PSI practice

Question 1

The NJ REC regulation to terminate membership call multiple listing service when….

Answer 1

Suggest uniform commission rates among all member broker

Question 2

When must a listing broker provide a copy of the fully executed written listing agreement?

Answer 2

Within 5 business days of execution of a listing agreement

Question 3

If it is a cloud on the title to a property the best means of eliminating it is to….

Answer 3

A suit to quiet title

Question 4

The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian he also noted that an attractive feature is the large Russian grocery store. He decides to stop advertising in the city newspaper instead advertise the property and two different Russian internet sites this is?

Answer 4

Acceptable if it includes no preferential language for purchasers

Question 5

A tax assessor determined that commercial building with a 3.5% mortgage has a market value of $400,000. If the assessed value is 60% of the market value and the tax rate is 63.18 mils what is the annual tax?

Answer 5

$15,162.20

Question 6

When a licensee takes a listing to sell a new multi family residential property the document that must be provided to the owner from the licensee?

Answer 6

Attorney general memorandum on discrimination

Question 7

Bill pays his property tax bill of $980 for the calendar year he signed a purchase and sales contract on June 28th and closes the sale on July 15th. The contract states that the seller is responsible for the expenses on the day of closing. What is the amount of prepaid tax that is due back to Bill at closing assuming a 360 day year?

Answer 7

$449.17

Question 8

Which of the following are mostly likely to be addressed by building codes?

Answer 8

Construction standards

Question 9

A broker who charges or collects an advance fee in excess of $25 for services to be rendered must?

Answer 9

Furnished within 90 days an accounting of how the money was used

Question 10

Which of the following statements in advertising would be an example of non-discriminatory language under HUD’s fair housing advertising guidelines?

Answer 10

Female seeking female roommate

Question 11

In estimating the value of a 50 unit apartment complex which is the following approaches would yield the most accurate estimate of value?

Answer 11

Income

Question 12

What is the purpose of a reverse mortgage?

Answer 12

supplement the mortgagors income

Question 13

The broker’s principle is the seller. The buyer is represented by another broker. The broker maybe guilty of misrepresentation if she knows but chooses not to disclose

Answer 13

the park behind the home will be a highway in two months

Question 14

Insurance value differs from market value in that

Answer 14

the value is only attributable to the replacement of the structure

Question 15

Which of the following is least likely to be considered in establishing value by the sales comparison approach?

Answer 15

capitalization rate

Question 16

The purchase price for a new home was $230,000. The buyer put down 20% the balance of the mortgage for the 80% of the purchase price. The appraise value at the time of closing was $250,000 and the assessment value was $220,000. What will the buyer pay for one years of property tax if her tax rate is 0.2%

Answer 16

$440

Question 17

Minors are held liable for real estate contract obligations

Answer 17

Have their guardian co-sign

Question 18

Which of the following would NOT be considered relevant if HUD investigated a perspective home buyer’s allegation of discriminatory treatment by a licensee in a brokerage office?

Answer 18

if the licensee believes she was acting in the best interests of the perspective buyer

Question 19

A neighborhood grocery store no longer complies with the law because of a new zoning ordinance is adopted so that the property is zoned for residential use nevertheless the owner is allowed to continue to operate the grocery store. This is an example of?

Answer 19

Nonconforming use

Question 20

Which of the following best describes housing for older persons act?

Answer 20

requires that at least 80% occupied units to have one person 55 or older living there

Question 21

In advertisements a real estate company may NOT

Answer 21

abbreviate it’s regular business name