PSI NJ REAL ESTATE EXAM, PSI PRACTICE TEST GRADED
A 2026.
Water Rights -ANSWER-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 -ANSWER-an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the -ANSWER-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 -ANSWER-mortgagor
A competitive market analysis is MOST often used for -ANSWER-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 -ANSWER-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 -ANSWER-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? -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? -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 -
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 -ANSWER-constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot? -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, -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 -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 -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? -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 -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 -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 -
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 -ANSWER-fiduciary
An agreement to purchase that has NOT yet closed is -ANSWER-an executory contract.
When compiling a competitive market analysis, a broker would look for comparable
properties that -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 -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 8-1/2%, how large a loan (rounded to the nearest $100)
can this buyer afford? (BE SURE TO USE THE AMORTIZATION TABLE.) -ANSWER-$130,000
An Environmental Impact Statement (EIS) -ANSWER-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? -ANSWER-One
A 2026.
Water Rights -ANSWER-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 -ANSWER-an agent to the broker and a subagent to the principal.
Depreciation is calculated based on the -ANSWER-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 -ANSWER-mortgagor
A competitive market analysis is MOST often used for -ANSWER-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 -ANSWER-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 -ANSWER-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? -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? -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 -
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 -ANSWER-constructive notice
What type of map is MOST useful for describing the terrain of a very hilly lot? -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, -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 -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 -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? -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 -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 -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 -
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 -ANSWER-fiduciary
An agreement to purchase that has NOT yet closed is -ANSWER-an executory contract.
When compiling a competitive market analysis, a broker would look for comparable
properties that -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 -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 8-1/2%, how large a loan (rounded to the nearest $100)
can this buyer afford? (BE SURE TO USE THE AMORTIZATION TABLE.) -ANSWER-$130,000
An Environmental Impact Statement (EIS) -ANSWER-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? -ANSWER-One
