Practice Test B

Question 1

A house contains screens, smoke alarms, and a crystal chandelier. The contract of sale mentions none of the items specifically. Before final closing, the seller has the right to remove:

a. the screens, because they are trade fixtures.
b. the smoke alarms, which are personal property.
c. the chandelier, because it is an appurtenance.
d. none of the items.

Answer 1

d. none of the items.

Question 2

The amount of earnest money deposit is determined by:

a. state law.
b. the broker.
c. agreement of the parties.
d. the local association of REALTORS®.

Answer 2

c. agreement of the parties.

Question 3

Nelson McDonald sold his house on his own and still owed a broker a commission. He must have signed a(n):

a. open listing.
b. net listing.
c. exclusive-right-to-sell listing.
d. exclusive-agency listing.

Answer 3

c. exclusive-right-to-sell listing.

Broker always gets paid in exclusive-right-to-sell listing.

Question 4

Which can be executed without subjecting the signers to further responsibility for title?

a. Quitclaim deed
b. Special warranty deed
c. Warranty deed
d. Bargain and sale deed

Answer 4

a. Quitclaim deed

Question 5

The utility company dug up Andrea Dunham’s garden to lay gas lines. The company had an easement, recorded at the county clerk’s office. Andrea claimed the easement was invalid because she was never told about it. The easement:

a. was valid even if she had never heard of it.
b. was valid only if the company could prove she knew about it when she bought.
c. was appurtenant.
d. had expired if it had not been used for ten years.

Answer 5

a. was valid even if she had never heard of it.

Question 6

When a court orders real property sold to satisfy an unpaid lien, the process is known as a(n)

a. easement.
b. encumbrance.
c. attachment.
d. foreclosure.

Answer 6

d. foreclosure.

Question 7

The tax rate is $7.80 per $100 assessment. If property is valued at $87,500 and assessed for 50% of its value, what is the total property tax?

a. $682.50
b. $3,412.50
c. $6,825
d. $13,650

Answer 7

b. $3,412.50

50% of value, times the tax rate,
$7.80 per $100 = 7.8%, so multiply by .078

Question 8

When appraising an office building, the appraiser is MOST concerned with

a. accrued depreciation.
b. annual mortgage payments.
c. comparable sales.
d. net annual income.

Answer 8

d. net annual income.

Question 9

A borrower obtained a second mortgage loan for $20,000 at 10%. It called for payments of $175 a month over a period of five years. The final installment would be a balloon payment. This loan is a:

a. fully amortized loan.
b. partially amortized loan.
c. straight loan.
d. blanket loan.

Answer 9

b. partially amortized loan.

A fully amortized loan is a loan that is repaid in equal payments over a set period, ensuring the entire principal and interest are paid off by the end of the loan term.

A partially amortized loan is a loan where the regular payments don’t fully repay the principal amount over the loan term. Instead, a significant portion, known as a balloon payment

A straight loan, also known as a term loan or interest-only loan, is a type of loan where the borrower only makes interest payments during the loan term, and the entire principal balance is due at the end of the term, in a lump sum payment.

A blanket loan, also known as a blanket mortgage, is a single loan secured by multiple properties. Instead of obtaining separate mortgages for each property, a borrower uses a single loan to finance them all.

Question 10

If the interest rate is 5% and the monthly interest payment is $650, the principal sum would be

a. $130,000.
b. $156,000.
c. $84,000.
d. $325,000.

Answer 10

b. $156,000.

$650 divided by 5% multiplied by 12 months.

Question 11

Ezra dies and devises his real property to his second wife for her lifetime, after which the property will pass to Ezra’s children. Ezra’s children own a(n):

a. life estate.
b. reversion.
c. remainder interest.
d. estate for years.

Answer 11

c. remainder interest.

Question 12

The prospective borrower decided to change the loan from FHA-insured to a conventional loan. In this situation, the lender

a. must issue a new Loan Estimate.
b. does not have to issue a new Loan Estimate.
c. has to meet the original closing date.
d. is responsible for any delays caused by the change.

Answer 12

a. must issue a new Loan Estimate.

Question 13

The market data approach is MOST important in appraising a(n):

a. church.
b. older residence.
c. apartment building.
d. newly constructed residence.

Answer 13

b. older residence.

