PSI NJ Real Estate Exam / PSI Practice Test - Q & A

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PSI NJ Real Estate Exam / PSI Practice Test - Q & A The Equal Credit Opportunity Act addresses all of the following EXCEPT a. discrimination in lending b. written statements of credit denial c. acce... ptable factors for borrower analysis d. standardization of interest rates 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 The real estate licensee who accepts an undisclosed fee for referring a buyer to a specific title company may be in violation of RESPA Which of the following events would AUTOMATICALLY cancel a listing agreement? property owners death Another term for the owner of a property listed with your firm is the Client 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 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 When a principal authorizes an agent to perform a particular act or transaction, it is an example of what type of agency? special agency 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 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 State laws differ on whether a buyer is entitled to know about a suicide that occurred in the house last year The real estate broker who is listing a house for sale should personally verify the number of SF in the building 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 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 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 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 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 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 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 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 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 The escrow officer or closing agent MUST give information regarding the sales price and seller's social security number to IRS A judgement has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given is? constructive notice 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 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 When someone has living heirs but dies without leaving a will, the estate is distributed according to the statue of descent Is NOT usually prorated at closing? special tax assessments 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 [Show More]

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