NJ PSI PROPERTY AND CASUALTY EXAM 2
COMPREHENSIVE TEST 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ The sellers have agreed to give the buyers an allowance of $16.95
per square yard to retile the kitchen. If the kitchen is 10 feet x 14
feet, how much will it cost the sellers (to the nearest dollar)?.
Answer: $264
◉ Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price.
Answer: the first sold
◉ Which of the following is the first action to take when mold
problems are found?. Answer: Identify and remedy the cause of the
problems.
◉ A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to. Answer:
demand immediate payment of the entire note.
◉ A buyer is getting a fully amortized loan for $220,000. The bank
will give the buyer the loan for 15 years at 5 1/2% or for 30 years at
,6 1/2%. To the nearest cent, what is the difference between the
monthly payments for these two loans? (BE SURE TO USE THE
AMORTIZATION TABLE.). Answer: $409.20
◉ A property management plan may serve different purposes for
different owners, and generally has to strike a balance between
preservation of the property's value and generation of income.
Which of the following owners would MOST likely prefer a property
manager who emphasizes maintenance of value over profitability?.
Answer: An individual entrepreneur who owns several apartment
buildings.
◉ A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called. Answer: a contract
◉ Errors and Omissions insurance covers the broker for. Answer:
Unintentional misrepresentation
◉ An example of a contract terminated due to inability to perform
would be one in which the. Answer: seller had contracted for sale of
the entire property without the knowledge or consent of the other
joint tenant.
◉ According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the....
Answer: cash price or amount of the loan, amount of down payment
, required and number, amount, and frequency of payments. DO NOT
NEED TO INCLUDE PREPAYMENT PENALTIES AND REBATES.
◉ A deed restriction is applicable to the activities of. Answer:
present and future owners.
◉ In MOST states, foreclosed property is sold through. Answer:
Public Auction
◉ A tenant rented an apartment, signing a 15-month lease. After the
lease expired, the tenant paid 1 month's rent and got a receipt. What
kind of leasehold does the tenant have?. Answer: tenancy at will
◉ When preparing a market data estimate of value, which of the
following categories of adjustment is NOT essential?. Answer: The
original cost of the building.
◉ Which of these Federal laws regulates the advertisement of a
lender's credit terms (rates, payment, etc.)?. Answer: Regulation Z
◉ A couple owns an older home in a neighborhood that is becoming
a commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of. Answer: anticipation
COMPREHENSIVE TEST 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉ The sellers have agreed to give the buyers an allowance of $16.95
per square yard to retile the kitchen. If the kitchen is 10 feet x 14
feet, how much will it cost the sellers (to the nearest dollar)?.
Answer: $264
◉ Three identical homes in a neighborhood were listed at the same
time in a market where demand was constant. According to the law
of supply and demand, which would have sold for the lowest price.
Answer: the first sold
◉ Which of the following is the first action to take when mold
problems are found?. Answer: Identify and remedy the cause of the
problems.
◉ A borrower has defaulted on the mortgage. The mortgage
contains an acceleration clause. This permits the lender to. Answer:
demand immediate payment of the entire note.
◉ A buyer is getting a fully amortized loan for $220,000. The bank
will give the buyer the loan for 15 years at 5 1/2% or for 30 years at
,6 1/2%. To the nearest cent, what is the difference between the
monthly payments for these two loans? (BE SURE TO USE THE
AMORTIZATION TABLE.). Answer: $409.20
◉ A property management plan may serve different purposes for
different owners, and generally has to strike a balance between
preservation of the property's value and generation of income.
Which of the following owners would MOST likely prefer a property
manager who emphasizes maintenance of value over profitability?.
Answer: An individual entrepreneur who owns several apartment
buildings.
◉ A written agreement in which a purchaser agrees to buy and a
seller agrees to sell is called. Answer: a contract
◉ Errors and Omissions insurance covers the broker for. Answer:
Unintentional misrepresentation
◉ An example of a contract terminated due to inability to perform
would be one in which the. Answer: seller had contracted for sale of
the entire property without the knowledge or consent of the other
joint tenant.
◉ According to the Truth-in-Lending Act, if any "trigger terms" are
used in an ad, all of the following disclosures MUST appear in the....
Answer: cash price or amount of the loan, amount of down payment
, required and number, amount, and frequency of payments. DO NOT
NEED TO INCLUDE PREPAYMENT PENALTIES AND REBATES.
◉ A deed restriction is applicable to the activities of. Answer:
present and future owners.
◉ In MOST states, foreclosed property is sold through. Answer:
Public Auction
◉ A tenant rented an apartment, signing a 15-month lease. After the
lease expired, the tenant paid 1 month's rent and got a receipt. What
kind of leasehold does the tenant have?. Answer: tenancy at will
◉ When preparing a market data estimate of value, which of the
following categories of adjustment is NOT essential?. Answer: The
original cost of the building.
◉ Which of these Federal laws regulates the advertisement of a
lender's credit terms (rates, payment, etc.)?. Answer: Regulation Z
◉ A couple owns an older home in a neighborhood that is becoming
a commercial area. Because of the change in the use of the land, the
couple can expect the value of their parcel to increase at some future
time. This is an example of the principle of. Answer: anticipation
