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A tax assessor determined that a commercial building with a 3

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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 ¯-

milis, 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? a.

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. 24hours

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 seil their long-time home to take a tax-free capital gain of up to eo.

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 eo.

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C. offer may be withdrawn at any time prior to the delivery of its acceptance.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 storec4 He decides to stop advertising the property In the city newspaper and instead advertise the property on two different

Russian tntemet sites. This la

A. acceptable because It Is not print medla.

B. unacceptable due to Its discriminatory nature.

C. acceptable If the advertisement Includes no preferential language.

D. the only appropriate way to market property Jn this n~ighborho

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 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? o-

A. Antique chandelier.

B. Hot water heater.

C. Helrloom rosebush.

D. Cast iron garden bench.

Which of the following statements about branch offices is INCORRECT? o-

A. The name of the branch office supervisor must be recorded with the commission.

B. Alicensed broker-calesperson 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 responsibdie 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 o.

familiarity with the ADA Title Mi. This broker is most likely working for the client as

A. an affiliate.

B. an escrow officer.

C. as property manager.

D. a designated broker.

A candidate passes the prelicensure course examination on November &. The candidate must apply for the license within: o-

A. six months from completing the prelicensure course

B. one year from passing the state licensing examination

C. one year from compieting the prelicensure course

D. two yeers from passing the state licensing examination

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

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 ail of the seller's terms.

in New Jersey, the Private Weil Testing Act (PWTA) requires: o.

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 weil fails the test

insurance vaiue differs from market value in that i.

A. the vaiue is only attributable to the replacement vaiue of the structure.

B. includes the land and structure values.

C. fair market value is not insurable.

D. i includes only the land value.

In a jurisdiction where a seller's property condition discioeure is required, the licensee is responsible for oe.

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? oe.

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

B. Aciause 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: o-

A. suggests uniform commission rates among ali 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 o-

A. refuse to write the offer.

B. insist on a prompt closing.

C. ask for a high eamest 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: o-

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 o-

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. A free dinner for attendees at a homebuyers’ evening seminar

D. Free use of a local moving van for ali 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? o-

A. radon

B. lead-based paint

C. neighborhood composition

D. seller's property disclosure

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

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 emaiis.

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? oe.

A. a broker's price opinion

B. acomparative market analysis

C. areconciliation report for an FHA loan

D. avaiue 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 vaiue was $220,000. What will the buyer pay for one year’s property taxes, if her tax rate is 0.2%?

A. $440

B. $500

C. $3,680

D. $4,600

Depreciation usually appiles to e-

A. the building only.

B. the land only.

C. both the land and the buliding.

D. income obtained from the buliding.

A lender whose mortgagor has defaulted may be offered a deed in ileu of foreciosure. if he accepts, which of the following will be TRUE? o-

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? o-

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 themseives. After the closing, the owners paid afullcommission °-

to the broker. The broker MUST have had

A. an open listing.

B. an exclusive agency listing.

C. anet listing.

D. anexciusive right to sell.

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

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 o.

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 waik-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 adjustabie.

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

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 knownto, %-

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? a.

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 reai estate license? o-

A. failing to provide a client with a copy of the signed exciusive 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 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? o-

A. $61,600

B. $78,400

C. $80,500

D. $360,500

A buliding 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? oe.

A. $61,600

B. $78,400

C. $80,500

D. $360,500

The seller has entered into an exclusive right to sell agreement with Terry Hill. Ms. Hill presents the seller with an offer to purchase which is 20% less than the list price. Which of o.

the following is appropriate?

A. The seller is obligated to pay Ms. Hil 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 else the offer is considered to be accepted.

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

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

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? o-

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

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

C. Allender 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 o-

A. no entry 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.

A real estate salesperson legally represents the party who has: e-

A. paid a commission to the licensee's broker

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

C. entered into an exciusive 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): o.

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 following EXCEPT o-

A. disclose the seller's motivation for selling.

B. identify latent property defects.

C. prepare a Competitive Market Analysis (CMA).

D. disciose 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 too! he should use to o-

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 retail building and has a long-term lease. As part of their fit-up, they boit to the floor their meat and dairy coolers, shelves and #.

check-out stands.

When Quality Supermarkets vacates the property at the end of the lease, will Quality Supermarkets be legaily entitied to remove these fixtures?

A. Wo, 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.

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

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

B. a former occupant of a property had AJDS

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

D. the property was the scene of a serious crime

Ted and Cerol want to buy a 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 needto 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 smortization table.

AMORTIZATION TABLE

MONTHLY PAYMENT PER $1.000 OF LOAN

interest Rate| ihe thetomn

eervenr [Sven [ves [stem Loren [Stes [Ore Seu + tear

SS 88815 1062/5 79115 e6o]$ Sas[s S57]/$ “Os © 485

[saat igai[ ose] eas] ces] sas] see] fw] S16

pet aa] eae] 7a7] bas] 6oot Es S31

sz] i9s7] nse] 872] 7e6] 676] 632] 605] 5 86)

