PSI NJ Real Estate Exam, PSI PracticeTe
l l l l l l l
st with Complete Solutions
l l l
WaterlRightsl✔✔Theltermsl"littoral,"l"riparian,"landl"appropriative"lreferlto
Alsalespersonllistslalpropertylwithlalcontractlthatlallowslforlsubagencylandlduallagency.lThelsales
personlisl✔✔anlagentltolthelbrokerlandlalsubagentltolthelprincipal.
Depreciationlislcalculatedlbasedlonlthel✔✔Costloflthelbuildinglonly.
Whenlalpropertylownerluseslhislhomelaslcollaterallforlalloanlandlcreateslallienlinlfavorloflthellender
,ltitlelislheldlbylthel✔✔mortgagor
AlcompetitivelmarketlanalysislislMOSTloftenlusedlforl✔✔settinglallistinglprice
Alsellerltellslthellistinglagentlthatlherlhomelwasltreatedlforltermitesl10lyearslago,lsoltherelarelnoltermit
eslnow.lBeforellistinglthelproperty,lthelagentlshouldl✔✔telllthelsellerlnotltoldisclose,
becauselthelstatutelofllimitationslhaslrunlout.
,AllloflthelfollowinglarelmethodsltolcalculatelthelreproductionlorlreplacementlcostloflalbuildinglEXC
EPTlthel✔✔straight-linelmethod
Thelbuyerlislassuminglalmortgagelpresentlylonlthelpropertylinlthelamountlofl$110,000.lWhatlislthela
djustmentlmadelatlclosing?l✔✔Creditlbuyerl$110,000;ldebitlsellerl$110,000.
Iflconditionslforlpurchaselarelincludedlinlaldeedlandltheselconditionslarelviolated,lwhatlislthelpenal
ty?l✔✔Returnloflthelpropertyltoltheloriginallowner.
Thelpurposeloflrequiringlanlearnestlmoneyldepositlinlalreallestatelsaleslcontractlisltol✔✔provide
evidenceloflthelbuyer'slintentionltolcarryloutlthelcontract.
Aljudgmentlhaslbeenlproperlylrecorded.lAnylsubsequentlpurchasers,lwhetherltheylhavelactuallylexa
minedlthelrecordlorlnot,lhavelbeenlgivenl✔✔constructivelnotice
WhatltypeloflmaplislMOSTlusefullforldescribinglthelterrainloflalverylhillyllot?l ✔✔contourlmap
ThelDepartmentloflHousinglandlUrbanlDevelopmentlestimateslthatlmostlprivatelhomeslbuiltlbeforel1
978lcontainlpotentiallyldangerousllevelslofllead.lBecauseloflthis,lsomelFederallagencies,
, suchlaslFHA,l✔✔Requirelthelbuyerltolacknowledgeldisclosureloflthelpresenceloflanylknown
leadlpaint.
Atltheltimelofllisting,lthelsellerltellslthellistinglagentltheylarelmovinglbecauselthelneighborlhaslloudl
partiesleverylweekend.lThelagentlshouldl✔✔telllpotentiallbuyerslaboutlthelparties.l(Any
sociallinformationlexpressedltolanlagentlcanlbelshared)
Almajorlreasonlforlbuyinglandlowninglalcondominiumlratherlthanlaldetachedlsingle-
familylhomelislthatl✔✔alcondominiumltendsltolbelmorelaffordable.
Albuyerlwaslnegotiatinglthelpurchaseloflalhouselforlhimself.lDuringlalconversationlwithlthelseller,lth
elsellerlagreedltolincludelalllkitchenlapplianceslinlthelsale,landlthislfactlwaslincludedlinlthelsaleslcontr
act.lInlthislsituation,liflthelsellerltakeslthelapplianceslwithlhim,lwhatlrecourseldoeslthelbuyerlhave?l✔
✔Thelbuyerlmaylsuelthelsellerlforlspecificlperformance.
