Test 3- NJ REAL ESTATE Exam Questions with Verified Answers Rated A+

Test 3- NJ REAL ESTATE Exam Questions with Verified Answers Rated A+ Which of the following is a permitted free offering? o- A. A complimentary home warranty with every listing B. A coupon for a discounted commission on listing services C. A free dinner for attendees at a homebuyers' evening seminar D. Free use of a local moving van for all listings *ANS* C. A Free dinner for attendees at a homebuyers' evening seminar Depreciation usually applies to . A. the building only. B. the land only. C. both the land and the building. D. income obtained from the building. *ANS* A. the building only. Under New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT: A. accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement B. dealing honestly with all parties C. disclosing material defects in a property to a prospective purchaser D. protecting and promoting the interests of the licensee's principal when acting as an agent *ANS* A. accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He also noticed a Russian grocery store right by the neighborhood that was attractive. He decides to stop the advertising the property and started adverting the property on two different Russian internet sites. This is: 1. Acceptable because it is not print media 2. Unacceptable due to its discriminatory nature 3. Acceptable if the advertisement includes no preferential language 4. The only appropriate way to market property in this neighborhood 3You and 2 others 9 Comments Seen by 37 Love Comment *ANS* 3. Acceptable if the advertisement includes no preferential language Which of the following are most likely to be addressed by building code? A.deed restrictions B.construction standards C.permissible uses of structures D.restrictive covenant *ANS* B.construction standards A seller places his property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller 2 rejects that offer, but states that he will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is A. rescinded. B. null and void. C. irrevocable. D. binding. *ANS* B. null and void. A property was listed with a broker, but the owners advertising the property found a buyer and negotiated the sale themselves. After the closing, the owners paid a full commission %- to the broker. The broker MUST have had A. an open listing. B. an exclusive agency listing. C. anet listing. D. an exclusive right to sell. *ANS* D. an exclusive right to sell. A neighborhood grocery store no longer complies with the law because a new zoning ordinance is adopted so that the property is zoned for residential use. Nevertheless, the owner "- is allowed to continue to operate the grocery store. This is an example of A. variance. B. nonconforming use. C. spot zoning. D. a conditional-use permit. *ANS* B. nonconforming use. A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE? 2 A. Because it is voluntary, it will not be an adverse item on the buyer's credit. B. The lender will take the title subject to any junior liens. C. The lender will usually retain his rights under mortgage insurance or VA guarantee. D. The loan will still be assumable. *ANS* C. The lender will usually retain his rights under mortgage insurance or VA guarantee. Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? o- A. a broker's price opinion B. a comparative market analysis C. reconciliation report for an FHA loan D. value analysis for a non-residential property valued below $250,000 *ANS* C. reconciliation report for an FHA loan The answer is C sometimes they trick you and say a government-funded loan Which disclosure is the most commonly required in a residential real estate sale? 2 A. radon B. lead-based paint C. neighborhood composition D. seller's property disclosure *ANS* B. lead-based paint An individual Is hired by the homeowners' association of KLM Condominiums. The individual is not required to be a real estate licensee in New Jersey UNLESS the individual o engages in which of the following activities? A. Collecting the monthly association membership fees B. Negotiating a contract with a security service C. Retaining a landscaping service D. Soliciting tenants for vacant rental units *ANS* D. Soliciting tenants for vacant rental units Minors are held liable for real estate contract obligations if they 2 A. are at least 16 years of age. B. have the contract notarized. C. graduated from high school. D. have their guardian co-sign. *ANS* D. have their guardian co-sign. A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST: 2. A. deduct the amount collected from the commission or settlement B. give the principal receipts for all expenditures C. furnish within ninety days of its collection an accounting of how the money was used D. retain the difference between the amount of money collected and the amount spent *ANS* C. furnish within ninety days of its collection an accounting of how the money was used A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should * A. refuse to write the offer. B. insist on a prompt closing. C. ask for a high earnest money payment. D. relay any reservations to the seller. *ANS* D. relay any reservations to the seller. New Jersey Real Estate Commission regulations require a licensee to terminate membership in a real estate board or multiple listing service whenever the organization: # A. suggests uniform commission rates among all member brokers B. lobbies against legislation that the licensee personally favors C. charges dues that the licensee feels are excessive D. advocates rules, practices, and/or standards with which the licensee does not agree *ANS* D. advocates rules, practices, and/or standards with which the licensee does not agree Which of the following statements about branch offices is INCORRECT? 