981] 3262] ae9] 776] 707] 689] 622

eee eet SS 88

| ECB 2 ae 936 229 7.7? 7.29) 712 6%

saz] 2os2] izeo] ges] ses] sos] eo] 747] 78

[ftom iz67| 0s{ eco] = seo| eas) eel 772

poet 2201] 29a] oes] oss] aret eas] s2z] 833 |

ffs] 1822] 10m |] ee] 908] ke] 860] 850

| weyay 2aso] sso] nde] 99s| 945] 8S] sae] 8 89

a aa7s| svat iss27] 103s] get] 95s] 987] 929

| anayat 2200| 1406] nes] 1067] 017] sea] 977] 969

Pa 2225] ess] zor] t1a07] 1084] 1029] 1016] 10.09 |

| taaf2t22so] ses] 1233] 1287] 1091] 1088] ose] 1049 |

22.76] aoe] zee] 1272] 128] us07] 3096] 10.90

saat 2301] is2zs] zoo] izos] utes] ites] 1236] 1252 |

p27] sss] 13s2] 124s] zoe] ines] 1276] 13:72)

| aaa} 2353] 1583] 1366] 1280] 1248] 1225] 1237] 1213 |

S239] 62a] aaoo] 13.17] zai] 126s] i257] 12 sa)

|S a/2]_ 24.06] 164s] ase] 1sse] 1s20] 1305] 1298] 12.95,

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. Ha writing confirming the terms of the rebate is provided to the buyer at closing.

| T9384] aaa] gas] a7] as] = oof smi] ssi

| 621957] 136] = a2] 746] = 6 76] = 6.32] = 605 | 5 86

| 9 8iy = 1162] =o] 76] = 707] ~=— 66 | 69] 6 22 |

| 7a} 2008] =1se] =o zs] 806 | 739] = 00] = 5] 6 59

| 2028] 234] 96] 87] 772] oe] a] 696 |

| BA —20S2] =:1240] ~=98s] = es] = 86] =—69| = 47] 7.34

| 2076] =1267] ~1015} 900] 840] 805] 794] 772)

ee 7 ee

| YS 225] = 1322] 31075] 966) 909] 878} séo]| 850)

| 0n/at 250] sso] = 1106] = =6999] = =945] =o] 899] 8 89 |

| M275] 378] =6487] =1033] = gaa} = 983] = 987] 9.29

| aaa], = 2200] =moe] = 1169] 1067] 1017] 991] »'’ 969

| at 2225] 48S] 1201] 1107] 1054] 1029] :*%% 1009

| azayat—22so] 46s] = 1283] = 1237] ~=1091] 1068] ss] 1049

|] 22 76] = aoa] = 266] n.72]a28] 107] ar 10 90

| aSa2}2sor] 31823] 1299] 1208] 1166) 1206] 1196] 1331)

| 28.27] = 858] 13982] «61246 ] =1208{ 1185] 1276] 1272)

eget eet ea! Est an Ba ast 8

| ST 8379] 1624] 4D, 37] azBrt ze 257] nse

| —ssaSa/2] = 2406] ~=616.45] =1ase}] 618584] 1320] 1305] 1298] 1295)

| tet =a sz] 6 76] ~=aeo | =—ssz] 13so] 1345] 1389] 1336]

A $484.40

B. $806.40

C. $618.90

D. $661.62

A contract is terminated if o-

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

B. a third party intervenes.

C. itts 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? oe.

A. Fair Credit Reporting Act.

B. Equal Credit Opportunity Act.

C. Uniform Settlement Act.

D. Real Estate Settlement Procedures Act.

What shouid buyers insert into thelr purchase offer to make sure they would NOT have to go through the purchase if they CANNOT obtain the necessary financing? e-

A. Escape ciause.

B. Provision for liquidated damages.

C. Contingency.

D. Walk-through agreement.

An agency relationship is established between the broker and eo.

A. another broker.

B._ the principal.

C. amulttiple 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 o.

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? o-

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 -.

A. eams acommission 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 o-

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

Ali 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: o.

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 ail 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 o-

A. Federal Housing Administration (FHA).

B. Fannie Mae (FNMA).

C. Veterans Administration (VA).

D. Farmers Home Administration (FmHA).

A compiaint must be filed with HUD within what period of time after a fair housing violation has occurred? w-

A. 1 week

B. 1 month

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 o.

$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 o-

vould be an example of a

A. unilateral contract in which only Seiler 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. void 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 selis her home, and Sam o.

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

A. alicense.

B. acovenant.

C. aneasement.

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 o.

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 es.

A. puffing.

B. biockbusting.

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 e.

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

AMORTIZATION TABLE

MONTHLY PAYMENT PER $1,000 OF LOAN

tere reer can [sven Tpovean [Svea eS Year

perYear |SYeers [10 Years [1S Years |20 Years [2S Years [SO Years [35 Years [40 Years

| si S 1B 881S 1061/$ 79115 660|$ SBs|$ SS7/S 5 < 5 42:

| = S291] 1086] ss] eas] 61S] = Se8]) SK S16

J] a] nai] see] 737] 645] 600] = S51

| a2] 9s7] 1ns6] 872] 746] 676] 682] SS

| gay] =usez2] 899] 776] 707] = 6 || 622

[7a 2008, sss] 928[ ~—sos[ 739| 7ool 67s] 659!