Question 14

Among the several pieces of information that the lender must gather before issuing a Loan Estimate (LE) is the applicant’s

a. signed affidavit that borrower has complied with fair housing guidelines.
b. statement of religious beliefs.
c. Social Security number.
d. estimated earnings statement.

Answer 14

c. Social Security number.

Question 15

Broker Bensley listed the Corwins’ property. His salesman, Stan Sandow, accepted a check for $5,000 earnest money with an offer. Sandow should take the check and

a. give it to the Corwins.
b. hold it until closing.
c. give it to Bensley.
d. deposit it in Stan’s special escrow account.

Answer 15

c. give it to Bensley.

Bensly is the broker - HE is rersponsible for depositing it into the escrow account.

Question 16

Mrs. Hall signed a 30-day listing with a broker. The next day she was killed in an accident. The listing was then

a. invalid unless her husband ratified it.
b. still in effect for 29 more days.
c. binding upon her heirs if services had been performed.
d. terminated.

Answer 16

d. terminated.

After a contract for SALE of property - if seller dies - contract continues to closing. Contract was already signed.

Question 17

A widow received ownership of the family home for the rest of her life, with title going to her children on her death. She owns a(n)

a. life estate.
b. leasehold.
c. remainder.
d. easement.

Answer 17

a. life estate.

Question 18

Under the common law of agency, the real estate broker has a fiduciary relationship with

a. the client.
b. other brokers only.
c. the seller’s attorney.
d. both buyer and seller.

Answer 18

a. the client.
(or the principal)

Question 19

Title to real property is passed when a valid deed is

a. escrowed.
b. signed.
c. delivered.
d. witnessed.

Answer 19

c. delivered.

Question 20

A lot of 80 feet wide and 200 feet deep is sold at $500 per front foot. Commission is 10% of sales price, and the selling salesperson receives 60% of the commission. What does the salesperson receive?

a. $1,600
b. $2,400
c. $4,000
d. $6,000

Answer 20

b. $2,400

80 multiplied by $500 = sales price; 10$ of that is commission, salesperson receives %60 of the commission.

Question 21

Restrictive covenants that “run with the land”

a. are established by local municipalities.
b. are binding on future owners of the property.
c. must be approved by a court.
d. may not be more restrictive than building codes

Answer 21

b. are binding on future owners of the property.

“Run with the land” means it sells with the property, they are tied to land and sell with property.

Question 22

VA and FHA mortgages are notable for their

a. subsidized payments.
b. prepayment penalties.
c. adjustable rates.
d. low down payments.

Answer 22

d. low down payments.

VA loan down payment is 0%, FHA mortgage is 3.5 %.

Question 23

Who is uniquely in a position to provide the TRID Toolkit to a buyer, but not required to?

a. Lender
b. Buyer’s agent
c. Closing agent
d. Insurance agent

Answer 23

b. Buyer’s agent

Question 24

Private restrictions on land use may be created by

a. zoning regulations.
b. building codes.
c. deed.
d. any of the above.

Answer 24

c. deed.

PRIVATE restrictions are not from government. Only owner can put restrictions on the deed, not government. Zoning and building codes are government.

Question 25

The use of subtle means to induce buyers to settle in neighborhoods the broker thinks appropriate is known as a. blockbusting. b. redlining. c. birddogging. d. steering.

Answer 25

d. steering.

Question 26

A mortgage broker usually offers what service? a. Handles closing procedures b. Brings borrower and lender together c. Provides initial funding d. Sells mortgages on the secondary market

Answer 26

b. Brings borrower and lender together ## Footnote Real Estate broker brings buyers & seller together, mortgage broker joins buyers & lenders.

Question 27

A broker receives a commission only if she produces a buyer before someone else sells the property. She is probably working under what type of listing? a. Open listing b. Net listing c. Exclusive-right-to-sell listing d. Exclusive-agency listing

Answer 27

a. Open listing ## Footnote Several brokers involved.

Question 28

Investors will sometimes borrow money to make a real estate purchase. This practice is called a. a bulk transfer. b. an exchange. c. leverage. d. pyramiding.

Answer 28

c. leverage.

Question 29

A broker listing a house may be guilty of discrimination for purposely not mentioning the house to a. qualified Hispanic homebuyers. b. qualified black homebuyers. c. qualified white homebuyers. d. any of the above.

