PSI NJ Real Estate Exam, PSI Practice
Test with Complete Solutions
Water Rights ✔✔The terms "littoral," "riparian," and "appropriative" refer to
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is ✔✔an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the ✔✔Cost of the building only.
When a property owner uses his home as collateral for a loan and creates a lien in favor of the
lender, title is held by the ✔✔mortgagor
A competitive market analysis is MOST often used for ✔✔setting a listing price
A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no
termites now. Before listing the property, the agent should ✔✔tell the seller not to disclose,
because the statute of limitations has run out.
,All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT the ✔✔straight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is
the adjustment made at closing? ✔✔Credit buyer $110,000; debit seller $110,000.
If conditions for purchase are included in a deed and these conditions are violated, what is the
penalty? ✔✔Return of the property to the original owner.
The purpose of requiring an earnest money deposit in a real estate sales contract is to ✔✔provide
evidence of the buyer's intention to carry out the contract.
A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given ✔✔constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot? ✔✔contour map
The Department of Housing and Urban Development estimates that most private homes built
before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies,
, such as FHA, ✔✔Require the buyer to acknowledge disclosure of the presence of any known
lead paint.
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend. The agent should ✔✔tell potential buyers about the parties. (Any
social information expressed to an agent can be shared)
A major reason for buying and owning a condominium rather than a detached single-family
home is that ✔✔a condominium tends to be more affordable.
A buyer was negotiating the purchase of a house for himself. During a conversation with the
seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in
the sales contract. In this situation, if the seller takes the appliances with him, what recourse does
the buyer have? ✔✔The buyer may sue the seller for specific performance.
A loan which requires the borrower to pay interest only until the maturity date (or due date), and
then to pay the entire principal on the maturity date, is called a ✔✔straight (term) loan (AKA
term loan)
Test with Complete Solutions
Water Rights ✔✔The terms "littoral," "riparian," and "appropriative" refer to
A salesperson lists a property with a contract that allows for subagency and dual agency. The
salesperson is ✔✔an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the ✔✔Cost of the building only.
When a property owner uses his home as collateral for a loan and creates a lien in favor of the
lender, title is held by the ✔✔mortgagor
A competitive market analysis is MOST often used for ✔✔setting a listing price
A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no
termites now. Before listing the property, the agent should ✔✔tell the seller not to disclose,
because the statute of limitations has run out.
,All of the following are methods to calculate the reproduction or replacement cost of a building
EXCEPT the ✔✔straight-line method
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is
the adjustment made at closing? ✔✔Credit buyer $110,000; debit seller $110,000.
If conditions for purchase are included in a deed and these conditions are violated, what is the
penalty? ✔✔Return of the property to the original owner.
The purpose of requiring an earnest money deposit in a real estate sales contract is to ✔✔provide
evidence of the buyer's intention to carry out the contract.
A judgment has been properly recorded. Any subsequent purchasers, whether they have actually
examined the record or not, have been given ✔✔constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot? ✔✔contour map
The Department of Housing and Urban Development estimates that most private homes built
before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies,
, such as FHA, ✔✔Require the buyer to acknowledge disclosure of the presence of any known
lead paint.
At the time of listing, the seller tells the listing agent they are moving because the neighbor has
loud parties every weekend. The agent should ✔✔tell potential buyers about the parties. (Any
social information expressed to an agent can be shared)
A major reason for buying and owning a condominium rather than a detached single-family
home is that ✔✔a condominium tends to be more affordable.
A buyer was negotiating the purchase of a house for himself. During a conversation with the
seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in
the sales contract. In this situation, if the seller takes the appliances with him, what recourse does
the buyer have? ✔✔The buyer may sue the seller for specific performance.
A loan which requires the borrower to pay interest only until the maturity date (or due date), and
then to pay the entire principal on the maturity date, is called a ✔✔straight (term) loan (AKA
term loan)
