1,000B. 5,000C. 6,000D. 10,000

Practice Tests for the New Jersey Real Estate Exam (National Portion) Flashcards What type of building is divided into two condominiums where the first is the co-op residential units (80%) and the second is for professional/commercial units (20%)?A.CondoB. CondopC. Co-opD. Multi family home

• Condop

What is the exterior layer of a house?A. EavesB.FlashingC. PitchD. Sheathing

• Sheathing

What is the fine placed for a violation of license law?A.

$1,000B. $5,000C. $6,000D. $10,000

A. $1,000

What is the name given to the breakdown of an individual's credit history?A. Credit assessmentB. Credit reportC.Financial recordD. Repayment report

• Credit report

What is the name given to a situation where an individual uses borrowed money to purchase a property?A.BuydownB. Purchase moneyC. LeverageD. Shorting

• Leverage

What is the tax levied on transfer of property?A. Capital gains taxB. Deductible taxC. Property taxD. Transfer tax

• Transfer tax

What conveys a grantor's interest in real property?A.DeedB. InsuranceC. TitleD. Warrant

• Deed

Who regulates the Clean Water Act?A. EPAB. CERCLAC.NY Health DepartmentD. RESPA

A. EPA

What is a roof's vertical rise in inches divided by its horizontal span in feet?A. DepthB. WidthC. PitchD. Length

• Pitch

What is a non-possessory interest in property or restrictive covenant burdening the title?A. Adverse possessionB.EasementC. EncumbranceD. Escheat

• Encumbrance

What is the term used to refer to the responsibility one individual has for the acts of another?A. Vicarious liabilityB.Fixed liabilityC. Current liabilityD. Contingent

• Vicarious liability

What are outside amenities that maximize use of property called?A. Cosmetic improvementsB. Essential improvementsC. Offsite improvementsD. Supplemental improvements

• Offsite improvements

What is the value estimating process that uses similar available properties to determine the value of land?A.Mirror methodB. Sales comparison methodC. Allocation methodD. Abstraction method

• Abstraction

method+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+This is a method of estimating the value of a piece of land that is based on the going price of similar parcels of land within the area.

What is a homeowner's policy that covers two parts:

property and liability?A. HO1B. HO2C. HO3D. HO4

C. HO3

What valuing method is Comparative Market Analysis not considered as?A. AppraisalB. Home valuingC.

Depreciation valuingD. Tax returns valuing

• Appraisal

What is the equivalent of 1 cubic foot?A. 5.25 gallonsB.

7.26 gallonsC. 7.48 gallons

• 7.48 gallons

What is the term used to describe a building that is separate from the main house?A. Supplemental structureB.Accessory buildingC. Secondary landD. Shed

• Accessory building

What is an exclusive term to describe the lease entered when an individual buys shares from a housing corporation?A. Percentage leaseB. Gross leaseC. Net leaseD. Proprietary lease

• Proprietary lease

What is the name given to the long beams that span the piers of a foundation offering support to the floor or ceiling?A. EavesB. FramesC. JoistsD. Studs

• Joists

What are contingencies as used in real estate?A.Conditions that must be met by both the buyer and the seller before closingB. Conditions set by the government on buying a homeC. Conditions set by the bank in order to approve a loan for a mortgageD. Conditions that must be met to avoid judicial foreclosure

• Conditions that must be met by both the buyer and the

seller before closing Why was the Privacy Act of 1974 significantA. It required agencies to publicize records to the Federal RegisterB. It required privacy of recordsC. It required federal government to operate without transparencyD. It required credit information to be kept private

• It required agencies to publicize records to the Federal

Register What is the legal term for passing responsibility of your apartment onto another tenant?A. Sub leaseB. Lease assignmentC. LeaseholdD. Lease break

• Lease assignment

What is the actual amount of space a tenant can lay carpet and place furniture?A. Usable Square FootageB. Rentable square footageC. Common areasD. Service areas

• Usable Square Footage

What is the "Law of agency"?A. Commissions that are collected from both partiesB. A set of laws that apply to a person who acts on behalf of another personC. The ability to accept an offer on behalf of the sellerD. An authorized agency selling another's property A set of laws that apply to a person who acts on behalf of another person Which of these is considered an operating expense?A.RepairsB. DepreciationC. PayrollD. All of the above

• All of the above

Which air conditioning system facilitates both heating and cooling?A. Forced air systemB. Cooling systemC. Heating systemD. Thermostat

• Forced air system
• Department of BuildingsWhat is the final stage of a real estate transaction?A.

ClosingB. SaleC. Final walk throughD. Handing of the title What is the name given to the estimate amount on a mortgage?A. Pre-approvalB. Post-approvalC. PrincipalD.Mortgage

• Pre-approval

A property originally assessed at $500,000 appreciated at 4% the first year and then 5% the year after. What is its current value?A. $525,000B. $545,000C. $546,000D. None of the above C.

$546,000+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+:-:+$500,0001.041

.05 = $546,000

• Cash out refinanceWho oversees that code restrictions are followed and

construction / renovation are done by licensed professionals?A. ContractorB. Department of BuildingsC.Zoning boardD. Architectural Review Board What is the lowest section of the roof that overhangs beyond the sidewalls of the building?A. EavesB. JoistsC.StudD. Shingles

• Eaves

In 1988, the Civil Rights Act was amended to include?A.Married womenB. ImmigrantsC. Black peopleD. Handicaps and familial status

• Handicaps and familial status
• ClosingWhich Act was passed to protect against discrimination in

borrowing?A. Equal Credit OpportunityAct B. Fair and Accurate Credit Transaction Act of 2003C. The Fair Credit Reporting ActD. Truth in Lending Act How long are brokers required to hold on to property files?A. One yearB. Three yearsC. Five yearsD. Never

• Three years

What is a detailed building plan that is needed before starting construction?A. Building designB. Execution planC.BlueprintD. Authorized plan

• Blueprint

Which entity performs the percolation test?A. Department of StateB. Building InspectorC. Homeowners AssociationD.Department of Health

• Department of Health

What is a notice given on a pending lawsuit?A. Lis PendensB. Statute of limitationsC. Notice of intentD. Notice of default

• Lis Pendens

The commission that is due to a salesperson is decided by?A. ChattelsB. State LawC. Mutual AgreementD. Court Decree

• Mutual Agreement

Which of the following is an example of community property?A. Property that is inherited by the husband through marriageB. Income that is earned by one spouse during the marriageC. Income earned prior to marriageD. A gift given to one spouse during the marriage

• Income that is earned by one spouse during the

marriage What is the nature of the title in co-op ownership?A.FreeholdB. LeaseholdC. Regular holdD. Lease assignment

• Leasehold

What is a schedule of the projected future income and expenses for a real estate investment?A. IOUB. InvoiceC.Promissory noteD. Pro Forma Statement

• Pro Forma Statement

What is a deed used for?A. To transfer title rightsB. An official document proving a bank has loaned moneyC. A pro forma statementD. A lien

• To transfer title rights