NJ Real Estate Exam

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Referral AgentLicensee limited to presenting prospective clients and customers to the brokerReferral FeeMoney paid another broker for sending a client or customerSalespersonOne licensed to assist a broker in real estate transactionsTitle 11, Chapter 5state rules and regulations for real estate licenseesBranch OfficeBroker's additional place of businessComminglingmixing broker's money with that of othersDuplicate OriginalCopy of a real estate contract with original signaturesEscrow AccountPlace for money belonging to clients and customersGuilty KnowledgeAwareness of wrongdoing with no attempt to stop itProbationLeast severe discipline by the Real Estate CommissionRevocationCancellation of a real estate licenseSuspensionTemporary lifting of a real estate licenseTrust AccountAnother name for escrow accountWaiver of Broker Cooperationform sellers must sign for an office-exclusive listingAgentOne authorized to act for anotherAntitrust LawsRegulations prohibiting price-fixingAttorney-In-FactPerson authorized to act under a power of attorneyBrokerone authorized to act for another in real estate transactionsBuyer's BrokerAgent who takes a buyer as the principalClientPrincipal who engages an agentCommissionBroker's usual compensationConsumer Information Statementwritten explanation of a business relationshipCustomerThird party in a transaction, not the principalDisclosed Dual AgentOne who works for both the seller and the buyerDisclosureRevealing to another any pertinent informationDual AgencyBrokers taking both parties as principalsEmployeesalesperson whose broker pays Social Security, regulates hours, etc.Fiduciary RelationshipTrust and confidence between partiesFraudIntentional or unintentional misleading of another who is harmed therebyGeneral AgentOne empowered for a wide range of actionsIndependent ContractorSalesperson who sets own hours, pays own estimated income taxes, etcKickbackIllegal sharing of a commission with sellerLatent Defectproblem not discoverable by normal prudent inspectionLaw of AgencyRules governing conduct of agentsListing AgreementContract by which the owner retains a broker to find a buyerMeeting of the Mindsagreement between a buyer and seller on major pointsMegan's LawLegislation requiring that communities be alerted to the presence of sex offendersPower of AttorneyWritten authorization of agencyPrincipalThe one employing an agent; the clientProcuring Causethe one who brings about a salePuffingHarmless exaggeration as salesmanshipReady, Willing, and Able BuyerOne qualified and prepared to purchaseSalespersonPerson licensed to assist a real estate brokerSpecial Agentone authorized to act for another in a specific transactionSubagentAgent of an agentTransaction Brokerone who facilitates a transaction without functioning as an agentCode of EthicsStandards of conduct adopted by REALTORSConflict of Interestproblem when serving best interests of both the client and oneselfErrors and Omissions Insurancereal estate equivalent of malpractice coverageFraudulent MisrepresentationIntentional FraudGraduate, REALTOR Institutedesignation awarded for advanced studyInnocent MisrepresentationUnintentional deception committed in ignoranceNational Association of REALTORSprivate nationwide organization of brokers and salespersonsNegligent Misrepresentationfraud committed by someone who should have known betterNew Jersey REALTORSStatewide group of real estate licensees who choose to joinREALTORÂźMember of a private national organizationStandard of CareCompetence normally expectedAttorney General's MemorandumStatement about discrimination everyone listing property must receiveBlockbustingInducing panic selling based on prejudiceCivil Rights Act of 1866federal law; protected classes are race and color; no exceptionsDepartment of Housing and Urban Developmentfederal agency enforcing civil rights complianceFederal Fair Housing Act of 1968federal law setting many protected classes; some exceptionsLaw Against DiscriminationNew Jersey's law governing discrimination in real estate transactionsMount Laurel I and IIcourt cases covering moderate-income housingProtected ClassSpecific group that may not be discriminated againstRedliningrefusal to lend in certain areas, usually inner-cityReverse Descrimination"Benign" discrimination intended to correct past wrongsSteeringchanneling homeseekers to or away from certain areasTesterundercover checker who monitors fair housing complianceTitle VIIIsection of federal Civil Rights Act that covers housingAccretionAn increase in land resulting from the deposit of soil by the water.Air RightsBelong to owner of land belowAlluvionSolid material deposited by a body of waterAvulsionsudden change of the course of a streamBundle of Rightspossession, control, enjoyment, and so onChattelsTangible personal propertyCorporealTangibleDeviseLeave real estate to someone by willEmblementsAnnual cropsErosionThe wearing away of land usually due to the action of wind or waterFixtureOnce personal property, now real estateHereditamentAnything that can be inheritedImprovementManufactured attachments to landIncorporealIntangibleLandthe earth, including air aboveLittoral Rightsland bordering bodies of water affected by tidesMineral Rightssubsurface rightsParcelSpecific tract of landPersonal Property, PersonaltyEverything that is not real propertyReal Estateland, improvements, and bundle of rightsReal property, realtySynonyms for real estateRelictionCreation of dry land by the gradual withdrawal of waterRiparian RightsUse of water by adjoining landownersSubsurface RightsOwnership of minerals, oil, and so onTrade Fixtureremovable by tenantsConstruction LienPlaced against real estate by a worker who has not been paidConveyTransfer by sale or