2 A. The name of the branch office supervisor must be recorded with the commission. B. A licensed broker-salesperson must supervise the office on a full-time basis. C. Two salespersons may be designated to share supervising responsibilities. D. The employing broker is ultimately responsible for all licensees employed at the branch office. *ANS* C. Two salespersons may be designated to share supervising responsibilities. In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for o- A. completing the property condition disclosure. B. ensuring that the seller complete the property condition disclosure before closing. C. ensuring that the buyer receives the property disclosure before the contract Is finalized. D. checking the disclosure for accuracy and ensuring that the buyer receives it before closing. *ANS* D. checking the disclosure for accuracy and ensuring that the buyer receives it before closing. insurance value differs from market value in that o- A. the value is only attributable to the replacement value of the structure. B. includes the land and structure values. C. fair market value is not insurable. D. it includes only the land value. *ANS* A. the value is only attributable to the replacement value of the structure. In New Jersey, the Private Well Testing Act (PWTA) requires: oe A. the buyer to order the test B. the selling broker to recommend sources of remediation C. the buyer and seller to certify receipt of test results before title transfer D. the seller to remediate if the well fails the test *ANS* C. the buyer and seller to certify receipt of test results before title transfer A candidate passes the prelicensure course examination on November 8. The candidate must apply for the license within: A. six months from completing the prelicensure course B. one year from passing the state licensing examination C. one year from completing the prelicensure course D. two years from passing the state licensing examination *ANS* c A real estate broker has a fiduciary responsibility to her client and her responsibilities include investigating financial references, ordering and examining credit reports, and °- familiarity with the ADA Title ill. This broker is most likely working for the client as A. an affiliate. B. an escrow officer. C. a property manager. D. a designated broker. *ANS* B. an escrow officer. In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate? io. A. cost B. income C. market data D. gross rent multiplier *ANS* D. gross rent multiplier A seller wants $120,000 for his home and still owes $20,000 on his original loan at 7%. The current interest rate is 12% A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's $20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this A Blanket B Equity C Wraparound D Buydown *ANS* C Wraparound A sellers property disclosure form states that there are no known material defects with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the basement. The licensee should A disclose the existence of asbestos to all potential buyers B Ask the sellers permission to disclose and abide by the seller's wishes C suggest the buyers have a home inspection and leave discovery up to the inspector D suggest to the seller that he wrap the pipes to contain potential airborne contamination *ANS* A disclose the existence of asbestos to all potential buyers This was on the test all 3 times In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate? A cost B income C Market Data D Gross rent multiplier *ANS* D Gross rent multiplier Once an offer to purchase is presented to a seller, the A buyer is bound to the terms contained therein until the delivery of its acceptance B property is unavailable to any other prospects C offer may be withdrawn at any time prior to the delivery of its acceptance D Seller may not consider any other outstanding offers *ANS* C offer may be withdrawn at any time prior to the delivery of its acceptance The IRS allows a married couple who sell their long time home to take a tax free capital gain of up to A $125,000 B $ 250,000 C $500,000 D any amount *ANS* c. $500,000 0 *ANS* 0 A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should 1. refuse to write an offer 2. insists on a prompt closing 3. ask for a high earnest money payment 4. relay any reservations to the seller *ANS* . relay any reservations to the seller A correct statement about a transaction broker is that they: a) present both the buyer and seller. B)represent neither the buyer nor the seller. C)are required to disclose confidential information. D) may conduct transactions without an active real estate license. *ANS* B)represent neither the buyer nor the seller A broker has a single agency relationship with the seller. Any REQUIRED property condition disclosure would be completed by the 1. seller 2. the broker 3. agent on behalf of the broker 4. agent on behalf of the seller *ANS* 1. seller Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines? 1. "female seeking female roommate" 2. "nice home ideal for any family with children 