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Real Estate state exam New Jersey or State salesperson combo exam

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Real Estate state exam New Jersey or State salesperson combo exam.

A tax assessor determined that a commercial building with a 3.5% mortgage has a market value of $400,000. If the assessed value is 60% of market value and the tax rateis631/8 9

mills, what is the annual tax?

A. $5,305.50

B. $8,837.50

C. $15,150.00

D. $25,250.00

 

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

 

 

A secretary in a real estate office who does NOT have a real estate license may: o-

A. review the Consumer information Statement with a prospective buyer

 B. perform bookkeeping functions concerning escrowed funds

C. sign escrow checks with the written authorization of the broker

D. disclose the current status of a commercial listing

 

 

Written offers to purchase real estate in New Jersey must be presented to sellers within: io.

A. 2é4hours

B. 48 hours

C. 3days

D. Sdays

 

A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry amortgage °-

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. Buy-down.

 

 

The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to 2.

A. $125,000.00

B. $250,000.00

C. $500,000.00

D. any amount.
 

 

Once an offer to purchase is presented to a seller, the 2

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C. offer may be withdrawn at any time prior to the delivery of its acceptance.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.

 

 

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 noted that an attractive feature of the -

neighborhood seems to be the large Russian grocery store. He decides to stop advertising the property in the city newspaper and instead advertise the property on two different

Russian internet sites. This is

 

A. acceptable because it is not print media.

B. unacceptable due to its discriminatory nature.

C. acceptable if the advertisement includes no preferential language.

D. the only appropriate way to market property in this neighborhood.
 

 

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 noted that an attractive feature of the -

neighborhood seems to be the large Russian grocery store. He decides to stop advertising the property in the city newspaper and instead advertise the property on two different

Russian internet sites. This is

 

A. acceptable because it is not print media.

B. unacceptable due to its discriminatory nature.

C. acceptable if the advertisement includes no preferential language.

D. the only appropriate way to market property in this neighborhood.

 

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 o

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 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.

 

 

Which of the following is NOT an example of a fixture? 2

A. Antique chandelier.

B. Hot water heater.

C. Heirloom rosebush.

D. Cast iron garden bench.

 

 

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. Alicensed broker-ealesperson 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.

 

 

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.

 

 

A candidate passes the prelicensure course examination on November 8. The candidate must apply for the license within: io.

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

 

 

The listing broker may be due a commission, even when no sale occurred, if the io

A. potential buyer was unable to obtain financing.

B. seller decided he no longer wished to sell.

C. seller refused a buyer's reasonable offer.

D. broker located a buyer who made an offer that met all of the selier’s terms.

 

 

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

 

 

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.

 

 

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.

 

 

According to the New Jersey Real Estate License Law, employment agreements between salespersons and brokers MUST include which of the following provisions? a.

A. Aclause outlining the compensation to salespersons in the event that their employment is terminated

B. Aclause requiring the salesperson to purchase errors and omissions insurance coverage

C. aclause confirming the salesperson’s status as an independent contractor

D. An attorney review clause stating that it is the broker's option to hire an attorney in order to protect the broker's rights

 

 

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

 

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.

 

 

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

 

 

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 thelr guardian co-sign.

 

 

Which of the following is a permitted free offering? o-

A. Acomplimentary home warranty with every listing

B. Acoupon for discounted commission on listing services

C. Afree dinner for attendees at a homebuyers’ evening seminar

D. Free use of a local moving van for all listings

 

 

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

 

Which disclosure is the most commonly required in a residential real estate sale? 2

A. radon

B. lead-based paint

C. neighborhood composition

D. sellers property disciosure

 

According to the CAN SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT 2

A. clearty indicate the nature of the content of the email.

B. inform the recipient of the name and location of the brokerage firm.

C. allow a method for the recipient to opt out and not receive future emails.

D. advise the recipient that it will take 180 days to remove the recipient's name from this email list.

 

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. acomparative market analysis

C. areconciliation report for an FHA loan

D. avalue analysis for a non-residential property valued below $250,000

 

 

The purchase price for a new home was $230,000. The buyer put down 20%, and the balance was a mortgage for 80% of the purchase price. The appraised value at the time of o-

closing was $250,000, and the assessed value was $220,000. What will the buyer pay for one year's property taxes, if her tax rate is 0.2%7

 

A. $440

B. $500

C. $3,680

D. $4,600

 

 

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.

 

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreciosure. 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 assumabie.

