PSI NJ Real Estate Exam, PSI Practice Test. Flashcards

PSI NJ Real Estate Exam, PSI Practice Test. Flashcards Usury laws were enacted to protect theborrower 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 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 goes the tenant have?tenancy at will Two lots of the same size are sold on a street. The lot on the corner sells for $20,000 more than the lot in the middle of the street. What characteristic MOST likely explains the price difference?situs 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 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.How does a creditor who has obtained a judgement get satisfaction against a debtor who will not pay?write of execution Which of the following statements about discount points is FALSE?a. they are computed as a percentage of the selling priceb. they are used to buy down interest ratec.they are a function of the marketplaced. they are paid by either the buyer or the seller they are computed as a percentage of the selling price 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.When preparing a market data estimate of value, which of the following categories of adjustment is NOT essential?a.the amount of square footageb. the location of the propertyc. the original cost of the buildingd. the date of sale of the comparables the original cost of the building 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 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 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 prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest a competitive market analysis 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.Parcels A, B, and C are located side by side and owned by three different owners. A is worth $20,000, B is worth $27,000, and C is worth $16,000 for a total of $63,000. A developer believes that if all three can be purchased, the larger parcel would be worth $85,000. By assembling these under one owner they would be worth $22,000 more than their individual values. This demonstrates which principle of value?plottage 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 Which of the following events would AUTOMATICALLY cancel a listing agreement?property owners death The real estate licensee who accepts an undisclosed fee for referring a buyer to a specific title company may be in violation of RESPA Real property can be converted to personal property byseverance If all other factors are equal, in which location is a parking lot likely to bring the highest sales price?business district zoned for a six-story office building 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. What type of agency BEST describes this relationship?Agency coupled with an interest 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