PSI exam Questions And Well
Elaborated Solutions
A license may use the term "Realtor" or "realtor associate" only if the licensee is -
ANSWER -a member of the national association of realtors
Which of the following would automatically be included in the sale of property -
ANSWER -Plumbing fixtures
a seller is offering his property for sale in as is condition. a buyer enters into a contract
with the seller. The buyer - ANSWER -can void the contract due to the sellers failure to
disclose the latent defect
Maintains a real estate agency and terminated two salespersons, in this situation, the
broker is required to take all the following steps except - ANSWER -Permit them to
remove original sales and listing contracts from the brokers office
What should buyers insert into the purchase offer to make sure they would not have to
go through with the purchase if they are not met - ANSWER -contingencies
A potential buyer signs a contract with a seller but then decides not to buy. The seller
may sue the potential buyer for specific preformance because the contract was a -
ANSWER -bilateral contract
Standard title insurance policy would protect a buyer - ANSWER -When the seller has
forged his ex-wife's signature on the deed
Under New Jersey Real Estate commission rules, a licensee's obligations to the public
include all of the following except - ANSWER -Accepting any reasonable commission
offered by a seller in the course of negotiating a listing agreement
When operating in a discloses dual agency relationship, a licensee must disclose the -
ANSWER -Buyer being laid-off after submitting a mortgage application
A land contract is sometimes known as - ANSWER -Installment Contract
A 15 year old inherited some property from a grandparent. The 15 year old put the
property for sale and recieved an offer. Can the 15 year old cancel the agreement to sell
property? - ANSWER -Yes the contract is voidable because is a minor
"sell now before its too late" is an example of - ANSWER -blockbusting
Which of the following types of deeds provides the purchaser of real estate the greatest
protection of any deed - ANSWER -General warranty deed
, After making three sales in six weeks to growing families with young children in a
neighborhood of mostly retirees, a broker decided to seek additional listings there. He
went door to door suggesting that homeowners who enjoyed living in their quiet
neighborhood might wish to sell now and move to a different area where there would
not be so many noisy children. He listed four homes during this marketing campaign..
.this is an example of - ANSWER -Blockbusting because he persuaded them to list
because of an influx of a protected class
All of the following activities constitute property management for which licensure is
required, except - ANSWER -maintenance calls
A buyer and seller agreed upon a selling price for a property and both signed a written
contract. As part of the contract, they have the right to sell the house within 30 days this
is an - ANSWER -executory contract
The seller entered into an exclusive right to sell agreement with terry hill, Ms, hill,
presents the seller with an offer to purchase. Which of the following is appropriate -
ANSWER -The seller is under no obligation to accept the offer or make a counter offer.
What does the mortgage lender most often rely on when deciding how much is safe to
lend to a parcel of real estate - ANSWER -appraisal report
The lead paint addendum that must be presented with the purchase and sale contract
for certain older homes will - ANSWER -provide the buyer with the opportunity to waive
the right to lead paint inspection
It is not illegal to - ANSWER -fire a new salesperson who did not achieve specific sales
goals
When taking a listing to sell a new multi-family residential property, the document that
must be presented to the seller is - ANSWER -the attorney general's memorandum
When should you be sure that the seller completes a lead based paint and or lead
based paint hazard form? - ANSWER -when the house was built before 1978
The candidate must apply for the license within - ANSWER -one year
After being given the appraisal and the closing disclosure, what would result in the
buyer having the right to an additional 3 days to review the documents - ANSWER -the
loan product was changed
after depositing the earnest money, the buyer has a right to - ANSWER -rescind his
offer before acceptance
, The common area of condominium development is owned by - ANSWER -all owners
as tenants in common
A salesperson has the oppurtunity to list a complex that is 100 % rented. The
salesperson can predict the price by using - ANSWER -GRM
All of the following types of out-of-state real estate marketed in NJ through the NJ
Brokers must be registered with the Real Estate Comission - ANSWER -Except office
condominiums
A condominium complex is exempt from the fair housing requirements regarding
familial status if - ANSWER -it is intended for at least on person 55 years or older per
unit
Title insurance has allowed for more accessible loans for buyers - ANSWER -because
it reduces the risk of loss due to title defects
option contracts must - ANSWER -be in writing
unsold foreclosed property goes to - ANSWER -REO
what is one way the a lender can reduce the buyers total monthly payment amount so
the buyer can afford it? - ANSWER -reducing the interest rate by charging extra points
A lender may add 1/12th of the estimated cost of the annual property taxes and hazard
insurance on the mortgaged property to the loan through a - ANSWER -an impound,
escrow, or reserve account
tax against specific property resulting from a public improvement that benefits that
property is known as a - ANSWER -special assessment.
