NJ Real Estate Exam - PRACTICE EXAMMATH QUESTIONS

NJ Real Estate Exam - PRACTICE EXAM/MATH QUESTIONS Flashcards If the tenant exercises his option to buy, can he force the landlord to sell?

YES If a broker is expecting to receive 6% commission on a sale of $250,000 house, what will the commission be?a) $750b) $1,500c) $7,500d) $15,000

• $15,000

Two partners own real estate, one has 60% interest, the

other has 40% this is :a) joint tenancyb) tenancy in

common(no right of survivorship)

• tenancy in common(no right of survivorship)

Selling price: $325,000, 20% down and 2 points plus

$2,000 closing fees. What is the total cash required to close?a) 71,500b) 72,200c) 73,500d) 75,600

• $72,200

Under the truth in lending act, disclosure of which of the following will trigger disclosure of other credit terms?a) 10% down paymentb) 10% annual percentage ratec) no down paymentd) reasonable financing available

• no down payment

Money in a trust account, Broker must?a) keep accurate recordsb) may withdraw commission amount

• keep accurate records

A buyer interested in buying property in another state without an inspection. The buyer should obtain ..?a) a quitclaim deedb) abstract of titlec) a bargain and sale deedd) an extended coverage title insurance policy

• an extended coverage title insurance policy

Which of the following is a freehold estate?a) estate for yearsb) life estatec) estate at willd) easement in gross

• life estate

If a lender charges 2 points on a $60,000 loan, how much does the lender get?a) 120b) 1,200c) 2,400d) none of the above

• $1,200

One who has the right to sign the name of a principal to a

contract of sale is:a) an attorney in factb) broker with a

listingc) a special agentd) an attorney at law

• an attorney in fact

After showing a listed property to a prospect, the broker with an exclusive agency listing to protect his commission should?a) make a record of it in the brokers filesb) notify the seller of the prospects identityc) send an office memo to the prospective buyerd) wait until the prospect makes a deal with the seller

• make a record of it in the brokers files

A recorded easement may be removed from the records by ...a) recording a quitclaim deed signed by the owner of the easementb) instituting a lis pendens actionc) filling a marginal released) giving a three day notice followed by an Unlawful Detainer Action

• filling a marginal release

Items that are affixed as appurtenances to land are usually real property. Which of these items is NOT real property?a) growing treesb) trade fixturesc) buried water tanksd) buildings

• trade fixtures

The term littoral describes which of the following?a) land bordering water affected by the tide currentsb) land bordering water that is flowing like a streamc) land bordering any kind of body of water

• land bordering water affected by the tide currents

A VA loan may be granted for the purchase of a one family to four family dwelling if the ...?a) veteran certifies the rent collected will equal the mortgage paymentsb) loan will be amortized for not more than 20 yearsc) down payment will be at least 10%d) veteran agrees to live there

• veteran agrees to live there

A deed made and delivered but NOT recorded is:a) valid

between the parties and valid as to third parties with noticeb) invalid between the parties

• valid between the parties and valid as to third parties

with notice When a person who owns real estate in severalty dies testate, the property ..?a) goes entirely to the surviving joint tenantb) is probated and distributed according to the willc) is solely vested in the remaining tenant in commond) reverts to the county by escheat

• is probated and distributed according to the will

When the owner of a company suffer financial loss from the exercise of police power, such as through the application of zoning laws...?a) the owner must be justly compensated for the lossb) there is a condemnation proceedingc) the owners will never be allowed to continue their use under the former zoningd) the owner can appeal to the zoning commission

• the owners will never be allowed to continue their use

under the former zoning Under which circumstances can one take depreciation on a single family dwelling for federal tax purposes?a) when no one lives in itb) when one sells itc) when one exchanges itd) when one rents it

• when one rents it

Which of the following items is credited to the buyer at closing?a) fuel on handb) earnest moneyc) prepaid water charged) real estate tax paid in advance

• earnest money

A salesperson holds two listings - an open listing on one property and an exclusive listing on another. Neither one contains a safety clause, and one week after both listing expire, the two owners get together and exchange properties without previously being shown the properties.The salesperson ... ?a) may sue for full commission on bothb) may sue for commission on the open listingc) may demand full commission on the exclusive listingd) will receive no commission from either listing