 

 

Which of the following approaches would allow you to estimate vaiue if you know the construction price per square foot? e.

A. Cost.

B. Income.

C. Market comparison.

D. Sales.

 

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. avariance.

B. nonconforming use.

C. spot zoning.

D. aconditional-use permit.

 

 

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. anexclusive agency listing.

C. anet listing.

D. anexciusive right to sell.

 

 

Which of the following are MOST likely to be addressed by buliding codes?

A. Deed restrictions.

B. Construction standards.

C. Permissible uses of structures.

D. Restrictive covenants.

 

 

Under New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT: o-

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

 

 

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.

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 following occurrences will result in

the buyer having the right to an additional three days to review the documents?

A. There was a mathematical error on the proration of taxes or utilities.

B. Appliances are missing even though the seller agreed to include them.

C. The loan product was changed from a fixed rate to one that is adjustable.

D. There was an omission in the property disclosure of a recently discovered special assessment.

 

 

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 following occurrences will result in

the buyer having the right to an additional three days to review the documents?

 

A. There was a mathematical error on the proration of taxes or utilities.

B. Appliances are missing even though the seller agreed to include them.

C. The loan product was changed from a fixed rate to one that is adjustable.

D. There was an omission in the property disclosure of a recently discovered special assessment.

 

 

A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, %-

but not disclosed by, the seller. The buyer

A. can void the contract due to the seller s failure to disclose the latent defect.

B. can reduce the contract sales price by the cost of correcting the defect.

C. must go through with the purchase because the house is being sold as is.

D. can force the seller to correct the defect.

A salesperson’s client is the lessee. Who does the salesperson represent? 2,

A. Lender.

B. Tenant.

C. Landlord.

D. Lien holder.

 

Which of the following actions is NOT a cause for suspension or revocation of a New Jersey real estate license? 2-

A. failing to provide a client with a copy of the signed exclusive listing contract

B. delivering a consumer information statement to a seller after having made a listing presentation

C. payment of a referral fee by a licensed New Jersey broker to a broker licensed in another state

D. collecting a commission as a broker from both parties to a transaction while representing both parties as their agent

 

 

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 items? 2.

A. $61,600

B. $78,400

C. $80,500

D. $360,500

 

A bullding 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 items?

A. $61,600

B. $78,400

C. $80,500

D. $360,500

 

 

The seller has entered into an exciusive 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 2

the following is appropriate?

A. The seller is obligated to pay Ms. Hill a commission or the offer price if the seller rejects the offer.

B. The seller is under no obligation to accept the offer or make a counteroffer.

C. The seller has 72 hours to submit a counteroffer or eise the offer is considered to be accepted.

D. The seller is obligated to make a counteroffer to the buyer if the offer is unacceptable.

 

 

Which of the following is true with respect to licensees offering free or discounted products or services? 2

A. The offering can be made through a lottery, contest or game.

B. The offering can be conditioned upon the consumer entering into a contract of sale.

C. The offering can be conditioned upon the consumer entering into a brokerage agreement.

D. The licensee's broker can receive compensation from the provider of the free or discounted product or service.

 

 

A buyer and seller have signed a contract for the sale of a commercial property which contains no instructions on what the broker, as escrow agent, is to do with escrowed monies °-

in the event of a default by the buyer. Prior to closing, the buyer decides not to proceed with the sale. In this situation, how should the broker handle any deposit money that the

broker is holding in escrow on the transaction?

 

A. Forfeit it to the seller.

B. Return it to the buyer.

C. Maintain it in trust until the matter is resolved.

D. Return it to the buyer's attorney.

 

 

Which of the following statements regarding the American with Disabilities Act (ADA) Is true? ie

A. Alandiord must make reasonable accommodations for those with disabilities.

B. Aseliler must make reasonable accommodations for those with disabilities.

C. Alender must make loans to those with disabilities.

D. Abuyer can require a seller to make structural changes before closing.

 

 

Real estate taxes that are paid in advance are prorated on the closing statement as 2.

