NJ PSI Exam Practice Questions Flashcards

NJ PSI Exam Practice Questions Flashcards A Savings & Loan Institution would be violating the Federal Fair Housing Act by denying the loan to Mr. and Mrs.Happy Borrower for which of the following reasons?minority background A homeowner owned a house on a lot. The front ten feet of the lot were taking by eminent domain for a sidewalk.Would the homeowner be entitled to compensation?Yes. The land was taken for public use by eminent domain Physical deterioration is considered curable wheneverIt costs less to correct than the resulting value increase.How long does a broker have to deposit funds received on behalf of a principal in an escrow or trust account?five business days after the money is received by the licenseeEscrow- 5 days Which is the best example of functional obsolescence?(outdated feature) steep, narrow stairway in a 1 3/4 home When may a licensed salesperson hold a concurrent license with more than one New Jersey broker?Under no circumstances*Can only work for 1 broker* Usury MOST nearly means:illegal interestUser/bad: usury Sid and Nancy bought a store building and took title as joint tenants. Nancy died testate. Sid now owns the store Severalty(sever/gone) The primary purpose of a deed is toTransfer title rights Susan is a broker who has a signed listing agreement with

a seller. The agreement includes a statement: "If the

Property has not been sold after three months from the date of the signing, this agreement will automatically continue for additional three-month periods thereafter until the Property is sold". Which of the following statements is TRUE about this agreement?it is illegal under New Jersey lawListing agreements need expiration date !!Which of the following is true of a second mortgage?It is usually issued at a higher rate of interest.The rights of the owner of property located along the banks of a river are called riparian rights Which of the following is true regarding real estate commissions in New Jersey?they are negotiable between the principal and the brokerCommissions are always negotiable Which of the following types of ownership CANNOT be created by the operation of law, but must be created by the parties' expressed intent?Tenancy by the entireties(Married couples) The Civil Rights Act of 1866 prohibits discrimination in housing based on which of the following reasons?Race Discrimination is prohibited in lending practices underECOA- Equal Credit Oppurtunity Act What do liens and easements have in common? Both are encumbrances Who is responsible for preparing any promissory notes(personal promise to pay lender) involved in a closing?Lender Which of the following provides a buyer with the best assurance of clear, marketable title?Title insurance

Which of the following is considered a conventional loan?commercial bank's ARM loan(Adjustable rate mortgage loan) A person who has complete control over a parcel of real estate is said to own a fee simple estate(Highest form of ownership) The clause in a mortgage which permits the mortgagee to declare the entire unpaid sum due upon default by the mortgagor is called An acceleration clauseThe first step in a foreclose200,000 mortgage, 600 payment, you're behind on payments, they want the ENTIRE balance to avoid foreclosure.Which of the following does not have to be included in a written listing agreement?the complete legal description of the property being sold The amount of earnest money deposit is determined byan agreement between parties A house sold for $42,000. The buyer made a 20% down payment. Monthly interest was $252. What was the interest rate on the loan?

9%Explained:*20% down means they borrowed 80%*A for

apr means ANNUAL42,000 x .80 = $33,600252 x 12 = 3.24Then divide 33,600/3.24So .09 converts to 9% The first step in an appraisal isDefine the problem/purpose of appraisal A portion of Wendell's building was inadvertently built on Ginny's land. This is called an Encroachment When can a landlord evict a disabled blind or disabled tenant from the premises?If the tenant has loud parties and makes too much noise.When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called balloon payment(Big bag of money) A VA loan may be granted for the purchase of a one-family to four-family property if the veteran agrees to live there.A bill of sale is used to transfer ownership of what?personal property In which if the following markets may a lender sell a loan that a mortgage banker has previously originated?secondary market A borrower bought a $74,000 house with no down payment. The loan was probably VA loan(Veteran loan) no down payment Which of the following would usually occur in a sale-and-leaseback transaction?The property is sold on the condition that the new owner lease it back to the seller at the time title passes.The covenant(guarantee/promise)in a deed which states that the grantor is the owner and has the right to convey the title is called covenant of seisin Bill is a salesperson in New Jersey who discriminated on the basis of disability and engage in blockbusting. Bill also cashed a sizable earnest money check from buyer and used to money to purchase a new car. These actions were all unknown to Bill's broker. Which of the following actions will result when Bill's violations are reported to the Real Estate Commission?The employing broker will not have his licensed revoked A broker or licensed salesperson in New Jersey is obligated to do which of the following upon obtaining a listing?provide the person(s) signing the listing a legible, signed, true and correct copy*Need a copy of what they signed*