Alloanlwhichlrequireslthelborrowerltolpaylinterestlonlyluntillthelmaturityldatel(orldueldate),landlthenlt
olpaylthelentirelprincipallonlthelmaturityldate,lislcalledlal✔✔straightl(term)lloanl(AKA
termlloan)
l l l l l l l
st with Complete Solutions
l l l
WaterlRightsl✔✔Theltermsl"littoral,"l"riparian,"landl"appropriative"lreferlto
Alsalespersonllistslalpropertylwithlalcontractlthatlallowslforlsubagencylandlduallagency.lThelsales
personlisl✔✔anlagentltolthelbrokerlandlalsubagentltolthelprincipal.
Depreciationlislcalculatedlbasedlonlthel✔✔Costloflthelbuildinglonly.
Whenlalpropertylownerluseslhislhomelaslcollaterallforlalloanlandlcreateslallienlinlfavorloflthellender
,ltitlelislheldlbylthel✔✔mortgagor
AlcompetitivelmarketlanalysislislMOSTloftenlusedlforl✔✔settinglallistinglprice
Alsellerltellslthellistinglagentlthatlherlhomelwasltreatedlforltermitesl10lyearslago,lsoltherelarelnoltermit
eslnow.lBeforellistinglthelproperty,lthelagentlshouldl✔✔telllthelsellerlnotltoldisclose,
becauselthelstatutelofllimitationslhaslrunlout.
,AllloflthelfollowinglarelmethodsltolcalculatelthelreproductionlorlreplacementlcostloflalbuildinglEXC
EPTlthel✔✔straight-linelmethod
Thelbuyerlislassuminglalmortgagelpresentlylonlthelpropertylinlthelamountlofl$110,000.lWhatlislthela
djustmentlmadelatlclosing?l✔✔Creditlbuyerl$110,000;ldebitlsellerl$110,000.
Iflconditionslforlpurchaselarelincludedlinlaldeedlandltheselconditionslarelviolated,lwhatlislthelpenal
ty?l✔✔Returnloflthelpropertyltoltheloriginallowner.
Thelpurposeloflrequiringlanlearnestlmoneyldepositlinlalreallestatelsaleslcontractlisltol✔✔provide
evidenceloflthelbuyer'slintentionltolcarryloutlthelcontract.
Aljudgmentlhaslbeenlproperlylrecorded.lAnylsubsequentlpurchasers,lwhetherltheylhavelactuallylexa
minedlthelrecordlorlnot,lhavelbeenlgivenl✔✔constructivelnotice
WhatltypeloflmaplislMOSTlusefullforldescribinglthelterrainloflalverylhillyllot?l ✔✔contourlmap
ThelDepartmentloflHousinglandlUrbanlDevelopmentlestimateslthatlmostlprivatelhomeslbuiltlbeforel1
978lcontainlpotentiallyldangerousllevelslofllead.lBecauseloflthis,lsomelFederallagencies,
, suchlaslFHA,l✔✔Requirelthelbuyerltolacknowledgeldisclosureloflthelpresenceloflanylknown
leadlpaint.
Atltheltimelofllisting,lthelsellerltellslthellistinglagentltheylarelmovinglbecauselthelneighborlhaslloudl
partiesleverylweekend.lThelagentlshouldl✔✔telllpotentiallbuyerslaboutlthelparties.l(Any
sociallinformationlexpressedltolanlagentlcanlbelshared)
Almajorlreasonlforlbuyinglandlowninglalcondominiumlratherlthanlaldetachedlsingle-
familylhomelislthatl✔✔alcondominiumltendsltolbelmorelaffordable.
Albuyerlwaslnegotiatinglthelpurchaseloflalhouselforlhimself.lDuringlalconversationlwithlthelseller,lth
elsellerlagreedltolincludelalllkitchenlapplianceslinlthelsale,landlthislfactlwaslincludedlinlthelsaleslcontr
act.lInlthislsituation,liflthelsellerltakeslthelapplianceslwithlhim,lwhatlrecourseldoeslthelbuyerlhave?l✔
✔Thelbuyerlmaylsuelthelsellerlforlspecificlperformance.
Alloanlwhichlrequireslthelborrowerltolpaylinterestlonlyluntillthelmaturityldatel(orldueldate),landlthenlt
olpaylthelentirelprincipallonlthelmaturityldate,lislcalledlal✔✔straightl(term)lloanl(AKA
termlloan)