giftCurtesyhusband's rights in wife's propertyDominant EstateProperty that benefits from an easementDowerWife's rights in husband's propertyEasementPermanent right to use another's landEasement by NecessityRight of access to a landlocked parcelEasement by PrescriptionRight sometimes acquired through usageEasement in GrossRight used for utility lines on another's landEncroachmentBuilding intruding on another's landEncumbranceany easement, encroachment, etc.Estate in LandAmount of ownershipFee Determinableownership "as long as"Fee Simplemost complete ownership of land possibleFreehold EstateOwnership lasting indefinitelyGeneral Lienclaim against all property someone ownsInvoluntary Lienproperty taxes are oneLeasehold EstateRight to use and possess for limited timeLicenseTemporary permissionLienFinancial claim against real estateLife Estatecomplete ownership until someone's deathLis Pendensnotice that a lien may be filedMortgage Lienlender's claim against real estateParty WallStructure owned by two adjoining landownersPriorityThe order in which liens are paidRemaindermanthird party who will gain eventual ownershipRevisionary InterestFuture interest of an ownerServient EstateThe tract over which an easement runsSpecific Lienclaim against one parcel of real estateTackingAdding successive periods of usageVoluntary Lienmortgage or equity loan, for exampleCorporationLegal entity considered to be an artificial personDeviseePerson named in a will to inherit real estateGeneral PartnershipGroup with each partner completely liableJoint TenancyNonmarried persons with right of survivorshipLimited PartnershipGroup with only general partner fully liablePartitionCourt ordered sale and divisionRight of SurvivorshipProcess by which co-owner automatically receives share of co-owner who diesSole Proprietorshipbusiness owned by one personTenancy by the EntiretySpecial ownership by married coupleTenancy in CommonOwners free to devise property to any heirTenancy in SeveraltyReal estate ownership by only oneTitleOwnershipBoard of DirectorsGroup elected to manage a cooperativeCommon ElementsStairwells, roofs, etc., owned by allCondominiumFee simple ownership of living unitConversionApartment house changed to condosCooperativeApartment whose buyer receives stock in corporationHomeowner's AssociationAll owners in one condominium complexHorizontal Properties Actregulates the creation of condominiumsProprietary Leaseco-op owner's right to apartmentReservesMoney set aside for future repairsTime-SharingOwnership for part of a yearTown Housearchitectural termAd Valorem Taxtax set according to valueAssessed ValueValue used for tax purposesAssessment RollList of all taxable propertyEqualization FactorAdjusts for assessment variationsFull-Value AssessmentEstimate based on probable sales priceMillOne-thousandth of a dollarRatableA taxable propertyRedemption PeriodTime in which a foreclosed owner can regain propertyRevaluationReassessment of all a municipality's ratablesSpecial AssessmentTax only on property directly benefiting from an improvementTax Foreclosureseizing of property for unpaid taxesTax LienMunicipality's financial claim against real propertyTax Salecollection of overdue taxes through public auction of propertyAsbestosnow-banned hazardous mineral once used for insulationBuilding CodesStandards for constructionBuilding Permitpermission for constructionCERCLAComprehensive Environmental Response, Compensation, and Liability Act of 1980Certificate of Occupancyinspector's approval for human habitationCondemnationCourt action by which government takes propertyDeed Restrictionlimit on use of property set by sellerDepartment of Environmental ProtectionNew Jersey agency overseeing natural resourcesEminent DomainGovernment's power to take private property for public useEscheatReversion of property to the state when an owner dies without leaving a will or any known heirs.Exclusionary ZoningDiscriminatory local regulationsLead-Based PaintOnce widely used wall covering containing a now-banned metalMaster PlanPrimary method by which local governments recognize development goalsNonconforming UseExisting use that doesn't meet current zoning standardsPolice PowerGovernment's right to regulate for health and safetyRadonA naturally occurring radioactive gasVarianceA use that does not meet zoning requirementsZoning OrdinanceMunicipal restriction on uses of real estate in various areasComparative Market AnalysisPrice comparison for seller's use when listingExclusive-Agency ListingListing that promises broker will be paid unless owners sell on their ownExclusive-right-to-sell listinglisting that states broker will be paid no matter who sellsMultiple Listing Service (MLS)Organization of brokers who work to sell each other's listingNet ListingIllegal listing: Broker keeps everything above a certain figureOpen ListingListing given to any number of brokers; only selling broker is paidAssignmenttransfer of interest in a contract to a third partyBilateral Contractcontract with a promise by each partyBreach of ContractViolation of a contractCompetent Partiesthose legally qualified to enter into contractsConsiderationSomething of value given in exchangeContingencyCertain happening on which a contract dependsContractAgreement between two parties to perform some legal act(s)Counterofferoffer returned to buyer with changes by sellerEarnest MoneyBuyer's deposit with purchase contractEquitable Titleinterest acquired by buyer with land contractEscape Clauseprotection for seller when buyer has another house to sellExecuted ContractContract that has been fulfilledExecutory ContractContract that has not yet been performedExpress ContractContract set down in so many wordsImplied ContractContract not put into words but shown by actionsLand ContractAgreement under which buyer pays in installments