Answer 29

d. any of the above.

Question 30

Deed restrictions are a method by which a. local zoning ordinances are enforced. b. the planning commission makes its work effective. c. cities can control construction details. d. the seller can limit the buyer's use.

Answer 30

d. the seller can limit the buyer's use.

Question 31

Which of the following exceptions is NOT allowed under New Jersey's fair housing law? a. certain types of housing may be restricted to members of one sex. b. Homeowners may discriminate when selling their own homes. c. Religious organizations may discriminate on the basis of religion. d. When renting a duplex or up/down two-family dwelling, an owner-occupant may discriminate except for race.

Answer 31

b. Homeowners may discriminate when selling their own homes. (NOT true!)

Question 32

The primary purpose of a deed is to a. furnish security. b. give notice. c. transfer title rights. d. prove ownership.

Answer 32

c. transfer title rights.

Question 33

A summary of the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called a(n) a. chain of title. b. title insurance policy. c. certificate of title. d. abstract of title.

Answer 33

d. abstract of title.

Question 34

At the closing, the cost of filing the deed in the public records usually appears as a a. credit to the buyer. b. credit to the seller. c. debit to the buyer. d. debit to the seller.

Answer 34

c. debit to the buyer. ## Footnote Buyer registers deed and must pay fees

Question 35

A person cannot successfully claim that he or she did not know about the contents of any recorded document. This legal principle is known as a. statute of frauds. b. actual notice. c. eminent domain. d. constructive notice.

Answer 35

d. constructive notice.

Question 36

The purpose of TRID's Loan Estimate is to ensure a. buyers do not borrow more than they can repay. b. real estate brokers are responsive to buyers' needs. c. buyers know how much money is required. d. buyers are aware of all costs relating to their mortgage loan.

Answer 36

d. buyers are aware of all costs relating to their mortgage loan.

Question 37

A building was bought for $250,000, with 10% down and a loan for the balance. If the lender charged the buyer two points, how much cash did the buyer need? a. $20,000 b. $22,500 c. $25,000 d. $29,500

Answer 37

d. $29,500 ## Footnote 10% of $250,000 is $25,000, so loan amount is for $225,000. 2 points (2%) of loan amount ($225,000) is $4,500. SO - down payment ($25,000) and points ($4,500) together is $29,500.

Question 38

A mortgage loan payable in installments sufficient to pay the principal off by the end of the term is called a a. fully amortized loan. b. partly amortized loan. c. straight loan. d. blanket loan.

Answer 38

a. fully amortized loan.

Question 39

Which of the following deeds contains no express or implied warranties? a. Bargain and sale deed b. Quitclaim deed c. Grant deed d. Warranty deed

Answer 39

b. Quitclaim deed

Question 40

The disclosures required by TRID apply to a. brokers selling office buildings. b. security salespersons with limited partnerships c. Ginnie Mae when purchasing mortgages. d. lenders financing purchase of a residence.

Answer 40

d. lenders financing purchase of a residence.

Question 41

A comparative market analysis is usually provided by the a. appraiser. b. listing agent. c. lender. d. closing agent.

Answer 41

b. listing agent.

Question 42

A legal action brought by either buyer or seller to enforce the terms of the contract is known as a. an injunction. b. specific performance. c. lis pendens. d. an attachment.

Answer 42

b. specific performance. ## Footnote When one party is not doing what he promised to do, party affected will sue to do what he promisied - sueing for specific performance.

Question 43

To avoid possible violation of antitrust regulations, one should avoid any discussion of commissions with a. a competitor. b. other associates in the office. c. potential listers. d. anyone.

Answer 43

a. a competitor.

Question 44

Cash flow means a. the amount of money flowing into and out of a property. b. a bookkeeping function accounting for each day's money. c. total remaining money after expenses have been paid. d. taxes, mortgage payment, and operating costs.

Answer 44

c. total remaining money after expenses have been paid.

Question 45

The town allows construction on quarter-acre lots. One subdivision has a restriction for at least acre lots. Which statement is TRUE? a. If the town issues a building permit for a quarter-acre lot, no one can block construction. b. Neighbors in the subdivision may enforce the one-acre restriction by calling on local police. c. The rown will not issue a permit for less than one-acre lots in that subdivision. d. Neighbors may enforce the one-acre limit but only through a court order.