3. "apartment available, No pets of children allowed" 4. "located within walking distance to a great Catholic school" *ANS* a Some questions i found that were also on the test Quality Supermarkets has taken occupancy of a retail building and has a long term lease. As part of the their fit-up, they bolt to the floor their meat and dairy coolers, and shelves. When Quailty Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures? 1. no, because they are trade fixtures 2. yes, because they are appurtenances 3. no, because they are bolted to the floor 4. yes, if removed prior to the end of the lease *ANS* 4. yes, if removed prior to the end of the lease This was on the past test What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate? 1. market analysis 2. sales contract 3. appraisal report 4. assessor's determination *ANS* 3. appraisal report Which of these conditions does NOT create a stigmatized property that may or may not be disclosed under the laws of some states? A) The owner of the property has AIDS. B) The property was the site of gang-related activity. C) A murder occurred on the property. D) A suicide occurred on the property. *ANS* A) The owner of the property has AIDS. A lender may add 1/12th of the estimated cost of the annual property taxes and hazards insurance on the mortgage property to the monthly loan payment for deposit in: a) a PMI account. B)a margin account C) an impound, escrow or reserve account. D) an adjustment account *ANS* C) an impound, escrow or reserve account. Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond? 1. If you feel it is in your best interest, please do so. 2. Since I represent the seller I am not able to answer your question. 3. I am not aware of any issues that such an inspection would identify. 4. Since the seller has provided a property disclosure, there should be no need for any further inspection. *ANS* 1. If you feel it is in your best interest, please do so. 2 questions like this were on the test remember to take away the percentage the buyer puts down A building was purchased for $350,000 with a 20% down payment, If the lender charged the buyer three discount points, how much will the buyer need to cover these two: 1. $61,600 2. $78,400 3. $80,500 4.$360,500 *ANS* x.20=70,000 280,000x.03=8,400 Answer is 2 78,400 When the buyer gives a seller's broker information about possible financial problems in completing the purchase, the broker should, a. respect the confidence and let it go no further b. inform the seller immediately c. offer to lend the buyer extra funds d. ask for written confirmation of the situation *ANS* b. inform the seller immediately Title insurance has allowed for more accessible loans for buyers. This is because: 1. Lender policies can add exemption to the owner's policy. 2. It reduces the risk of loss due to buyer default. 3. It reduces the risk of loss due to title defects. 4. Lender policies are paid for by buyers *ANS* 3. It reduces the risk of loss due to title defects. If a purchase agreement says to release earnest money after the inspection date, then the seller demands the money be release prior to the inspection date. What should the broker do? e to release the earnest money b. tell the buyer of the situation se the earnest money *ANS* e to release the earnest money At the time the property is listed the homeowner must be given a copy of the a. HUD fair housing poster b. NJ Law against Discrimination c. Attorney General's Memorandum on discrimination d. Division of Civil Rights homeseller's pamphlet *ANS* c. Attorney General's Memorandum on discrimination A salesperson has the opportunity to list 6-PLEX? That is 100% rented. The salesperson does not need to account for any expenses in order to predict the price at which the building will sell is known as *ANS* Gross Rent Multiplier (GRM) The buyer was given a loan estimate at the time of the application for the mortgage and it is now three business days before the closing. The appraisal and the closing disclosure have been given to the buyer. The buyer's broker meets her client at the property for a walk-through and to review the documents. Which of the occurrences will result in the buyer having the right to an additional three days to review the documents? *ANS* The loan product was changed form a fixed rate to one that is adjustable A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if: 1. it satisfies or exceeds all terms included in the counteroffer. 2. the owner withdraws the counteroffer before it is accepted. 3. the owner gives the first buyer notice that another offer was received and an opportunity to revise the bid. 4. the first buyer is informed, in writing, of the owner's intent to accept another offer. *ANS* 2 - Once the Offer is signed by the Buyer and the Seller, and the contained contingencies are met, it then becomes a legally binding agreement. For the past 30 years, the Stone family has operated a neighborhood grocery store. Last week the city council passed a zoning ordinance that prohibits packaged food sales in the area where the Stone's grocery store is located. The store is now an example of a/an: 1. illegal enterprise. 2. variance of the zoning laws. 3. violation of eminent domain. 