Final Exam #2 Flashcards
(110 cards)
1
Q
Two men own a parcel of land as joint tenants. One of them dies, and his will stipulates that his interest will pass to his wife and, upon her death, to his children. What type of estate do the children have?
A. Estate in reversion
B. Estate in remainder
C. Life estate
D. No estate
A
D. No estate
2
Q
Something of value offered by one party and accepted by another as inducement to perform is called
A. acknowledgement.
B. boot.
C. conveyance.
D. consideration.
A
D. consideration.
3
Q
The unities of time, title, interest, and possession are directly connected with
A. tenancy in common.
B. remainder interest.
C. communal property.
D. joint tenancy.
A
D. joint tenancy.
4
Q
Most agency relationships in real estate transactions are
A. special agencies.
B. general agencies.
C. universal agencies.
D. ostensible agencies.
A
A. special agencies.
5
Q
A seller’s broker must transmit to her principal
A. copies of all advertisements on the property.
B. all offers that are reasonable.
C. all written offers that are reasonable.
D. all written offers.
A
D. all written offers.
6
Q
If the owners of a property sell it themselves, even though they have an exclusive agency listing with a broker, they owe the broker
A. the full commission.
B. one-half the commission.
C. a commission that must be settled through arbitration.
D. no commission.
A
D. no commission.
7
Q
Which of the following does NOT hold a leasehold estate?
A. Tenant for years
B. Life tenant
C. Tenant at will
D. Tenant at sufferance
A
B. Life tenant
8
Q
A loan used for temporary financing is a
A. VA loan.
B. FHA 203(b) loan.
C. construction loan.
D. land contract.
A
C. construction loan.
9
Q
Regulation Z requires the disclosure of which of the following?
A. RESPA
B. APR
C. NAR
D. CMA
A
B. APR
10
Q
In a sale-leaseback agreement, the
A. grantor becomes the landlord.
B. grantee becomes the tenant.
C. grantor becomes the lessee.
D. grantor becomes the assignee.
A
C. grantor becomes the lessee.
11
Q
A man and a woman are not married but own property together. The man dies in an accident and the woman now owns the property in severalty. The man and the woman must have held title in
A. tenancy by the entirety.
B. tenancy in common.
C. life tenancy.
D. joint tenancy.
A
D. joint tenancy.
12
Q
When a lease provides that the lessee shall be responsible for all expenses, it is known as
A. a gross lease.
B. a percentage lease.
C. a net lease.
D. an index lease.
A
C. a net lease.
Remember a NET catches everything in its path, all expenses are caught in the net.
13
Q
The lease that requires no advance notification to terminate it at the end of its term is called
A. a periodic tenancy.
B. a month to month.
C. an estate for years.
D. a year to year.
A
C. an estate for years.
14
Q
The clause in a mortgage that provides for the entire balance of the mortgage loan to be immediately due and payable because of the borrower’s default is called
A. a defeasance clause.
B. an alienation clause.
C. an acceleration clause.
D. a habendum clause.
A
C. an acceleration clause.
15
Q
A contract that has been fully performed by the parties is called
A. an executory contract.
B. a voidable contract.
C. an executed contract.
D. a consolidated contract.
A
C. an executed contract.
16
Q
The cost approach would most likely be used for which of the following?
A. Single-family house
B. Apartment building
C. Public building
D. Office building
A
C. Public building
17
Q
Which of the following liens takes precedence over all the others?
A. Judgment against the seller
B. Purchase money mortgage taken by the seller
C. Delinquent special assessment charge
D. First mortgage recorded by a bank
A
C. Delinquent special assessment charge
18
Q
If an owner in severalty dies testate, the property will be
A. probated and passed on to the owner’s heirs according to the law of descent.
B. probated and passed on to the owner’s devisees.
C. automatically vested in the other tenant.
D. automatically subject to the law of escheat.
A
B. probated and passed on to the owner’s devisees.
19
Q
If a certain income-producing property has a high degree of risk to the potential investor, the capitalization rate used will tend to be
A. higher, thus producing a higher value.
B. higher, thus producing a lower value.
C. lower, thus producing a lower value.
D. lower, thus producing a higher value.
A
B. higher, thus producing a lower value.
20
Q
In a blanket mortgage, what clause gives the developer the right to sell an individual lot without having to pay off the entire principal amount?