Answer 45

d. Neighbors may enforce the one-acre limit but only through a court order.

Question 46

Rex Vail lives in one side of a duplex. He refuses to rent the other side to Marian Washington, a single black woman with good credit and income. He tells her he wants to choose his neighbors. Marian may have a remedy under which of the following acts? a. Fair Housing Act of 1968 b. Civil Rights Act of 1866 c. New Jersey Law Against Discrimination d. None of the above

Answer 46

b. Civil Rights Act of 1866

Question 47

In the valuation of a large office building, which approach is given MOST weight? a. Cost b. Income capitalization c. Market data d. All equal weight

Answer 47

b. Income capitalization

Question 48

A broker must pay Social Security taxes, workers' compensation, and unemployment insurance for all a. associates. b. part-time salespersons. c. independent contractors. d. employees.

Answer 48

d. employees.

Question 49

The fiduciary duty forbids a listing broker a. advising a seller that list price is too high. b. negotiating for an offer if it is below listed price. c. advertising property at less than the listed price. d. relisting property at a lower price.

Answer 49

c. advertising property at less than the listed price.

Question 50

Which of the following represents a voluntary lien? a. Mortgage b. Special assessment c. Estate tax d. Ad valorem tax

Answer 50

a. Mortgage

Question 51

A house sold for $157,000. The broker charged a 6% commission and divided it as follows: 10% to salesperson Alan, who took the listing, and the rest divided equally between salesperson Bette, who made the sale, and the broker's office. What was Alan's commission? a. $942 b. $4,710 c. $9420 d. $15,700

Answer 51

a. $942 ## Footnote Total commision = $157,000 times 6% - $9420. %10 percent of that would be $942.

Question 52

Smith Water Hole Company constructed a swimming pool. On completion, they filed a lien for nonpayment. This was MOST likely a a. general lien. b. special lien. c. construction lien. d. voluntary lien.

Answer 52

c. construction lien.

Question 53

The term leverage refers to a. the movement of people that enhances value in the area. b. the use of borrowed money to finance most of an investment. c. using influence at the bank to make a loan. d. measuring the impact of the cash flow.

Answer 53

b. the use of borrowed money to finance most of an investment.

Question 54

The illegal practice of inducing panic selling in a neighborhood for financial gain is called a. steering. b. redlining. c. blockbusting. d. canvassing.

Answer 54

c. blockbusting.

Question 55

A broker must obey a seller's instructions to a. avoid all mention of the septic system. b. show the property only to white couples. c. refuse low offers without presenting them. d. be present personally at all showings of the property.

Answer 55

d. be present personally at all showings of the property.

Question 56

A document that transfers possession but does not transfer ownership is a a. warranty deed. b. deed with restriction. c. will. d. lease.

Answer 56

d. lease.

Question 57

"Triggering terms" are phrases in an advertisement that a. move the buyer to action. b. first catch the reader's attention. c. mislead the reader as to geographic location. d. require full disclosure of financing details.

Answer 57

d. require full disclosure of financing details.

Question 58

The term depreciation refers to a. the value of real estate after its useful life. b. loss of value in real estate due to any cause. c. costs incurred to modernize a building. d. the capitalized value of rent losses.

Answer 58

b. loss of value in real estate due to any cause.

Question 59

How many lots, each measuring 72.5 feet wide by 100 feet deep, could be created from a two-acre block of land? a. 3 b. 6 c. 9 d. 12

Answer 59

d. 12 ## Footnote **ONE acre = 43,560 square feet** - memorize this!!! Lots will be 7,250 square feet. acre/sqaure feet 87,120 sp.ft. (2 acres) / 7,250 sq.ft = 12

Question 60

The amount of money that would be paid for property by a buyer to a seller, both being ready, willing, and able to act and both being fully informed, represents that property's a. exchange value. b. market value. c. appraised value. d. equalized value.

Answer 60

b. market value.

Question 61

Bill sold a duplex for a profit of $50,000 and took back a mortgage. He a. owes income tax on the entire gain in the year the property is sold. b. pays income tax year by year as payment is received. c. postpones tax if he purchases a vacation cottage within two years. d. collects interest in the first years, principal later.

