Page | 1
PSI NJ REAL ESTATE EXAM, PSI
PRACTICE TEST. 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Water Rights - correct answer-The terms "littoral," "riparian," and
"appropriative" refer to
A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is - correct answer-
an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the - correct 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 - correct
answer-mortgagor
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A competitive market analysis is MOST often used for - correct
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 - correct 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 - correct 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?
- correct 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? - correct answer-
Return of the property to the original owner.
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The purpose of requiring an earnest money deposit in a real
estate sales contract is to - correct 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 - correct answer-constructive notice
What type of map is MOST useful for describing the terrain of a
very hilly lot? - correct 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, - correct 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 - correct answer-tell potential buyers about the
parties. (Any social information expressed to an agent can be
shared)
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A major reason for buying and owning a condominium rather than
a detached single-family home is that - correct 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? - correct 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 - correct answer-straight (term) loan
(AKA term loan)
The real estate contract for a specific property for use as an
unlicensed whiskey sales operation was forced to terminate. The
termination was the result of - correct answer-Impossibility of
performance. - - (Key word: *Unlicensed* whiskey sales
operation).
PSI NJ REAL ESTATE EXAM, PSI
PRACTICE TEST. 2026 QUESTIONS
AND ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
Water Rights - correct answer-The terms "littoral," "riparian," and
"appropriative" refer to
A salesperson lists a property with a contract that allows for
subagency and dual agency. The salesperson is - correct answer-
an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the - correct 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 - correct
answer-mortgagor
, Page | 2
A competitive market analysis is MOST often used for - correct
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 - correct 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 - correct 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?
- correct 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? - correct answer-
Return of the property to the original owner.
, Page | 3
The purpose of requiring an earnest money deposit in a real
estate sales contract is to - correct 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 - correct answer-constructive notice
What type of map is MOST useful for describing the terrain of a
very hilly lot? - correct 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, - correct 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 - correct answer-tell potential buyers about the
parties. (Any social information expressed to an agent can be
shared)
, Page | 4
A major reason for buying and owning a condominium rather than
a detached single-family home is that - correct 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? - correct 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 - correct answer-straight (term) loan
(AKA term loan)
The real estate contract for a specific property for use as an
unlicensed whiskey sales operation was forced to terminate. The
termination was the result of - correct answer-Impossibility of
performance. - - (Key word: *Unlicensed* whiskey sales
operation).
