NJ State Exam 101

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C. an involuntary lien
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Terms in this set (123)
C. an involuntary lien
When a land owner uses his land as security for a loan, the encumbrance created is called.
C. Question the seller to any known defects
If an owner wants to list a property for sale "as is," the listing agent should
A. licensee must hold a timeshare license
According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey, all of the following are true EXCEPT that the
C. Yes, if the broker directs the salesperson not to cooperate
May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees
A. Economic obsolesce
A motel is the subject of an appraisal and it is determined that rerouting of a county highway has limited customer access to to the motel. This is an example of
D. The agreement is voidable until a legal description is provided
An exclusive buyer representation agreement does not include a legal description of the property. What is the result of this omisison?
D. Unearned rent collections in advance?
Which of the following items would be prorated at closing with credit going to the seller?
A. Yes, because Jones can force any other property owner in the subdivision to comply with deed restrictions.
Jones and Halstead lice across the street from each other in a subdivision in which homeowners are prohibited by deed restriction from keeping large animals on their property. Jones discovers that Halstead is keeping a Shetland pony in the backyard. Can Jones take action to enforce the deed restriction?
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In New Jersey, the fee which Must be paid when fee simple title to a parcel of real estate passes for a consideration from one party to another is the:
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What is the greatest ADVANTAGE of using FHA financing when purchasing a home that the buyer plans to occupy?
A broker has a single agency relationship with the seller. Any REQUIRED property condition disclosure would be completed by theC. The seller agrees to sell at a fixed price within a stipulated time.Which of the following statements is TRUE regarding an option agreement?C. higher equity in the property.A low loan-to-value ratio indicated aC. This is a negotiation that keeps the original offer alive.An offer was presented but the seller did not accept the offer; instead he suggested different terms that would be more acceptable. Which of the following is false?A buyer contracted to purchase a vacant lot for $350,000 cash with no contingencies. The buyer intends to build a professional office complex on the property. However, the buyer did not advise the seller of this intent. Prior to closing, the buyer learns that local zoning will not allow an office complex. The buyer's contract may be considered.A. Under no circumstances may the licensee inquire as to the legal residency status of the prospective tenant.A licensee representing a landlord is concerned when a prospective tenant mentions that she has recently left her homeland to work as a research consultant under a grant at a local hospital, and hopes to return to her native country with valuable knowledge to share when the project ends. What steps, if any, is the licensee legally able to take in protecting her client's interest?B. This is the best buy you'll find all year.Which of the following statements is the BEST example of puffing?B. 1 monthA complaint must be filed with HUD within what period of time after a fair housing violation has occurred?B. performance obligations of the partiesWhich of the following differentiates a bilateral contract from a unilateral contract?B. Her equity reaches 22%A homebuyer received a conventional loan with a down payment of 8% of the purchase price. In the future, her mortgage payment (PITI) will be reduced automatically without refinancing when which of the following occurs?A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:An owner has a freestanding cabinet that was custom-built to fit an alcove of the living room. When the owner sells the home, the cabinet will be BEST described asC. It is impossible for one of the parties to performA contract is terminated ifDeposit monies may NOT be disbursed to the seller in which circumstanceB. $3,900Buyer write an offer for $325,000 with 20% down payment is accepted. They must pay 1 1/2 discount points to obtain financing. What amount will they owe for points?C. No, because the seller has not accepted the offerA licensee listed a property that had an unfinished garage. The licensee received an offer subject to the garage being finished. Was a contractual obligation created?A seller sold his property for $375,000 with the closing on July 1st, in a jurisdiction where the buyer pays for the day of closing. The seller had a mortgage balance at the time of closing of $301,000 and had recently paid invoices of $400 for the second quarter's water and electricity, $1,200 for new appliances, and roofing repairs of $700. Based only on these items, how much will the seller receive at closing?A, The listing price of the property.If a licensee mentions MLS when advertising in a newspaper, the New Jersey Licensing Law requires which of the following information to be included?D. Credit the buyerHow is the earnest money deposit usually applied at closing on a settlement statement?A. rollback taxesA farmer who owns fifty acres of land benefits from a reduced property tax assessment since the property is qualified farmland covered by the Farmland Reassessment Act. The property is being sold to a buyer who will use it for non-qualified purposes. This situation will create liability for:According to the New Jersey Real Estate License Law, which of the following statements is CORRECT concerning the terms of an employment agreement?C. Two salespersons may be designated to share supervising responsibilities.Which of the following statements about branch offices is INCORRECT?C. Maintenance callsAll of the following activities constitute property management for which licensure is required EXCEPTD. Promissory noteIn a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on theC. Appraisal ReportWhat does the mortgage lender MOST often rely on when deciding how much is safe to lend on a parcel of real estate?In commercial property leasing, listing agents should ensure that the owner complies withUnder New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT:C. Property was listed with another firm in the MLS in the last 180 daysA listing has expired with one firm. A licensee from another