PSI NJ Real Estate Exam, PSI Practice Test
s s s s s s s
.
WatersRightss-sanswersThestermss"littoral,"s"riparian,"sands"appropriative"srefersto
Assalespersonslistssaspropertyswithsascontractsthatsallowssforssubagencysandsdualsagency.s
Thessalespersonsiss-sanswersansagentstosthesbrokersandsassubagentstosthesprincipal.
Depreciationsisscalculatedsbasedsonsthes-sanswersCostsofsthesbuildingsonly.
Whensaspropertysownersusesshisshomesasscollateralsforsasloansandscreatessasliensinsfavorsofs
theslender,stitlesissheldsbysthes-sanswersmortgagor
AscompetitivesmarketsanalysississMOSTsoftensusedsfors-sanswerssettingsaslistingsprice
Assellerstellsstheslistingsagentsthatshershomeswasstreatedsforstermitess10syearssago,ssosthere
saresnostermitessnow.sBeforeslistingsthesproperty,sthesagentsshoulds-
sanswerstellsthessellersnotstosdisclose,sbecausesthesstatutesofslimitationsshassrunsout.
Allsofsthesfollowingsaresmethodsstoscalculatesthesreproductionsorsreplacementscostsofsasbuil
dingsEXCEPTsthes-sanswersstraight-linesmethod
Thesbuyersissassumingsasmortgagespresentlysonsthespropertysinsthesamountsofs$110,000.s
Whatsissthesadjustmentsmadesatsclosing?s-
sanswersCreditsbuyers$110,000;sdebitssellers$110,000.
Ifsconditionssforspurchasesaresincludedsinsasdeedsandsthesesconditionssaresviolated,swhatsis
sthespenalty?s-sanswersReturnsofsthespropertystosthesoriginalsowner.
Thespurposesofsrequiringsansearnestsmoneysdepositsinsasrealsestatessalesscontractsisstos-
sanswersprovidesevidencesofsthesbuyer'ssintentionstoscarrysoutsthescontract.
Asjudgmentshassbeensproperlysrecorded.sAnyssubsequentspurchasers,swhetherstheyshaves
actuallysexaminedsthesrecordsorsnot,shavesbeensgivens-sanswersconstructivesnotice
WhatstypesofsmapsissMOSTsusefulsforsdescribingsthesterrainsofsasveryshillyslot?s-
sanswerscontoursmap
ThesDepartmentsofsHousingsandsUrbansDevelopmentsestimatessthatsmostsprivateshomessb
uiltsbefores1978scontainspotentiallysdangerousslevelssofslead.sBecausesofsthis,ssomesFeder
alsagencies,ssuchsassFHA,s-
sanswersRequiresthesbuyerstosacknowledgesdisclosuresofsthespresencesofsanysknownsleads
paint.
, Atsthestimesofslisting,sthessellerstellsstheslistingsagentstheysaresmovingsbecausesthesneighbor
shassloudspartiesseverysweekend.sThesagentsshoulds-
sanswerstellspotentialsbuyerssaboutsthesparties.s(Anyssocialsinformationsexpressedstosansag
entscansbesshared)
Asmajorsreasonsforsbuyingsandsowningsascondominiumsrathersthansasdetachedssingle-
familyshomesissthats-sanswersascondominiumstendsstosbesmoresaffordable.
Asbuyerswassnegotiatingsthespurchasesofsashousesforshimself.sDuringsasconversationswithsth
esseller,sthessellersagreedstosincludesallskitchensappliancessinsthessale,sandsthissfactswassinc
ludedsinsthessalesscontract.sInsthisssituation,sifsthessellerstakessthesappliancesswithshim,swha
tsrecoursesdoessthesbuyershave?s-
sanswersThesbuyersmayssuesthessellersforsspecificsperformance.
