Homework answers / question archive / 1)Quality Supermarkets has taken occupancy of a retail building and has a long term lease

1)Quality Supermarkets has taken occupancy of a retail building and has a long term lease

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1)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 Quality Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures?

 

A.) no, because they are trade fixtures

 

B.) yes, because they are appurtenances

 

C.) no, because they are bolted to the floor

 

D.) yes, if removed prior to the end of the lease

 

2. A salesperson is convicted of a crime which involves a real estate licensee. The commission obtains a certified copy of judgement of conviction against the salesperson. According to the New Jersey Real Estate License Law, the commission MUST:

 

A.) revoke the salesperson license

 

B.) suspend the salesperson license

 

C.) determine altercation to take

 

D.) Notify the salesperson employing broker of the circumstances to the conviction

 

 

3. A broker maintains a property management trust (escrow) account which has the clients funds in it. the brokers accounting records show that client Smith has a negative $1,000 balance in it whereas client Jones has $2,000 balance in his account

 

The buyer wrote an offer to purchase a property and gave the broker $10,000 earnest money. The offer required the seller to respond within six days. Three days later the buyer decided to terminate the offer and has asked for the earnest money to be refunded. What will normally happen to the earnest money in such a situation?

 

A.) The broker can withdraw the offer , but the seller and the broker will each retain five thousand dollars as liquidated damages

 

B.) The broker will retain the earnest money deposit in lieu of commission in the the event of termination

 

C.) The buyer cannot terminate the offer until six days are up and will therefore forfeit the earnest money deposit

 

D) Until the seller has accepted the offer the buyer has the right to terminate and receive the refund of the deposit

 

 

4. A landlord’s lease prohibits tenants from altering the property in any way. A woman who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is true?

 

A.) The landlord is responsible for making all apartments accessible to people with disabilities

 

B.) The tenant cannot remedy these conditions because of the terms of the lease

 

C.) The landlord should not have rented this apartment to the tenant

 

D.) The tenant is entitled to make the alteration necessary for apartment accessibility

 

 

5. The broker received a birthday check from one of his clients. The broker decided to put it in the escrow account because it was from a client. This is considered:

 

A.) Conversion

 

B.) Commingling

 

C.) Acceptable if the check was written on the client’s business account

 

D.) Acceptable if the client has had a transaction within the last 18 months

 

 

6. If placed on a brokers website, which of the following advertisements does not meet the standards established by the New Jersey Real Estate License Law?

 

A.) Winslow Township-4 bedroom, colonial, $234,900. R Realtors, 555-700

 

B.) West Orange vicinity- lovely 3 bedroom rancher, in-ground pool, Y RE inc, licensed RE broker

 

C.) Atlantic city - 2 bedroom condo. fireplace, large kitchen, $147,500, Q. Realtor, Office 555-7954, Home 555-7655

 

D.) Irvington vicinity ( City of Newark)- convenient to shopping and public transportation. 3 bedroom, RE, Realtor, 555-7624

 

7. If placed on a brokers website, which of the following advertisements does not meet the standards established by the New Jersey Real Estate License Law?

 

A.) Winslow Township-4 bedroom, colonial, $234,900. R Realtors, 555-700

 

B.) West Orange vicinity- lovely 3 bedroom rancher, in-ground pool, Y RE inc, licensed RE broker

 

C.) Atlantic city - 2 bedroom condo. fireplace, large kitchen, $147,500, Q. Realtor, Office 555-7954, Home 555-7655

 

D.) Irvington vicinity ( City of Newark)- convenient to shopping and public transportation. 3 bedroom, RE, Realtor, 555-7624

 

D.) Irvington vicinity ( City of Newark)- convenient to shopping and public transportation. 3 bedroom, RE, Realtor, 555-7624

 

 

8.  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% debt-to-income ratio for housing debt. What is the maximum monthly house payment the bank will approve?

 

A.) $1,600

 

B.) $2,100

 

C.) $2,200

 

D.) $2,700

 

 

9. A property is shown to prospective buyer by a cooperating agent who is a long-time friend of the listing agent. While still in the house the buyers make a full price offer on the property. As the cooperating agent is locking up the house, the owner return and ask how the showing went. The cooperating agent explains that she has an offer on the property and will immediately deliver it to the listing agent. The owner beg the cooperating agent to present the offer immediately. The cooperating agent should?

