PSI New Jersey NJ Real Estate Exam, PSI Practice Test 2023

PSI New Jersey NJ Real Estate Exam, PSI Practice Test 2023 88. A loan which requires the borrower to pay interest only until the maturity date (or due date), and then pay the entire principal on the maturity date, is called a: term loan 89. Which of the following statements about discount points is FALSE? a. they are computed as a percentage of the selling price b. they are used to buy down interest rate c. they are a function of the marketplace d. they are paid by either the buyer or the seller: they are computed as a percentage of the selling price 90. When is flood insurance REQUIRED in order to obtain a loan?: when the property is located in a flood hazard zone 91. Usury laws were enacted to protect the: borrower 92. A buyer made an offer on a property that was listed at $350,000. She wanted to put $35,000 down and make payments to the seller, allowed the seller to retain title until the principal was paid off. The seller accepted, and the buyer became a: vendee 93 The Equal Credit Opportunity Act addresses all of the following EXCEPT a. discrimination in lending b. written statements of credit denial c. acceptable factors for borrower analysis d. standardization of interest rates: standardization of interest rates 94. Under the terms of their listing contract, the owners may sell their house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the owners have?: exclusive agency listing 95. The real estate licensee who accepts an undisclosed fee for referring a buyer to a specific title company may be in violation of: RESPA 96. Which of the following events would AUTOMATICALLY cancel a listing agreement?: property owners death 97. Another term for the owner of a property listed with your firm is the: client 98. A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when: the seller accepts the offer 99. The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the called that: he is no longer the listing agent 100. When a principal authorizes an agent to perform a particular act or transaction, it is an example of what type of agency?: special agency 101. One common method for controlling the problems created by conflict of interest in dual representation is: allowing a broker to designate separate salespeople within the company as legal representatives of each of the clients 102. A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which type of agency is this: agency coupled with an interest 103. State laws differ on whether a buyer is entitled to know about: a suicide that occurred in the house last year 104. The real estate broker who is listing a house for sale should personally verify: the number of SF in the building 105. 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 a. tell the seller not to disclose, because the statute of limitations has run out b. tell the seller to disclose the termite treatment on the property disclosure c. talk to neighbors to see if there are termites in the neighborhood d. talk to the planning and zoning department for local termite eradication ordinance: tell the seller to disclose the termite treatment on the property disclosure 106. A seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), who is liable for damages from the dumping prior to the sale of the property?: seller 107. 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 108. 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 109. A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31. This is called: an option contract 110. A company agrees to lease a property to be used as a gambling casino. State laws prohibit gambling. This particular contract would be legally defined as: void 111. The real estate contract for a specific property for use as an unlicensed whiskey sales operation was forced to terminate. The termination was a result of: impossibility of performance 112. An amount of money, agreed to in writing by buyer and seller, that will serve as full compensation if one party does not live up to a sales contract is called: liquidated damages 113. A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an automatic renewal clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the lease term?: no notice required 114. The escrow officer or closing agent MUST give information regarding the sales price and seller's social security number to: IRS 115. A judgement has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given is?: constructive notice 116. For Federal income tax purposes, what are the costs of homeownership that may be deducted from gross income?: mortgage loan interest, local property taxes, mortgage loan origination fees 117. At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing? a. credit seller $300, credit buyer $300 b. debit seller $300, debit buyer $300 c. credit seller $300, debit buyer $300 d. debit seller $300, credit buyer $300: debit seller $300, credit buyer $300 118. When someone has living heirs but dies without leaving a will, the estate is distributed according to the: statue of descent 119. is NOT usually prorated at closing?: special tax assessments 120. The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing? a. credit buyer $110,000, debit seller $110,000 b. credit seller $110,000, debit buyer $110,000 c. credit buyer $110,000, no adjustment to seller d. credit seller $110,000, no adjustment to buyer: credit buyer $110,000, debit seller $110,000 121. The statement "this property has the most beautiful views in the neighborhood" is an example of: puffing 122. The Civil Rights Act of 1866 prohibits any type of discrimination based on: race 123. Antitrust laws prohibit competing brokers from all of the following EX- CEPT a. boycotting other brokers in the marketplace b. dividing the market to restrict competition c. agreeing to set sales commissions and management rates d. receiving compensation from both the buyer and the seller: receiving compensation from both the buyer and the seller 124. A real estate brokerage company has developed standardized policies regarding the inventory of properties to be shown to prospective buyers, the company's standards for qualifying buyers, and documentation of all conversations and showings. These policies can help the firm defend itself in the event of an accusation of discrimination, but only if the policies: require every licensee in the firm to follow them consistently 125. Earnest money should be deposited into a trust account: in a timely manner, according to state laws 126. The practice of inducing panic selling in a neighborhood for financial gain is: blockbusting 127. According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the a. cash price or amount of the loan b. amount of down payment required c. number, amount, and frequency of payments d. prepayment penalties and rebates: prepayment penalties and rebates 128. An agent shows a home to a couple and mentions that it has a lovely fireplace in the living room. After buying the home, the buyers and agent discover that the brick fireplace is just a decorative fireplace and is not "wood burning." What would BEST protect the agent from financial loss? a. the state recovery fund b. E&O coverage c. homeowner warranty insurance d. a business pursuits endorsement on the agent's homeowners insurance policy: E&O coverage 129. The buyer wants to make the purchase offer contingent on a complex mortgage arrangement. The buyer's agent who is drawing up the contract should: suggest the buyer ask a lawyer to furnish the wording 130. Too much leverage may result in: negative cash flow 131. Ownership of common stock in a corporation gives: an interest that is classified as personal property 132. Legal descriptions using the government survey system are NOT generally used in: the original 13 states.