PSI NJ Real Estate Exam, PSI Practice Test, Complete
Correct answers 2022.
Water Rights
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
an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the
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
mortgagor
A competitive market analysis is MOST often used for
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
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
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?
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?
Return of the property to the original owner.
The purpose of requiring an earnest money deposit in a real estate sales contract
is to
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
constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot?
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,
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
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
, 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?
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
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
Impossibility of performance. - - (Key word: Unlicensed whiskey sales operation).
A broker lists a property, with a listing contract allowing subagency and dual
agency. One of the broker's salespersons shows the property. The salesperson
would be classified as
a subagent of the seller. — (Think - brokerage is the AGENCY, salesperson is working
under the agency)
The relationship in which the agent is placed in the position of trust and
confidence to the principal is known by the term
fiduciary
An agreement to purchase that has NOT yet closed is
an executory contract.
When compiling a competitive market analysis, a broker would look for
comparable properties that
were located near the property being listed.
The power vested in the government to establish legislation to preserve order,
protect the public health and safety, and promote the general welfare is known as
police power
If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 8-1/2%, how large a loan
(rounded to the nearest $100) can this buyer afford? (BE SURE TO USE THE
AMORTIZATION TABLE.)
$130,000
An Environmental Impact Statement (EIS)
projects the impact on the environment of a proposed project.
In an exclusive right-to-sell listing, an owner lists the property for sale with how
many brokers?
One
A prospective buyer made an offer to purchase a property. The owner responded
with a counteroffer. While the buyer was reviewing the counteroffer, the owner
received a better offer. The owner can accept the second offer if
the owner withdraws the counteroffer before it is accepted.
Antitrust laws prohibit competing brokers from all of the following EXCEPT
receiving compensation from both the buyer and the seller.
Without checking the facts, a broker who is the seller's agent tells a buyer that
the property taxes in a particular neighborhood are among the lowest in the area.
Correct answers 2022.
Water Rights
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
an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the
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
mortgagor
A competitive market analysis is MOST often used for
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
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
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?
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?
Return of the property to the original owner.
The purpose of requiring an earnest money deposit in a real estate sales contract
is to
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
constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot?
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,
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
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
, 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?
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
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
Impossibility of performance. - - (Key word: Unlicensed whiskey sales operation).
A broker lists a property, with a listing contract allowing subagency and dual
agency. One of the broker's salespersons shows the property. The salesperson
would be classified as
a subagent of the seller. — (Think - brokerage is the AGENCY, salesperson is working
under the agency)
The relationship in which the agent is placed in the position of trust and
confidence to the principal is known by the term
fiduciary
An agreement to purchase that has NOT yet closed is
an executory contract.
When compiling a competitive market analysis, a broker would look for
comparable properties that
were located near the property being listed.
The power vested in the government to establish legislation to preserve order,
protect the public health and safety, and promote the general welfare is known as
police power
If a borrower can afford to make monthly principal and interest payments of
$1,000 and the lender will make a 30-year loan at 8-1/2%, how large a loan
(rounded to the nearest $100) can this buyer afford? (BE SURE TO USE THE
AMORTIZATION TABLE.)
$130,000
An Environmental Impact Statement (EIS)
projects the impact on the environment of a proposed project.
In an exclusive right-to-sell listing, an owner lists the property for sale with how
many brokers?
One
A prospective buyer made an offer to purchase a property. The owner responded
with a counteroffer. While the buyer was reviewing the counteroffer, the owner
received a better offer. The owner can accept the second offer if
the owner withdraws the counteroffer before it is accepted.
Antitrust laws prohibit competing brokers from all of the following EXCEPT
receiving compensation from both the buyer and the seller.
Without checking the facts, a broker who is the seller's agent tells a buyer that
the property taxes in a particular neighborhood are among the lowest in the area.