A. noentry to buyer; a credit to seller.

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

C. acredit to buyer; a debit to seller.

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

 

Areal estate salesperson legally represents the party who has: 2

A. paid a commission to the licensee's broker

B. entered into an agency agreement with the licensee's broker

C. entered into an exclusive agreement directly with the individual salesperson

D. made personal contact with the licensee

 

 

An order for payment from the Real Estate Guaranty Fund issued as a result of conduct by a licensee will result in a(n): 2

A. minimum five-year revocation of license

B. automatic revocation of license with no eligibility for reinstatement until the Fund is reimbursed

C. minimum $5,000 fine

D. automatic suspension of license for a minimum of one year with no eligibility for reinstatement until the Fund is reimbursed

 

 

A real estate licensee representing a buyer may do all of the folowing EXCEPT 2

A. disclose the selier's motivation for selling.

B. identify latent property defects.

C. prepare a Competitive Market Analysis (CMA).

D. disclose the highest price the buyer is willing to pay.

 

 

A salesperson has the opportunity to list a 6-plex that is 100 percent rented. The salesperson does NOT need to account for any expenses. The numerical tool he should use to 2

predict the price at which the building will sell is known as

A. Gross Rent Multiplier (GRM).

B. Net Rent Multiplier (NRM).

C. Gross income Multiplier (GIM).

D. Return on investment (ROM).

 

 

Quality Supermarkets has taken occupancy of a retall building and has a long-term lease. As part of their fit-up, they boit to the floor thelr meat and dairy coolers, shelves and o-

check-out stands.

 

When Quality Supermarkets 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 boited to the floor.

D. Yes, if removed prior to the end of the lease.

 

 

A buyer's agent is NOT permitted to tell a buyer that: a

A. the seller is willing to accept less than the listing price because of financial circumstances

B. a former occupant of a property had AIDS

C. the roof leaked recently but was patched by the owner

D. the property was the scene of a serious crime

 

 

Ted and Carol want to buy s house that Is listed for $105,000. The seller accepts the offer they wrote for $5,000 less than list price. They have a 20% down payment and need to get “-

an 80% LTV mortgage. Their lender offers them a 30 yr. mortgage at 5.5% interest. The taxes are $1,494 per year and the insurance Is $480 per year. How much is their monthly PIT!

payment? Be sure to use the amortization table.

AMORTIZATION TABLE

MAONTHLY PAYMENT PER $1.000 OF LOAN

 

interest Rate] he the lon

 

eeveer  [prar[lovea [iste [aan [ites pore] 33s + ‘ears

 

| CSS ses] s rosi}s 7901/5 esol$ sas|s Ss3s7]/$ OS ° 48s

 

PT saa|i9ai[ tose] eis] ces] Gas] sea] | 516

 

fp set rar) __sast soot $8

 

| Safa] as7[ nse] 72] 74s] 76] 632] 6.05]

 

| ti‘(S 8s] sz6z] aga] 776] 707] 6 6] 6.39] 6 22

 

ie el asi

 

| 2B] 214] 9.36 327 77) 7.24 7.12 6%

 

| 2] 20sz] izeo] oes] ses] = p06] zea] 747] 7 S48

 

| 206] 1267] 01s] goa sao] sas] ee 772]

 

| a] zac] zoey woes] oss] svat aaa] 822] eal

 

| 22s] 1322] 1075] ee | ns! 878] seo] 8 50 |

 

| oa] aso] sso] unos] 99s] 94s] 91s] seo] 889

 

| aa ans[ ise} as] 1033] 981] oss] 937] 9.29)

 

| aa] 2200] aoe] ses] 1067] 10.17) 992] 977] 969 |

 

Pa 2225] 143s] 201] 11027] 3054] 1029] 1016] 10.09 |

 

| azz] 22so| ress] 1233] 13387] 1091] 1068] 10s6| 1049 |

 

| S226] aoe] zee] n72] 1328] 1107] 1096] 1030 |

 

| asaya] 23.01] 1523] 1299] zoe] nes{ nee] 3236] 12.32]

 

Pat asz7]t sss] ass2] izes] zoe] anss] 1176] 1172 |

 

| tey2]23ss| sas] 1366] 1280] 124s] 1225] 1237] 12.13 |

 

| S239] 16.24] 14.00] 13.17] ize] 26s] 1257] 12.56 |

 

| Saya] 24.06] 1645] 43a] ssa] 1320] 1305] 1298] 1295)

 

 

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 of sale.

