NJ Real Estate Exam Practice Questions Flashcards

NJ Real Estate Exam Practice Questions Flashcards A house contains screens, smoke alarms, and a crystal chandelier. The contract os sale mentions none of the items specifically. Before final closing, the seller has the

right to remove:A. the screens, because they are trade

fixturesB. the smoke alarms, which are personal propertyC.the chandelier, because it is an appurtenanceD. none of the items

• none of the items

In the variation of a large office building, which approach is given the MOST weight?A. CostB. Income capitalizationC.Market dataD. all of the above

• income capitalization

The term condominium refers to a(n):A. apartmentB. type

of ownershipC. type of buildingD. PUD

• type of ownership

Every listing must include:A. the broker's home phone

numberB. square-foot measurements of the propertyC.notice that commissions are negotiableD. broker's promise to advertise the property

• notice that commission are negotiable

Investors will sometimes borrow money to make a real

estate purchase. This practice is called:A. a bulk transferB.

an exchangeC. leverageD. pyramiding

• leverage

A broker's license is suspended by the Real Estate

Commission. His salespeople must immediately:A. find a

new broker to associate withB. carry on the business until he regains his licenseC. stop listing and sellingD. obtain broker's licenses

• stop listing and selling

Among the several pieces of information that the lender must gather before issuing a Loan Estimate (LE) is the

applicant's:A. signed affidavit that borrower has complied

with fair housing guidelinesB. statement of religious beliefsC. social security numberD. estimated earnings statement

• social security number

Real estate brokers may protect themselves in case of professional lawsuits through a special type of insurance

known as:A. malpracticeB. errors and omissionsC. inland

marineD. floaters

• errors and omissions

Which of the following is a lien that does NOT have to be recorded?A. money judgementB. real estate taxesC. a tax deedD. a voluntary lien

• real estate taxes

Title to real property is passed when a valid deed is:A.

escrowedB. signedC. deliveredD. witnessed

• delivered

The Real Estate Commission prohibits:A. listing a home

phone number on business cardsB. vague "vicinity"

advertisementsC. real estate advertisements on televisionD. puffery ads with words like "superb" or "terrific"

• vague "vicinity" advertisements

Whether a salesperson is associated with a broker as an

employee or as an independent contractor is important:A.

for income tax purposesB. when applying for a licenseC.when listing property, because and independent contractor may list in her own nameD. when establishing the escrow account

• for income tax purposes

The front door key to a house is:A. chattelB. fixtureC.

improvementD. trade fixture

• fixture

From which of the following does one obtain an FHA loan?A. Federal Housing AuthorityB. Federal Home Loan BoardC. Local FHA lenderD. Farmers Home Agency

• Local FHA lender

The New Jersey Real Estate Commission:A. is funded from

the cereal treasuryB. is under the Department of Banking and InsuranceC. sets commission ratesD. controls Truth-in-Renting Law

• is under the Department of Banking and Insurance

When appraising an office building, the appraiser is MOST

concerned with:A. accrued depreciationB. annual mortgage

paymentsC. comparable salesD. net annual income

• net annual income

A salesperson left a real estate firm to work at a bank. The broker must account for all commissions due the former

salesperson within:A. 3 daysB. 1 weekC. 10 daysD. 30

days

• 30 days

Which of the following represents functional obsolescence?A. used-car lot next doorB. outmoded plumbingC. change in zoningD. leaky roof

• outmoded plumbing

The gross income from a small office building is $73,500 and the annual expense is $52,300. If the owner expects to receive an 11% return on her investment, what should she be willing to pay for the building?A. $192,727B. $212,000C.

$475,455D. $668,182

• $192,727Step 1. ( $73,500 - $52,300 = $21,200)Step 2.

($21,200 / 0.11 = $192,727.)

The Multiple Dwelling Reporting Rule is required by the:A.

New Jersey Real Estate CommissionB. public advocateC.attorney general of New JerseyD. Department of Community Affairs

• attorney general of New Jersey

A void contract is:A. not in writingB. rescindable by

agreementC. missing an essential elementD. executory

• missing an essential element

If a broker's license is suspended, the licenses of his or her

salespersons are:A. also suspended automaticallyB. not

affectedC. suspended for any salesperson who was aware of the offense at the timeD. allowed to continue for a six-month temporary period

• also suspended automatically

The market data approach is MOST important in appraising

a(n):A. churchB. older residenceC. apartment buildingD.

newly constructed residence

• older residence

In a real estate sale, transfer tax fees are usually paid by

the:A. sellerB. stateC. buyerD. broker

• seller

A borrower obtained a second mortgage loan for $20,000 at 10%. It called for payments of $175 a month over a period of five years. The final installment would be a

balloon payment. This loan is a:A. fully amortized loanB.

partially amortized loanC. straight loanD. blanket loan

• partially amortized loan

Educational requirements for a broker's license can be

waived for certain:A. broker's licensed in other statesB.

spouses of recently deceased brokersC. salespersons its ten years of experienceD. college graduates who hold a doctorate

• broker's licensed in other states

New Jersey's laws allows a landlord to refuse to rent to:A.

anyone on welfareB. people with childrenC. people with dogsD. any of the above

• people with dogs

With certain restrictions, a commission may be shared with

an unlicensed person in the form of a rebate to the:A.

sellerB. buyerC. broker's assistantD. office secretary

• buyer

Regulation Z would require full disclosure of all financing

terms if an advertisement mentioned:A. "payment of $1,500

a month"B. "terms negotiable"C. "$200,000 mortgage available"D. "owner will finance"

• "payment of $1,500 a month"

Who is uniquely in a position to provide the TRID toolkit to a buyer, but not required to?A. lenderB. buyer's agentC.closing agentD. insurance agent

• buyer's agent

The utility company dug up Andrea Dunham's garden to lay gas lines. The company had an easement, recorded at the county clerk's office. Andrea claimed the easement was invalid because she was never told about it. The

easement:A. was valid even if she never heard of itB. was

valid only if the company could prove she knew about it when she bought itC. was appurtenantD. had expired if it had not been used for ten years

• was valid even if she never heard of it

An estate at will:A. cannot be terminatedB. is terminated

only if stated in the else's last will and testamentC.terminates on the death of the lessor or lesseeD.terminates on the date specified in the lease agreement

• terminates on the death of the lessor or lessee

Continuing education courses may be taken:A. in a

classroom onlyB. exclusively over the internetC. entirely by mailD. by mail, internet, or classroom

• by mail, internet, or classroom

Ron Smith dies suddenly, leaving a wife and two minor children but no will. The New Jersey law of descent

provides that his wife is entitled to:A. his entire estateB. half

of his estateC. $50,000 plus half the remaining estateD. the entire remaining estate after the children reach 21

• $50,000 plus half the remaining estate