Asloanswhichsrequiressthesborrowerstospaysinterestsonlysuntilsthesmaturitysdates(orsduesdate)
,sandsthenstospaysthesentiresprincipalsonsthesmaturitysdate,sisscalledsas–
sanswersstraights(term)sloans(AKAstermsloan)
Thesrealsestatescontractsforsasspecificspropertysforsusesassansunlicensedswhiskeyssalessope
rationswassforcedstosterminate.sThesterminationswassthesresultsofs-
sanswersImpossibilitysofsperformance.s-s-
s(Keysword:s*Unlicensed*swhiskeyssalessoperation).
Asbrokerslistssasproperty,swithsaslistingscontractsallowingssubagencysandsdualsagency.sOnes
ofsthesbroker'sssalespersonssshowssthesproperty.sThessalespersonswouldsbesclassifiedsass-
sanswersassubagentsofsthesseller.s—s(Thinks-
sbrokeragesissthesAGENCY,ssalespersonsissworkingsundersthesagency)
Thesrelationshipsinswhichsthesagentsissplacedsinsthespositionsofstrustsandsconfidencestosthesp
rincipalsissknownsbysthesterms-sanswersfiduciary
AnsagreementstospurchasesthatshassNOTsyetsclosedsiss-sanswersansexecutoryscontract.
Whenscompilingsascompetitivesmarketsanalysis,sasbrokerswouldslooksforscomparablesprope
rtiessthats-sanswerswereslocatedsnearsthespropertysbeingslisted.
Thespowersvestedsinsthesgovernmentstosestablishslegislationstospreservesorder,sprotectsthes
publicshealthsandssafety,sandspromotesthesgeneralswelfaresissknownsass-
sanswerspolicespower
Ifsasborrowerscansaffordstosmakesmonthlysprincipalsandsinterestspaymentssofs$1,000sandsth
eslenderswillsmakesas30-yearsloansats8-
1/2%,showslargesasloans(roundedstosthesnearests$100)scansthissbuyersafford?s(BEsSUREsT
OsUSEsTHEsAMORTIZATIONsTABLE.)s–sanswers$130,000
s s s s s s s
.
WatersRightss-sanswersThestermss"littoral,"s"riparian,"sands"appropriative"srefersto
Assalespersonslistssaspropertyswithsascontractsthatsallowssforssubagencysandsdualsagency.s
Thessalespersonsiss-sanswersansagentstosthesbrokersandsassubagentstosthesprincipal.
Depreciationsisscalculatedsbasedsonsthes-sanswersCostsofsthesbuildingsonly.
Whensaspropertysownersusesshisshomesasscollateralsforsasloansandscreatessasliensinsfavorsofs
theslender,stitlesissheldsbysthes-sanswersmortgagor
AscompetitivesmarketsanalysississMOSTsoftensusedsfors-sanswerssettingsaslistingsprice
Assellerstellsstheslistingsagentsthatshershomeswasstreatedsforstermitess10syearssago,ssosthere
saresnostermitessnow.sBeforeslistingsthesproperty,sthesagentsshoulds-
sanswerstellsthessellersnotstosdisclose,sbecausesthesstatutesofslimitationsshassrunsout.
Allsofsthesfollowingsaresmethodsstoscalculatesthesreproductionsorsreplacementscostsofsasbuil
dingsEXCEPTsthes-sanswersstraight-linesmethod
Thesbuyersissassumingsasmortgagespresentlysonsthespropertysinsthesamountsofs$110,000.s
Whatsissthesadjustmentsmadesatsclosing?s-
sanswersCreditsbuyers$110,000;sdebitssellers$110,000.
Ifsconditionssforspurchasesaresincludedsinsasdeedsandsthesesconditionssaresviolated,swhatsis
sthespenalty?s-sanswersReturnsofsthespropertystosthesoriginalsowner.
Thespurposesofsrequiringsansearnestsmoneysdepositsinsasrealsestatessalesscontractsisstos-
sanswersprovidesevidencesofsthesbuyer'ssintentionstoscarrysoutsthescontract.