C. provided it does not exceed 50% of the total commission.

D. if a writing confirming the terms of the rebate is provided to the buyer at closing.

 

 

ee) ee a ee Ye

| C2] 9s7] ua36] 872] 746] = =—6.76] = 6.32] = 6 05| 5 86 |

| t=‘ UY]: apa] =tn62] ago] 776] = 707] = 6 66 |] 639] 6.22 |

| 7a2] 2004] = ngs] 9.28] sos] = 739] = 700] = S| 6 59

PT CSC~«CSTS sic zae] sé] =—s7] 772] sel 7tal 6.96 |

| Bat 2052] 1240] 9s] ses] = 806} 769] 747] 7.34 |

| C206] 1267] = 05] 9.00 = sao] sos] zee] 772 |

| a] zon] = zse]) oes] 933] 87a] pan] 822| 8.11 |

Psi: 2s] = 13.22[ «1075| 966] 909] s7sl seol 850]

| stoay2] aso] isso] nos] =o] as] 9s] ago] 889 |

Pa 2a7s]is7e]ns7{ 1083] = 981] 9s3] 9.37] 9.29 |

| aaa] 2200] =1406] = 69] 1067] 1017] 991] Dt

PCR, SS 22as| 143s] 1201] 1102[ 1054] 1029] °*%% 1009

Paz] 2250] ses! 1285] 1137| 1091] esl v¥l 1049

| CS 22 OT tage] izes] oan72] 1a28]aso7] F-10090

| asay2] sor] 1s23] 1299] 1208] 1166] tres] oitse] 11.32 |

pCi: 2.27] 1853] 1332] ize] 1200] nes] oinmet 1272 |

aa ay2]o2sss| asss| ses] asso] 1243, 12zy[ 237; 1233

|S] 2879] 1634] 1409 13.17 aarti 257] 230

| Saya] 2406] = 16.45] 14.34] 1384] 1320] 1305] 1298] 12.95 |

PtCiéKGTCsCi2M 2676] =aeo| §=1ss2z] 13s9] 1345] 1359] 1336]

A. $484.40

 

B. $596.40

 

c. $618.90

 

D. $661.62

 

 

A contract is terminated if oe.

A. one of the parties decides not to go forward.

B. a third party intervenes.

C. itis impossible for one of the parties to perform.

D. one party assigns his rights to another.

 

 

A couple applied for a loan to finance the purchase of a new home. What Federal Act was created to ensure that they have knowledge of all closing costs? 2

A. Fair Credit Reporting Act.

B. Equal Credit Opportunity Act.

C. Uniform Settlement Act.

D. Real Estate Settlement Procedures Act.

 

 

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? 2

OA. Escape clause.

B. Provision for liquidated damages.

C. Contingency.

D. Walk-through agreement.

 

An agency relationship is established between the broker and 2

A. another broker.

B. the principal.

C. amulttipie listing service.

D. acustomer.

 

When a licensee takes a listing to sell a new multi-family residential property, the document that MUST be provided to the owner by the licensee is o-

A. an Attorney General's Memorandum on Discrimination.

B. a lead-based paint disclosure form.

C. acopy of the Truth-in-Renting Law.

D. alist of all municipalities in the multiple listing systems to which the licensee belongs.

 

A 15-year-old inherited some property from a grandparent. The 15-year-old put the property on the market and accepted an offer. Could the 15-year-old legally reverse the 2

agreement to sell?

A. Yes, the contract is vold because the seller is a minor.

B. Yes, the contract is voidable because the seller is a minor.

C. Yes, the contract is unenforceable because the seller is a minor.

D. No, the contract is valid and may not be rescinded.

 

 

Which of the following statements in an advertisement would be an example of non-discriminatory language under HUD's Fair Housing Advertising Guidelines? 2-

A. “female seeking female roommate”

B. “nice home ideal for any family with children”

C. “apartment available. No pets or children allowed”

D. “located within walking distance to a great Catholic school”

 

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 2

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.

 

 

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 2

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. $71,700

B. $72,400

C. $73,600

D. $74,000

 

All of the following types of out-of-state real estate marketed in New Jersey through a common promotional pian must be registered with the New Jersey Real Estate Commission -

EXCEPT

 

A. office condominiums.

B. residential lots of less than one acre.

C. residential golf course condominiums.

D. house and lot packages where the purchaser intends to occupy the property as a principal residence.

 

 

In its advertisements, a New Jersey real estate company may NOT: 2

A. list the salespersons’ names in the advertisement

B. include the term “agency” in a description of the company

C. include the home phone number of a licensee if it is identified as such

D. abbreviate its regular business name

 

 

When MUST a listing broker provide a copy of a fully executed written listing agreement to the owner? o-

A. Upon execution of the listing agreement by all parties

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

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

D. At the time of presentation of a written offer

 

Major sources of real estate financing are lenders in the secondary mortgage market. An example of a lender in the secondary mortgage market is 2

A. Federal Housing Administration (FHA).

B. Fannie Mae (FNMA).

C. Veterans Administration (VA).

D. Farmers Home Administration (FmHA).

 

A complaint must be filed with HUD within what period of time after a fair housing violation has occurred? 2

A. 1 week

B. 1month

C. 1year

D. 7 years

 

An apartment complex generating $70,000 annually in net income is purchased based upon a 5% cap rate. What would the owner's equity gain be if the net income increases to s.

