PSI NJ Real Estate Exam, PSI Practice Test
Questions and Answers
1. Water Rights
ANS The terms "littoral," "riparian," and "appropriative" refer to
2. A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is
ANS an agent to the broker and a subagent to the principal.
3. Depreciation is calculated based on the
ANS Cost of the building only.
4. 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
ANS mortgagor
5. A competitive market analysis is MOST often used for
ANS setting a listing price
6. 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
ANS tell the seller not to disclose, because the statute of limitations has run out.
,7. All of the following are methods to calculate the reproduction or
replacement cost of a building EXCEPT the
ANS straight-line method
8. The buyer is assuming a mortgage presently on the property in
the amount of $110,000. What is the adjustment made at closing?
ANS Credit buyer $110,000; debit seller
$110,000.
9. If conditions for purchase are included in a deed and these
conditions are violated, what is the penalty?
ANS Return of the property to the original owner.
10. The purpose of requiring an earnest money deposit in a real
estate sales contract is to
ANS provide evidence of the buyer's intention to carry out the contract.
11. A judgment has been properly recorded. Any subsequent
purchasers, whether they have actually examined the record or not,
have been given
ANS constructive notice
12. What type of map is MOST useful for describing the terrain
of a very hilly lot?
, ANS contour map
13. 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,
ANS Require the buyer to acknowledge disclosure of the presence of any known lead
paint.
14. 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
ANS tell potential buyers about the parties. (Any social information expressed to an agent
can be shared)
15. A major reason for buying and owning a condominium
rather than a
detached single-family home is that
ANS a condominium tends to be more affordable.
16. 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,
Questions and Answers
1. Water Rights
ANS The terms "littoral," "riparian," and "appropriative" refer to
2. A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is
ANS an agent to the broker and a subagent to the principal.
3. Depreciation is calculated based on the
ANS Cost of the building only.
4. 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
ANS mortgagor
5. A competitive market analysis is MOST often used for
ANS setting a listing price
6. 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
ANS tell the seller not to disclose, because the statute of limitations has run out.
,7. All of the following are methods to calculate the reproduction or
replacement cost of a building EXCEPT the
ANS straight-line method
8. The buyer is assuming a mortgage presently on the property in
the amount of $110,000. What is the adjustment made at closing?
ANS Credit buyer $110,000; debit seller
$110,000.
9. If conditions for purchase are included in a deed and these
conditions are violated, what is the penalty?
ANS Return of the property to the original owner.
10. The purpose of requiring an earnest money deposit in a real
estate sales contract is to
ANS provide evidence of the buyer's intention to carry out the contract.
11. A judgment has been properly recorded. Any subsequent
purchasers, whether they have actually examined the record or not,
have been given
ANS constructive notice
12. What type of map is MOST useful for describing the terrain
of a very hilly lot?
, ANS contour map
13. 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,
ANS Require the buyer to acknowledge disclosure of the presence of any known lead
paint.
14. 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
ANS tell potential buyers about the parties. (Any social information expressed to an agent
can be shared)
15. A major reason for buying and owning a condominium
rather than a
detached single-family home is that
ANS a condominium tends to be more affordable.
16. 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,