 

A.) Present the offer because the owners are directing her to do so.

 

B.) Deliver the offer to the listing agent before it is presented to the owners.

 

C.) Present the offer to the owners and demand that they sign immediately.

 

D.) Deliver the offer to the listing agent, but verbally tell the seller that is a full price offer.

 

 

10.  Which of the following BEST defines a material fact in the real estate context?

 

A.) property deficiency that must be recorded at the time of sale.

 

B.) A representation made on a licensee's marketing sheet that has been verified by the licensee.

 

C.) A fact significant enough to influence an individual's decision about whether or not to purchase.

 

D.) A latent deficiency of a property that may be disclosed to a prospective buyer only if an offer is made.

 

 

11.  Which of the following BEST defines a material fact in the real estate context?

 

A.) property deficiency that must be recorded at the time of sale.

 

B.) A representation made on a licensee's marketing sheet that has been verified by the licensee.

 

C.) A fact significant enough to influence an individual's decision about whether or not to purchase.

 

D.) A latent deficiency of a property that may be disclosed to a prospective buyer only if an offer is made.

 

 

12.  What would the prorated tax be for a period of 7 months and 15 days if the current tax is $7,200 per year, and the prorates are done using a 360 day year?

 

A.) 2700

 

B.) 3000

 

C.) 4200

 

D.) 4500

 

 

13.  What would the prorated tax be for a period of 7 months and 15 days if the current tax is $7,200 per year, and the prorates are done using a 360 day year?

 

A.) 2700

 

B.) 3000

 

C.) 4200

 

D.) 4500

 

14.   A contract of sale prepared by a licensee must include an attorney review clause if it pertains to which of the following type of properties?

 

A.) Six Family dwelling unit, a portion of which is used for non-residential purpose.

 

B.) Commercial building that doesn’t exceed 10000 square feet.

 

C.) Subdivision of fifteen or more lots.

 

D.) Single family residential vacant lot.

 

15.  A deposit check from a buyer paid upon the submission of an offer may be held without being deposited into the brokers escrow account:

 

A.) Until negotiations are concluded and the seller has accepted the offer

 

B.) Until all inspections are required by the contract have been performed

 

C.) For no more than 5 business days after receipt of money

 

D.) After the termination of the attornet review period

 

 

16.  A deposit check from a buyer paid upon the submission of an offer may be held without being deposited into the brokers escrow account:

 

A.) Until negotiations are concluded and the seller has accepted the offer

 

B.) Until all inspections are required by the contract have been performed

 

C.) For no more than 5 business days after receipt of money

 

D.) After the termination of the attornet review period

 

17.  Which of the following items could never constitute a fixture?

 

A.) Tree

 

B.) Shrub

 

C.) Swimming pool

 

D.) Land

 

 

18.  A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year-old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statement regarding this situation is true?

 

A.) City code always takes priority over deed restrictions.

 

B.) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed

 

C.) Deed restrictions always take priority over city codes

 

D.) This deed restriction is more restrictive and will, therefore, take precedence

 

 

19.  Which if the following is a function of the municipal planning board?

 

A.) Approving a variance for an addition to a garage or a residential property

 

B.) Creating a master plan for all the land in a particular county

 

C.) Unilaterally approving subdivisions in a jurisdiction

 

D.) Prescribing and controlling the development and use of all land in a municipality

 

20.  The owner of a home with no liens obtained a home equity of $75,000, secured by his home. several months later, he borrowed $15,000 and then $13,000, each loan secured by a lien against his home. He then lost his job and failed to pay his past due property taxes of $7,500. His loan went into default and his home was foreclosed. Assuming that the liens for all three loans were recorded in a timely manner, what is the order of payoff to the lien holders?

 

A.) $7,500 , $75,000 , $15,000 , $13,000

 

B.) $7,500 , $13,000 , $15,000 , $75,000

 

C.) $75,000 , $7,500 , $15,000 , $13,000

 

D.) $75,000 , $15,000 , $13,000 , $7,500

 

 

21.  A multiple listing service decides to deny membership to brokers who charge commission below 4% on residential properties in minority neighborhoods. This restriction violates:

 

A) Redline guidelines

 

B.) EPA regulations

 

C.) Blockbusting prohibitions

 

D.) Antitrust regulations

 

 

22.  While three of a salesperson's listings are active , the salesperson leaves the employment of one broker and transfers to a new broker. it is not a violation of the New Jersey real estate license law for that sales person to?

