NJ PSI PROPERTY AND CASUALTY EXAM 2
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is. Answer: an agent to
the broker and a subagent to the principal.
◉ Depreciation is calculated based on the. Answer: 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. Answer:
mortgagor
◉ A competitive market analysis is MOST often used for. Answer:
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. Answer: 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. Answer: 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?.
Answer: 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?. Answer: Return of the
property to the original owner.
◉ The purpose of requiring an earnest money deposit in a real
estate sales contract is to. Answer: 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. Answer: constructive notice
◉ What type of map is MOST useful for describing the terrain of a
very hilly lot?. Answer: 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,. Answer: 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. Answer: 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. Answer: 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?. Answer: 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. Answer: straight (term) loan (AKA
term loan)
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS GRADED A+
◉ A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is. Answer: an agent to
the broker and a subagent to the principal.
◉ Depreciation is calculated based on the. Answer: 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. Answer:
mortgagor
◉ A competitive market analysis is MOST often used for. Answer:
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. Answer: 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. Answer: 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?.
Answer: 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?. Answer: Return of the
property to the original owner.
◉ The purpose of requiring an earnest money deposit in a real
estate sales contract is to. Answer: 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. Answer: constructive notice
◉ What type of map is MOST useful for describing the terrain of a
very hilly lot?. Answer: 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,. Answer: 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. Answer: 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. Answer: 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?. Answer: 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. Answer: straight (term) loan (AKA
term loan)
