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PSI Real Estate State Exam (NJ) Updated Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the "fair housing act"?✔✔ The Fair Housing Act prohibits discrimination in housing based on race, color, religion, gender, familial status, or national origin.
What is "capital gains tax" in real estate?✔✔ Capital gains tax is a tax on the profit made from selling a property, typically calculated as the difference between the sale price and the original purchase price.
What is a "real estate appraisal"?✔✔ A real estate appraisal is an unbiased estimate of the value of a property, typically conducted by a licensed appraiser based on factors like condition, location, and comparable sales.
What is a "deed of bargain and sale"?✔✔ A deed of bargain and sale transfers ownership of property, but it does not guarantee that the title is free from claims or encumbrances.
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What does "equity" in real estate refer to?✔✔ Equity refers to the difference between the current market value of a property and the amount owed on any mortgages or liens attached to it.
What is a "flood zone" in real estate?✔✔ A flood zone is an area that is susceptible to flooding, often determined by government agencies for the purpose of regulating building and development.
What is a "short sale" in real estate?✔✔ A short sale occurs when a property is sold for less than the amount owed on the mortgage, with the lender agreeing to accept the lower price to avoid foreclosure.
What is the definition of "title insurance" in a real estate transaction?✔✔ Title insurance protects buyers and lenders from financial loss due to defects in a property's title, such as ownership disputes or errors in public records.
What does the term "escrow" mean in a real estate deal?✔✔ Escrow refers to a third-party service that holds funds, documents, or assets during the process of a real estate transaction until all conditions are met. 2 / 4
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What is the purpose of a "deed of trust"?✔✔ A deed of trust is a document that secures a loan by transferring the legal title of the property to a trustee until the borrower repays the loan.
What does "eminent domain" allow the government to do?✔✔ Eminent domain allows the government to take private property for public use, providing just compensation to the property owner.
What is the "right of first refusal" in real estate?✔✔ The right of first refusal is a contractual right that gives someone the option to purchase a property before the owner sells it to someone else.
What is a "quitclaim deed"?✔✔ A quitclaim deed is a legal document used to transfer ownership of a property without guaranteeing that the title is clear of any claims or encumbrances.
What is a "real estate broker"? 3 / 4
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✔✔ A real estate broker is a licensed professional who helps clients buy, sell, or rent properties and can employ real estate agents to assist with these tasks.
What is "joint tenancy" in property ownership?✔✔ Joint tenancy is a form of property ownership where two or more individuals hold equal shares with the right of survivorship, meaning the surviving owner(s) inherit the deceased owner's share.
What is the difference between "real property" and "personal property"?✔✔ Real property refers to land and any buildings or structures permanently attached to it, while personal property includes movable items not affixed to the land.
What is a "mortgage broker"?✔✔ A mortgage broker acts as an intermediary between borrowers and lenders, helping individuals secure financing for real estate purchases.
What is the function of "zoning laws" in real estate?✔✔ Zoning laws regulate how land can be used in specific areas, ensuring that developments are consistent with the community's planning and growth objectives.
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