 

A.) Advise the sellers that the salesperson will transfer the listings to the new broker

 

B.) Accept compensation when the salesperson listing is sold by the former broker during the original term

 

C.) Secure an offer on one of the listings as a representative of the former office after being licensed with new broker

 

D.) Take the contents of the office files of these three listings to the new broker

 

 

23.  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 the 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 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 grantee, it was not a legal deed

 

 

 

24.  Which of the following is true regarding encroachments?

 

A.)An encroachment is considered a trespass

 

B.) A fee appraisal will ascertain if an encroachment exists

 

C.) Title insurance will insure against an encroachment

 

D.) An encroachment is similar to an easement by necessity

 

 

25.  Which of the following would prevent a seller from providing marketable title?

 

A.) Leaky roof

 

B.) Mechanic’s lien

 

C.) Fair housing violation

 

D.) Murder on the property

 

26.  Which of the following would prevent a seller from providing marketable title?

 

A.) Leaky roof

 

B.) Mechanic’s lien

 

C.) Fair housing violation

 

D.) Murder on the property

 

 

27.  Upon termination of a salesperson, The broker is required to give written accounting of monies owed to that salesperson within a maximum of how many days?

 

A.) 7

 

B.) 30

 

C.) 60

 

D.) 90

 

 

 

28.  Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer’s allegation of discriminatory treatment by a licensee in a brokerage office?

 

A.) Records of the houses shown and properties suggested to the prospective buyer.

 

B.) Whether or not the HUD Equal Housing Opportunity post is displayed in the office.

 

C.) Whether the licensee believed she was acting in the best interests of the prospective buyer.

 

D.) The reports of undercover testers who visited the office.

 

 

29.  Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer’s allegation of discriminatory treatment by a licensee in a brokerage office?

 

A.) Records of the houses shown and properties suggested to the prospective buyer.

 

B.) Whether or not the HUD Equal Housing Opportunity post is displayed in the office.

 

C.) Whether the licensee believed she was acting in the best interests of the prospective buyer.

 

D.) The reports of undercover testers who visited the office.

30)  A 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 first In 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

 

A.) Earns a commission at that point

 

B.) Earns a commission even if contingencies in the contract have not been met

 

C.) Does not earn a commission unless the sale closes

 

D.) Does not earn a commission if the buyer and seller agree to rescind the contract

 

 

30.  In 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

 

A.) Earns a commission at that point

 

B.) Earns a commission even if contingencies in the contract have not been met

 

C.) Does not earn a commission unless the sale closes

 

D.) Does not earn a commission if the buyer and seller agree to rescind the contract

 

 

31.  In 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

 

A.) Earns a commission at that point

 

B.) Earns a commission even if contingencies in the contract have not been met

 

C.) Does not earn a commission unless the sale closes

 

D.) Does not earn a commission if the buyer and seller agree to rescind the contract

 

 

32.  The seller responded to the buyer’s offer, proposing a changes to some of the terms. In this case the seller would be the

 

A.) Offeror giving a counteroffer

 

B.) Offeror giving a counteroffer

 

C.) Offeror giving an amended offer

 

D.) Offeror giving an amended offer

 

 

33.  The seller responded to the buyer’s offer, proposing a changes to some of the terms. In this case the seller would be the

 

A.) Offeror giving a counteroffer

 

B.) Offeror giving a counteroffer

 

C.) Offeror giving an amended offer

 

D.) Offeror giving an amended offer

 

34.  The seller responded to the buyer’s offer, proposing a changes to some of the terms. In this case the seller would be the

 

A.) Offeror giving a counteroffer

 

B.) Offeror giving a counteroffer

 

C.) Offeror giving an amended offer

 

D.) Offeror giving an amended offer

 

 

35.  Monday June 12 Mrs. buyer rescind the closing disclosure for the purchase of a new home that was scheduled to close on Friday June 16, when Mrs. buyer arrives for the closing on Friday, she learns that a prepayment penalty has been added to the terms of her loan. TRID rules dictates that the

 

A.) closing must occur as planned or the loan will be canceled.