8 2028| 1218] oss] 037] 772! 7m] 70! 606

[eua{20sz] i200] 983! ae8] ets, 7! 7a7[ su

CC 20.76] 1267] 1015 9.00 840| 8.05 7.84 7.72

| ava] znon] 1294] 104s] = oss] 874] eat] 822] 811

| CSCS] =8322] =81075| =9966] =9909| 8878] sel (85O.

| tonya] aso] isso] = inos])=— 999] 9as| 915] So] 8 89 |

| ans] sve] as7] 103s] 981] ss] 987] 9.29)

[aaa] 2200] =1406] =le9|] = 1067 = 1017] 91977] 9 69

| CC 22 2S eS] = zor] =—uscz|) =61054] =91029| =91016| ~—10 09 |

| azay2],2zso| 1464] 12353] =011387] =91091| 1068] 1056] 10.49

|S] 2276] aoa] 1266] 172] =(1328/ =t107] §=91096| = 10.90

| aS a/2] 2301] 15.23] 1299] = 1208] 1166] nes] kde] 1232)

AY 2.27]) S53] 1882] 124e] zoe] anes] 1276] 11.72 |

[tanya], 23ss| 1583] 1366] 1280] 1243] 1225] 1237] 12:13 |

| S| 23.79] 1614] = eoo] 1337] si] izes | 1257] 1254)

[Safa] 24.06] 1645] 1484] 1854] 1320] 1305] 1298] 1295 |

| Ci‘, HZ] 676] =e] = 392] 61359] «891345 | 61339] 15.36

per Year {5 Years 10 Years [15 Years i20 Years [25 Years |30 Years (35 Years |40 Years

| CSS 1888/$ 1061/$ 79115 660/$ S8S|/$ S3S7/$ SOS|S 483)

| SA] 191] =1086] = 8] 88] 63S] = S68] 538] 8.16 |

| ti‘: GSM] a] =e] 77] 645] ~=—600]) =m] S51

| aa] 19S7]) nse] 872] 746] = 676] = 382] 605] S86 |

| C98] 62] 899] 776] 707] = 66 |] 6389] 622 |

| 7a] 2006] 1288] 928] 806] 739] = 700] = S| 6 SD

| CCS B] 2.24] 9S6] 887] 772] — 78a] 713] 6.96 |

| BA 2OS2] 1240] = 98s] es] 80s | 7747] 734

| C206 1267] = 1018] = 900] 80] 805 | 784] 772

| et 2201] = zga] toes] oss] a4] saa] = 822] 81h

| Ci‘ 22S =33.22] =891075| ~=—96 |] 909] ~=— a] =o] 8 SO

| Oa] aso] 61880] 3106] =—999] = 9.4S| = 91S] 899] 8 BF

2s] s.78]1ns7]) 108s] = oat] oss] 987] 929

| AR Y2] 2200] =1406] 31269] =1067] «1017] om | 8s,

| si 22s] 48S] 1201] =81102| §=891054] 81029] «813% = 1009

| -azy2t—22so] aes] = =128s| 1287] 3091| wes] 358) 1049

| AS] 226] ee] 1266] 1272] 1128] = 1207] = 80% = 10.90

| Safa] 23.01] = 15.23] = 1299] =1208] «1n6s] 1106] «1236] 1131

| Tazz] SSS] sez] zee] 1200] 128s] 1276] 11:72)

[__ayal__2sss] 1ses| oases] ize0{ rzes! za] :237

[15] 2379] 1616] 1909" 4017] 28s) azen! 27

| aSa/2], eos] = 164s] tase] 1sse] 1320] 1805] i298] 1295

| tC“ 2432] =676] =84eo| ~=—iss2| isso] =1sas] 1399] = 13.36 |

A. $309.20

B. $409.20

©. $828.80

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 eo.

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 real estate o.

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

A. This ts 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: o.

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 os.

A. an acceleration clause.

B. an alienation clause.

C. acoinsurance clause.

D. anextension or “tail” clause.

The purpose of a reverse mortgage is to o.

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

B. grant the mortgegee 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? e-

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 fail 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 onty on interior wails.

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 2.

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 attorney.

D. explain the possible 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. itis only found in older wood frame structures.

C. itis inexpensively detected and mitigated.

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

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

A. ithas an easily detectable odor.

B. itis only found in older wood frame structures.

C. itis inexpensively detected and mitigated.

D. itis 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? o.

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.

Hf a deed creating a tenancy in common does NOT state the fractional interest of each co-owner, it o-

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.

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

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? eo.

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: o.

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? o.

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 seller 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, 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

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

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? o.

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 seller gives a $500 bonus check to the selling agent. The agent should o.

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 lilegal.

What does the mortgage lender MOST often rely on when deciding how much is safe to lend on a parce! of real estate? o.

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 2.

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

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

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

D. lender 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 *-

A. an option.

B. a letter of intent.

C. anon-dinding option.

D. a project intent letter.

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. it reduces the risk of loss due to buyer default.

C. reduces 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 gulity of misrepresentation if she knows, but chooses NOT to o.

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 ts leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power a.

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 reali 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. _ instaliment contract.

B. option contract.

C. implied contract.

D. express contract.

Which of the following is LEAST likely to be considered in establishing the vaiue 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 buliding.

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

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 gulity 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 so.

for the additional violation?

A. $500

B. $2,000

C. $5,000

D. $10,000

A person who was previously found gulity 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? o-

A. tien

B. encumbrance

C. cloud on the title

D. adverse possession

In general, option contracts o-

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 eo.

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 o.

A. vote on a new fee.

B. reduce thelr 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 building. If the building design includes 20,000 square feet, then which of the o.

following minimum sized lots should be purchased?

A. tacre

B. 2 acres

C. 4acres

D. 8 acres

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

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 o-

developer to ensure this will take piace?

A. Have an architectural review committee approve buliding pians.

B. Establish a homeowner's association.

C. Petition for a zoning change.

D. Create deed restrictions.

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

A. have an ownership interest.

B. terminate upon the death of the person on whoee 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? o.

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.