$100,000 per year?

 

A. $200,000

B. $400,000

C. $500,000

D. $600,000

 

 

eller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A will honor for a 12 month period exclusively for Buyer B. This 2-

vould be an example of a

 A. unilateral contract in which only Seller A has made a promise to perform.

 

B. unilateral contract in which only Buyer B has made a promise to perform.

 

C. bilateral contract which both parties are obliged to perform within the time period.

 

D. vold contract.

 

Neighbors Sam and Molly share the use of Sam's driveway, which is entirely on Sam's property. Sam wants to have control of driveway use in case Molly sells herhome, andSam = *-

does not like the new owner. Sam should provide Molly with

A. alicense.

B. acovenant.

C. an easement.

D. an encroachment

 

As 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 RealEstate --

Commission, the purchaser or lessee MUST be provided with a copy of the:

 

A. Statement of Record filed by the developer with the Commission

B. New Jersey Public Offering Statement approved by the Commission

C. deed or other instrument establishing title in the name of the developer

D. filed plat map identifying the location of the property being bought or leased

 

 

A salesperson is convicted of a crime which involved activities as a real estate licensee. The Commission obtains a certified copy of the judgment of conviction against the *-

salesperson. According to the New Jersey Real Estate License Law, the Commission MUST:

A. revoke the salesperson’s license

B. suspend the salesperson's license

C. determine, at its discretion, what disciplinary action to take against the salesperson

D. notify the salesperson's employing broker of the circumstances pertaining to the conviction

 

 

Limiting the neighborhoods in which a licensee shows houses because of a buyer's race is io.

A. puffing.

B. blockbusting.

C. rediining.

D. steering.

 

After terminating the employment of a licensee, the New Jersey Real Estate Commission rules require the terminating broker to: o.

A. immediately pay all commissions due the licensee

B. give releases on all listings obtained by the licensee

C. obtain the signature of the licensee on a written termination agreement

D. provide a written accounting of compensation due the licensee

 

A buyer Is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference -

between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.)

AMORTIZATION TABLE

MONTHLY PAYMENT PER $1,000 OF LOAN

 

a TC

oorveer [Svar [Wren [ister foram [Bren [oven [aren [ore]

| SS 1888/5 1061]$ 791/15 seols sesis s3s7[s os )2 4:

| Sz] 1911] 1086] 818] 6s] 63s] 68] S516

JG] 1984] nas] gee] 737] as] G0o] my 851

| Ga], 9s7] nse] 872] 746] 676] 632] 6 S86

| tga] sez] 899] 776] 707] 6 6 6 9] 6.22

| 7/2] 20.04] ass] 9.28] 806] 739] 700] = 75] 659

| i028] 2a} ose] oas7| 77? 7] 731! 696

Psu2{z0s2[azeol oes! es ecay 7 arf Gi

| 20.76] = 12.67] = 10.18 9.00 840 8.05 7.84 7.72

| te] zor] 2294] 1045] 95s] sat sai] 822] 8.21 |

| 2s] 3322] 1075] 966] 909] a8] seo] 8 so

| 101/2]_—2aso| isso] 1106] 999] = 945] 915] 899] 8.89

LT 2a7s| 1378] as7] 1083] 981] ss] 987] 9.29

[| aaa] 2200] 1406] 169] 1067] 1017] 991] 977] 9 69 |

P2225] 48s] 1201] 3102] 1054] 1029] 1036] 1009 |

[| azay2|22so| 1464] 123s] uas7] 1091] 1068] 1056] 10.49 |

| S| 2276] 494] i266] ti72] 3128] 1207] 1096] 10.90 |

| a3 a/2] 2301] 1523] 1299] 1208] 1166] a6] nse] 12.32 |

| 42827] sss] 1ss2] izes] 1208] nes] o1n76] 1172 |

|e ay2]_23s3] sss] 1366] 1280] 1243] 225] 1237] 1213)

[| S| 23.79] 2614] 1400] 1327] 128i] 1265] 1287] 12:54 |

[|S a/2] 24.06] 1645] 14.94] 1354] 1320] 13.05] 1298] 1295 |

| tt] 24.32] 1676] 49] 1392] 1359] 345] 1399] 13.36 |

 

