NJ Real Estate Practice Exam Flashcards

NJ Real Estate Practice Exam Flashcards

revocationThe withdrawal of an offer before acceptance is called:

the lenderOf the following, whose interest is benefited by an acceleration clause in a mortgage note?a seller suffers a monetary loss due to the embezzlement of money by a licensed broker, a licensed real estate salesperson or an unlicensed employee of a real estate broker

Monies may be paid out of the Guaranty Fund in the event:

sell the propertyA joint tenant may NOT:

consult an attorneyYour client plans to get divorced shortly before closing of a property she and her boyfriend just purchased and asks you about how to hold title to the property. You should

suggest she:

• all of the aboveWho is required to comply with State Licensing Laws?A. an

individual employed to handle the sale of units in a condominium buildingB. one who for a compensation effects an "exchange" of real estateC. one who auctions real estateD. all of the above

D. mortgagerAll but one of the following owes a fiduciary obligation:A.

executorB. guardianC. attorneyD. mortgager run an ad giving the impression that he/she is the owner of the property In advertising a listed property for sale, a broker may not

legally:

broker and his/her salespersonsA principal-agent relationship exists between the: enforce federal environmental lawsThe Environmental Protection Agency (EPA) was created

to:

an executory contractA contract, the terms of which have not been fully

performed, is known as:

• poor floor planWhich of the following is NOT an example of physical

deterioration?A. poor floor planB. peeling paintC. cracked patioD. missing shingles selling priceMarket value is most closely related to a lienThe right by which a creditor has a claim against a

borrower's property is most broadly described as:

$34,188If you sell a lot for $40,000 after making a 17% profit, what was the price you originally paid?

• yearsIf a licensee is convicted with forgery, the REC will not

grant a license within:

• None of the aboveThe responsibilities of the Real Estate Commission

include:A. setting the fees for licensing examsB.

promulgating real estate lawsC. setting license feesD. none of the above

D. all of the aboveAn option is:A. a unilateral contractB. binding only on one

partyC. accepted by performanceD. all of the above $1,692The purchase price of a home is $44,000. The down payment is 3% of the first $25,000 and 5% of the balance.How much will the seller pay if he/she is to be charged for 4 discount points?

the party signing the instrumentAn acknowledgement is given by:

• none of the aboveA real estate deal is made between a seller and buyer

without services of a broker. They arrange with a licensed broker, for a fee, to prepare certain instruments. He/she

may lawfully prepare:A. agreement of saleB. deedC.

purchase money mortgageD. none of the above it must be prominently displayed in the broker's main officePertaining to the salesperson's license, which of the following is true?a fee simple estateFull and complete ownership of land as recognized today

exists most nearly in:

• all of the aboveResidential rental referral agencies must include which of

the following in their contract with a prospective tenant?A.the date and duration of the contractB. the refund policyC.a statement that the business is licensed by the New Jersey Real Estate CommissionD. all of the above a household furnishingAn example of personal property is an attorney or the owner of the property being conveyedDeeds may be prepared by:

• divorce of either partyOne of the following is NOT a method by which a contract

can be discharged:A. divorce of either partyB. operation of

lawC. agreementD. performance or brach disclose it to the buyerA salesperson has listed a house for sale and has knowledge of a latent defect in the building. His

responsibility is to:

• all of the aboveWhen listing and selling property, the real estate licensee

should be concerned with which of the following environmental conidtions?A. the presence of lead paintB.underground storage tanks (USTs)C. moldD. all of the above

D. all of the aboveAn offer may be terminated by:A. lapse of agreed period of

timeB. acceptance of offerC. counter offerD. all of the above his employing brokerIn a multiple listing, a salesperson who negotiates a sale is

directly responsible to:

condemn itIf Jane Smith owns property in fee simple, she can do all of

the following EXCEPT:

a brief digest of the title to a particular propertyAn abstract of title is:

relationship between rental value and sees price of property The use of the gross multiplier to assist appraising real

property leased to various tenants is based upon:

$307.20An apartment manager receives 30% of the first month's rent and 6% of each month thereafter. If the rent is $320 per month, what will his annual fee amount to?

accretionThe boundary of your property can be changed by:

• the Rules and Regulations of the New Jersey Real

Estate Commission Which of the following requires licensees to provide owners with a copy of the Attorney's General Memorandum on the Law Against Discrimination?A. the New Jersey Law Against DiscriminationB. the Rules and Regulations of the New Jersey Real Estate CommissionC. the New Jersey Division of Civil RightsD. all of the above he/she must give a copy to all parties signing it at the time the signature is obtained When a broker prepares a document pertaining to a real

estate transaction:

D. all of the aboveAn agency agreement will be terminated by:A. the death of

the agentB. the bankruptcy of the principalC. the death of the principalD. all of the above

• the Real Estate Commission can demand an accounting

(explanation) Regarding a dispute between licensees concerning the division of commissions, which of the following is correct?A. the Real Estate Commission can demand an accounting (explanation)B. the Real Estate Commission is responsible for settling disputes between licenseesC. a salesperson cannot sue his/her broker for a commission he/she feels he/she has earned but not been paidD. only the broker can file a complaint with the Real Estate Commission

• a code obligatory upon members of the National

Association of Realtors

The Realtor Code of Ethics is:A. a code put into law by the

Real Estate Commission of NJB. a code obligatory upon members of the National Association of RealtorsC. part of an act pertaining to prevention of discrimination in real property transactionsD. part of the Statues of New Jersey pertaining to licensed real estate salespersons and brokers dedicationA gift of land for some public use made by the owner and accepted for such use by or on behalf of the public, as

streets in a plotted subdivision, is called:

the participating brokerIn a typical real estate transaction, the buyer's agent is: seller, broker, and salespersonKnown hidden defects in a property must be disclosed by: will not protect the seller against a clear showing of fraudulent misrepresentation A clause in the agreement of sale providing that the buyer has inspected the business takes goods, fixtures and other

property "as is":

subordinate to mortgages recorded ahead of it A junior mortgage is:

a vacation home rented out for the month of August and occupied by the owner for the month of September Which of the following properties would NOT qualify for a 1031 exchange?

• principalAll BUT which of the following are fiduciaries?A. principalB.

trusteeC. guardianD. receiver functional obsolescenceA house with four bedrooms and one bath is an example

of:

• consent of principal and agentWhich of the following is/are required to create an agency

relationship?A. written agreementB. compensation by principalC. consent of principal and agentD. all of the above enforceableWhen a buyer and seller enter into a definite purchase agreement except that no closing date misspecified, the

contract is:

B. must be in writingAn exclusive agency contract:A. is only terminated if the

property is sold by the sellerB. must be in writingC. can be listed by the owner with more than one brokerD. does not require a termination date an exclusive-right-to-sell listingWhich type of listing gives a broker the greatest protection?if the name of his/her broker is included in the adA salesperson may advertise a property for sale only: if he/she produces a ready, willing, and able buyer on the principal's terms

An agent is considered to have earned his commission:

constitues constructive notice of ownership The recording of a deed:

market valueThe amount which a seller who does not have to sell will

accept from a buyer who does not have to buy is called:

present his/her principal all written offers he/she receives including all of the terms and conditions of each offer signed by a prospective buyer

A broker owes an obligation to:

are used to indemnify aggrieved participants in real estate transactions

Funds received for deposit in the Guaranty Fund:

cost approachThe method most frequently used to determine value for a

fire insurance policy is:

$36,900After paying the broker's commission fee of 7% and expenses of $317, a seller desires a net amount to himself of $34,000. What will the sales price be?

• all of the aboveWhen there is a first violation of the licensing act, the REC

is empowered toA. impose monetary finesB. revoke the licenseC. suspend the licenseD. all of the above

breachFailure to perform or fulfill a contract is termed a:

original cost of the propertyWhich of the following factors would have little or no effect in determining the value of a commercial property?the home of a salesperson in his/her employ A newly licensed broker can maintain an office in ALL BUT

ONE of the following:

deliver to deed to the granteeUpon the completion of a sale of mortgaged property, the

seller must:

buffer zoneAn area separating two incompatible zoning districts is

called a:

PerformanceWhich of the following is NOT a necessary element in the formation of a contract?notice that has been received by direct communication, either oral or written

Actual notice is: