NJ Real Estate Exam Questions Flashcards

NJ Real Estate Exam Questions Flashcards A seller is interested in providing financing to the buyer of her homes, but she wants to retain title until the loan balance is paid off. Which of the following would be the best loan option?a. asset integrated mortgageb wraparound mortgagec. contract for deedd. subordination of deed

• contract for deed

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure, 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 creditB. The lender will take the title subject to any junior liensC. The lender will usually retain his rights under mortgage insurance or VA guarantee.D The loan will still be assumable

• The lender will usually retain his rights under mortgage

insurance or VA guarantee.The broker received a birthday check from one of his clients. The broker decided to put it in the escrow account

because it was from a client. This is considered:a.

Conversionb. Comminglingc. Acceptable if the check was written on the client's business accountd. Acceptable if the client has had a transaction within the last 18 months

• Commingling

Which if the following is a function of the municipal planning board?a.Approving a variance for an addition to a garage or a residential propertyb. Creating a master plan for all the land in a particular countyc. Unilaterally approving subdivisions in a jurisdictiond. Prescribing and controlling the development and use of all land in a municipality

• Creating a master plan for all the land in a particular

county Donald purchases a $310,000 home. The lender requires 2% down on the first $100,000 loan with 4% on the balance of the purchase price. The lender is charging 3 discount

points. calculate the discount points due at closing:a.312b.

8,988c. 9,300d. 319,300

• 8,988

a couple applied for a loan to finance the purchase of a new home. What federal act was created?A) Fair credit reporting actB) Equal credit opportunity actC) Uniform settlement actD) Real Estate settlement procedures act

(RESPA)

• Real Estate settlement procedures act (RESPA)

after receiving a commission payment, a broker must pay the salesperson's share within how many days?10 According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions?a. 10 daysb. 1 yearc. 6 monthsd. 6 years

• 6 years

According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all record of Real Estate transactions?a. Files must be able to be reproduced on paper for review by commissionb. Files must be kept on paper, and available for review for up to 10 yearsc. Files must be submitted electronically to the commissiond. Files must be kept on premises & available to public at any time

• Files must be kept on premises & available to public at

any time A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year-old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statement regarding this situation is true?a. City code always takes priority over deed restrictions.b. This city code takes priority because deed restrictions expire 10 years after a subdivision is developedc. Deed restrictions always take priority over city codesd. This deed restriction is more restrictive and will, therefore, take precedence

• This deed restriction is more restrictive and will,

therefore, take precedence Which of the following is true regarding encroachments?a.An encroachment is considered a trespassb. A fee appraisal will ascertain if an encroachment existsc. Title insurance will insure against an encroachmentd.An encroachment is similar to an easement by necessity

• An encroachment is considered a trespass

The listing broker may be due a commission, even when no

sale occurred, if the:a. potential buyers is unable to obtain

financingb. seller decides he no longer wants to sellc. seller refused buyers reasonable offersd. broker located a buyer who made an offer that metall of the sellers terms

• broker located a buyer who made an offer that met all of

the sellers terms If an unmarried couple wished to purchase a home together and have the right of survivorship, which form of ownership would they choose?Joint tenancy Mary knew that her marriage was on shaky ground when she bought a house in her own name. She was hoping to save the relationship, so she wrote a quitclaim deed conveying the property from herself to herself and her husband as joint tenants, NOT as tenants in common with full rights to survivorship. She told her husband she had done this, but the deed was NOT recorded. When Mary and her husband finally divorced, the deed disappeared. In a state, which is NOT a community property or curtesy state, does the ex have a claim to the property?a.No, however, had the deed been recorded, it would have served constructive notice and such would be defensibleb.Yes, she told him it existed and the courts always accept

oral argument when it relates to real propertyc. As they were legally married at the time of the conveyance he automatically owns a one-half interestd. As he did not sign the original conveyance as grantee, it was not a legal deed

• As they were legally married at the time of the

conveyance he automatically owns a one-half interest In New Jersey, the realty transfer fee appears on the

closing statement as:a. debit to the sellerb. debit to the

buyerc. credit to the sellerd. credit to the buyer

• debit to the seller

The seller responded to the buyer's offer, proposing changes to some of the terms. In this case the seller would be thea. Offeror giving a counterofferb. Offeree giving a counterofferc. Offeror giving an amended offerd. Offeree giving an amended offer

• Offeror giving a counteroffer

According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions?a. b. Files must be kept on a public

online database indefinitelyb. Files must be kept on a public online database for up to 10 yearsc. Files must be kept on premises and available to the public at any time.d.kept on file for 6 months

• Files must be kept on premises and available to the

public at any time.