PSI NJ Real Estate Exam Flashcards

PSI NJ Real Estate Exam Flashcards 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 An owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68,000 and the broker's commission. To the nearest dollar, what should the selling price be to net her $45,000?

1.)$105,090.2.) $110,753.3.) $120,910.(A) 4.) None of the above.During the listing presentation, the seller questions the amount of commission to be paid and is told the amount of commission is negotiable.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 31st. This is called an option contract If conditions for purchase are included in a deed and these conditions are violated, what is the penalty?Return of the property to the original owner.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 Impossibility of performance. - - (Key

word:Unlicensedwhiskey sales operation).

When preparing a market data estimate of value, which of the following categories of adjustment is NOT essential?The original cost of the building.An agreement to purchase that has NOT yet closed isan executory contract.Which of these Federal laws regulates the advertisement of a lender's credit terms (rates, payment, etc.)?Regulation Z 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.Antitrust laws prohibit competing brokers from all of the following EXCEPT receiving compensation from both the buyer and the seller.In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT more variety of loan programs available In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?One

A broker says, while showing a rural property, "This property has the world's purest well water." This would be an example of an expression of opinion, or puffing, which could lead to misrepresentation.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?The buyer may sue the seller for specific performance.A lawsuit for inverse condemnation may be brought bya homeowner Three identical homes in a neighborhood were listed at the same time in a market where demand was constant.According to the law of supply and demand, which would have sold for the lowest price?the first sold A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract An Environmental Impact Statement (EIS)projects the impact on the environment of a proposed project.A tenant rented an apartment, signing a 15-month lease.After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?tenancy at will How does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay?Writ of execution In MOST states, foreclosed property is sold throughPublic Auction 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. (Any social information expressed to an agent can be shared) 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 caller that He is no longer the listing agent.A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of anticipation The purpose of requiring an earnest money deposit in a real estate sales contract is to provide evidence of the buyer's intention to carry out the contract.A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes maintenance of value over profitability?An individual entrepreneur who owns several apartment buildings.

Which of the following events would AUTOMATICALLY cancel a listing agreement?Property owner's death.All of the following are methods to calculate the reproduction or replacement cost of a building EXCEPT the straight-line method Errors and Omissions insurance covers the broker forUnintentional misrepresentation Under a land contract for deed, who retains fee ownership of the property?Vendor Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?Both contracts are valid.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.The FHA functions MOST likean insurance company 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 A deed restriction is applicable to the activities ofpresent and future owners.The real estate broker who is listing a house for sale should personally verify The number of square feet in the building.A prospective buyer made an offer to purchase a property.The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if the owner withdraws the counteroffer before it is accepted.The escrow officer or closing agent MUST give information regarding the sales price and seller's social security number to IRS What type of map is MOST useful for describing the terrain of a very hilly lot?contour map Why was the Jones vs. Mayer decision of 1968 important?By upholding the Civil Rights Act of 1866, the Supreme Court removed all exceptions to racial discrimination in housing.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 is required Which of the following is the first action to take when mold problems are found?Identify and remedy the cause of the problems.

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 straight (term) loan (AKA term loan) A major reason for buying and owning a condominium rather than a detached single-family home is that a condominium tends to be more affordable.When a principal authorizes an agent to perform a particular act or transaction, it is an example of a Special Agency 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 tell the seller not to disclose, because the statute of limitations has run out.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 mortgagor The sellers have agreed to give the buyers an allowance of $16.95 per square yard to retile the kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the nearest dollar)?$264 Ownership of common stock in a corporation gives Co-ownership in any real property held by that corporation.A competitive market analysis is MOST often used forsetting a listing price 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.An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than

$250,000

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 police power When land is conveyed to a trustee, the trustee maydo whatever is permitted under the trust agreement 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 a subagent of the seller. - (Think - brokerage is the AGENCY, salesperson is working under the agency) A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)

$409.20

Which of the following statements about discount points is

FALSE?

(A) -1.) They are computed as a percentage of the selling price.2.) They are used to buy down interest rate.3.) They are a function of the marketplace.4.) They are paid by either the buyer or the seller.At the time of harvest, crops that require annual planting are generally considered to be Personal Property