A. Prepayment clause
B. Defeasance clause
C. Partial release clause
D. Subordination clause
A
C. Partial release clause
21
Q
The smallest unit of measure in the rectangular survey system is known as a
A. township.
B. section.
C. benchmark.
D. monument.
A
B. section.
22
Q
A woman gives a parcel of land to a man with an express condition in the deed that if the man builds an office building on the land, the parcel will revert to the woman. This is an example of a
A. deed restriction.
B. fee simple determinable.
C. leasehold estate.
D. life estate with a reversion in the remainder.
A
B. fee simple determinable.
23
Q
If a woman is legally occupying and using a single family structure, her interest in the real estate could NOT include which of the following?
A. Leasehold estate
B. Life estate
C. Estate at sufferance
D. Fee simple estate
A
C. Estate at sufferance
24
Q
TRID considers a loan application complete when the borrowers
A. pay an application fee.
B. provide evidence that they have interviewed three lenders.
C. receive a Loan Estimate.
D. submit the ALIENS information to the lender.
A
D. submit the ALIENS information to the lender.
25
A court decree which declares that an individual is indebted to another and fixes the amount of the debt is called a
A. bond.
B. lien.
C. judgment.
D. foreclosure.
C. judgment.
26
The federal government will require disclosure in a property of the known presence of
A. radon.
B. lead.
C. asbestos.
D. termites.
B. lead.
27
Which of the following is not an involuntary alienation of property?
A. Escheat
B. Devise
C. Tax foreclosure
D. Eminent domain
B. Devise
28
Liquidation of a loan in equal installments that include principal and interest is called
A. redemption.
B. compounding.
C. amortization.
D. straight reduction.
C. amortization.
29
The procedure by which a party to a contract is fully discharged of all responsibility and another party takes his or her place with agreement by both parties is known as
A. rescission.
B. revocation.
C. novation.
D. annullification.
C. novation.
30
When a purchaser buys subject to an existing mortgage,
A. the seller is not personally liable for the note or bond.
B. the purchaser is not personally liable for the note or bond.
C. both the purchaser and seller are liable for the note or bond.
D. a new note or bond is drawn up establishing the debt responsibility between
purchaser and seller.
B. the purchaser is not personally liable for the note or bond.
31
Compliance with the Lead Based Paint Hazard Reduction Act is important to real estate agents because its regulations specifically require real estate agents to
A. conduct inspections.
B. ensure compliance.
C. assess risk levels of listed properties.
D. refuse listings of contaminated properties.
B. ensure compliance.
32
In a real estate advertisement that includes information on mortgage financing, which of the following is permissible under the truth-in-lending law, without the necessity to add
qualifying words?
A. Two thousand dollars down
B. Liberal terms available
C. Interest rate is only 8 percent
D. Monthly payments only $600
B. Liberal terms available
33
A court action brought to remedy a gap in the chain of title is called
A. an action in partition.
B. an abstract of title.
C. a suit to quiet title.
D. a Torrens title.
C. a suit to quiet title.
34
A listing contract in which the listing broker’s commission is based upon procuring a buyer before the property is sold by the owner or another broker is
A. an exclusive agency listing.
B. an open listing.
C. an exclusive right to sell listing.
D. a multiple listing.
B. an open listing.
35
A purchaser buys a home for $102,000. She applies for an FHA mortgage loan and learns that the FHA will insure 97 percent of the first $25,000 of the purchase price and 95 percent of the balance. If the lender charges the purchaser three points, then how much
cash will actually be advanced to the purchaser?