• will receive no commission from either listing

Which is not an example of external obsolescence?a) population densityb) direct effect of inclement weatherc) zoningd) special assessments

• direct effect of inclement weather

What type of reduction in value is present when a hydrogen gas storage tank is located next to a property?a) physical deteriorationb) external obsolescencec) functional obsolescenced) negligable obsolescence

• external obsolescence

If the foreclosure sale proceeds are less than the outstanding debt and foreclosure expenses, which remedy is available?a) there is no remedyb) the mortgagee must absorb the loss, as the mortgagor is liable only for foreclosure expenses.c) owner has the statutory right of redemptiond) mortgagee may obtain a deficiency judgement against the mortgagor

• the mortgagee must absorb the loss, as the mortgagor is

liable only for foreclosure expenses.In appraising income producing property, the remaining useful life of the building is considered to be the time remaining ..a) in which the owner retains occupancyb) that the property can be profitably usedc) for tax depreciation purposesd) during which the property will be physically sound

• that the property can be profitably used

Which is true of Real Estate Appraisers?a) they may not advertiseb) fee is based on % of appraised valuec) must have designation such as MAI or SREAd) None of the above

• none of the above

One who owns life estate CANNOT ...a) sell ones interestb) mortgage ones interestc) devise ones interestd) lease ones interest

• devise ones interest

When a title insurance company issues an ALTA extended policy, such a policy usually extends beyond the risks normally insured under the standard policy to include all of the following EXCEPT...?a) unrecorded mechanics' liensb) unrecorded physical easementsc) the effect of zoning regulationsd) the rights of parties in possession

• the effect of zoning regulations

Brownfield's refer toa) wetlandsb) tiled agricultural areasc) deserted toxic industrial sitesd) new commercial developments

• deserted toxic industrial sites

Life EstateIs limited to the life of a specific person; life estate ends with the death of the owner.An easement acquired by constant, open and adverse use is called an easement by ....a) appurtenanceb) prescriptionc) necessityd) implication

• prescription

A person who has complete control over a parcel of real

estate is said to own a :a) leasehold estateb) fee simple

estatec) life estated) defeasible fee estate

• fee simple estate

Which of the following does NOT affect the validity of a deed?a) proper signatureb) lack of money considerationc) deliveryd) competent grantor

• lack of money consideration

Discount charges charged on a loan result in ...a) higher yield to the lenderb) longer time period of loan repaymentc) lower overall cost to borrowerd) higher purchase price in the secondary mortgage market

• higher yield to the lender

When you purchase property under an installment contract of sale (agreement of sale), you DO NOT have ...?a) an insurable interestb) an equitable interestc) legal titled) a transfer of possession

• legal title

In connection with metes and bounds descriptions, official markers on the property used to determine elevations are called..?a) metesb) monumentsc) benchmarkd) encroachments

• benchmark

At a real estate closing who is responsible for all the details that concern the title to the property?a) the sellers brokerb) the buyers brokerc) the sellers attorneyd) the buyers attorney

• the sellers attorney

An action brought by a landowner against the government in which the landowner claims money damages because her property value has lessened due to government action is BEST called?a) subrogationb) attachmentc) inverse condemnationd) lis pendens

• inverse condemnation

A deed prepared and signed but NOT delivered is ..?a) invalid as between the parties, but valid as to subsequent recorded interestsb) valid as between partiesc) valid as between the parties, but invalid as to subsequent recorded interestsd) invalid as between the parties

• invalid as between the parties

Which of the following is NOT characteristic of a DVA loan?a) loan is guaranteedb) owner occupiedc) loan is insuredd) little or no down payment

• loan is insured

An abstract of title ...a) insures the titlesb) gives a history of the title, including the recorded encumbrances against the propertyc) guarantees validity of title

• gives a history of the title, including the recorded

encumbrances against the property Once a note is paid in full, lender file a release or satisfaction of mortgage and remove the lien against the property. What is the mortgage clause that initiates this action?a) defeasanceb) conquerc) reconveyanced) acceleration

• reconveyance

When a person dies intestate and no heirs can be found for intestate succession, real property will revert to the government through a process of ...a) comminglingb) escheatc) metes

• escheat