firm wants to contact the owner to list the property. The licensee may call the owner only if theD. Cost of replacement of itemWhich of the following is NOT a legal test for a fixture?B. 2 acresA national company desires a parcel of land which must be four times the size of its proposed building. If the building design includes 20, square feet, then which of the following minimum sized lots should be purchased?D. advocates rules, practices, and/or standards with which the licensee does not agreeNew Jersey Real Estate Commission regulations required a licensee to terminate membership in a real estate board or multiple listing service whenever the organization:D. accepting a signed lease on the owners behalfWhich of the following is a violation of a property manager's fiduciary obligations to an owner?B. makes the title unmarketable and uninsurableAn easement differs from a deed in that an easementA. disclose the existence of asbestos to all potential buyersA seller's Property disclosure form states that there are no known materials defects with property, but the listing licensee is aware of asbestos wrappedA. or D. how much a willing seller will accept and how much a willing buyer will payThe market value of a property is determined byD. disclose the highest price the buyer is willing to payA real estate licensee representing a buyer may do all of the following EXCEPTD. $26,720A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase?A. subagent of the listing brokerA buyer-broker locates a property that is listed with another broker. The buyer makes an offer through the buyer-broker and an agreement of sale results. In this situation, the buyer-broker is acting as a:D. Sexual orientationThe New Jersey Law Against Discrimination prohibits New Jersey licensees from discriminating against prospective tenants in rental transactions for all of the following EXCEPT:B. advertising and an independent contractor agreement with compensation based on productionA licensee affiliated with a principal broker as an independent contractor. Which of the following must the principal broker provide to this licensee?C. ensuring that the buyer receives the property disclosure before the contract is finalizedIn a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible forC. Sally and her friend appear to be discussing illegal price fixingSally is a broker whose very good friend Jane is a broker with a competing company. They are having coffee and comparing the amount of commission they should each require from their clients. Which of the antitrust laws might a person from an adjoining table suspect they have violated if the conversation is overheard?B.A manager rents a unit to a tenant who later has a car accident and is confined to a wheelchair. The tenant now wants the manager to lower all the light switches and install grab bars. Does the manager have to make these modifications?A home is being purchased for $275,000. The buyer agrees to an 80% loan with the seller paying $5,000 of the buyer's closing costs. What amount will the buyer have to meet his down payment.D.A buyer's gross income is $90,000 per year. She pays $300 for a car loan and $200 for her student loan. When she applies for a mortgage the bank requires a maximum debt-to-income ratio of 36% on all debt, and a maximum 28% dent-to-income ration for housing debt. What is the maximum monthly house payment the bank will approve?D. must be in writingIn general, option contractsB. NJ Public Offering Statement approved by the CommissionAs required by the New Jersey Real Estate Sales Full Disclosure Act, before signing any contract for the purchase or lease of a property registered with the New Jersey Real Estate Commission, the purchaser or lessee MUST be provided with a copy of the:D. recommend a board-affiliated home inspectorWhen asked by a buyer client for the name of a hime inspector, a licensee shouldB. $178,000A broker is helping a listing client to determined an asking price for her property. The subject property has only one bath but it does have a fireplace. The house next door, which sold for $180,000 last week, has one and a half baths and no fireplace.........B. perform bookkeeping functions concerning escrowed fundsA secretary in a real estate office who does NOT have a real estate license may:C. an executory contractA buyer and seller agreed upon a selling price for a property and both signed a written agreement. As part of the contract, the buyer reserved the right to cancel the sale if the market, did not sell within 30 days. This contract isD. extension or "tail" clauseThe clause designed to ensure that a broker will receive a commission if negotiation with a ready, willing, and able buyer are completed after the listing has expired is calledA. installment contractA land contract is sometimes known as anC. contract for deedA seller is interested in providing financing to the buyer of her homes, but she wants to retain title until the loan balance is paid off. Which of the following would be the BEST loan option?D. abbreviate its regular business nameIn its advertisements, a New Jersey real estate company may NOT:A. CostWhich of the following methods for establishing value is generally considered MOST useful for a special-purpose building such as a church?C. Certificate of TitleA complete historical summary of all recorded documents affecting the title of a property is known asA. This is illegal according to RESPAThe seller has required that the buyer must use his title insurance company. The seller has been told that if the buyer uses the title company, they will pay part of his real estate commissions, increasing his net proceeds from the sale. Is this a legally permissible arrangement?A. Void or D VoidableA buyer has executed a contract to purchase real property. If it is discovered that he is only 16 tears old, the contract isB. Construction standardsWhich if the following are MOST likely to be addressed by building codes?A salesperson preparing a written offer from a prospect may do so by filling in the blanks on a pre-approved broker's contract form if the subject property is a:C. RedliningLimiting the neighborhoods in which a licensee shows houses because of a buyer's race isAccording to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions?C. one year from completing the prelicensure courseA candidate passes the prelicensure course examination on November 8th. The candidate must apply for the license within:C. when the buyer is using an FHA loan to purchaseAn appraisal made by a certified appraiser is requiredC. foreclosure avoidanceWhat term is used when a seller is in