A. $89,788
B. $94,478
C. $96,320
D. $99,100
B. $94,478
36
The type of deed that warrants only that the grantor has not impaired the title during the term in which he held it is referred to as a
A. general warranty deed.
B. bargain and sale deed.
C. bargain and sale deed, CAG.
D. quitclaim deed.
C. bargain and sale deed, CAG.
## Footnote
Covenant against grantor (CAG)
37
A woman died and left a 10-acre piece of land to her brother. This is a
A. legacy.
B. bequest.
C. devise.
D. demise.
C. devise.
38
A bank that insists on a $20,000 down payment to purchase a $100,000 home requires
A. a 20 percent loan-to-value ratio.
B. private mortgage insurance.
C. an 80 percent loan-to-value ratio.
D. a prepayment penalty
C. an 80 percent loan-to-value ratio.
39
An in rem proceeding is directly associated with a
A. tax foreclosure.
B. mortgage foreclosure.
C. court-ordered sale.
D. tax appeal.
A. tax foreclosure.
40
The Truth-in-Renting act does NOT apply to
A. apartment buildings with more than 25 units.
B. apartment buildings with less than 10 units.
C. owner-occupied properties with 5 rental units or less.
D. properties with fewer than 3 rental units.
D. properties with fewer than 3 rental units.
41
Who is responsible for explaining to buyers the topics in the booklet “Your Home Loan Toolkit: A step-by-step Guide”?
A. Lender
B. No one
C. Closing agent
D. Buyer’s agent
B. No one
42
After borrowers have indicated an intent to proceed, the lender
A. approves their loan application.
B. can provide a temporary approval letter.
C. is prohibited from asking for any additional information.
D. can ask for additional fees to process the loan application.
D. can ask for additional fees to process the loan application.
43
What is the maximum penalty for the first violation of the federal Fair Housing Act?
A. $16,000
B. $42,500
C. $49,467
D. $19,787
D. $19,787
44
A property at the end of three years was valued at $82,500. It had depreciated 2.5 percent during each of the three years. What was the original value?
A. $73,540
B. $81,265
C. $89,010
D. $89,189
C. $89,010
45
What law prohibits ALL racial discrimination in housing, with no exceptions?
A. Civil Rights Act of 1866
B. Jones v Mayer Act
C. Fair Housing Act of 1968
D. Civil Rights Act of 1965
C. Fair Housing Act of 1968
46
Which of the following is NOT an approach to value?
A. Appraisal by summation
B. Income capitalization approach
C. Original cost to owner
D. Sales comparison approach
C. Original cost to owner
47
The income capitalized to determine value is
A. monthly net income.
B. monthly gross income.
C. annual net income.
D. annual gross income.
C. annual net income.
48
Which of the following statements about the assignment of contracts in New Jersey is **FALSE**?
A. Novation is the substituting of a new party and the releasing of the old party of all responsibility.
B. An assignment must be in writing.
C. In an assignment, the assignor is released of all liability.
D. Novation also means the replacing of an existing contract with a new contract
C. In an assignment, the assignor is released of all liability.
## Footnote
In New Jersey, assignment of real estate contracts allows one party (the assignor) to transfer their rights and obligations under a purchase agreement to another party (the assignee). This process often involves a separate assignment agreement where the assignor and assignee agree on the terms of the transfer, including an assignment fee. The assignee then assumes the assignor's position in the original contract, taking on the responsibility of completing the purchase.
Assignor's Liability: Even after assignment, the assignor may remain liable for certain obligations under the original contract, especially if the assignee defaults.
49
The purchaser in a real estate sales contract breaches the contract and does not go through with the purchase. The contract stipulates that the seller may keep the earnest money. This is known as
A. punitive damages.
B. liquidated damages.
C. compensatory damages.
D. specific performance.
B. liquidated damages.
50
Which of the following most accurately describes a property manager?
A. trustee
B. escrow agent
C. fiduciary
D. client
C. fiduciary
51
The approach that uses the concept of depreciation is the
A. sales comparison approach.
B. cost approach.
C. income capitalization approach.
D. reconciliation approach.
B. cost approach.
52
A woman sold her property for $150,000. She realized a 20 percent return on her investment. How much did she originally pay for the property?
