PSI Exam-Questions with Correct Answers/ Verified/ 100% Pass
Answer : Mortgage lien - ✔️✔️When a land owner uses his land as security for a loan, the
encumbrances created is called ?
Answer : Question the seller to any known defects - ✔️✔️If an owner wants to list a property for
sale "as is" the listing agent should
Answer : Licensee must hold a timeshare license - ✔️✔️According to the New Jersey real estate
timeshare act, if a licensee is selling a timeshare located within the state of New Jersey all of the
following are true EXCEPT that the ?
Answer : yes, if the broker directs the salesperson not to cooperate - ✔️✔️Can a New Jersey real
estate licensee decline to cooperate with other New Jersey licensees?
Answer: Economic Obsolesce - ✔️✔️A motel is the subject of an appraisal and it is determined that
rerouting of a county highway has limited customer access to the motel this is an example of?
Answer: the agreement is voidable until a legal description is provided - ✔️✔️An exclusive buyer
representation agreement does not include a legal description of the property. what is the result of
this omission ?
Answer: yes, because Jones can force any other property owner in the subdivision to comply with
deed restrictions. - ✔️✔️Jones and Halstead live 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 ?
Answer: Realty Transfer Fee ( RTF) - ✔️✔️In New Jersey, the fee which must be paid when fee
simple title to a parcel of real state passes for a consideration from one party to another is the?
Answer: The required down payment may be lower than conventional loans. - ✔️✔️What is the
greatest advantage of using FHA financing when purchasing a home that the buyer plans to occupy?
Answer: Broker - ✔️✔️A broker has a single agency relationship with the seller. Any required
property condition disclosure would be completed by the ?
,Answer : The seller agrees to sell at a fixed price within a stipulated time - ✔️✔️Which of the
following statements is true regarding an option agreement?
Answer: higher equity in the property - ✔️✔️A low loan- to - value ratio indicated a ?
Answer: This is a negotiation that keeps the original offer alive - ✔️✔️An offer was presented but
the seller did not except the offer , instead he suggested different terms that would be more
acceptable, which of the following is false?
Answer: Void - ✔️✔️A buyer contracted to purchase a vacant lot for $350,000 cash with no
contingencies the buyer intends to build a professional office complex on the property. However the
buyer did not advise the seller of this intent. Prior to closing the buyer learns that local zoning will
not allow an office complex. The buyers contract may be considered?
Answer: Under no circumstances may the licensee inquire as to the legal residency status of the
prospective tenant. - ✔️✔️A licensee representing a landlord is concerned when a prospective
tenant mentions that she has recently left her homeland to work as a research consultant under a
grant at a local hospital in hopes to return to her native country with valuable knowledge to share
when the project ends. What steps if any is a Licensee legally able to take in protecting her clients
interest?
Answer: This is the Best Buy you'll find all year. - ✔️✔️Which of the following statements is the best
example of puffing?
Answer: 1 month - ✔️✔️A complaint must be filed with HUD within what period of time after the
fair housing violation has occurred?
Answer: Performance obligations of the parties - ✔️✔️Which of the following differentiates a
bilateral contract from a unilateral contract ?
Answer: Broker must give account of how the money is being spent within 90 days - ✔️✔️A broker
who charges or collects an advance fee in excess of $25 for services to be rendered MUST ?
Answer: Personal Property - ✔️✔️An owner has a freestanding cabinet that was custom built to fit
an alcove of the living room. When the owner sells the home, the cabinet will be BEST described as ?
, Answer: it is impossible for one of the parties to perform - ✔️✔️A contract is terminated if ?
Answer: upon written request of seller - ✔️✔️Deposit monies may NOT be disbursed to the seller in
which circumstance ?
Answer : 3,900 - ✔️✔️A buyer writes an offer for 325,000 with 20% down payment is accepted.
They must pay 1 1/2 discount points to obtain financing. What amount will they owe for points?
Answer : No, because the seller has not accepted the offer - ✔️✔️A licensee listed a property that
had an unfinished garage. The licensee received an offer subject to the garage being finished. Was a
contractual obligation created ?
Answer: The listing price of the property - ✔️✔️If a licensee mentions MLS when advertising in a
newspaper, the New Jersey licensing Law requires which of the following information to be
included?
Answer : credit the buyer - ✔️✔️How is the earnest money deposit usually applied at closing in
settlement statement ?
Answer: Rollback taxes - ✔️✔️A farmer who owns fifty acres of land benefits from a reduced
property tax assessment since the property is qualified farmland covered by the farmland
reassessment act. The property is being sold to a buyer who will use it for non-qualified purposes.
This situation will create liability for ?
Answer: A broker may not authorize a salesperson to act on the brokers behalf until a written
agreement is signed by the broker and salesperson. - ✔️✔️According to the New Jersey Real estate
license act, which of the following statements is CORRECT concerning the terms of an employment
agreement ?
Answer: Two salespersons may be designed to share supervising responsibilities. - ✔️✔️Which of
the following statements about branch offices is INCORRECT?
Answer: Maintenance calls - ✔️✔️All of the following activities constitute property management
for which licensure is required EXCEPT?