Jones end Haistead live across the street from each other in a subdivision in which homeowners are prohibited by deed restriction from k

Jones discovers that Halstead is keeping a Shetiand pony in the backyard. Can Jones take action to enforce the deed restriction?

A. Yes, because Jones can force any other property owner in the subdivision to comply with the deed restrictions.

B. Yes, because Jones is legally bound to report to the subdivider any violation of the deed restrictions.

C. No, because only a property owner with land adjoining Haistead'’s can take action against Halsteed.

D. No, because Hailstead’s ownership rights take precedence over deed restrictions.

A salesperson has the opportunity to list a 6-piex that is 100 percent rented. The salesperson does NOT need to account for any expenses.

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

A. Gross Rent Multiplier (GRIM).

B. Net Rent Multiplier (NRM).

C. Gross income Multiplier (GIM).

D. Return on investment (RO#).

A broker listed a property and found a buyer, to whom he disclosed some minor defects he had noted in his own inspection of the prog

form, the seller stated that he was not aware of anything more serious. After the sale closed, the buyer discovered serious plumbing prot

rescind the sale and recover damages. What is the broker's responsibility in this situation?

A. The broker must repay the commission to the seller because the sale was rescinded.

B. The broker is equality Kable (with the seller) for damages because he had an independent duty to discover and disclose any latent defects in the property.

C. The broker is guilty of willful misrepresentation and is subject to whatever disciplinary actions his state's real estate licensing agency prescribes for such a violation.

D. The broker in this situation has done nothing wrong, is not liable for the buyer's damages, and is entitied to keep his commission.

in order to collect a commission, which of the following is a REQUIREMENT for a broker with an open listing?

A. The broker must put the listing on the MLS.

B. The listing must have a protection clause.

C. The broker or one of his licensees must be the procuring cause for the sale.

D. The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer.

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?

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 assumablie.

When is a broker's compensation negotiable?

A. Only if agreed on by the client.

B. if a written contract is signed.

C. When the broker is an independent contractor.

D. in every case

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

According to the New Jersey Real Estate Licensing Law, what method of payment may NOT be accepted as an earnest money deposit on a

A. cash

B. debi card

C. credit card

D. check or money order

A real estate licensee representing a buyer may do ail of the following EXCEPT

A. disclose the seller's motivation for selling.

B. identify latent property defects.

C. prepare a Competitive Market Analysis (CMA).

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

in order to collect a commission, which of the following is a REQUIREMENT for a broker with an open listing?

A. The broker must put the listing on the MLS.

B. The listing must have a protection clause.

C. The broker or one of his licensees must be the procuring cause for the sale.

D. The broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer.

Which of the following statements about branch offices is INCORRECT?

A. The name of the branch office supervisor must be recorded with the commission.

B. Alicensed broker-salesperson must supervise the office on a full-time basis.

C. Two salespersons may be designated to share supervising responsibilities.

D. The employing broker is ultimately responsible for ail licensees employed at the branch office.

Coprowgts C NUR PM UG rights rverownd

When is a broker's compensation negotiable?

A. Only if agreed on by the client.

B. if a written contract Is signed.

C. When the broker is an independent contractor.

D. In every case.

When is a broker's compensation negotiable?

A. Only if agreed on by the client.

B. Wf a written contract is signed.

C. When the broker is an independent contractor.

D. In every case.

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

A. puffing.

B. blockbusting.

C. rediining.

D. steering.

A buyer and a seller agree to prorate the cost of lawn maintenance, cleaning fees, and related services on a property. The cost prepaid by t

The closing date is June 20, with the seller paying for the day of closing. How much does the buyer owe?

A. $135

B. $150

C. $285

D. $300

The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He

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

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. Heneighborhood seems to be the large Russian grocery store. He decides to stop advertising the property in the city newspaper and insteadRussian 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.

C oprrvgts © SON) PU nether reserved

in estimating the value of a 50-unit apartment complex, which of the following approaches would yield the moet accurate estimate?

A. cost

B. income

C. market data

D. gross rent multiplier

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

A. 1 week

B. iImonth

C. tyear

D. 7 years

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

A. have an ownership interest.

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

C. sre estates of inheritance.

D. are estates for a fixed term

Broker A has created an extremety aggressive business model which has allowed for very quick success in the market. The other brokers i

allow Broker A to show their listings or show Broker A's listings. This would violate

A. Regulation Z.

B._ the Sherman Antitrust Act.

C. the Real Estate Boycott Act.

D. the Real Estate Settiement Procedures Act.

According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey, ail of t

A. licensee must hold a timeshare sales license.

B. timeshare must be approved by the Rea! Estate Commission.

C. licensee must provide the buyer with a copy of the Public Offering Statement.

D. contract of sale must provide notice of a seven calendar day rescission period.

According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey, ail of t

A. licensee must hold a timeshare sales license.

B. timeshare must be approved by the Real Estate Commission.

C. licensee must provide the buyer with a copy of the Public Offering Statement.

D. contract of sale must provide notice of a seven calendar day rescission period.

Whenever a salesperson receives cash to be heid in trust, the salesperson MUST:

A. deposit the money within twenty-four hours in an interest bearing account

B. give a written receipt signed by the salesperson to the prospective purchaser and immediately deliver the funds to the salesperson's broker

C. notify the customers that cash is unacceptable and request that payment be made by certified check as required by the license law

D. immediately deposit the funds in the salesperson's account and write a check to the broker's escrow account

Setier A entered into an option contract with Buyer 8B. The contract allowed for a price of $200,000 which Seller A will honor for a 12 month

would 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.

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

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.

A property is shown to prospective buyers by a cooperating agent who is a long-time friend of the listing agent. While still in the house the

property. As the cooperating agent is locking up the house, the owners return and ask how the showing went. The cooperating agent expla

and will immediately deliver it to the listing agent. The owners 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 immediatety.

D. detiver the offer to the listing agent, but verbally tell the sellers that it is a full price offer.

A buyer's agent learns that there was previously a water intrusion problem in the basement, and this is not mentioned on the seller's discic

for next week, and the agent has not had a commission check in quite some time. How should the agent proceed?

A. As the problem has obviously been repaired, it is unnecessary to make the disclosure.

B. The agent owes the client full disclosure of ail material facts and as such has a duty to disciose this latent defect.

C. As the inspection did not show any potential damage, the agent should not worry about the issue and proceed to closing.

0. Do nothing because full disclosure could cause the buyer not to purchase the property and the agent would not receive a commission.

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

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

B. it reduces the risk of loss due to buyer default.

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

D. lender policies are paid for by buyers.

Sally is purchasing a $400,000 home and the lender has approved her for a $320,000 mortgage with a 6% interest rate, arnortized over 30

interest payments total (rounded up)?

(BE SURE TO USE THE AMORTIZATION TABLE.)

AMORTIZATION TABLE

MAST MLV PAYMENT FEE $1 O00 OW LOAN

interent Rete

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GREETS GE 9 OS cS

Pe sep tit sas a7 east ect ms 83

Pe] ses7] asst sts] tas] ere] est 6 Ts 86

Ces es] emt mort ef

[af zooef ses] sce] eo] sa] tool es] ese!

Poe sat ose] 8? 773 7 34 711] 6

Pte] ter] ns O72

[east ep eel ioe] oss) aml em] ert en]

yf sacs] ses] som] gee gop] aa tee 8s)

ett Ht crep oust ost at eat ret ree

Pt ssa sat] css] 98a] sas] 97] 929 |

[awl 2z0of aosf res] ice) iif om] er] 968]

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Pa] asso] ees use] t37) soot] toes] ase] ices

pte] aoe] zee] 7s] aca] tno7] ase] ic 90

Po asast soa] uses] isos] zoe] tree] une] tase] 12 32 |

Par assy] oss2] zee] szoat pes] uae] ti 72 |

Pp twaes]cesy] sas] ossee] azeo] sas] oases] isa] oasis)

PST ye eset aoc] asa7] sea] ares] ouzs7] ina

| suo] 2406] i645] reset ssa) is20] isos] zee] 295)

MONTHLY PAYMENT Pf8S1 000 C# LAN

qterest Rete} ie tem

“Sree feast [see [nes Sen ven [es ee

[3 1saa]5 woei]s ~s[s ee]; se{s sys sa]s an

psi auf ewe et ew ent se of a

Pe ta astro as] 60 37)

Perot 39s7] set artes) ere) esz] eas 8 86

[isn] re] a] tert ses] en] oa

[rif sooe] ara] esa] one? 739 roo] om] ese,

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Pasar] szee] pas 93a) ate sar bes] ban

Pas ses] sos] ee] toe tl

pet aso] insect sre] oe gas | gist as $89

pT cas] iszatuis7[ css] oer] ass] sty as

pte ac] 2200] eos tres] cer) oir) ome 969

pts ses uses ros] ocsa] or] iste] cos

Paz) so] ees] ses iis7 oon oes] ose] ices |

ere ee ee ete Taste] amt acs

$263 * g slter lbts Ls Yer

ro gat a7yoassy])osas2 ft azeal) szoa] ass 1276] 4 72

| es] syse] ses] see asec, szes tases] azar] azas)

[ST ue] eta] seo] siz ize es izsr Tis sa]

| tS a2] 2406] teas] casa] 3sey ssco] os] izse] 129s |

| Le] te ref aes] 1392) 3s9f sas] oy ee] 13 86

A. $23,248

B. $29,060

C. $29,867

D. $34,874

Which of the following statements in an advertisement would be an example of non-discriminatory language under HUD’s Fair Housing Ac

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”

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

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

B. Asetlier must make reasonable eccommodations for those with disabilities.

C. Alender must make toans to those with disabilities.

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

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

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

B. Asetier 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.

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

A. Market analysis.

B. Sales contract.

C. Appraisal report.

D. Assessor's determination.

A deposit check from a buyer paid upon the submission of an offer may be heid without being deposited into the broker's escrow account:

A. until negotiations are concluded and the seller has accepted the offer

B. until all inspections required by the contract have been performed

C. for no more than five business days after receipt of the money

D. for no more than five business days after the termination of the attorney review period

The setter responded to the buyer's offer, proposing changes to some of the terms. in this case the seller would be the

A. offeree giving a counteroffer.

B. offeror giving a counteroffer.

C. offeror giving an amended offer.

D. offeree giving an amended offer.

Under New Jersey Real Estate Commission rules, s licensee's obligations to the public include all of the following responsibilities EXCEF

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

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.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 cthe 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 adjustabie.

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

in its advertisements, a New Jersey real estate company may NOT: -.

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

Which of the following types of deeds provides the purchaser of real estate the GREATEST protection? A. Quitciaim deed.

B. Trustee's deed.

C. General warranty deed.

D. Deeod in trust.

An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A 2.

lawsuit filed by the buyers would be for

A. specific performance.

B. lis pendens.

C. quiet title action.

D. a deficiency judgment.

A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase? *

A. $3,200

B. $23,520

C. $24,400

D. $26,720

A broker maintains a real estate agency and terminated two salespersons. in this situation, the broker is REQUIRED to take ali the following actions with regard to these two 2.salespersons EXCEPT

A. provide each with a written accounting of ail monies due each salesperson.

B. permit them to remove original sales or listing contracts from the broker's office.

C. pay any undisputed compensation due within ten days of the broker's receipt of such funds.

D. abide by the post-termination compensation clause contained in their employment agreements or provide a written explanation for not doing so.

In a jurisdiction where the common law of agency governs real estate activities, a broker has entered a single agency relationship with the buyer. He has put together a list of o.

properties to show that would provide the MAXIMUM commission to the broker, but not all of these properties are suitable for the buyer's needs. In this case the broker has violated

the fiduciary duty of

A. confidentiality.

B. loyalty.

C. disclosure.

D. caution.

For the borrower, the major ADVANTAGE of Private Mortgage insurance (PMI) for a home mortgage loan is that 2.

A. the premium is typically paid by the seller.

B. asmaiier down payment is required.

C. the entire amount of the loan is insured.

D. the loan is paid in full if the borrower dies.

Concerning the rights of a buyer or lessee, all contracts for the sale or lease of a property registered with the New Jersey Real Estate Commission as required by the Real Estate 2.

Sales Full Disclosure Act MUST contain which of the following notices directly above the space for the buyer's or lessee's signature?

A. The right to cancel the contract within ten days of signing the contract

B. The right to inspect the property within thirty days of signing the contract

C. The right to cancel the contract within seven days of signing the contract

D. The right to secure financing from the lender of their choice

According to the New Jersey Law Against Discrimination, which of the folowing ciasses is NOT protected’? o.

A. civil union status

B. convicted felons

C. domestic partner status

D. gender identity or expression

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

A. debit to the seller

B. debi to the buyer

C. credit to the selier

D. credit to the buyer

The rules governing New Jersey real estate licensees require that a comparative market analysis (CMA) for a property MUST include: 2.

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

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 2.

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

A. revoke the salesperson's license

B. suspend the salespersons license

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

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

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

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

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

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

The seller has entered into an exclusive right to se" 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 seiler has 72 hours to submit a counteroffer or else the offer is considered to be accepted.

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

in a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on the 2.

A. trust deed or mortgage.

B. deed.

C. loan application.

D. promissory note.

A city has rules requiring that a four-unit apartment buliding MUST be on a lot of at least 15,000 square feet and provide a MINIMUM of two off-street parking spaces per unit. These ~°.

rules are examples of the right of

A. police power.

B. eminent domain.

C. taxation.

D. escheat.

The person conveying an ownership interest in real property is known as the 2.

A. grantor.

B. grantee.

C. mortgagor.

D. mortgagee.

Which of the following is LEAST likely to be considered in establishing the vaiue of a property by the sales comparison approach? 2.

A. The date of saie.

B. The capitalization rate.

C. The size of the lot.

D. The square footage of the building.

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 2.

A. an acceleration clause.

B. an alienation clause.

C. acoinsurance clause.

D. an extension or “tail” clause.

Which of the following is an example of a disclosure required by the federal government? s.

A. The buyer is entitied to a copy of the covenants, conditions, and restrictions from the HOA.

B. The seller needs to buy a home before she can close on the contract.

C. Neighborhood demographic data is available on a local website.

D. The buyer should inspect the property for lead-based paint.

Latino families were beginning to move into a neighborhood that had previously been all white. A local broker passed out flyers to homeowners that said, “Sell now before K’stoo --

late! We have beautiful new homes with attractive financing and good schools.” These flyers would likely be viewed by the courts as

A. good marketing.

B. blockbusting.

C. reditining.

D. steering.

Minors are held liable for real estate contract obligations If they o.

A. are at least 16 years of age.

B. have the contract notarized.

C. graduated from high school.

D. have their guardian co-sign.

A lender requested that the entire loan baiance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this? 7.

A. Alienation clause.

B. Prepayment clause.

C. Condemnation clause.

D. Defeasance clause.

closing costs. What amount will the buyer have to have to 2.

meet his down payment requirements?

A. $45,000

B. $50,000

C. $55,000

D. $60,000

A licensee must provide a Consumer information Statement in all of the following transactions EXCEPT the: 2.

A. sale of a vacant one-family lot

B. sale of a three-family house in a mixed-use zone

C. sublease of a studio apartment for two months

D. lease of a three-bedroom apartment for one year

A lender may add 1/12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property to the monthly loan payment for deposit in o.

A. a PMI account.

B. amargin account.

C. an impound, escrow, or reserve account.

D. an adjustment account.

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

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

A broker has a single agency relationship with the seller. Any REQUIRED property condition disclosure would be completed by the o.

A. seller.

B. broker.

C. agent on behaif of broker.

D. agent on behalf of setier.

The setier has required that the buyer must use his title insurance company. The seller has been told that if the buyer uses the title company, they will pay part of his real estate 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 Regutation Z.

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

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

May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees? o.

A. Yes, if the client directs the licensee according to New Jersey regulations.

B. Yes, if the cent gives verbal direction not to cooperate.

C. Yes, if the broker directs the salesperson not to cooperate.

D. No; licensees are required to cooperate under all circumstances.

May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees? 2.