4. nonconforming use. *ANS* 4 non confirming-A nonconforming use is created when a zoning provision is adopted or amended to prohibit a particular use that lawfully existed prior to the enactment or amendment. Davis, Hernandez, and Moore are vested as tenants in common on a parcel of land. Each received a pro-rata undivided interest in the parcel. The total price was $120,000. Davis put up 40% and Hernandez put up $22,500. What percentage does Moore own (to the nearest tenth of a percent)? 1. 33.3% 2. 36.0% 3. 41.2% 4. 45.0% *ANS* 120,000 x .40 ( 40 percent) =48000. 22,500 divided by 120,000 = 18.75 (18.75 percent) 100 percent - 40 percent and minus 18.75 percent = 41.25. Answer is number 3 A real estate salesperson is representing only the buyer in a transaction. Which of the following actions would be a violation of the salesperson's agency duties to the client? 1. disclosing the price the seller originally paid for the property 2. disclosing the highest price the buyer is willing to pay 3. preparing a competitive market analysis 4. identifying latent property defects *ANS* disclosing the highest price the buyer is willing to pay The most listing contracts, a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract: 1. earns a commission at that point 2. earns a commission even if the contingencies in the contract have not been met. 3. does not earn commission unless the sale closes 4. does not earn a commission if the buyer and seller agree to rescind the contract *ANS* 1. earns a commission at that point What 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? A. Escape Clause B. Provision for liquidated damages C. Contingency D. Walk-through agreement *ANS* Escape Clause is mostly used in the event the purchase is contingent upon the sale of another home, then, SELLER* may plug in Escape Clause So they can seek more favorable offer the answer is C whenever a salesperson receives cash to be held in trust the salesperson must: a. deposit the money within 24 hrs in an interest bearing acct b. give a written receipt c. notify the customer no cash is acceptable d. immediately deposit the funds *ANS* b. give a written receipt Which of the following statements about the branch offices is false? 1. The name of the branch office supervisor must be recorded with commission 2. The license broker-salesperson must supervise the office on a full time basis 3. Two sales person may be designated to share supervising responsibilities 4. The employing broker is ultimately responsible for all licensees employed at the branch *ANS* 3. Two sales person may be designated to share supervising responsibilities Mary knew that her marriage was on shaky ground when she bought a house in her own name. She was hoping to save the relationship, so she wrote a quitclaim deed conveying the property from herself to herself and her husband as joint tenants, NOT as tenants in common with full rights to survivorship. She told her husband she had done this, but this deed was NOT recorded. When Mary and her husband finally divorced, the deed disappeared. In a state, which is NOT a community property or curtesy state, does the ex have a claim to the property? A. No, however, had the deed been recorded, it would have served constructive notice and as such would be defensible. B. Yes, she told him it existed and the courts always accept oral argument when it relates to real property. C. As they were legally married at the time of the conveyance he automatically owns a one-half interest. D. As he did not sign the original conveyance as granted, it was not a legal deed. *ANS* A. No, however, had the deed been recorded, it would have served constructive notice and as such would be defensible. An option is: A. Not binding on the seller B. Is binding on the buyer C. Always in writing D. for a fixed period *ANS* for a fixed period Bill pays his property tax bill of $980 for the calendar year. He signs a purchase and a 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 amounts of prepaid taxes due back to Bill at closing? Assume 360 days per year. A. $449.17 B. $484.56 C. $495.44 D. $530.83 *ANS* $980/360=2. Deal closes on July 15th so we got Aug, sept, oct, Nov. Dec( 165 days *2.) =$449.17 back to the seller A complaint must be filed with the HUD within what period of time after a fair housing violation has occurred? A. 1 week B. 1 month C. 1 year D. 7 years *ANS* C. 1 year In jurisdiction where the common law of agency governs real estate activities, a broker has entered that properties to show that would provide the MAXIMUM commission to the broker, but not all of that the fiduciary duty of A. confidentiality B. Loyalty C. disclosure D. Caution *ANS* c What is the interest rate on an interest-only loan of $120,000 if quarterly interest payments are $2,700? A. 2.25% B. 4.50% C. 6.75% D. 9.00% *ANS* 2700*4( it says quarterly 2700) =10800 10800/=.09% 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 cabinets will be best described as A. Real property B. Personal property C. A fixture D. An appurtenance *ANS* Personal Property because it is free standing therefore not a fixture and not attached to land therefore not real property A lender may add 1/12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property to the monthly loan payment for deposit in : A. A PMI account B. A margin account C. An impound, escrow or reserve account D. An adjustment account *ANS* C. An impound, escrow or reserve account 1. What is the greatest advantage of using FHA financing when purchasing a home that the buyer plans to occupy? A. FHA requires a fixed-rate loan so that the buyer can rely on a fixed payment. B. The required down payment may be lower than conventional loans. C. The loan will be automatically assuage to a future buyer. D. FHA requires the seller to pay the buyer's closing costs. *ANS* B. The required down payment may be lower than conventional loans. 