Answer 61

b. pays income tax year by year as payment is received. ## Footnote When Bill sells the duplex and finances the sale himself (takes back a mortgage), this is considered an installment sale for tax purposes. Installment Sale: An installment sale is a sale where at least one payment is received after the tax year of the sale. Tax Treatment: Instead of paying tax on the entire profit in the year of the sale, Bill can report the profit as he receives payments. This means that in each year he receives a payment, a portion of the payment representing his profit will be taxed.

Question 62

Mr. Johnson, a subdivider/developer, would like to control the types of vehicles that can be parked in front of homes in his classy subdivision. He can accomplish this with a. deed restrictions. b. enforcement of zoning. c. a reverter clause. d. eminent domain.

Answer 62

a. deed restrictions.

Question 63

One way an investor in real estate may defer capital gain taxes is by a. exchanging for like property. b. obtaining maximum leverage. c. selling for cash. d. building reserves.

Answer 63

a. exchanging for like property. ## Footnote Person has 45 days to identify the replacement property, and THEN has 180 days to close. THEN he can defer capital gains.

Question 64

In the valuation of a hospital, which approach is given MOST weight? a. Cost b. Income capitalization c. Market data d. All equal weight

Answer 64

a. Cost

Question 65

The sale of time-sharing units a. does not require a real estate license. b. allows buyers the right of rescission for seven days. c. is forbidden to individual owners d. is usually on a flat-fee basis.

Answer 65

b. allows buyers the right of rescission for seven days.

Question 66

Covenants, conditions, and restrictions are placed on a condominium or cooperative development by the a. homeowners' association. b. attorney general's othce. c. developer. d. present tenants.

Answer 66

c. developer.

Question 67

The primary objective of a property manager should be to provide the owner with a. a low vacancy rate. b. the highest return on the property value. c. complete monthly reports of income and expense. d. allocated costs.

Answer 67

b. the highest return on the property value.

Question 68

If a radon test on a home reveals a reading of 14 picocuries per liter, a prospective purchaser should probably a. not worry about it. b. report it to the local health department. c. ask to see a survey. d. request remediation.

Answer 68

d. request remediation. ## Footnote On exam - more than 4 picocuries per liter is no good!

Question 69

A house sells for $102,000 and is appraised at $100,000 by a lender who is willing to make a 75% loan-to-value ratio loan. How much down payment does this house require? a. $25,000 b. $25,500 c. $27,000 d. $75,000

Answer 69

c. $27,000 ## Footnote Down payment - $25,00 (75% of loan) PLUS the extra $2,000/

Question 70

Under the provisions of the ordinary store lease, trade fixtures that remain in the store after the expiration of the lease become the property of the a. lessee. b. new tenant. c. lessor. d. chattel mortgagee.

Answer 70

c. lessor.

Question 71

A listing that obligates the broker to distribute the listing to other brokers is a(n) a. open listing. b. option. c. multiple listing. d. friendly listing.

Answer 71

c. multiple listing.

Question 72

A void contract is one that is a. not in writing. b. rescindable by agreement. c. missing an essential element. d. executory.

Answer 72

c. missing an essential element.

Question 73

If there is an incident of discrimination, the complainant has to prove that a. the act was intentional. b. the offense was repeated. c. discrimination occurred. d. the act caused a loss.

Answer 73

c. discrimination occurred.

Question 74

An option is a contract that a. requires the buyer to complete the purchase. b. keeps an offer open for a specified time. c. gives the buyer an easement on the property. d. allows the buyer to occupy the property.

Answer 74

b. keeps an offer open for a specified time.

Question 75

In the cost approach, the appraiser makes use of the a. owner's cost of the original building. b. estimate of the replacement cost of the building. c. sales prices of similar buildings. d. depreciated value used for income tax purposes.

Answer 75

b. estimate of the replacement cost of the building.

Question 76

A lease that requires the lessee to pay taxes, operating expenses, and insurance is called a a. gross lease. b. net lease. c. percentage lease. d. recorded lease.

Answer 76

b. net lease. ## Footnote Commercial lease - owner only pays mortgage.

Question 77

The tenant with a month-to-month tenancy must give the landlord how much notice of intention to vacate? a. One week b. Two month's c. One month d. No notice

Answer 77

c. One month ## Footnote Month to Month - 1 month notice; one year lease - three months.

