PSI NJ REAL ESTATE EXAM PSI
PRACTICE TEST QUESTIONS AND
VERIFIED ANSWERS WELL GRADED
(NEW 2025 /2026 UPDATE) QUESTIONS
WITH VERIFIED ANSWERS 100%
CORRECT / A+ GRADE
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.
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)
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).
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 -
CORRECT ANSWER-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 -
CORRECT ANSWER-fiduciary
An agreement to purchase that has NOT yet closed is - CORRECT
ANSWER-an executory contract.
When compiling a competitive market analysis, a broker would
look for comparable properties that - CORRECT ANSWER-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 - CORRECT ANSWER-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
PRACTICE TEST QUESTIONS AND
VERIFIED ANSWERS WELL GRADED
(NEW 2025 /2026 UPDATE) QUESTIONS
WITH VERIFIED ANSWERS 100%
CORRECT / A+ GRADE
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.
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)
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).
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 -
CORRECT ANSWER-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 -
CORRECT ANSWER-fiduciary
An agreement to purchase that has NOT yet closed is - CORRECT
ANSWER-an executory contract.
When compiling a competitive market analysis, a broker would
look for comparable properties that - CORRECT ANSWER-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 - CORRECT ANSWER-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