Asjudgmentshassbeensproperlysrecorded.sAnyssubsequentspurchasers,swhetherstheyshaves
actuallysexaminedsthesrecordsorsnot,shavesbeensgivens-sanswersconstructivesnotice
WhatstypesofsmapsissMOSTsusefulsforsdescribingsthesterrainsofsasveryshillyslot?s-
sanswerscontoursmap
ThesDepartmentsofsHousingsandsUrbansDevelopmentsestimatessthatsmostsprivateshomessb
uiltsbefores1978scontainspotentiallysdangerousslevelssofslead.sBecausesofsthis,ssomesFeder
alsagencies,ssuchsassFHA,s-
sanswersRequiresthesbuyerstosacknowledgesdisclosuresofsthespresencesofsanysknownsleads
paint.
, Atsthestimesofslisting,sthessellerstellsstheslistingsagentstheysaresmovingsbecausesthesneighbor
shassloudspartiesseverysweekend.sThesagentsshoulds-
sanswerstellspotentialsbuyerssaboutsthesparties.s(Anyssocialsinformationsexpressedstosansag
entscansbesshared)
Asmajorsreasonsforsbuyingsandsowningsascondominiumsrathersthansasdetachedssingle-
familyshomesissthats-sanswersascondominiumstendsstosbesmoresaffordable.
Asbuyerswassnegotiatingsthespurchasesofsashousesforshimself.sDuringsasconversationswithsth
esseller,sthessellersagreedstosincludesallskitchensappliancessinsthessale,sandsthissfactswassinc
ludedsinsthessalesscontract.sInsthisssituation,sifsthessellerstakessthesappliancesswithshim,swha
tsrecoursesdoessthesbuyershave?s-
sanswersThesbuyersmayssuesthessellersforsspecificsperformance.
Asloanswhichsrequiressthesborrowerstospaysinterestsonlysuntilsthesmaturitysdates(orsduesdate)
,sandsthenstospaysthesentiresprincipalsonsthesmaturitysdate,sisscalledsas–
sanswersstraights(term)sloans(AKAstermsloan)
Thesrealsestatescontractsforsasspecificspropertysforsusesassansunlicensedswhiskeyssalessope
rationswassforcedstosterminate.sThesterminationswassthesresultsofs-
sanswersImpossibilitysofsperformance.s-s-
s(Keysword:s*Unlicensed*swhiskeyssalessoperation).
Asbrokerslistssasproperty,swithsaslistingscontractsallowingssubagencysandsdualsagency.sOnes
ofsthesbroker'sssalespersonssshowssthesproperty.sThessalespersonswouldsbesclassifiedsass-
sanswersassubagentsofsthesseller.s—s(Thinks-
sbrokeragesissthesAGENCY,ssalespersonsissworkingsundersthesagency)
Thesrelationshipsinswhichsthesagentsissplacedsinsthespositionsofstrustsandsconfidencestosthesp
rincipalsissknownsbysthesterms-sanswersfiduciary
AnsagreementstospurchasesthatshassNOTsyetsclosedsiss-sanswersansexecutoryscontract.
Whenscompilingsascompetitivesmarketsanalysis,sasbrokerswouldslooksforscomparablesprope
rtiessthats-sanswerswereslocatedsnearsthespropertysbeingslisted.
Thespowersvestedsinsthesgovernmentstosestablishslegislationstospreservesorder,sprotectsthes
publicshealthsandssafety,sandspromotesthesgeneralswelfaresissknownsass-
sanswerspolicespower
Ifsasborrowerscansaffordstosmakesmonthlysprincipalsandsinterestspaymentssofs$1,000sandsth
eslenderswillsmakesas30-yearsloansats8-
1/2%,showslargesasloans(roundedstosthesnearests$100)scansthissbuyersafford?s(BEsSUREsT
OsUSEsTHEsAMORTIZATIONsTABLE.)s–sanswers$130,000