 

per Year |S Years 10 Years |15 Years |20 Years [25 Years [30 Years |35 Years |40 Years

| CSS B88] $ 1061/5 791|/$ 660]$s SBs|$ S37/$ S.o5|$ 483)

| Sa] gar] 086] = 8s] ssa] 63s] see] 538] 5.26 |

| ES” ey ee

| Ga] gs7| nse] 8.72] 7.46] 676] 632] 605] 5.86

La ate2z] 899] 7.76] 707] 666] 639] 622 |

| 7 Aa] 20.08] = nes] 9.28| sos] 739] 700] 6.75] 659

| 2028] raat ose] sz] 772] 7a] 7a 696 |

| 82] 20s2] 240] oss] ses] 80s] es] 747] 7.34 |

| 20.76] 1267] 015] 00] 840] sos |e] 7.72 |

| a] 2nor] = izeal 104s] oss] sa] aaa] 822] 8.32)

| 022s] 3322] 307s] 966] 90s] 87a] séo| 8 So |

| to a/a| aso] 1350] 1206] = 999] 94s] 91s] 899] 689 |

[27s | 3s.7e]ns7] ross] gai] oss] 937] 9.29]

eee 9.55 |

P2228] ass] i201] soz] 1054] 1029] 15m) 1009

[azz] 22so| aes] izss] 1as7] 1091| oes] ase] 1049]

[| S| 22.76] aoe] zee] an72] ize] 07] 18 >

 

| asa] 28.01] 15.283] 1299] 1208] 1166] 1266] 11.96

 

MT 2.27t sss] 1ssz] 1zee] zoe] ines] oin7e 1172)

tanya] 2sss| sas] ses] i290] res! 22s] +237

 

| ST 28.79] = 16.147 = 14.09 1717 28) 12.0% 1257

 

[| Say2] 240s] 164s] 14se] 19se] 1320] isos] 1298] 1295]

|G] 2482] 16.76] 1469] sez] sso] sas] 1sso] 13.36 |

 A. $309.20

 

 B. $409.20

 

C. $525.80

 

 D. $850.80

 

 

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: o.

A. four-acre vacant lot zoned as light commercial

B. five-acre unimproved lot zoned as single-family residential

C. fifteen-acre unimproved lot that the prospect, a developer, will subdivide for the construction of single-family homes

D. small, fully occupied strip mall housing a delicatessen, a dry cleaner, and a stationery store

 

 

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 with 2-

whom this broker negotiates is this broker's

A. client.

B. customer.

C. principal.

D. fiduciary.

 

The 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 reai estate o-

commissions, increasing his net proceeds from the sale. Is this a legally permissible arrangement?

 

A. This is illegal according to RESPA.

B. This is illegal according to Regulation Z.

C. This ts permissible if the buyer was receiving a VA loan.

D. This is permissible if no fee is paid directly to the seller.

 

In New Jersey, the realty transfer fee appears on the closing statement as a: 2-

CG A. debit to the seller

 

B. debit to the buyer

 

C. credit to the seller

 

D. credit to the buyer

 

According to the New Jersey Law Against Discrimination, which of the following descriptions may be used in advertising properties in a townhome development? o.

A. Close to synagogues and churches

B. Ethnic neighborhood

C. Singles only

D. Senior housing

 

The clause designed to ensure that a broker will receive a commission if negotiations with a ready, willing, and able buyer are completed after the listing has expired is called o.

A. an acceleration clause.

B. an alienation clause.

C. acoinsurance clause.

D. anextension or “tail” clause.

 

The purpose of a reverse mortgage is to .

A. permit the mortgagor to borrow additional funds as the mortgage is paid down.

B. grant the mortgagee priority over certain liens.

C. provide financing for construction.

D. supplement the mortgagor's income.

 

Which of the following statements is TRUE regarding an option agreement? o.

A. The buyer must purchase the property at some future time.

B. The buyer is given the privilege of occupying the property.

C. The seller agrees to sell at a fixed price within a stipulated time.

D. Any payments are refunded should the buyer fall to perform on the agreement.

 

 

The lead paint addendum that MUST be presented with the purchase and sale contract for certain older homes will o-

A. require the removal! of all lead paint prior to the closing.

B. provide the buyer with the opportunity to waive the right to a lead paint inspection.

C. mandate that sellers remove any lead paint only on interior walls.

D. make the sellers liable for any of the buyer's lead-related medical problems.

 

 

A married couple is purchasing a home. They ask the salesperson to advise them regarding the best way to take title. The salesperson should *-

A. ask his broker to make a recommendation.

B. advise them to take title as tenants by the entirety.

C. decline to advise them and suggest that they consult an attomey.

D. explain the possibile types of joint ownership so they understand the options.

 

 

Which of the following statements about airborne radon is TRUE? o.