default and is allowed to pay off a mortgage before the foreclosure sale?D. Local authoritiesWho establishes zoning ordinances?A. Escape ClauseWhat should buyers insert into their purchase offer to make sure they would NOT have to go through the purchase if they CANNOT obtain the necessary financing?B. Must forward the offer to the seller's attorney for considerationA seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power of attorney to accept any of all cash at a price of $108,000 or more pending his return. The broker receives and offer for $110,000 all cash. The brokerB. Before showing a company listing to a buyer clientAt what time MUST a licensee first secure an Informed Consent to Dual Agency?A. release the earnest money to the seller immediatelyThe purchase and sales agreement provides for release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker shouldB. provide the buyer with the opportunity to waive the right to a lead paint inspectionThe lead paint addendum that MUST be presented with the purchase and sale contract for certain older homes willAccording to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyerC. credit cardAccording to the Real Estate Licensing Law, what method of payment may NOT be accepted as an earnest money deposit on a sale transaction?A.Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of aBWhich of the following actions is NOT prohibited by New Jersey Real Estate Commission rules?Bill pays his property tax bill of $980 for the calendar year. He signs a purchase and sale contract on June 28th and closes the sale on July 15th. The contract states, that the seller is responsible for expenses on the day of closing. What is the amount of prepaid taxes due back to Bill at closing. Assume 360 days per year.The purchased price for a new home was $230,000. The buyer put down 20%, and balance was a mortgage for 80%of the purchase price. The appraised value at the time of closing assessed value was $220,000. What will the buyer pat for one year's property taxes, if her rate is 0.2%?A. alienation clauseA lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows the........A buyer informs a listing salesperson that the buyer plans to subdivide the property and then list it with the salesperson as soon as the offer is accepted. The salesperson makes no mention of to the seller and the buyer's offer is than accepted. The salesperson's conducted is in violation of the New Jersey License Law because the salesperson failed to:B BlockbustingLatino families were beginning to move into a neighborhood that had previously been al white. A local broker passed out flyers to homeowners that said, "sell now before it's too late! We homes with attractive financing and good schools." These flyers would be viewed by the courts asCWhich of the following statements about airborne radon is TRUE?DWhich of the following statements would MOST likely be considered mere "puffing?"BA licensee has signed a listing with a seller to market a commercially zoned building and lot. The licensee's responsibility to the prospective buyer must includeDA landlord's lease prohibits tenants from altering the property in any way. A women who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addiction, bathroom facilities in her wheelchair. Which of the following is true?C or DIN order to collect a commission, which of the following is a REQUIREMENT for a broker with an open listing?DThe seller has entered into an exclusive right to sell agreement with Terry Hill. Ms. Hill presents the seller with an offer to purchase which is 20% less than the list price. Which of the following......DWhich of the following statements concerning an agreement of sale prepared by a licensee is accordance with New Jersey License Law is CORRECT?CMr. Jones owns a multi-tenant office building and leases individual spaces. The monthly fixed rent payment includes all operating expenses. This form of leases is.......D?A property located in County F but close to County G may not be advertised as " in the vicinity of County G" UNLESS:DNegative amortization isAWhen title is given in the creation of an ordinary life estate, the recipient is permitted possession untilBA buyer's agent is NOT permitted to tell a buyer that:DWhen valuing a three-bedroom home in a neighborhood of very similar properties, one comparable has four bedrooms. After determine the fourth bedroom adds approximately $8,000. What adjustment should be made?AA seller has given a counteroffer to the buyer. If the seller receives a second offer for a higher price that she decides to accept, she must firstBA salesperson has been selling residential properties for five years. He would like to get into listing and selling industrial properties. What would be the salesperson's best course of.......BA buyer's agent is NOT permitted to tell a buyer that:AA seller has given a counteroffer to the buyer. If the seller receives a second offer for a higher price that she decides to accept she must.....AWhich of the following statements in an advertisement would be an example of non-discriminatory language under HUD's fair Housing Advertisement.....BAll licensees must notify the commission within how many days of being charges with a crime?CThe IRS allows a marred couple who sell their long-time home to take a tax-free capital gain of up toAAccording to the New Jersey Real Estate Licensing Laws, which of the following information is REQUIRED when advertising on a real estate salesperson's website?AA couple visits an Open House and fall in love with the floor plan and location.They tell the host they would love to buy the house..........DA licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following emails......Ca broker who has listed a property for sale CANNOT legallyCThe listing salesperson made a material misrepresentation about the property to an unrepresented buyer. Which of the following.....DA licensed broker may established a commission rate at a predetermined amount that reflects the broker's general office.....AWhich of the following types of deeds provides the grantee with LEAST protection?CWhen Must a listing broker provide a copy of a fully executed written listing agreement to the owner?BAn order for payment from the Real Estate Guaranty fund issued as a result of conduct by a licensee will result inC.A salesperson working with buyers secures an offer on a property, The offer calls for an initial deposit of $1,000 to be held in escrow........ payable to the salesperson. This action isDWhich of the following is a permitted free offering?According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of......