NJ Title Producer Title Final Exam – Questions& A+
Answers
"A" and "B" bought a house as tenants in common. If "A" dies which of the
following statements about ownership of the house is correct?
A) It automatically becomes tenancy in severalty.
B) It is divided, with B retaining their original interest and the balance going
to A's estate.
C) B holds fee simple ownership to A's share of the property
D) B holds a life estate ownership to A's share of the property Right Ans -
B) It is divided, with B retaining their original interest and the balance going
to A's estate.
The difference between the value of a property and the total amount of liens
against it is known as:
A) A down payment
B) Equity
C) Actual cash value
D)Collateral Right Ans - B) Equity
If a husband and wife take title to a property as tenants in common, they may
also have elected to have:
A) Title in severalty
B) Separate life estates
C) The right of survivorship
D) Unequal shares of ownership Right Ans - D) Unequal shares of
ownership
A person who openly, continuously and hostilely occupies another's land for a
period set by a statute may gain title by means of:
A) Voluntary alienation
B) Accretion
C) Prescription
D) Adverse possession Right Ans - D) Adverse possession
Truth-In-Lending Act requires the lender to furnish an applicant for a real
estate loan with a copy of an:
A) Amorization schedule
,B) Disclosure statement
C) Deed
D) Financial statement Right Ans - B) Disclosure statement
The seller is responsible for which of the following costs at closing:
A) The realty transfer tax
B) The title search
C) The Deed recording fee
D) Title insurance Right Ans - A) The realty transfer tax
When private property is abandoned the state may acquire title to that
property under the right of :
A) Escheat
B) Eminent domain
C) Police power
D) Taxation Right Ans - A) Escheat
The term hypothecation most closely means:
A) Conditional security for debt
B) Conditional ownership of property
C) A right of first refusal
D) Conditional mortgage commitment Right Ans - A) Conditional security
for debt
A CORRECT statement about condominium and cooperative apartment
owners is that they both:
A) Receive an annual real estate tax bill
B) Must pas assessments
C) Own shares of stock
D) Own real property Right Ans - B) Must pas assessments
Which of the following is not necessary to a valid contract:
A) Consideration
B) Contractual ability
C) Legal purpose
D) The signature of both parties Right Ans - D) The signature of both
parties
Which is NOT true of a tax lien sale?
, A) Title passes with the sale
B) The lien holder is the lowest interest bidder
C) The municipality may hold the lien
D) The property owner has two years to pay the lien Right Ans - A) Title
passes with the sale
Which would be a credit to the purchaser at settlement?
A) The balance of an existing mortgage to be assumed
B) Taxes overpaid by the seller
C) Fuel oil remaining in the tank
D) Unpaid new mortgage Right Ans - A) The balance of an existing
mortgage to be assumed
In a condominium apartment project, the BEST term to describe a swimming
pool and laundry room for the use of unite owners is?
A) Common elements
B) Limited common elements
C) Fee simple elements
D) Leasehold elements Right Ans - A) Common elements
When homeowners itemize deductions in computing their annual taxable
income they may deduct:
A) Payments of principal on the home mortgage
B) Interest paid on the home mortgage
C) Depreciation of the home
D) Cost of repair Right Ans - B) Interest paid on the home mortgage
Dual Agency is best described as:
A) Two companies working together
B) Owing special duties to another person
C) Brokers taking both parties as principals
D) None of the above Right Ans - C) Brokers taking both parties as
principals
The use of a property that was lawful at the time of enactment but is now in
violation of a zoning regulation is an example of?
A) Non conforming use
B) Exclusionary zoning
C) Variance
Answers
"A" and "B" bought a house as tenants in common. If "A" dies which of the
following statements about ownership of the house is correct?
A) It automatically becomes tenancy in severalty.
B) It is divided, with B retaining their original interest and the balance going
to A's estate.
C) B holds fee simple ownership to A's share of the property
D) B holds a life estate ownership to A's share of the property Right Ans -
B) It is divided, with B retaining their original interest and the balance going
to A's estate.
The difference between the value of a property and the total amount of liens
against it is known as:
A) A down payment
B) Equity
C) Actual cash value
D)Collateral Right Ans - B) Equity
If a husband and wife take title to a property as tenants in common, they may
also have elected to have:
A) Title in severalty
B) Separate life estates
C) The right of survivorship
D) Unequal shares of ownership Right Ans - D) Unequal shares of
ownership
A person who openly, continuously and hostilely occupies another's land for a
period set by a statute may gain title by means of:
A) Voluntary alienation
B) Accretion
C) Prescription
D) Adverse possession Right Ans - D) Adverse possession
Truth-In-Lending Act requires the lender to furnish an applicant for a real
estate loan with a copy of an:
A) Amorization schedule
,B) Disclosure statement
C) Deed
D) Financial statement Right Ans - B) Disclosure statement
The seller is responsible for which of the following costs at closing:
A) The realty transfer tax
B) The title search
C) The Deed recording fee
D) Title insurance Right Ans - A) The realty transfer tax
When private property is abandoned the state may acquire title to that
property under the right of :
A) Escheat
B) Eminent domain
C) Police power
D) Taxation Right Ans - A) Escheat
The term hypothecation most closely means:
A) Conditional security for debt
B) Conditional ownership of property
C) A right of first refusal
D) Conditional mortgage commitment Right Ans - A) Conditional security
for debt
A CORRECT statement about condominium and cooperative apartment
owners is that they both:
A) Receive an annual real estate tax bill
B) Must pas assessments
C) Own shares of stock
D) Own real property Right Ans - B) Must pas assessments
Which of the following is not necessary to a valid contract:
A) Consideration
B) Contractual ability
C) Legal purpose
D) The signature of both parties Right Ans - D) The signature of both
parties
Which is NOT true of a tax lien sale?
, A) Title passes with the sale
B) The lien holder is the lowest interest bidder
C) The municipality may hold the lien
D) The property owner has two years to pay the lien Right Ans - A) Title
passes with the sale
Which would be a credit to the purchaser at settlement?
A) The balance of an existing mortgage to be assumed
B) Taxes overpaid by the seller
C) Fuel oil remaining in the tank
D) Unpaid new mortgage Right Ans - A) The balance of an existing
mortgage to be assumed
In a condominium apartment project, the BEST term to describe a swimming
pool and laundry room for the use of unite owners is?
A) Common elements
B) Limited common elements
C) Fee simple elements
D) Leasehold elements Right Ans - A) Common elements
When homeowners itemize deductions in computing their annual taxable
income they may deduct:
A) Payments of principal on the home mortgage
B) Interest paid on the home mortgage
C) Depreciation of the home
D) Cost of repair Right Ans - B) Interest paid on the home mortgage
Dual Agency is best described as:
A) Two companies working together
B) Owing special duties to another person
C) Brokers taking both parties as principals
D) None of the above Right Ans - C) Brokers taking both parties as
principals
The use of a property that was lawful at the time of enactment but is now in
violation of a zoning regulation is an example of?
A) Non conforming use
B) Exclusionary zoning
C) Variance