A. ithas an easily detectable odor.

B. tis only found in older wood frame structures.

C. ttis inexpensively detected and mitigated.

D. itis not harmful to adults who do not smoke.

 

 

Which of the following statements about airborne radon is TRUE? e.

A. ithas an easily detectable odor.

B. tis only found in older wood frame structures.

C. itis inexpensively detected and mitigated.

D. tis not harmful to adults who do not smoke.

 

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? 2-

A. cash

B. debit card

C. credit card

D. check or money order

 

 

A licensee is representing a seller. A buyer makes an offer of $150,000, but tells the licensee that he would be willing to pay up to $155,000. The licensee should o-

A. refuse to present the $150,000 offer.

B. inform the seller that the buyer will pay $155,000.

C. suggest that the seller counteroffer at $152,500.

D. suggest that the buyer make an initial offer of $152,500.

 

 

if a deed creating a tenancy in common does NOT state the fractional interest of each co-owner, it 2.

A. is void.

B. is presumed each owner has an equal interest.

C. must be determined by a majority vote of the tenants.

D. becomes a joint tenancy.

 

 

if a deed creating a tenancy in common does NOT state the fractional interest of each co-owner, it 2.

A. is void.

B. is presumed each owner has an equal interest.

C. must be determined by a majority vote of the tenants.

D. becomes a joint tenancy.

 

 

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

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

B. acertificate of reasonable value

C. aFiCO score of at least 745

D. private mortgage insurance

 

 

Which of the following differentiates a bilateral contract from a unilateral contract? 2-

A. number of parties invoived

B. performance obligations of the parties

C. relative value of the object of the contract

D. type of property specified in the contract

 

 

The rules governing New Jersey real estate licensees require that a comparative market analysis (CMA) for a property MUST include: e.

A. the square footage of the property

B. school reports

C. the sales price of pending properties

D. a statement indicating that the CMA is not an appraisal

 

 

Which of the following best describes the Housing for Older Persons Act? 2.

A. requires that 55-and-older housing have significant facilities and services designed for seniors

B. requires that at least 80% of occupied units have one person age 55 or older living there

C. allows the awarding of monetary damages against those who believed that property designated as housing for older persons was exempt

D. allows grandparents with grandchildren to be exempt from the provisions of the Act

 

 

The purchase and sales agreement provides for release of earnest money to the seiler after the buyer's property inspection. The seller requests the earnest money prior to the s.

property inspection. The broker should

 

A. release the earnest money to the seller immediately.

B. notify the buyer of the broker's intention to release the earnest money to the seller.

C. release the earnest money on the buyer's verbal approval.

D. refuse to release the earnest money.

 

 

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, thatthe 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

 

A CORRECT statement about New Jersey's real estate transfer tax is that it is: e.

A. waived for new construction

B. payable by the buyer at closing, although no law prohibits contribution by the seller

C. payable at a reduced rate for grantors who are sixty-two or over

D. payable within thirty days of receipt of the recorded deed

 

Which of the following statements is the BEST example of puffing? 2

A. Since the bus stop is only 1 block away, the home has excellent access to public transportation.

B. This is the best buy you'll find all year.

C. This home has been fitted with double paned windows, as can be seen in the brochure.

D. This property has a net property income of $7,500.

 

 

Two days after closing, the selier gives a $500 bonus check to the selling agent. The agent should 2-

A. immediately deposit the check in his account.

B. instruct the seller to issue the check to the agent's broker.

C. cash the check and give the broker his share of the bonus.

D. instruct seller that bonuses are illegal.

 

 

What does the mortgage lender MOST often rety on when deciding how much is safe to lend on a parcel of real estate? 2.

A. Market analysis.

B. Sales contract.

C. Appraisal report.

D. Assessor's determination.

 

 

Title insurance has allowed for more accessible loans for buyers. This is because o.

