXAM, PSI PRACTICE TEST
QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GRADED A+

Water Rights - ANSWER B B B The terms "littoral," "riparian," and "appropriative" refer to
B B B B B B B




A salesperson lists a property with a contract that allows for subagency and dual agency. The s
B B B B B B B B B B B B B B B B



alesperson is - ANSWER B B B an agent to the broker and a subagent to the principal.
B B B B B B B B B B




Depreciation is calculated based on the - ANSWER B B B B B B B Cost of the building only.
B B B B




When a property owner uses his home as collateral for a loan and creates a lien in favor of the
B B B B B B B B B B B B B B B B B B B B



lender, title is held by the - ANSWER
B B B B B B B mortgagor



A competitive market analysis is MOST often used for - ANSWER
B B B B B B B B B B setting a listing price
B B B




A seller tells the listing agent that her home was treated for termites 10 years ago, so there are
B B B B B B B B B B B B B B B B B B



no termites now. Before listing the property, the agent should -
B B B B B B B B B B B



B ANSWER tell the seller not to disclose, because the statute of limitations has run out.
B B B B B B B B B B B B B




All of the following are methods to calculate the reproduction or replacement cost of a buildin
B B B B B B B B B B B B B B B



g EXCEPT the - ANSWER
B B B B straight-line method B




The buyer is assuming a mortgage presently on the property in the amount of $110,000. What
B B B B B B B B B B B B B B B



is the adjustment made at closing? -
B B B B B B B



B ANSWER Credit buyer $110,000; debit seller $110,000.
B B B B B




If conditions for purchase are included in a deed and these conditions are violated, what is the
B B B B B B B B B B B B B B B B



B penalty? - ANSWER B B Return of the property to the original owner.
B B B B B B B




1
Wicky

,The purpose of requiring an earnest money deposit in a real estate sales contract is to -
B B B B B B B B B B B B B B B B



B ANSWER provide evidence of the buyer's intention to carry out the contract.
B B B B B B B B B B




A judgment has been properly recorded. Any subsequent purchasers, whether they have actu
B B B B B B B B B B B B



ally examined the record or not, have been given - ANSWER
B B B B B B B B B B constructive notice B




What type of map is MOST useful for describing the terrain of a very hilly lot? -
B B B B B B B B B B B B B B B B



B ANSWER contour map B




The Department of Housing and Urban Development estimates that most private homes built
B B B B B B B B B B B B B



before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agenci
B B B B B B B B B B B B B



es, such as FHA, -
B B B B



ANSWER
B Require the buyer to acknowledge disclosure of the presence of any known le
B B B B B B B B B B B B



ad paint. B




At the time of listing, the seller tells the listing agent they are moving because the neighbor ha
B B B B B B B B B B B B B B B B B



s loud parties every weekend. The agent should -
B B B B B B B B



ANSWER
B tell potential buyers about the parties. (Any social information expressed to a B B B B B B B B B B B



n agent can be shared)
B B B B




A major reason for buying and owning a condominium rather than a detached single-
B B B B B B B B B B B B B



family home is that - ANSWERB B B B B a condominium tends to be more affordable.
B B B B B B




A buyer was negotiating the purchase of a house for himself. During a conversation with the se
B B B B B B B B B B B B B B B B



ller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in
B B B B B B B B B B B B B B B B B B



the sales contract. In this situation, if the seller takes the appliances with him, what recourse d
B B B B B B B B B B B B B B B B



oes the buyer have? - ANSWER
B B B B B The buyer may sue the seller for specific performance.
B B B B B B B B




A loan which requires the borrower to pay interest only until the maturity date (or due date), a
B B B B B B B B B B B B B B B B B



nd then to pay the entire principal on the maturity date, is called a -
B B B B B B B B B B B B B B



B ANSWER straight (term) loan (AKA term loan)
B B B B B




2
Wicky

, The real estate contract for a specific property for use as an unlicensed whiskey sales operatio
B B B B B B B B B B B B B B B



n was forced to terminate. The termination was the result of -
B B B B B B B B B B B



B ANSWER Impossibility of performance. - - B B B B



B (Key word: *Unlicensed* whiskey sales operation).
B B B B B




A broker lists a property, with a listing contract allowing subagency and dual agency. One of th
B B B B B B B B B B B B B B B B



e broker's salespersons shows the property. The salesperson would be classified as -
B B B B B B B B B B B B



B ANSWER a subagent of the seller. — (Think - B B B B B B B



B brokerage is the AGENCY, salesperson is working under the agency)
B B B B B B B B B




The relationship in which the agent is placed in the position of trust and confidence to the prin
B B B B B B B B B B B B B B B B B



cipal is known by the term - ANSWER
B B B B B B B fiduciary



An agreement to purchase that has NOT yet closed is - ANSWER
B B B B B B B B B B B an executory contract.
B B




When compiling a competitive market analysis, a broker would look for comparable propertie
B B B B B B B B B B B B



s that - ANSWER
B B B were located near the property being listed.
B B B B B B




The power vested in the government to establish legislation to preserve order, protect the pu
B B B B B B B B B B B B B B



blic health and safety, and promote the general welfare is known as -
B B B B B B B B B B B B



B ANSWER police power B




If a borrower can afford to make monthly principal and interest payments of $1,000 and the le
B B B B B B B B B B B B B B B B



nder will make a 30-year loan at 8-
B B B B B B B



1/2%, how large a loan (rounded to the nearest $100) can this buyer afford? (BE SURE TO USE
B B B B B B B B B B B B B B B B B B



THE AMORTIZATION TABLE.) - ANSWER
B B B B $130,000



An Environmental Impact Statement (EIS) -
B B B B B



B ANSWER projects the impact on the environment of a proposed project.
B B B B B B B B B




In an exclusive right-to-
B B B



sell listing, an owner lists the property for sale with how many brokers? - ANSWER
B B B B B B B B B B B B B B One

3
Wicky