The illegal process of a banker refusing to approve loans of a neighborhood bands on racial composition is the area is Redlining Alice is a broker/salesperson in New Jersey. Several weeks after closing a difficult sale, she received a nice thank you note with a bonus check from the seller of the house. Alice cashed the check because she felts she deserved it. Which of the following best characterizes this situation?Accepting the money constitutes a violation of real estate commission regulationsOnly person who can pay us is our broker. The client would have to give the broker the check in which the broker would issue the check to the broker directly. We cannot accept money from clients directly.Under RESPA, a copy of the REAL ESTATE

SETTLEMENT COSTS AND YOU must be given:

at the time of loan application, or within 3 days of application Which of the following is NOT considered a reason to terminate a lease?Death of landlord A real estate agent should tell the buyer, his customer, which of the following?A pending or recent zoning change A recorded subdivision plat is used in the lot and block systemPlat means map What is the statutory period to acquire a prescriptive easement in New Jersey?30 years If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, what happens?The easement is terminated Which of the following is/are considered to be personal property?patio furniture A special warranty reed differs from a general warranty deed in that the grantor's covenant in the special warranty deed applied only to a definite limited time Which is true about restrictive covenants? They are placed by private parties in a deedRestrictive covenants are NOT discriminatory A partition suit is used for which of the following?to force a division of property without all of the owners' consents Which of the following deeds contain no expressed or implied warranties?a quitclaim deed What are the penalties for the early payment of a mortgage loan in New Jersey?there are no penalties The finance charges recorded on the Truth in Lending

statements would include all of the following EXCEPT:

Recording fees and title insurance premiums The commission has the power to revoke a salesperson's license if the salesperson does which of the following?deposits a buyer's down payment into his or her bank accountEscrow must be within 5 days If, upon receipt of an offer to purchase his property under certain conditions, the seller makes a counteroffer, the prospective buyer is relieved of his original offer In New Jersey, which of the following is true of brokers and salespeople who are not lawyers?They may fill in blanks on preprinted form contracts that are customarily used in their communities Which of the following activities is a violation of the Federal Fair Housing Act?a nonprofit church that denies access to its retirement home to any person because of race

The maximum permissible loan to value ratios are based on the sale price or appraised value, whichever is lower.The title to real estate passes when a valid deed isDelivered and accepted Which of the following correctly describes the purpose of the New Jersey Mount Laurel decisions?they ensure the local zoning ordinances will provide for range of housing and thus bar discriminationLow moderate income housing prevents exclusionary zoning On a $50,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender?$51,000Points is considered percent so $50,000 x 0.02=

1,00050,000 + 1,000

Which of the following is NOT a form of title evidence?land court certificate Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller, and the listing broker?There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the buyerDual agency is illegal if not properly disclosed.When you see dual agency make sure "disclosed" is in front of it.A mortgage company makes a number of loans to be assembled into one package and sold to permanent investors. This process is an example of interim financing to mortgage company and is called Warehousing Tim, Manny, and Harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend Wendell. After the conveyance, Tim and Manny remain joint tenants owning two-thirds interest A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clause and it is a properly executed contract.After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage?enforceable Certain items on the premises that are installed by the tenant and are related to the tenant's business are called Trade fixtures The word "improvement" would refer to all of the following

EXCEPT

Trade fixtures A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire?June 15thListing terminates the day closing takes place.Written offers to our sellers within 24 hours! Offer on April 30th and accepted May 1st.An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform?He must exercise his option under the terms of the option contract In a gift of a parcel (land) of real estate, one of the two owners was given and undivided 60 percent interest and