You can furnish contract of sales for one to four family properties provided that a -
ANSWER -three day clause is present
you can rebate commission if you're a - ANSWER -broker
zoning ordinances are set by - ANSWER -local authorities
the clause designed to ensure that a broker will receive a commission if negotiations
with a ready, willing and able buyer concluded after the listing agreement has expired is
called - ANSWER -an extension or "bail" clause
Va loans offer - ANSWER -that the lender is safe if the borrower defaults
Elaborated Solutions
A license may use the term "Realtor" or "realtor associate" only if the licensee is -
ANSWER -a member of the national association of realtors
Which of the following would automatically be included in the sale of property -
ANSWER -Plumbing fixtures
a seller is offering his property for sale in as is condition. a buyer enters into a contract
with the seller. The buyer - ANSWER -can void the contract due to the sellers failure to
disclose the latent defect
Maintains a real estate agency and terminated two salespersons, in this situation, the
broker is required to take all the following steps except - ANSWER -Permit them to
remove original sales and listing contracts from the brokers office
What should buyers insert into the purchase offer to make sure they would not have to
go through with the purchase if they are not met - ANSWER -contingencies
A potential buyer signs a contract with a seller but then decides not to buy. The seller
may sue the potential buyer for specific preformance because the contract was a -
ANSWER -bilateral contract
Standard title insurance policy would protect a buyer - ANSWER -When the seller has
forged his ex-wife's signature on the deed
Under New Jersey Real Estate commission rules, a licensee's obligations to the public
include all of the following except - ANSWER -Accepting any reasonable commission
offered by a seller in the course of negotiating a listing agreement
When operating in a discloses dual agency relationship, a licensee must disclose the -
ANSWER -Buyer being laid-off after submitting a mortgage application
A land contract is sometimes known as - ANSWER -Installment Contract
A 15 year old inherited some property from a grandparent. The 15 year old put the
property for sale and recieved an offer. Can the 15 year old cancel the agreement to sell
property? - ANSWER -Yes the contract is voidable because is a minor
"sell now before its too late" is an example of - ANSWER -blockbusting
Which of the following types of deeds provides the purchaser of real estate the greatest
protection of any deed - ANSWER -General warranty deed
, After making three sales in six weeks to growing families with young children in a
neighborhood of mostly retirees, a broker decided to seek additional listings there. He
went door to door suggesting that homeowners who enjoyed living in their quiet
neighborhood might wish to sell now and move to a different area where there would
not be so many noisy children. He listed four homes during this marketing campaign..
.this is an example of - ANSWER -Blockbusting because he persuaded them to list
because of an influx of a protected class
All of the following activities constitute property management for which licensure is
required, except - ANSWER -maintenance calls
A buyer and seller agreed upon a selling price for a property and both signed a written
contract. As part of the contract, they have the right to sell the house within 30 days this
is an - ANSWER -executory contract
The seller entered into an exclusive right to sell agreement with terry hill, Ms, hill,
presents the seller with an offer to purchase. Which of the following is appropriate -
ANSWER -The seller is under no obligation to accept the offer or make a counter offer.
What does the mortgage lender most often rely on when deciding how much is safe to
lend to a parcel of real estate - ANSWER -appraisal report
The lead paint addendum that must be presented with the purchase and sale contract
for certain older homes will - ANSWER -provide the buyer with the opportunity to waive
the right to lead paint inspection
It is not illegal to - ANSWER -fire a new salesperson who did not achieve specific sales
goals
When taking a listing to sell a new multi-family residential property, the document that
must be presented to the seller is - ANSWER -the attorney general's memorandum
When should you be sure that the seller completes a lead based paint and or lead
based paint hazard form? - ANSWER -when the house was built before 1978
The candidate must apply for the license within - ANSWER -one year
After being given the appraisal and the closing disclosure, what would result in the
buyer having the right to an additional 3 days to review the documents - ANSWER -the
loan product was changed
after depositing the earnest money, the buyer has a right to - ANSWER -rescind his
offer before acceptance
, The common area of condominium development is owned by - ANSWER -all owners
as tenants in common
A salesperson has the oppurtunity to list a complex that is 100 % rented. The
salesperson can predict the price by using - ANSWER -GRM
All of the following types of out-of-state real estate marketed in NJ through the NJ
Brokers must be registered with the Real Estate Comission - ANSWER -Except office
condominiums
A condominium complex is exempt from the fair housing requirements regarding
familial status if - ANSWER -it is intended for at least on person 55 years or older per
unit
Title insurance has allowed for more accessible loans for buyers - ANSWER -because
it reduces the risk of loss due to title defects
option contracts must - ANSWER -be in writing
unsold foreclosed property goes to - ANSWER -REO
what is one way the a lender can reduce the buyers total monthly payment amount so
the buyer can afford it? - ANSWER -reducing the interest rate by charging extra points
A lender may add 1/12th of the estimated cost of the annual property taxes and hazard
insurance on the mortgaged property to the loan through a - ANSWER -an impound,
escrow, or reserve account
tax against specific property resulting from a public improvement that benefits that
property is known as a - ANSWER -special assessment.
You can furnish contract of sales for one to four family properties provided that a -
ANSWER -three day clause is present
you can rebate commission if you're a - ANSWER -broker
zoning ordinances are set by - ANSWER -local authorities
the clause designed to ensure that a broker will receive a commission if negotiations
with a ready, willing and able buyer concluded after the listing agreement has expired is
called - ANSWER -an extension or "bail" clause
Va loans offer - ANSWER -that the lender is safe if the borrower defaults