Answer : Mortgage lien - ✔️✔️When a land owner uses his land as security for a loan, the
encumbrances created is called ?
Answer : Question the seller to any known defects - ✔️✔️If an owner wants to list a property for
sale "as is" the listing agent should
Answer : Licensee must hold a timeshare license - ✔️✔️According to the New Jersey real estate
timeshare act, if a licensee is selling a timeshare located within the state of New Jersey all of the
following are true EXCEPT that the ?
Answer : yes, if the broker directs the salesperson not to cooperate - ✔️✔️Can a New Jersey real
estate licensee decline to cooperate with other New Jersey licensees?
Answer: Economic Obsolesce - ✔️✔️A motel is the subject of an appraisal and it is determined that
rerouting of a county highway has limited customer access to the motel this is an example of?
Answer: the agreement is voidable until a legal description is provided - ✔️✔️An exclusive buyer
representation agreement does not include a legal description of the property. what is the result of
this omission ?
Answer: yes, because Jones can force any other property owner in the subdivision to comply with
deed restrictions. - ✔️✔️Jones and Halstead live 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 ?
Answer: Realty Transfer Fee ( RTF) - ✔️✔️In New Jersey, the fee which must be paid when fee
simple title to a parcel of real state passes for a consideration from one party to another is the?
Answer: The required down payment may be lower than conventional loans. - ✔️✔️What is the
greatest advantage of using FHA financing when purchasing a home that the buyer plans to occupy?
Answer: Broker - ✔️✔️A broker has a single agency relationship with the seller. Any required
property condition disclosure would be completed by the ?
,Answer : The seller agrees to sell at a fixed price within a stipulated time - ✔️✔️Which of the
following statements is true regarding an option agreement?
Answer: higher equity in the property - ✔️✔️A low loan- to - value ratio indicated a ?
Answer: This is a negotiation that keeps the original offer alive - ✔️✔️An offer was presented but
the seller did not except the offer , instead he suggested different terms that would be more
acceptable, which of the following is false?
Answer: Void - ✔️✔️A buyer contracted to purchase a vacant lot for $350,000 cash with no
contingencies the buyer intends to build a professional office complex on the property. However the
buyer did not advise the seller of this intent. Prior to closing the buyer learns that local zoning will
not allow an office complex. The buyers contract may be considered?
Answer: Under no circumstances may the licensee inquire as to the legal residency status of the
prospective tenant. - ✔️✔️A licensee representing a landlord is concerned when a prospective
tenant mentions that she has recently left her homeland to work as a research consultant under a
grant at a local hospital in hopes to return to her native country with valuable knowledge to share
when the project ends. What steps if any is a Licensee legally able to take in protecting her clients
interest?
Answer: This is the Best Buy you'll find all year. - ✔️✔️Which of the following statements is the best
example of puffing?
Answer: 1 month - ✔️✔️A complaint must be filed with HUD within what period of time after the
fair housing violation has occurred?
Answer: Performance obligations of the parties - ✔️✔️Which of the following differentiates a
bilateral contract from a unilateral contract ?
Answer: Broker must give account of how the money is being spent within 90 days - ✔️✔️A broker
who charges or collects an advance fee in excess of $25 for services to be rendered MUST ?
Answer: Personal Property - ✔️✔️An owner has a freestanding cabinet that was custom built to fit
an alcove of the living room. When the owner sells the home, the cabinet will be BEST described as ?
, Answer: it is impossible for one of the parties to perform - ✔️✔️A contract is terminated if ?
Answer: upon written request of seller - ✔️✔️Deposit monies may NOT be disbursed to the seller in
which circumstance ?
Answer : 3,900 - ✔️✔️A buyer writes an offer for 325,000 with 20% down payment is accepted.
They must pay 1 1/2 discount points to obtain financing. What amount will they owe for points?
Answer : No, because the seller has not accepted the offer - ✔️✔️A licensee listed a property that
had an unfinished garage. The licensee received an offer subject to the garage being finished. Was a
contractual obligation created ?
Answer: The listing price of the property - ✔️✔️If a licensee mentions MLS when advertising in a
newspaper, the New Jersey licensing Law requires which of the following information to be
included?
Answer : credit the buyer - ✔️✔️How is the earnest money deposit usually applied at closing in
settlement statement ?
Answer: Rollback taxes - ✔️✔️A farmer who owns fifty acres of land benefits from a reduced
property tax assessment since the property is qualified farmland covered by the farmland
reassessment act. The property is being sold to a buyer who will use it for non-qualified purposes.
This situation will create liability for ?
Answer: A broker may not authorize a salesperson to act on the brokers behalf until a written
agreement is signed by the broker and salesperson. - ✔️✔️According to the New Jersey Real estate
license act, which of the following statements is CORRECT concerning the terms of an employment
agreement ?
Answer: Two salespersons may be designed to share supervising responsibilities. - ✔️✔️Which of
the following statements about branch offices is INCORRECT?
Answer: Maintenance calls - ✔️✔️All of the following activities constitute property management
for which licensure is required EXCEPT?