A. Yes, if the client directs the licensee according to New Jersey regulations.

B. Yes, if the client gives verbal direction not to cooperate.

C. Yes, the broker directs the salesperson not to cooperate.

D. No; licensees are required to cooperate under all circumstances.

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 ail cash. The broker

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

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

C. may accept the offer.

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

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.

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 2.

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 /ater,

selis 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 real estate license from that state or the help of a cooperating out-

of-etate licensee.

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

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

D. As iong as the licensee has informed the owner of his intentions to purchase the property himself, his actions are proper and legal.

in general, option contracts °:

A. are not binding on the seiler.

B. are binding on the buyer.

C. are for very short terms.

D. must be in writing.

A manager rents a uni to a tenant who later has a car accident and is confined to a wheelchair. The tenant now wants the manager to lower ail the light switches and install grab 2.

bars. Does the manager have to make these modifications?

A. Wo, the tenant can modify the unit and deduct the cost from the rent.

B. No, the tenant can modify the unit at his expense and will be responsible for restoring the unit.

C. Yes, because the landiord is responsible for keeping the units in a habitable condition.

D. Yes, but only if the term of the lease is for more than one year.

According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions? ”.

A. Files must be able to be reproduced on paper for review by the 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 and available to the public at any time.

Which of the following entries satisfies the requirement that an advertisement show that the broker is in the real estate brokerage business? o.

A. J. Jones Realty

B. J. Jones, Real Properties

C. J. Jones, Real Estate Agency

0. J. Jones, Real Estate Ventures

At a listing appointment, the seller asks the broker not to disclose the prior termite treatment and repairs since they are now corrected. The broker should o.

A. go back to the office without pursuing the listing.

B. Insist that the seller disclose these facts to any potential purchaser.

C. agree not to disclose these issues, as they no longer affect the property.

D. confirm that repairs were made, and the extent of those repairs, before agreeing.

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 o.

$100,000 per year?

A. $200,000

B. $400,000

c. $500,000

D. $600,000

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

A. six months from completing the prelicensure course

B. one year from passing the state licensing examination

C. one year from completing the preticensure course

D. two years from passing the state licensing examination

Which of the following is NOT a legal test for a fixture? 2.

A. intention of party doing attaching.

B. Method of attachment.

C. Adaptation of tem to use of property.

D. Cost of replacement of item.

Which of the following is a permitted free offering? 2.

A. Acomplimentary home warranty with every listing

B. Acoupon for discounted commission on listing services

C. A free dinner for attendees at a homebuyers’ evening seminar

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

A buyer-broker locates a property that is listed with another broker. The buyer makes an offer through the buyer-broker and an agreement of sale results. in this situation, the o.

buyer-broker ts acting as a:

A. subagent of the listing broker

B. referring broker with the listing broker

C. representative of the buyer and owes no fiduciary obligations to the seller

D. representative of the seller and owes no fiduciary obligations to the buyer

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

A. Upon execution of the isting 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

A potential buyer signs a contract with a seller but then decides not to buy. The seller may sue the potential buyer for specific performance or damages UNLESS the contract was a.

A. a bilateral contract.

B. an instaliment contract.

C. aland contract.

D. an option.

The owner of a home with no liens obtained a home equity loan 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 liensfor 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

Which of the following tems would be prorated at closing with the credit going to the selier? 2.

A. Accrued interest on an assumed mortgage.

B. Prepaid property taxes.

C. Eamest money.

D. Unearned rent collected in advance.

A city has a transfer fee of $1.00 for each $1,000 of the sales price and the state charges $1.50 per $500 of the sales price for real estate transactions. If the buyer pays 50% of the o.

transfer taxes, what would the seller's transfer tax be on the sale of a $400,000 home?

A. $2,000

B. $4,000

C. $6,000

D. $8,000

A setier 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 disciose 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 selier to correct the defect.

Under the New Jersey Real Estate Licensing Law, which of the following is an unlicensed assistant or secretary NOT permitted to do? o.

A. Type contracts for approval

B. Make telephone calis to request rent payments

C. Follow up on loan applications with lenders

D. Place signs on properties

A buyer has executed a contract to purchase real property. if it is discovered that he is onty 16 years old, the contract is 2.

A. void.

B. binding.

C. unenforceable.

D. voidablie as to the minor's interest.

According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer 2.

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.

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.

A licensee affiliates with a principal broker as an independent contractor. Which of the following must the principal broker provide to this licensee? o.

A. an independent contractor agreement with compensation based on production

B. advertising and an independent contractor agreement with compensation based on production

C. cards, insurance, and an independent contractor agreement with compensation based on production

D. advertising, office space and an independent contractor agreement with compensation based on production

An individual is hired by the homeowners’ associstion 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 of the following is among the typical responsibilities of a residential property manager? 2.

A. requesting that the tenant’s employer withhold the past due rent from wages

B. making decisions about structural changes that will enhance the property value

C. selecting tenants to provide a diverse environment

D. negotiating leases between the property owner and potential tenants

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 vaiue st 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%?

A. $440

B. $500

C. $3,680

D. $4,600

Under what conditions may a salesperson accept a bonus offered by a seller for services rendered? 2.

A. The salesperson receives payment directly from the seller.

B. The salesperson has the broker's approval.

C. The seller pays the bonus to the broker, who passes it on to the salesperson.

D. Under no circumstances

happen to the market value and the market price for 2

properties in the area?