A. $115,384
B. $120,000
C. $125,000
D. $130,434
C. $125,000
53
If two similar houses are for sale in a certain location, the one with the lower price is usually bought first. This is the principle of
A. substitution.
B. conformity.
C. supply and demand.
D. progression.
A. substitution.
54
The approach that allows for up and down adjustments to different properties to arrive at a value for a subject property is called the
A. gross net multiplier approach.
B. income capitalization approach.
C. cost approach.
D. sales comparison approach.
D. sales comparison approach.
55
A property manager’s responsibilities generally do NOT include which of the following?
A. Paying utilities
B. Investing profits
C. Renting units
D. Collecting security deposits
B. Investing profits
56
Salesperson A shows a property owned by Seller B and listed with Salesperson C’s broker. Which of the following statements about this is TRUE?
A. Salesperson A is the agent of Seller B.
B. Salesperson A is the subagent of Broker C.
C. Seller B is the customer of Salesperson A’s broker.
D. Salesperson A’s broker is the principal of Salesperson A.
D. Salesperson A’s broker is the principal of Salesperson A.
57
A broker has a house listed for $100,000. His daughter sees it and decides she wants to purchase it. The broker convinces the seller to accept an offer of $80,000 from her but doesn’t reveal to the seller his relationship to the purchaser. If the seller discovers this
relationship, which of the following statements is then TRUE?
A. The contract for the sale of the house is void.
B. The contract for the sale of the house is voidable.
C. The broker is entitled to a commission because he is the procuring cause of the
sale.
D. The daughter is obligated to pay the $100,000 listing price.
B. The contract for the sale of the house is voidable.
58
The term REALTOR® is designated for a
A. member of the MLS.
B. real estate broker who works only in residential sales.
C. member of the NAR.
D. real estate broker who works in residential, commercial and industrial properties.
C. member of the NAR.
(National Association of Realtors)
59
Which of the following is a listing whose consideration is NOT based on a percentage of the selling price?
A. An open listing
B. An exclusive agency listing
C. A net listing
D. An exclusive right to sell listing
C. A net listing
## Footnote
In real estate, a net listing is an agreement where the seller sets a minimum amount they want to receive from the sale of a property, and the real estate agent's commission is any amount the property sells for above that minimum. Essentially, the agent earns their commission from the profit generated above the seller's specified net amount.
60
In general, the federal fair housing law does NOT apply to
A. the sale of an owner-occupied house without the services of a broker.
B. bank loans.
C. the sale of an apartment in a four-family, owner-occupied home.
D. blockbusting.
A. the sale of an owner-occupied house without the services of a broker.
61
The federal fair housing law makes it illegal for a
A. seller to deny a mortgage loan to a buyer who is a member of a minority group.
B. landlord to deny commercial space to a prospective tenant who is a member of a minority group.
C. landlord of a two-unit residential dwelling to deny a unit to a member of a
protected class if the landlord does not occupy one of the units.
D. non-profit club to restrict its housing to its members only.
C. landlord of a two-unit residential dwelling to deny a unit to a member of a
protected class if the landlord does not occupy one of the units.
62
If a broker receives three offers to purchase a property at different times on the same day, and is finally able to reach the seller later in that day, then the broker should present
A. only the highest offer to the seller.
B. only the best offer to the seller.
C. all three offers in the order they were received.
D. all three offers in no specific order.
D. all three offers in no specific order.
63
A contract between an adult and a minor is
A. void.
B. voidable.
C. unenforceable.
D. unilateral.
B. voidable.
64
By definition, an “estate for years”
A. must last for a year or more.
B. is for a fixed term: six weeks, ten months, etc.
C. must be for at least two years.
D. requires a written lease.
B. is for a fixed term: six weeks, ten months, etc.
65
A broker agreed to pay a bonus to all associates who sold four homes in a calendar month. A salesperson sold four homes last month and received the bonus. This is an example of
A. a voidable contract.
B. a unilateral contract.
C. a bilateral contract.
D. right of first refusal.
B. a unilateral contract.
66
Which of the following documents is NOT typically recorded in the public records?