A. lender policies can add exemptions to the owners policy.

B. Kreduces the risk of loss due to buyer defauit.

C. it reduces the risk of loss due to title defects.

D. tender policies are paid for by buyers.

 

 

A buyer has specified in writing an interest in purchasing a property without any legal obligation. This is referred to as 2-

A. anoption.

B. a letter of intent.

C. anon-binding option.

D. a project intent letter.

 

 

Title insurance has allowed for more accessible loans for buyers. This is because 2

A. tender policies can add exemptions to the owners policy.

B. Kreduces the risk of loss due to buyer default.

C. itreduces the risk of loss due to title defects.

D. lender policies are paid for by buyers.

 

The broker's principal is the seller. The buyer is a customer from a different brokerage company. The broker may be guilty of misrepresentation if she knows, but chooses NOT to s.

disclose, that the

A. park behind the home will become a highway in two months.

B. neighborhood has been the scene of violent crime recently.

C. seller must be out of the house in another month.

D. demographics of the neighborhood are changing.

 

 

A 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 offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash. The broker

 

A. may not accept the offer until the seller returns.

 

B. must forward the offer to the seller's attorney for consideration.

 

C. may accept the offer.

 

D. may sign a deed of conveyance if the seller does not return on time.

 

 

The Pinelands Protection Act of 1979 is a New Jersey law that: o.

A. requires the registration of residential development projects with the New Jersey Department of Community Affairs

B. empowers the New Jersey Department of Environmental Protection to acquire title to certain real estate for less than its fair market value through condemnation

C. restricts development on real estate in certain designated areas

D. requires environmental impact statements to be filed with the New Jersey Department of Environmental Protection before title to developed real estate can be transferred

 

 

A land contract is sometimes known as an o-

A. _ installment contract.

 

B. option contract.

 

C. implied contract.

 

D. express contract.

 

Which of the following is LEAST likely to be considered in establishing the value of a property by the sales comparison approach? o.

A. The date of sale.

B. The capitalization rate.

C. The size of the lot.

D. The square footage of the building.

 

Which of the following statements conceming an agreement of sale prepared by a licensee in accordance with New Jersey License Law is CORRECT? 2.

A. The agreement must contain a mortgage contingency clause.

B. The agreement must include an Attorney Review Clause.

 

C. The buyer must be given a three-day right of rescission.

 

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

 

 

A person who was previously found guilty of a rule violation is later found gullty of a subsequent rule violation. What is the MAXIMUM fine which may be imposed on the licensee 2-

for the additional violation?

A. $500

B. $2,000

C. $5,000

D. $10,000

 

 

A person who was previously found guilty of a rule violation is later found guilty of a subsequent rule violation. What is the MAXIMUM fine which may be imposed on the licensee o.

for the additional violation?

A. $500

B. $2,000

C. $5,000

D. $10,000

 

if a gap in the chain of title is discovered, what would it create? 2

A. lien

B. encumbrance

C. cloud on the title

D. adverse possession

 

In general, option contracts 2

A. are not binding on the seller.

B. are binding on the buyer.

C. are for very short terms.

D. must be in writing.

 

Negative amortization is 2

A. the number of basis points a lender adds to an index to determine the interest rate of an adjustable-rate mortgage.

B. the result of every interest-only mortgage loan.

C. insurance coverage on real estate that compensates the owner for physical damage to a property from fire, wind, or other hazards.

D. anincrease in mortgage debt that occurs when the monthly payment is not large enough to cover the interest due.

 

 

During a broker meeting, a broker states that a competitor is NOT charging enough commission. The other brokers should 2

A. vote on a new fee.

B. reduce their fees.

C. remove themseives from the meeting.

D. not show the competitor's listing.

 

A national company desires a parcel of land which must be four times the size of its proposed buliding. If the building design includes 20,000 square feet, then which of the 2-

following minimum sized lots should be purchased?

A. 1acre

B. 2acres

C. 4acres

D. 8&8 acres

 

A low loan-to-value ratio indicates a o.

A. lower equity in the property.

B. greater risk of foreciosure.

C. higher equity in the property.

D. greater use of leverage.

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 e-

developer to ensure this will take place?

A. Have an architectural review committee approve building pians.

B. Establish a homeowner's association.

C. Petition for a zoning change.

D. Create deed restrictions.

 

A MAJOR difference between freehold and nonfreehold estates is that all nonfreehold estates o.

A. have an ownership interest.

B. terminate upon the death of the person on whose life they are based.

C. are estates of inheritance.

D. are estates for a fixed term.

 

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? 2

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

B. Whether or not the HUD Equal Housing Opportunity poster 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 visit the office.