3. An appraisal made by a certified appraiser is REQUIRED A. Before real property can transfer from one owner to another. B. When heirs receive property. C. When the buyer is using a FHA loan to purchase. D. Before any property settlement in a divorce *ANS* C. When the buyer is using a FHA loan to purchase Buyers write an offer for $325,000 with 20% down payment, which is accepted. They must pay 1 1/2 discount points to obtain financing. What amount will they owe for points? A. $2,437.50 B. $3,900.00 C. $4,875.00 D. $6,500.00 *ANS* So u take 80% of the $ coz u put 20% down payment. It will give you $. Now it says the lender will charge you 1.5% of the loan amount. At this point u just hv to multiply the $*.015(1.5% move the decimal to 2 spots on the left) will give you $3900 In order to qualify for payment from the Real Estate Guaranty Fund to replace trust funds misappropriated by a licensee, a claimant must A. Obtain a civil judgment and file a criminal complaint against the offending licensee. B. Have an attorney file a proof of claim with the Superior Court. C. File an application for recovery with the Attorney General. D. Submit proof of loss to the Real Estate Commission. *ANS* A. Obtain a civil judgment and file a criminal complaint against the offending licensee. Frank faces foreclosure on his house for he owes 73,000 on his home loan. He takes out a two more loans. The first loan amount is for 15,000. The second loan is 13,000. He has unpaid property taxes in the amount of $7,500. In what order must his debts be paid back. A.73,000, 15,000, 13,000, 7,500 B73,00, 13,000, 15,000, 7,500 C 7,500, 15,000, 13,000,73,000 D 7,500, 13,000, 15,000, 73,000 *ANS* C 7,500, 15,000, 13,000,73,000 Who establishes zoning ordinance? A. Local authorities B.regional councils C.individual states D.federal government *ANS* A. Local authorities The purpose of a reverse mortgage is to . A.permit the mortgagors to borrow additional funds as the mortgage is paid down B.supplement the mortgagors income C.grant the mortgage priority over certain liens . D.provide financing for construction. *ANS* The reverse annuity mortgage allows seniors (62 years of age and older) to supplement their income - B.supplement the mortgagors income A contract is termites if A.one party assigns his rights to another B.it's is impossible for one of the parties to perform C.one of the parties decides not to go forward D. A third party intervenes *ANS* A contract terminates by operation of law, or an act of God (such as a flood), rendering it impossible to perform - B. A landlord discovers he is tenant was only 17 when he signed the lease. For the landlord, the lease is: A. Unenforceable B. Void C. Voidable D. A meeting of the mind *ANS* Voidable by the minor. The minor (under 18 years of age) lacks age capacity and does not have to perform under the terms of the lease agreement. It is voidable at the minor's option. - C A land contract is sometimes known as a: A. installment contract B. Option contract C. Implied contract D. Express contract *ANS* A. installment contract And exclusive buyer representation agreement does not include a legal description of the property, what is the result of this omission? A. The agreement is valid B. Agreement is unenforceable C. The agreement is valid; A legal agreement is not required D. The agreement is voildable until a legal description is provided *ANS* D. The agreement is voildable until a legal description is provided What is the cash-on-cash return on $2 million property was a down payment of $500,000 and $15,000 off a monthly rental income? Math please ! A. 35% B 36% C34% D 37% *ANS* Divide your annual cash flow by your initial cash investment: Once you have your annual cash flow and initial cash investment totals, you are now ready to calculate your cash on cash return. Simply take your annual cash flow and divide it by your initial cash investment. B. 15,000x12=180,000 180,000÷500,000= .36 Who is responsible for altering an apartment for a disabled person? But the landlord is responsible for putting in a ramp? *ANS* -The disabled person but they must return it to it's original state when the lease is up. -yes the landlord is responsible A national company desires a parcel of land which must be four times the size of its proposed building.. if the building design includes 20,000sqft which of the following minimum sized lots should be purchased? A. 1 acre B. 2 acres C. 4 acres D. 8 acres *ANS* b If a property is assessed it 40% of market value what would be the assessed value if property holds a market value of 250,000? A. 80k B. 120k C. 100k D.140k *ANS* 250,000*.04=100,000. C This type of agency is created when a principal does not stop an individual from representing his or her interest? A. Agency by estoppel B. Express Agency C. Universal agency D. General agency *ANS* a The amount paid by a mortgagor for mortgage insurance, either government or private is called: 1. Mortgage insurance premium 2. Private mortgage insurance premium 3. FHA insurance premium 4. VA insurance premium *ANS* Answer: A - The mortgage insurance premium is paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company. 