Question 78

When recorded in the county where real property of the defendant is located, a judgment becomes a(n) a. voluntary lien. b. attachment lien. c. involuntary lien. d. equitable lien.

Answer 78

c. involuntary lien.

Question 79

Zoning ordinances are usually established by a. the federal government. b. local authorities. c. the state of New Jersey. d. court order.

Answer 79

b. local authorities.

Question 80

John Borek sold Andrew Meloni an acre of land but reserved the right to cross Meloni's acre to reach the public road. Meloni's new property is called the a. dominant tenement. b. servient tenement. c. homestead. d. leasehold

Answer 80

b. servient tenement.

Question 81

If a broker's license is suspended, the licenses of his or her salespersons are a. also suspended automatically. b. not affected. c. suspended for any salesperson who was aware of the offense at the time. d. allowed to continue for a six-month temporary period.

Answer 81

a. also suspended automatically.

Question 82

A broker-salesperson must a. maintain a separate escrow account. b. meet all broker qualifications. c. use only the designation "salesperson" on business cards. d. obtain a branch office license.

Answer 82

b. meet all broker qualifications.

Question 83

In New Jersey, an oral listing agreement a. is never legally enforceable. b. is enforceable if it is for less than one year. c. must be confirmed in writing within five days. d. is the most commonly used form of listing.

Answer 83

c. must be confirmed in writing within five days.

Question 84

In New Jersey, a licensed broker must have a. a $50,000 bond. b. a separate escrow bank account. c. a college degree. d. all of the above.

Answer 84

b. a separate escrow bank account.

Question 85

A salesperson or broker may have to start all over again with classes and examination if a license is not renewed for a. one year. b. two years. c. three years. d. four years.

Answer 85

b. two years.

Question 86

New Jersey's laws allow a landlord to refuse to rent to a. anyone on welfare. b. people with children. c. people with dogs. d. any of the above.

Answer 86

c. people with dogs.

Question 87

Which type of listing is illegal in New Jersey? a. Open listing b. Net listing c. Exclusive-right-to-sell listing d. Exclusive-agency listing

Answer 87

b. Net listing ## Footnote In New Jersey, a "net listing" is a type of real estate listing agreement where a seller sets a minimum amount they want to receive from the sale of their property. Any funds above that minimum amount are paid to the real estate agent as their commission. This type of agreement is generally discouraged and is illegal in New Jersey.

Question 88

Every listing must include a. the broker's home phone number. b. square-foot measurement of the property. c. notice that commissions are negotiable. d. broker's promise to advertise the property.

Answer 88

c. notice that commissions are negotiable.

Question 89

In New Jersey, a landlord may not refuse a tenant solely because of a. political affiliation. b. children in the family. c. prison record. d. pets.

Answer 89

b. children in the family.

Question 90

In New Jersey, continuous, open, notorious, hostile, and exclusive occupation of another's real property may lead to acquisition through adverse possession after a period of a. 3 years. b. 6 years. c. 10 years. d. 20 years.

Answer 90

d. 20 years. ## Footnote Explanation: While some sources mention a 30-year period, the majority of New Jersey legal sources indicate a 20-year requirement for adverse possession. There seems to be some conflicting legislation regarding this issue, with some statutes citing 30 years and others 20 years. However, based on the established precedent and interpretations by courts, the 20-year period is generally considered the correct answer. Additionally, for woodlands or uncultivated tracts, the period is 60 years.

Question 91

After the 75-hour course is successfully completed, license application must be made within a. 30 days. b. 6 months. c. 1 year. d. 2 years.

Answer 91

c. 1 year.

Question 92

The salesperson's license examination can be taken only by a. anyone who walks in. b. anyone enrolled in a prelicensing course. c. anyone who has successfully completed the course. d. someone who has a sponsoring broker.

Answer 92

c. anyone who has successfully completed the course.

Question 93

Unless the experience requirement is waived, the applicant for a broker's license must have served a full-time apprenticeship as a licensed salesperson for at LEAST a. 6 months. b. I year. c. 18 months. d. 3 years.

Answer 93

d. 3 years.

Question 94

Records of all contracts of sale and listing agreements must be kept by a broker for at LEAST a. tour years. b. five years. c. six years. d. seven years.

Answer 94

c. six years.