 

B.) closing may continue as planed as long as Mrs. buyer accepts the new loan term in writing.

 

C.) disclosure of the new loan terms triggers a waiting period, so closing can occur as early as Monday june19

 

D.) disclosures of the new loan term triggers a waiting period, so closing can occurs as early as Monday June 21.

 

36.  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.

 

A) $449.17

 

B) $484.56

 

C) $495.44

 

D) $530.83

 

 

37.  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.

 

A) $449.17

 

B) $484.56

 

C) $495.44

 

D) $530.83

 

 

38.  Using refrences to influx of persons of a particular ethnic origin into a neighborhood to secure listings from residents in the neighborhood is called:

 

A.) permissible aggressive marketing

 

B.) illegal and known as redlining

 

C.) illegal and known as steering

 

D.) illegal and known as blockbusting

 

 

39.  A prospective tenant feels that because of his national origin, he was denied rental of an apartment in a 12-unit apartment building. The building was owned by a private landlord who live in one of the units and who used the discriminatory advertising and no real estate broker. Does the prospective tenant have any recourse?

 

A.) Yes, because discrimination was in the rental of a unit in a 12-unit building

 

B.) Yes, because the owner of the building did not use a broker

 

C.) No, because the owner occupied one of the units

 

D.) No, because the owner avoided discriminatory advertising

 

 

40.  James has been asked to provide a suitable comparable sale for a property being listed by his broker. Which of the following would be the most appropriate property for James to provide?

 

A.) A similar style house that sold three years ago and is located in the same subdivision

 

B.) A neighboring house of the same age design, whose owner sold it to her nephew 6 months ago

 

C.) The same style and size house three doors down the block that is presently listed and being actively shown

 

D.) A house similar to the subject house in terms of size, style, and condition located in the same town that sold in the past 3 months

 

 

41.  The following statement was found in a real estate contract. “In the event of a default by the purchaser, the forfeiture of the earnest money to the seller will be only compensation to which the seller will be entitled. “This statement most likely describes a

 

A.) Broker protection clause

 

B.) Liquidated damages clause

 

C.) Default delivery clause

 

D.) Indemnification clause

 

 

42.  Under the Housing for Older Persons Act of 1995 (HOPA), the familial status provision of the Fair Housing Act no longer requires that:

 

A.) At least one occupant of a unit be 55 years old.

 

B.) Policies and procedures must demonstrate an intent for elderly housing.

 

C.) Significant facilities and services designed for the elderly be provided.

 

D.) 80% of all units must be occupied by at least one person aged 55 or older.

 

 

43.  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.) any reservations to seller relay

 

 

44.  A married couple is purchasing a home for $198,000 and gave the broker a $10,000 earnest money deposit. The buyers will finance the purchase with a new 80% loan-to-value mortgage loan.

 

The closing date is March 18, with the closing day charged to the buyer. Homeowners association dues are $325 monthly and were paid in advance by the seller. Property taxes are $2,416. Prorations should be made using the 365-day method.

 

The sellers will pay the 6% brokerage fee, the documentary stamp tax on the deed, and title insurance of $1,789. The buyers will pay the appropriate state taxes on the note and mortgage, $72 in recording fees, and for a survey costing of $475.

 

How is the purchase price shown on the Closing Disclosure?

 

 

A comparative market analysis (CMA) MUST include:

 

A.) The square footage of the property

 

B.) School reports

 

C.) The sales price of the property

 

D.) A statement indicating that the CMA is not an appraisal

 

45.  A comparative market analysis (CMA) MUST include:

 

A.) The square footage of the property

 

B.) School reports

 

C.) The sales price of the property

 

D.) A statement indicating that the CMA is not an appraisal

 

46.  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 an offer

 

B.) Relay any reservations to the seller

 

C.) Ask for a high earnest money payment

 

D.) Require the buyer's financial statement to accompany the offer

 

 

47.  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 an offer

 

B.) Relay any reservations to the seller

 

C.) Ask for a high earnest money payment

 

D.) Require the buyer's financial statement to accompany the offer

 

 

48.  Limiting the neighborhoods In which a licensee shows houses because of a buyer's race is?

 

A.) Puffing

 

B.) Blockbusting

 