A. Sales contract
B. Release of mortgage
C. Deed
D. Assignment
A. Sales contract
67
Taxes raised to pay for improvements that benefit real estate are referred to as
A. ad valorem taxes.
B. special assessments
C. facilities taxes.
D. luxury rates.
B. special assessments
68
The Bulk Transfer Act refers to
A. personal property only.
B. real property only.
C. both real and personal property.
D. chattels and fixtures.
A. personal property only.
## Footnote
The Bulk Transfer Act, also known as Bulk Sales Law or Article 6 of the Uniform Commercial Code (UCC), is designed to protect creditors when a business sells a substantial portion of its assets outside the normal course of business.
Here's a breakdown of the key aspects:
2. 1. Purpose: To prevent business owners from selling off their assets and disappearing, leaving creditors unpaid. Ensures creditors receive notice of the bulk sale and have a chance to claim what's owed before the assets change hands.
3. 2. What is a Bulk Sale? A bulk sale involves the transfer of a major part of a business's assets, such as inventory or equipment, outside the regular course of business. This could include selling off all inventory, a significant portion of equipment, or the entire business itself.
69
In order to convert an oral agreement into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days?
A. 1 day
B. 5 days
C. 10 days
D. 30 days
B. 5 days
70
Which is TRUE about a multiple listing?
A. It is a separate form of listing.
B. question.
C. It invites other brokers to produce a buyer.
D. It is a form of open listing.
C. It invites other brokers to produce a buyer.
71
A large old home with six bedrooms and one bathroom would be an example of
A. depreciation.
B. economic obsolescence.
C. functional obsolescence.
D. external obsolescence.
C. functional obsolescence.
72
Which of the following is NOT a usage encumbrance?
A. Mechanic’s or construction lien
B. Encroachment
C. Easement
D. License
A. Mechanic’s or construction lien
73
Which of the following statements is FALSE about a lien?
A. A lien attaches to the property, not the property owner.
B. A lien runs with the land.
C. A general lien includes state inheritance taxes.
D. A lien is a physical claim against property.
D. A lien is a physical claim against property.
74
Options and “first refusals”
A. are bilateral contracts.
B. cannot be enforced by the offeree.
C. can be oral agreements according to the Statute of Frauds.
D. place an obligation only on the offeror.
D. place an obligation only on the offeror.
75
Which of the following is essential for any contract?
A. Date
B. In writing
C. Consideration
D. Plain-language requirement
C. Consideration
76
What is required to form a valid purchase contract in New Jersey?
A. Must be accompanied by an earnest money deposit
B. One of the parties must be a minor
C. Omits an attorney review clause
D. An adequate description of the property
D. An adequate description of the property
77
A limited partnership is
A. created under the laws of the state from which it receives its charter.
B. run by a general partner or partners.
C. one in which each partner can be held personally liable for business losses and
obligations.
D. treated as a corporation for federal tax purposes.
B. run by a general partner or partners.
## Footnote
In New Jersey, a limited partnership (LP) for real estate involves a structure where investors (limited partners) pool their capital to purchase, develop, or manage properties, while a designated general partner manages the day-to-day operations and bears the primary liability. Limited partners are primarily financial contributors and have limited liability, generally only to the extent of their investment.
78
A condemnation suit is used in
A. police power.
B. eminent domain.
C. escheat.
D. tax foreclosure.
B. eminent domain.
79
Which of the following does NOT imply an easement?
A. Party wall
B. Prescriptive period
C. Ingress and egress
D. License
D. License
80
With regard to New Jersey real estate contracts,
A. only attorneys can prepare them.
B. in a breach of contract, the buyer can sue for liquidated damages.
C. a contract being considered in an attorney review period is unenforceable.
D. a contract signed by a person under duress is void.
C. a contract being considered in an attorney review period is unenforceable.
81
What is the license requirement pertaining to a license issued to a corporation?