Question 95

The Real Estate Commission is composed of how many members? a. Three b. Five c. Eight d. Ten

Question 96

Educational requirements for a broker's license can be waived for certain a. brokers licensed in other states. b. spouses of recently deceased brokers. c. salespersons with ten years of full-time experience. d. college graduates who hold a doctorate.

Answer 96

a. brokers licensed in other states.

Question 97

A New Jersey real estate salesperson must be a. a citizen of the United States. b. at least 21 years old. c. a college graduate. d. sponsored by a supervising broker.

Answer 97

d. sponsored by a supervising broker.

Question 98

The Guaranty Fund is used to a. pay a broker commission unlawfully withheld by a seller. b. protect a salesperson if a broker refuses to split a commission as previously agreed. c. reimburse the public for losses arising from licensees' wrongdoing. d. compensate buyers who have suffered from unlawful discrimination.

Answer 98

c. reimburse the public for losses arising from licensees' wrongdoing.

Question 99

A broker could lose his or her license for sharing a commission with a. another broker's salesperson. b. a broker in another state. c. a former salesperson who listed the house while in that broker's employ. d. another New Jersey broker.

Answer 99

a. another broker's salesperson.

Question 100

With certain restrictions, a commission may be shared with an unlicensed person in the form of a rebate to the a. seller. b. buyer. c. broker's assistant. d. office secretary.

Answer 100

b. buyer.

Question 101

When a new building is considered safe for human habitation, a building inspector can issue a a, certificate of occupancy. b. restrictive covenant. c. special use permit. d. building permit.

Answer 101

a, certificate of occupancy.

Question 102

The largest fine that may be charged as a penalty for a violation of the New Jersey license law is a. $500. b. $5,000. c. $10,000. d. $50,000.

Answer 102

d. $50,000.

Question 103

The New Jersey Real Estate Commission is part of the a. Department of Banking and Insurance. b. Attorney General's office. c. Education Department. d. Secretary of State's office.

Answer 103

a. Department of Banking and Insurance.

Question 104

Which of the following needs a real estate license when involved in handling a real estate transaction? a. A n executor b. A bank c. A developer selling homes in her subdivision d. An auctioneer

Answer 104

d. An auctioneer

Question 105

The deed known in New Jersey as a bargain and sale deed with covenants against grantors acts is also known as a a. quitclaim deed. b. fiduciary deed. c. warranty deed. d. special warranty deed.

Answer 105

d. special warranty deed. ## Footnote in a special warranty deed, grantor guarantees he/she owns property & warranty's after closing that he is responsible.

Question 106

Ron Smith dies suddenly, leaving a wife and two minor children but no wil. The New Jersey law of descent provides that his wife is entitled to a. his entire estate. b. half of his estate. c. $50,000 plus half the remaining estate. d. the entire remaining estate after the children reach 21.

Answer 106

c. $50,000 plus half the remaining estate.

Question 107

New Jersey's Consumer Information Statement lists a. both obvious and latent defects in the property. b. protected classes under the state's fair housing laws. c. the licensees agency relationship to each party. d. current mortgage plans available from local lenders.

Answer 107

c. the licensees agency relationship to each party.

Question 108

Megan's Law requires that a. a community be alerted to the presence of convicted sex offenders. b. buyers be given three days after signing in which to void a purchase contract. c. in the absence of a will, surviving children are entitled to half an estate. d. tenants aged 62 or older may not be evicted.

Answer 108

a. a community be alerted to the presence of convicted sex offenders.

Question 109

The Mt. Laurel lawsuits were concerned with a. blockbusting. b. redlining. c. stigmatized property. d. exclusionary zoning.

Answer 109

d. exclusionary zoning. ## Footnote The Mount Laurel Doctrine, established by the New Jersey Supreme Court, mandates that municipalities must provide realistic opportunities for low and moderate-income housing Exclusionary zoning in New Jersey refers to municipal regulations that limit housing opportunities, effectively excluding people of lower or moderate income from certain areas. This is achieved through zoning ordinances that restrict housing types or density, thereby increasing housing prices and making them less accessible.

Question 110

A residential lease for one year or more is subject to review and possible cancellation by the tennant's attorney a. but not by the landlord's attorney. b. any time during the first month of tenancy. c. within three business days of signing. d. only if the attorney's notice is given by certified mail.

Answer 110

c. within three business days of signing.