PSI REAL ESTATE STATE EXAM (NJ)
Updated Questions and Answers
1. When a land owner uses his land as security for a loan, the
encumbrance created is called.
ANS C. an involuntary lien
2. If an owner wants to list a property for sale "as is," the listing
agent should
ANS C. Question the seller to any known defects
3. According to the New Jersey Real Estate Time Share Act, if a licensee
is selling a timeshare located within the state of New Jersey, all of the
following are true EXCEPT that the
ANS A. licensee must hold a timeshare license
4. May a New Jersey real estate licensee decline to cooperate with
other New Jersey
licensees
ANS C. Yes, if the broker directs the salesperson not to cooperate
5. 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
, ANS A. Economic obsolesce
6. An exclusive buyer representation agreement does not include a
legal de- scription of the property. What is the result of this omisison?
ANS D. The agreement is voidable until a legal description is provided
7. Which of the following items would be prorated at closing with
credit going to the seller?
ANS D. Unearned rent collections in advance?
8. Jones and Halstead lice 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?
ANS A. Yes, because Jones can force any other property owner in the subdivision to comply with deed
restrictions.
9. In New Jersey, the fee which Must be paid when fee simple title to a
parcel of real estate passes for a consideration from one party to
another is the
ANS
The Realty Transfer Fee (RTF)
, 10. What is the greatest ADVANTAGE of using FHA financing when
purchasing a home that the buyer plans to occupy?
ANS The required down payment may be lower than conventional loans
11. A broker has a single agency relationship with the seller. Any
REQUIRED property condition disclosure would be completed by the
ANS Seller/ Agent on behalf of the seller
12. Which of the following statements is TRUE regarding an option
agreement?-
ANS C. The seller agrees to sell at a fixed price within a stipulated time.
13. A low loan-to-value ratio indicated a
ANS C. higher equity in the property.
14. An offer was presented but the seller did not accept the
offer; instead he suggested different terms that would be more
acceptable. Which of the following is false?
ANS C. This is a negotiation that keeps the original otter alive.
15. 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
Updated Questions and Answers
1. When a land owner uses his land as security for a loan, the
encumbrance created is called.
ANS C. an involuntary lien
2. If an owner wants to list a property for sale "as is," the listing
agent should
ANS C. Question the seller to any known defects
3. According to the New Jersey Real Estate Time Share Act, if a licensee
is selling a timeshare located within the state of New Jersey, all of the
following are true EXCEPT that the
ANS A. licensee must hold a timeshare license
4. May a New Jersey real estate licensee decline to cooperate with
other New Jersey
licensees
ANS C. Yes, if the broker directs the salesperson not to cooperate
5. 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
, ANS A. Economic obsolesce
6. An exclusive buyer representation agreement does not include a
legal de- scription of the property. What is the result of this omisison?
ANS D. The agreement is voidable until a legal description is provided
7. Which of the following items would be prorated at closing with
credit going to the seller?
ANS D. Unearned rent collections in advance?
8. Jones and Halstead lice 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?
ANS A. Yes, because Jones can force any other property owner in the subdivision to comply with deed
restrictions.
9. In New Jersey, the fee which Must be paid when fee simple title to a
parcel of real estate passes for a consideration from one party to
another is the
ANS
The Realty Transfer Fee (RTF)
, 10. What is the greatest ADVANTAGE of using FHA financing when
purchasing a home that the buyer plans to occupy?
ANS The required down payment may be lower than conventional loans
11. A broker has a single agency relationship with the seller. Any
REQUIRED property condition disclosure would be completed by the
ANS Seller/ Agent on behalf of the seller
12. Which of the following statements is TRUE regarding an option
agreement?-
ANS C. The seller agrees to sell at a fixed price within a stipulated time.
13. A low loan-to-value ratio indicated a
ANS C. higher equity in the property.
14. An offer was presented but the seller did not accept the
offer; instead he suggested different terms that would be more
acceptable. Which of the following is false?
ANS C. This is a negotiation that keeps the original otter alive.
15. 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