A. All of the officers must be licensed either as a broker or salesperson.
B. Two officers must be licensed as brokers.
C. The officers do not need to be licensed.
D. One officer must be licensed while the other officers may not be required to obtain licenses.
D. One officer must be licensed while the other officers may not be required to obtain licenses.
82
A condensed history of all instruments affecting a particular parcel of land is the
A. abstract of title.
B. chain of title.
C. title report.
D. evidence of title.
A. abstract of title.
83
A broker is told at a closing to deduct her commission from the funds previously deposited in her escrow account. In order to avoid commingling, the amount making up the broker’s commission must be paid out within
A. three days.
B. five days.
C. seven days.
D. ten days
B. five days.
84
In New Jersey, which of the following would NOT be required to be licensed as either a real estate broker or salesperson?
A. An individual operating a rental agency
B. An individual managing properties for various owners
C. An attorney handling a distressed property sale for his client trying to avoid possible foreclosure proceedings
D. A person hired by a developer to list and sell new homes in the development
C. An attorney handling a distressed property sale for his client trying to avoid possible foreclosure proceedings
85
In New Jersey, a real estate broker
A. must act for only one party in a transaction.
B. must act as an intermediary bringing together buyers and sellers.
C. as a fiduciary, must act on behalf of both parties to a transaction.
D. may act for both parties with the written knowledge and consent of both.
D. may act for both parties with the written knowledge and consent of both.
86
Property located outside the state of New Jersey is covered by the Real Estate Sales Full Disclosure Act when offered for sale in this state. Which of the following is NOT exempt from the act?
A. Property sold by a court order
B. A development of 50 single family homes
C. A development of 25 condominiums
D. Property being sold by a federal government agency
C. A development of 25 condominiums
## Footnote
The New Jersey Real Estate Sales Full Disclosure Act (RESFDA) applies to certain out-of-state properties offered for sale within New Jersey. This is particularly relevant for condominiums, time-shares, retirement communities, and land subdivisions. The act aims to ensure that buyers of these properties have access to necessary information about the development and its conditions before making a purchase.
87
The primary purpose of the New Jersey Real Estate Commission is to
A. regulate the issuance of real estate licenses.
B. protect the image of the real estate brokerage industry.
C. protect the general public in real estate transactions.
D. punish unethical licensees.
C. protect the general public in real estate transactions.
88
A broker could advertise
A. that a brand new Cadillac sedan is included in the sale price.
B. free appraisals.
C. a contest held for the promotion of one of his listings.
D. another broker’s listing, provided both brokers are in the same MLS.
A. that a brand new Cadillac sedan is included in the sale price.
89
Which of the following will result in automatic revocation of a real estate license?
A. Fraud
B. Embezzlement
C. Payment out of the guaranty fund
D. Undisclosed dual agency
C. Payment out of the guaranty fund
90
The New Jersey Law Against Discrimination does NOT cover which of the following classifications?
A. Creed
B. Age
C. Handicap
D. National origin
B. Age
91
Individuals found guilty of a first offense violation of the New Jersey Law Against
Discrimination can be fined up to
A. $500.
B. $5,000.
C. $10,000.
D. $25,000.
C. $10,000.
92
In New Jersey, a conveyance to a married couple creates a
A. partnership.
B. joint tenancy.
C. tenancy by the entirety.
D. tenancy in common.
C. tenancy by the entirety.
93
New Jersey residents who purchase newly subdivided out-of-state properties are protected by the Real Estate Sales Full Disclosure Act, which allows the buyers to cancel their contracts within
A. three days.
B. seven days.
C. ten days
D. 14 days.
B. seven days.
94
A married couple, New Jersey residents, would like to use some of the money they recently inherited to pay off the mortgage on their home. Will they be permitted to do so?
