PSI NJ Real Estate Practice Exam Study Guide 2023

PSI NJ Real Estate Practice Exam Study Guide 2023 59. Even with title insurance, the policyholder may still suffer losses arising from: and use change due to zoning ordinances. 60. The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing?: Credit buyer $110,000; debit seller $110,000. 61. 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?: Debit seller $300; credit buyer $300. 62 A landlord may legally refuse to rent to a prospective tenant if the tenant: has ever been convicted of selling illegal drugs. 63. A broker represents a group of investors who purchase single family residences when they can be found at very low prices. Their offers are typically made with $500 deposits and 15 / 32 cash closings within 7 days of acceptance of the offers. When the last property closed, the investors suggested the broker keep the deposit money to be used for their next purchase, as yet not identified. What must the broker do with these deposit funds?: Return them to the purchasers. 64. Antitrust laws prohibit competing brokers from all of the following EXCEPT: receiving compensation from both the buyer and the seller. 65. An equal housing opportunity notice MUST be: displayed in the brokerage office. 66. A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not?: No, because it is appropriate to show any property for which the buyer is qualified. 67. Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?: "Catholics preferred." 68. The Civil Rights Act of 1866 prohibits any type of discrimination based o: race. 69. Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area. The buyer could seek to rescind the contract on the basis of: misrepresentation. 70. Failure of a real estate agent to comply with Fair Housing practices is punishable by: license revocation and criminal prosecution. 17 / 32 71. A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as: steering. 72. A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that: there is no dollar limit on damages paid. 73. An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?: $90,426 required selling price= net funds required / 1- commission (10,000+75,000)/ (1-.06)= $90,426 74. 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 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION TABLE.): $176,100 4 1/2 for 20 years= $6.35 per $1000 6.34(x)= $1000 x=$1000/634 = 157 157x1000= $157,000 5 1/2 for 30 years= $5.69 per $1000 5.6 9(x )= $1 00 0 x= 10 00/ 56