PSI Real Estate State Exam (NJ) Updated Exam
Questions and Verified Answers
100% Guarantee Pass
1. When a land owner uses his land as security for a loan, the encumbrance
created is called.
Answer: C. an involuntary lien
2. If an owner wants to list a property for sale "as is," the listing agent should
Answer: 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
Answer: A. licensee must hold a timeshare license
4. May a New Jersey real estate licensee decline to cooperate with other New
Jersey licensees
Answer: 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 to the motel. This is an example
,of
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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
Answer: 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?
, Answer: 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
Answer: Seller/ Agent on behalf of the seller
12. Which of the following statements is TRUE regarding an option agreement?-
Answer: C. The seller agrees to sell at a fixed price within a stipulated time.
13. A low loan-to-value ratio indicated a
Answer: 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?
Answer: 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 not advise the seller of this intent. Prior to
closing, the buyer learns that local zoning will not allow an office complex. The
buyer's contract may be considered.
Answer: Void
Questions and Verified Answers
100% Guarantee Pass
1. When a land owner uses his land as security for a loan, the encumbrance
created is called.
Answer: C. an involuntary lien
2. If an owner wants to list a property for sale "as is," the listing agent should
Answer: 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
Answer: A. licensee must hold a timeshare license
4. May a New Jersey real estate licensee decline to cooperate with other New
Jersey licensees
Answer: 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 to the motel. This is an example
,of
Answer: 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?
Answer: 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?
Answer: 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?
Answer: 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
Answer: 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?
, Answer: 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
Answer: Seller/ Agent on behalf of the seller
12. Which of the following statements is TRUE regarding an option agreement?-
Answer: C. The seller agrees to sell at a fixed price within a stipulated time.
13. A low loan-to-value ratio indicated a
Answer: 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?
Answer: 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 not advise the seller of this intent. Prior to
closing, the buyer learns that local zoning will not allow an office complex. The
buyer's contract may be considered.
Answer: Void