1. Which of the following are not most likely to be addressed by building codes? A. Deed restrictions B. Constructions standards C. Permissible use of structures D. Restriction covenants *ANS* A. Deed restrictions 3. If in a homeowner wants to list a property for sale "as is" The listing agent should: A. Assume that the owner will accept a relatively low price for the property B. Consult that he is relieved of any responsibilities if the bio leader discovers defects that were not disclosed C. Question the seller as to any known defects D. assume that the house is a "fixer-upper" *ANS* C. Question the seller as to any known defects 2. Deposit monies may not be disbursed to the seller in which circumstance? A. At closing or settlement B. As provided in a sale contract C. Upon the written consent of the buyer D. Upon written request of the seller *ANS* 3. An order for payment from the real estate guarantey fund issue as an result of conduct by a licensee will result in an: A. Minimum five years revocation B. Reduction of license until fun is reimbursed C. Minimum $5000 fine D. Suspension *ANS* D. Suspension 1. A sellers property condition disclosure constitutes: A. A guarantee to the buyer of property condition B. A statement of the sellers actual knowledge C. A waiver of inspection D. An implied warranty *ANS* b 1. A complete historical summary of all recorded documents affecting the title of a property is known as: A. Abstract of title B. Title report C. Certificate of title D. Title binder *ANS* A. Abstract of title 2 at what time was a licensee first secure an informed consent to do agency? A. Before the buyers offer and sellers accepts B. Before showing a company listing to a buyer client C. In the contract of sale D. At the time of closing *ANS* b As soon as the client shows interest in a property you need to establish agency relationship 3. The licensee mentions MLS when advertising in a newspaper, the New Jersey licensing law requires which of the following information to be included? A. The listing price of the property B. The amount of the property tax C. The multiple listing service number D. The full name of the MLS *ANS* C. The multiple listing service number 1. The clause designed to ensure brokers receive commission if found a ready, willing, and able buyer after listing has expired is called: A. Acceleration clause B. alienation clause C. a coinsurance clause D. An extension or 'tail' clause *ANS* d 2. if a license sells a timeshare in New Jersey all of the following is true except: A. Licensee must hold a timeshare sales license B. Timeshare must be approved by a real estate commission C. Licensee must provide the buyer with a copy of the public offering statement D. Contract of sale must provide notice of a seven day calendar day recession period *ANS* d 3. All licensees must notify the commission with how many days of being charged with a crime? A. 15 B. 30 C. 90 D. 120 *ANS* b 3. A real estate broker maintained place of business must continuously display on exterior brokers name and the words: *ANS* Answer: Individuals operating as sole proprietors and licensed as employing brokers shall conspicuously display on the exterior of their maintained place of business their name and the words "Licensed Real Estate Broker" 1. Which of the following is not a legal test for fixture? A. Intention B. Method of attachment C. adoption of item to property D. Cost of replacement *ANS* D. Cost of replacement 3. A low loan-to-value ratio indicates a: A: lower equity B: greater risk of foreclosure C: higher equity on the property D: greater use of leverage *ANS* ? 2. in New Jersey, the realty transfer fee appears on the closing statement as a: *ANS* 2. Debit to seller 1. Which method of payment is NOT excepted as earnest money? *ANS* Credit card 1. According to the New Jersey real estate licensing law, which of the following information is required for advertising a real estate sales person website? A. Name of the salesperson firm B. Sales person's home office number C. The address of the broker D. MLS number of all list of properties *ANS* a 3. When must a listing broker provide a copy of a fully executed written agreement to the owner? A. Upon execution of the listing agreement by all parties B. Written three days of execution of the listing agreement by registered mail, return-receipt-required C. At the time of the presentation of a written offer *ANS* a Occasionally, the title to real property becomes unmarketable. Which of the following causes would be least likely to result in that eventuality? 1.Imperfect title, due to a breach caused by adverse possession of a prior owner 2.A lis pendens filed by the husband of the owner of record 3.Restrictions imposed by a private owner through a deed notation 4.Public restrictions contained in zoning ordinances and building codes *ANS* Answer: D - Public restrictions rarely cause title to real property to be unmarketable; private restrictions sometimes do. An assessment does which of the following? A. Places a value on property for the purpose of real estate sales. B. Is the same as a competitive market analysis. C. Places a value on property for the purpose of taxation. D. Is usually carried out by the mayor of a town. *ANS* Answer: C. An assessment places a value on property for the purpose of taxation.B