and waits for deedLiquidated DamagesSum agreed on to serve as damages in case of future defaultNovationSubstitution of a new contract for an existing oneOffer and Acceptancemeeting of the mindsOptioncontract binding one party; other party free to act or notParol Evidence RuleConvention that a written contract overrides spoken promisesRecissionReturn to the status quoSpecific Performancecourt action usually asking that the seller be forced to sell as agreedStatute of FraudsLaw requiring certain contracts to be in writingStatute of LimitationsTime within which one is allowed to assert a legal rightTime is of the EssenceContract clause requiring punctual performanceUnenforceable ContractSeemingly valid contract but neither party can sue to force performanceUnilateral ContractOne-sided promise, valid only if the other party actsValid Contractcontract that meets all legal requirementsVoid ContractContract that does not meet all legal requirementsVoidable Contractcontract that is binding, but one party may disaffirm itAdjustable-Rate Mortgageplan with interest rate changed either up or down periodicallyAmendatory ClauseStates that a buyer getting an FHA loan can rescind the contract if the appraisal is lower than the purchase priceAmortization ScheduleListing of each payment: interest, principal paid, remaining debtAmortized LoanRepayment plan including principal payments; gradually reduces debtAssumableMortgage can be taken over by next buyerBi-weekly MortgageRepayment plan, the equivalent of thirteen monthly payments per yearBPOWritten estimate of value by a real estate licenseBudget LoanLoan with monthly payments including property taxes and insuranceBuydownPayment of extra points in return for lower interest rateCapPercentage beyond which interest rate cannot be raised at adjustmentCeilingHighest interest rate ever allowed on a specific adjustable loanCertificate of Reasonable ValueVA appraisal statementFederal Housing AdministrationUS agency that insures mortgage to protect lending institutionsFHA 203(b)Low down-payment insured mortgage loanIndexGuide to national mortgage trends, used for adjustable mortgage ratesInterestCharge for the use of other people's moneyLoan-to-value ratioPercentage of a property's market value that may be borrowedMargainPercentage charged by lender above index rateNJ Housing and Mortgage Finance AgencyLender of low-interest money in certain areasPITIMortgage payment, including interest, amortization, and certain expensesPointOne percent of the loan amount, charged ass extra up-front interest when loan is madePrivate Mortgage InsuranceProtection for the lender on a low-down-payment mortgage loanStraight loanMortgage with payments of interest onlyTarget AreaNeighborhoods in which the state wishes to strengthen housing stockVA MortgageLoan guaranteed by the federal governmentEquityDifference between current value and money owedToolkitExplanation of financing termsRate LockLender agrees to hold the interest rate for a certain period of timeAmenityExtra that contributes to owner satisfaction: clean air, view, and so onAppraisalProcess of estimating valueAppraiserAn independent person trained to provide an unbiased estimate of valueCapitalization RateRate of return demanded by investors in a particular areaComparablesSimilar nearby property recently soldCost ApproachAppraisal technique that analyzes the cost to buildDepreciationLoss of value due to any causeExternal ObsolescenceLoss of value due to factors beyond the property boundariesFunctional ObsolescenceLoss of value due to worn or outmoded featuresGross Income MultiplierAnalysis of income including rental and other factorsGross Rent MultiplierAnalysis of rental income, used roughly in sales comparison approachHighest and Best UseUse of land that yields the most moneyIncome ApproachAnalysis of value of property using return on investmentMarket PriceWhat a property actually sells forMarket ValuePrice that would be paid by an informed buyerPhysical DeteriorationLoss of value due to wear and tearReconciliationAnalysis of values received by different appraisal approachesReplacement CostCost to rebuild using today's materials and techniquesReproduction CostCost to rebuild exactly, using materials like the originalSales Comparison ApproachAppraisal technique that analyzes sales prices of comparable propertiesSitusLocation; buyers' willingness to pay more for certain locationsSubject PropertyParcel of real estate being appraisedSubstitutionPrinciple that no one pays more if the same can be had for lessValuePresent worth of future benefitsAdjusted basisCost plus improvements, minus depreciationAppreciationIncrease in valueBasisInitial cost of real estateBill of SaleDocument transferring ownership of personal propertyBootExtra money received by one party in an exchangeBulk Transfer ActLaw regulating sale and financing of business personal propertyCapital GainProfit on the sale of an assetCash FlowMoney left from rental income after expenses are paidDepreciationYearly bookkeeping charge for part of initial costExchangeTax-deferred mutual transfers of income propertyIncome PropertyReal estate held for rental incomeInstallment SaleSale in which seller receives purchase price over period of yearsLeverageExtensive use of borrowed money for purchasesMarginal Tax RateRate at which investors top dollar is taxedPyramidingRefinancing property to buy moreReal estate Investment SyndicateGroup pooling resources to buy real estateReal estate Investment TrustFund making real estate investments and selling sharesReturnCash flow plus income tax saving plus appreciationSyndicateA joining together of two or more people to carry out business projectsTax CreditDirect deduction from income tax dueUniform Commercial CodeLaw regulating transfer of business personal property