A. Yes, but their lender may charge them a prepayment penalty.
B. Yes, they will be able to pay off the loan without a prepayment penalty.
C. No, New Jersey law prohibits the prepayment of mortgages.
D. They will only be able to prepay if it is an FHA mortgage loan.
B. Yes, they will be able to pay off the loan without a prepayment penalty.
95
Whenever a resident of another state is licensed in New Jersey, she must
A. furnish evidence of good moral character to the real estate commission.
B. complete an additional 15-hour course for non-residents.
C. file a consent to be sued in New Jersey.
D. pay a higher licensing fee than resident licensees.
C. file a consent to be sued in New Jersey.
96
Which of the following things may a broker-salesperson NOT do?
A. Supervise a branch office
B. Open up his own real estate business
C. Be an officer of a real estate corporation
D. Maintain an escrow account
D. Maintain an escrow account
97
A copy of a complete accounting in writing of all monies due a terminated salesperson must be kept by the broker for how long?
A. Six months
B. One year
C. Three years
D. Six years
D. Six years
98
Which accurately describes the attorney review clause?
A. You count three days from the execution of the sales agreement.
B. The clause includes all residential leases prepared by licensees for a term of one year or more.
C. The clause must be included in any commercial lease.
D. All parties to the sales contract are required to consult their attorneys during the review period.
B. The clause includes all residential leases prepared by licensees for a term of one year or more.
99
Supervisors of real estate offices must be physically present at that office during business hours for how many days per calendar week (excluding vacations and holidays)?
A. Three days
B. Four days
C. Five days
D. Six days
C. Five days
100
The main purpose of the license law is to
A. encourage competition.
B. protect the public.
C. limit the number of licensees.
D. protect licensees.
B. protect the public.
101
If a licensee is indicted for aggravated sexual assault, his license is
A. canceled.
B. revoked.
C. suspended.
D. placed on probation.
C. suspended.
102
Which of the following is a record a broker must keep for six years?
A. Copies of all unaccepted offers to purchase
B. Expired listing agreements
C. Copies of statements to buyers and sellers showing disbursement of funds
D. Copies of newspaper advertisements
C. Copies of statements to buyers and sellers showing disbursement of funds
103
A transaction broker has a fiduciary responsibility to
A. the seller.
B. the buyer.
C. both seller and buyer.
D. no one.
D. no one.
104
A licensed broker in New Jersey may pay a referral fee to a broker in another state
A. if the out-of-state broker has a New Jersey resident license.
B. if the out-of-state broker has a New Jersey non-resident license.
C. if the out-of-state broker has a real estate license in his own state.
D. The out-of-state broker is not allowed to collect a referral fee under this
circumstance.
C. if the out-of-state broker has a real estate license in his own state.
105
The law of descent applies to what remains of an estate after
A. payment of all debts.
B. the surviving spouse receives 50 percent.
C. the will has been executed.
D. all real estate has been sold.
A. payment of all debts.
106
Who, of the following, would have the best opportunity to have her apprenticeship requirements waived for a broker’s license?
A. A salesperson with one year’s experience and 75 sold listings
B. A former broker with 25 years’ experience who wants to re-enter the real estate
field after being away 10 years
C. A wounded war veteran with a salesperson’s license
D. A broker in another state with one year’s experience and the desire to set up
business in New Jersey
C. A wounded war veteran with a salesperson’s license
107
New or altered buildings in New Jersey can only be used or occupied with the issuance of
A. evidence of compliance.
B. certificate of continuing occupancy.
C. a completed construction permit.
D. certificate of occupancy.
D. certificate of occupancy.
108
When investing, what is the basis?
A. Cost of any capital improvements
B. Investor’s original cost for the real estate
C. Taxable profit on an investment
D. Value after depreciation
B. Investor’s original cost for the real estate
109
Generally, in New Jersey, in order to appraise property for federally related loans, a person must
A. hold a real estate license with a specialty in appraising.
B. be a state-licensed or state-certified appraiser.
C. be a member of the Appraisal Institute.
D. hold a bachelor’s degree in real estate appraising.
B. be a state-licensed or state-certified appraiser.
110
At what time must the lender provide the Closing Disclosure to the buyer/borrowers?
A. Business day before scheduled closing
B. A week before scheduled closing
C. Three business days before scheduled closing
D. Day of closing
C. Three business days before scheduled closing