A. The market vaive will decline, but the market price will remain stable.

B. The market value will remain stable, but the market price will decline.

C. The market vaiue will increase and the market price will remain stable.

D. The market value and the market price will both decline in this situation.

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? o.

A. Renegotiable rate mortgage.

B. Graduated payment mortgage.

C. Adjustable rate mortgage.

D. Freddie Mac.

A national company desires a parce! of land which must be four times the size of its proposed bullding. If the building design includes 20,000 square feet, then which of the 2.folowing minimum sized lots should be purchased?

A. 1 acre

B. 2 acres

C. 4 acres

D. 8&8 acres

The lead paint addendum that MUST be presented with the purchase and sale contract for certain older homes will 2.

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 waits.

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

A seller is interested in providing financing to the buyer of her home, but she wants to retain title until the loan balance is paid off. Which of the following would be the BEST loan o.

option?

A. Asset integrated mortgage.

B. Wraparound mortgage.

C. Contract for deed.

D. Subordination of deed.

According to the New Jersey Real Estate License Law, a licensee who wants to sell property that the licensee owns must 2.

A. list the property with another licensee in the same office.

B. disclose the ownership interest in any advertisement of the property.

C. disclose the ownership interest in any notice submitted on the listing to the MLS.

D. disciose in the contract of sale that the seller holds a New Jersey real estate license.

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.

A. Escape clause.

B. Provision for liquidated damages.

C. Contingency.

D. Wealk-through agreement.

A licensee is emailing information regarding an open house for one of her listings. in addition to complying with state-specific requirements for advertising, which of the following

must siso be included in the email?

A. opt-out provision

B. how the recipient’s name was obtained

C. complete property address

D. listing sale price

An owner has a freestanding cabinet that was custom-built to fit an aicove of the living room. When the owner selis the home, the cabinet will be BEST described as *.

A. real property.

B. personal property.

C. a fixture.

D. an appurtenance.

Under a rescission agreement, the s.

A. contract is cancelled and the purchaser is in default.

B. parties are returned to their original positions, and ail monies must be returned.

C._ selter is in default because of inability to perform.

D. contract is voidable by either party.

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

After receiving a written offer, a seller revises the offered purchase price and initiais the change. The salesperson who prepared the offer then takes the only copy of the revised o.

document back to the buyers. The licensee has violated the New Jersey Real Estate License Law by failing to:

A. initial the revisions the seller made

B. provide a copy of the initialed revised offer to the seller

C. request that the seller sign an addendum reflecting the revision

D. consult with the broker before delivering the counteroffer to the buyer

When a land owner uses his land as security for a loan, the encumbrance created is called 2.

A. aspecial security.

B. a mortgage or deed of trust lien.

C. an involuntary lien.

D. a gratuitous privilege.

Which of the following formulas should be used to determine capital gains? 2.

A. Difference between the adjusted basis and the net selling price.

B. Difference between the basis of the property and its gross selling price.

C. Basis of the property less the cost of any physical improvements made to the property.

D. Difference between the basis of the property pius total depreciation and its net selling price.

When a land owner uses his land as security for a loan, the encumbrance created is called 2.

A. aspecial security.

B. a mortgage or deed of trust lien.

C. an involuntary lien.

D. a gratuitous privilege.

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 computed atthe rate °-

of $3 per $1,000. What is the transfer fee for this transaction?

A. $372

B. $474

C. $492

D. $4,740

What is the greatest ADVANTAGE of using FHA financing when purchasing a home that the buyer pians to occupy? 2.

A. FHA requires a fixed-rate loan so that the buyer can rely on a fixed payment.

B. The required down payment may be lower than conventional loans.

C. The loan will be automatically assumabie to a future buyer.

D. FHA requires the seller to pay the buyer's closing coets.

A seller's agent is contacted by a potential buyer whoee financial status is questionable. When asked to write an offer, the agent should o.

A. retuse to write the offer.

B. insist on a prompt closing.

C. ask for a high earnest money payment.

D. relay any reservations to the sefier.

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 normaity happen to the earnest money in such a situation?

A.The buyer can withdraw the offer, but the seller and the broker will each retain $5,000 as liquidated damages.

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

C. The buyer cannot terminate the offer until the 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 a refund of the deposit.

An agency relationship is established between the broker and 2.

A. another broker.

B. the principal.

C. a multiple listing service.

D. acustomer.

Which of the following are MOST likely to be addressed by buliding codes? 2.

A. Deed restrictions.

B. Construction standards.

C. Permissible uses of structures.

D. Restrictive covenants.

A Setters 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 ail 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 sefier that he wrap the pipes to contain potential airborne contamination.

A Setier’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. diectlose 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.

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. a certificate of reasonable value

C. a FICO score of at least 745

D. private mortgage insurance

Which of the following statements concerning 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 inciude the attorney general's memorandum on discrimination.

in New Jersey, the Private Well Testing Act (PWTA) requires: o.

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 titie transfer

D. the seller to remediate if the weil faits the test

A salesperson's client is the lessee. Who does the salesperson represent? o.

A. Lender.

B. Tenant.

C. Landlord.

D. Lien holder.

Which of the following analyses MUST be prepared by a certified appraiser? 2.

A. Acompetitive market anatysis for a buyer or seller.

B. Aprice opinion for a lender invoived with a short sale transaction.

C. An analysis to determine a project's estimated market capture and capitalization rate.

D. Aproperty valuation report supporting a federally-reiated loan application.

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