C.) Redlining

 

D.) Steering

 

 

49.  Limiting the neighborhoods In which a licensee shows houses because of a buyer's race is?

 

A.) Puffing

 

B.) Blockbusting

 

C.) Redlining

 

D.) Steering

 

 

50.  When MUST a listing broker provide a copy of a fully executed written fisting agreement to the owner?

 

A.) Upon execution of the listing agreement by all parties

 

B.) Within three days of execution of the listing agreement by registered mall, return-receipt-requested

 

C.) Within five business days of execution of the listing agreement

 

D.) At the time of presentatlon of 1 written offer

 

 

51.  The PRIMARY purpose of percolation tests and test borings is to determine whether?

 

A.) The absorption capacity of the soil is sufficient for intended use.

 

B.) A reinforced footing or foundation should be used.

 

C.) A particular type of well is drilled to a sufficient depth.

 

D.) The building inspector should issue a building permit.

 

 

52.  A salesperson’s client is the lessee. Who does the salesperson represent?

 

A.) Lender

 

B.) Tenant

 

C.) Landlord

 

D.) Lien holder

 

 

53.  A house that was listed for $164,000 sold for $158,000. The new loan amount was $124,000. The state where the sale occurred charges a transfer fee which is completed at the rate of $3 per $1,000. What is the transfer for this transaction?

 

A.) 372

 

B.) 474

 

C.) 492

 

D.) 4,740

 

 

54. A house that was listed for $164,000 sold for $158,000. The new loan amount was $124,000. The state where the sale occurred charges a transfer fee which is completed at the rate of $3 per $1,000. What is the transfer for this transaction?

 

A.) 372

 

B.) 474

 

C.) 492

 

D.) 4,740

 

 

55.  The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will:

 

A.) Require the removal of all lead paint prior to the closing.

 

B.) Provide the buyer with the opportunity to wave the right to a lead paint inspection.

 

C.) Mandate the sellers remove any lead paint only on interior walls.

 

D.) Make the sellers liable of the buyer's lead related medical problems

 

 

56.  In a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on the?

 

A.)Trust deed or mortgage

 

B.) Deed

 

C.) loan application

 

D.) Promissory note

 

 

57.  Which of the following differentiates a bilateral contract from a unilateral contract?

 

A.) Number of parties involved

 

B.) Performance obligations of the parties

 

C.) Relative value of the object of the contract

 

D.) Type of property specified in the contract

 

 

58.  What would most lenders require if the buyer is putting less than 20% down?

 

A.) That the buyer has one year’s worth of reserves in a certificate of deposit

 

B.) A certificate of reasonable value

 

C.) A FICO score of at least 745

 

D.) Private mortgage insurance

59) Who may give a supportable opinion of market value to be used in seeking a federally-related loan to finance a real estate transaction?

 

A.) A certified appraiser

 

B.) A licensed real estate broker

 

C.) Any real estate licensee, in each state in which she is licensed

 

D.) A Certified Public Accountant

 

 

60. 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 as?

 

A.) Real Property

 

B.) Personal Property

 

C.) A fixture

 

D.) An appurtenance

 

 

61.  Which type of deed offers the purchaser the greatest amount of protection?

 

A.) General Warranty Deed

 

B.) Quitclaim Deed

 

C.) Bargain and Sale Deed

 

D.) Fiduciary Deed

 

 

62. What type of mortgage loan is likely to be tied to a publicly available index that is mutually acceptable to the lender and the borrower?

 

A.) Renegotiable rate mortgage

 

B.) Graduated payment mortgage

 

C.) Adjustable rate mortgage

 

D.) Freddie mac

 

 

63.  A city added curbs and gutters to six blocks for the benefit of the adjacent property owners. This improvement will most likely be paid for by?

 

A.) Raising the city’s property taxes

 

B.) A special assessment levied against the adjacent property owners

 

C.) A general lien filed against the adjacent property owners

 

D.) An appropriation from the city’s general funding

 

 

64.  Which of the following are most likely to be addressed by building codes?

 

A.) Deed restrictions

 

B.) Construction standards

 

C.) Permissible use of structures

 

D.) Restrictive covenants

 

 

65.  A real estate broker enters into an agreement to represent a buyer who is seeking a property to purchase, and remains a single agent throughout the transaction. A seller whom this broker negotiates is this brokers?

 

A.) Client

 

B.) Customer

 

C.) Principle

 

D.) Fiduciary

 

 

66.  A licensee is the property manager for a shopping center. The shopping center owner tells the licensee to avoid Internet marketing because he distrusts the technology. The licensee discuss is this with the owner, but eventually complies. The licenses compliance is due to the duty of?

 

A.) Care

 

B.) Loyalty

 

C.) Obedience

 

D.) Fair dealing

 

 

67.  A licensee just attended a class on using social media to further her real estate sales career. She was so excited about the class that she immediately came home and signed up for Facebook, Twitter Twitter and LinkedIn . She has chosen a listing to market via social networking, a residence recently built to resemble an antebellum mansion. Which of the following words or phrases may she lawfully include in her advertising?

 

A.) Updated antebellum

 

B.) Antebellum mansion

 

C.) Antebellum style mansion

 

D.) Beautiful “antebellum” estate

 

 

68.  A deed was properly completed and executed. Title to the property passed when the deed was

 

A.) Signed

 

B.) Recorded

 

C.) Acknowledged

 

D.) Accepted by the grantee

 

 

69.  An owner who lives out of state contacts a licensee who is in the state where the owner’s property is located. The owner hires the licensee to sell the property for $150,000. The licensee realizes that the land is in an area that has recently been rezoned for a higher use. He tells the owner he will purchase the property himself. He does so, and, 3 weeks later, sells the same property for $175,000. Which of the following statements about this situation is correct?

 

A.) The licensee cannot legally act as an agent for an owner who lives out of state without either an active license from that state or the help of a cooperating out-of-state licensee

 

B.) Since the property sold at a profit within 6 months after the purchase, the licensee must inform the owner of his selling price

 

C.) The licensee can legally purchase the property only after informing the owner of the zoning change and how it will affect the property.

 

 

70. Rents on a duplex total $600 monthly and are due the first of each month. If the sale of the duplex closes on the 15th of a month, the rental income will be reflected on the closing statement as a

 

A.) Debit to the seller of $300 and a credit to the buyer of $300

 

B.) Credit to the seller of $300 and a debit to the buyer of $300

 

C.) Credit of $600 to the seller only

 

D.) Credit of $600 to the buyer only

 

 

71.  Which of the following actions is NOT prohibited by the New Jersey Real Estate Commission rules?

 

A.) Holding a deposit for thirty days before depositing it in a trust account.

 

B.) Firing a new salesperson who did not achieve specific sales goals.

 

C.) Routinely destroying agency records every four years.

 

D.) Holding a drawing for a television among persons attending an open house.

 

 

72.  Real estate taxes that are paid in advanced are prorated on the closing statement as.

 

A.) no entry to buyer; a credit to seller.

 

B.) no entry to buyer; a debit to seller.

 

C.) a credit to buyer; a debit to seller.

 

D.) a debit to buyer; a credit to seller.

 

73.  A low loan-to-value ratio indicates a?

 

A) Lower equity in the property

 

B) Greater risk of foreclosure

 

C) Higher equity in the property

 

D) Greater use of leverage

 

 

74.  What is the notice given to the buyer by the seller concerning the condition of a property called?

 

A.) Seller's Disclosure Notice

 

B.) Seller's Defects Notice

 

C.) Seller's Lien Notice

 

D.) Seller’s Disclaimer Notice

 

 

75.  According to the new jersey real estate licensing law, what method of payment may NOT be accepted as an earnest money deposit on a sale transaction?

 

A.) Cash

 

B.) Debit card

 

C.) Credit card

 

D.) Check or money order

 

 

76.  Insurance value differs from market value in that?

 

A.) The value is only attributed 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

 

 

77.  Listings are NOT taken when the office policy is to practice only:

 

A.) Sub agency

 

B.) Exclusive seller agency

 

C.) Exclusive buyer agency

 

D.) Disclosed dual agency

 

 

78.  When asked by a buyer client for the name of a home inspector, a licensee should?

 

A) Identify the most cost effective inspector in the area

 

B) Suggest the broker's approved inspector.

 

C) Provide a list of home inspectors

 

D) Recommend a board-affiliated home inspector

 

 

79.  What should buyer 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.) Walkthrough agreement

 

 

80.  A seller's 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 seller's permission to disclose and abide by the sellers 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

 

 

81.  According to the real estate licensing law, a real estate licensee can provide a rebate of the commission to a buyer.

 

A.) If the Licensee is the broker.

 

B.) If notated on the contract sale

 

C.) Provided if does not exceed 50% of the total commission.

 

D.) If a writing confirming th terms of the rebate is provided to the buyer at closing.

 

 

82.  The types of agency relationships a real estate license may establish in a real estate transaction include the following EXCEPT?

 

A.) An agency between a licensee and the seller exclusively.

 

B.) A disclosed limited agency relationship where a licensee represents both the buyer and the seller in the same real estate transaction.

 

 

 

C.) A disclosed limited agency relationship where a licensee represents more than one buyer in real estate transactions on the same property.

 

D.) A disclosed limited agency relationship where a licensee represents a buyer in a real transaction while the seller is unrepresented by any licensee.

 

 

83.  In New Jersey, the realty transfer fee appears on the closing statement as a?

 

A.) Debit To Seller

 

B.) Debit To The Buyer

 

C.) Credit To The Seller

 

D.) Credit To The Buyer

 

 

84.  A residential developer desires to limit all construction in a subdivision to single family houses of at least 3,000 square feet. Which of the following is the BEST way for the developer to ensure this will take place?

 

A.) Have an architectural review committee approve building plans

 

B.) Establish a homeowner's associations

 

C.) Petition for a zoning change

 

D.) Create deed restrictions

 

85.  A written offers to purchase Real Estate in New Jersey must be presented to sellers within:

 

A.) 24 hours

 

B.) 43 hours

 

C.) 3 days

 

D.) 5 days

 

 

86.  An applicant for a Real estate salesperson's license must apply for the issuance of the license within:

 

A.) 30 days after accepting an offer of employment from a licensed real estate broker

 

B.) One year from the date of beginning the pre-licensure education course

 

C.) One year from the date of completion of the pre-licensure education course

 

D.) One year from the date of passing the state licensing examination

 

 

87. With regard to the termination dates in listing contracts, which of the following statements is CORRECT?

 

A.) Oral listings with a definite termination date are enforceable by brokers

 

B.) Exclusive agency listings must have a definite termination date

 

C.) Exclusive right-to-sell listings are not required to state a definite termination date

 

D.) A listing contract may provide for an automatic extension of the listing term unless written notice is given

 

 

88. With regard to the termination dates in listing contracts, which of the following statements is CORRECT?

 

A.) Oral listings with a definite termination date are enforceable by brokers

 

B.) Exclusive agency listings must have a definite termination date

 

C.) Exclusive right-to-sell listings are not required to state a definite termination date

 

D.) A listing contract may provide for an automatic extension of the listing term unless written notice is given

 

 

89. Which if the following statements concerning an agreement of sale prepared by a licensee in accordance with New Jersey License Law is correct?

 

A.) The agreement must contain a mortagage contingency clause

 

B.) The agreement must include a attorney review clause

 

C.) The buyer must be given a 3 day right of rescission

 

D.) The contract must include the attorney general memorandum on discrimination

 

 

90.  According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all record of Real Estate transactions?

 

A.) Files must be able to be reproduced on paper for review by commission

 

B.) Files must be kept on paper, and available for review for up to 10 years

 

C.) Files must be submitted electronically to the commission

 

D.) Files must be kept on premises & available to public at any time

 

 

91.  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 correct

 

D.) Gross rent multiplier

 

 

92. Which of the following items would be prorated at closing with the credit going to the seller?

 

A.) Accrued interest on an assumed mortgage

 

B.) Prepaid property taxes

 

C.) Earnest money

 

D.) Unearned rent collected in advance

 

 

93. A CORRECT statement about transaction brokers is that they:

 

A.) Represent both the buyer and the 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

 

 

94. Which activity is NOT exempt from the requirement to provide disclosures under the Brokerage Relationship Disclosure Act?

 

95. In which of the following situations does a general agency relationship exist?

 

96. Broker Joan just received an oral offer to purchase listed property. No earnest money accompanied the oral offer. Which of the following statements is correct?

 

97. Which of the following statements best describes a transaction broker?