NEW JERSEY REAL ESTATE LAW EXAM
PREP | COMPREHENSIVE LICENSING LAW
STUDY GUIDE, PRACTICE TEST, EXAM
QUESTIONS AND CORRECT ANSWERS
UPDATED QUESTIONS AND ANSWERS
100% VERIFIED EXAM PREP
[EXAM• STUDY GUIDE • SUMMARY • ASSIGNMENT]
A clean, organized resource designed for easy revision and reference.
QUICK • CLEAR • PROFESSIONAL
,Laten defect. Problems,not discoverable by normal pruden
inspection.
(1)
How does a creditor who has obtain a judgment get Writ execution
satisfaction against a debtor, who will not pay ?
(2)
Land contract. Agreement, under which a buyer pays installment,and waits,for the deed.
(3)
Escheat Reversion of property to the state, when intestate, owner dies,without heirs.
(4)
Material information. Is defined.as a physical condition,
that a buyer would want to know,NJ code says,
(5) psychological, are not considered physical condition,
(nosy dogs,or suicide)
Conforming When Fannie May, and Freddie Mac, announce, that they will buy loans up to a certain
amount, many local lenders, set that as their limit,
(6) (Example 471,000 ceiling) loans,
higher than the limit,are known as Jumbo loans, (non conforming) And the banks keep
them in their portfolio,
New Jersey truth-in- lending, how many days must a lender At least 12 days in advance,of the closing of all charges, or fees,they must pay in
notify of all charges of the loan, connection with the loans.
(7)
Ginnie Mae A government corp' was formed primarily to assist with low income, and high risk
mortgages
(8)
,Qualifying ratios A typical ratio might be 28/36. Borrower is allowed to spend up to 28% of gross monthly
income for housing, or up to 36% of income including other payments on log term debts,
(9)
Wraparound mortgage Financing the purchase of real property when an existing lender (mortgage) is to be
retained. The buyer gives a wraparound mortgage to the seller, the seller continues to
(10) make payments on the old loan, or is used as a method of refinancing,
Package mortgage Covers not only the real estate,also All fixtures and appliances on the premise,
(11)
Interim finnancing Temporary financing. Bridge loan are intended for no more then 6 month,
(12)
Purchase - money mortgage Is any mortgage placed when property is bought.
This is in contrast to refinancing,
(13)
Open end mortgage Is used by borrowers to obtain additional funds to improve their property.the Borrower
OPENS the mortgage to increase the debt,
(14)
Preaproval Is a preaproval form from a lender,
(15)
Pre- qualification Is a financial analysis done for a buyer by most real estate agents,
(16)
In real estate the concept of, Cost,Generally relates to the past.
Cost.
Price. Price, relates to the present.
Value.
Value, relates to the future.
(17)
, Situs, The location of a particular property And people's preference for particular location, is a
major factor affecting value,
(18)
Location.location.
Location,
Basic principle of value, Highest and best use, the most profitable use to which the property can be adapted,
Highest and best use, For example a highest an best use study may show that a parking lot in a busy downtown
area should , in fact, be replaced by an office building,
(19)
Basic principle of value, The principle of substitution states that the maximum value of a property tends to be set
by the cost of purchasing another,
Substitution, For example, if two similar houses are for sale in an area, the less expensive one sells first,
(20)
Regression Les expensive neighboring houses, hold down the value of a better property, this
appraisal principle,is known as regression, it's the reason why homeowners, aren't likely to
(21) get there investment back, if they improve their home so that it cost much more then
others, on the same street.
Progression The principle of progression states, that the worth of a lesser property is increased, if its
neighbor are more valuable. That is why, the least expensive house in a neighborhood,is
(22) traditionally considered, a good investment,
The sales comparison approach Is essential in almost every appraisal of real estate.it is considered the most reliable of the
three approaches in appraising residential property, (CMA)
(23)
The cost approach, The cost approach is most helpful in the appraisal of schools, churches,public
To value, buildings,such properties are difficult to appraise.
(24) The cost approach to value is based on the principle of substitution, or reproduction,
PREP | COMPREHENSIVE LICENSING LAW
STUDY GUIDE, PRACTICE TEST, EXAM
QUESTIONS AND CORRECT ANSWERS
UPDATED QUESTIONS AND ANSWERS
100% VERIFIED EXAM PREP
[EXAM• STUDY GUIDE • SUMMARY • ASSIGNMENT]
A clean, organized resource designed for easy revision and reference.
QUICK • CLEAR • PROFESSIONAL
,Laten defect. Problems,not discoverable by normal pruden
inspection.
(1)
How does a creditor who has obtain a judgment get Writ execution
satisfaction against a debtor, who will not pay ?
(2)
Land contract. Agreement, under which a buyer pays installment,and waits,for the deed.
(3)
Escheat Reversion of property to the state, when intestate, owner dies,without heirs.
(4)
Material information. Is defined.as a physical condition,
that a buyer would want to know,NJ code says,
(5) psychological, are not considered physical condition,
(nosy dogs,or suicide)
Conforming When Fannie May, and Freddie Mac, announce, that they will buy loans up to a certain
amount, many local lenders, set that as their limit,
(6) (Example 471,000 ceiling) loans,
higher than the limit,are known as Jumbo loans, (non conforming) And the banks keep
them in their portfolio,
New Jersey truth-in- lending, how many days must a lender At least 12 days in advance,of the closing of all charges, or fees,they must pay in
notify of all charges of the loan, connection with the loans.
(7)
Ginnie Mae A government corp' was formed primarily to assist with low income, and high risk
mortgages
(8)
,Qualifying ratios A typical ratio might be 28/36. Borrower is allowed to spend up to 28% of gross monthly
income for housing, or up to 36% of income including other payments on log term debts,
(9)
Wraparound mortgage Financing the purchase of real property when an existing lender (mortgage) is to be
retained. The buyer gives a wraparound mortgage to the seller, the seller continues to
(10) make payments on the old loan, or is used as a method of refinancing,
Package mortgage Covers not only the real estate,also All fixtures and appliances on the premise,
(11)
Interim finnancing Temporary financing. Bridge loan are intended for no more then 6 month,
(12)
Purchase - money mortgage Is any mortgage placed when property is bought.
This is in contrast to refinancing,
(13)
Open end mortgage Is used by borrowers to obtain additional funds to improve their property.the Borrower
OPENS the mortgage to increase the debt,
(14)
Preaproval Is a preaproval form from a lender,
(15)
Pre- qualification Is a financial analysis done for a buyer by most real estate agents,
(16)
In real estate the concept of, Cost,Generally relates to the past.
Cost.
Price. Price, relates to the present.
Value.
Value, relates to the future.
(17)
, Situs, The location of a particular property And people's preference for particular location, is a
major factor affecting value,
(18)
Location.location.
Location,
Basic principle of value, Highest and best use, the most profitable use to which the property can be adapted,
Highest and best use, For example a highest an best use study may show that a parking lot in a busy downtown
area should , in fact, be replaced by an office building,
(19)
Basic principle of value, The principle of substitution states that the maximum value of a property tends to be set
by the cost of purchasing another,
Substitution, For example, if two similar houses are for sale in an area, the less expensive one sells first,
(20)
Regression Les expensive neighboring houses, hold down the value of a better property, this
appraisal principle,is known as regression, it's the reason why homeowners, aren't likely to
(21) get there investment back, if they improve their home so that it cost much more then
others, on the same street.
Progression The principle of progression states, that the worth of a lesser property is increased, if its
neighbor are more valuable. That is why, the least expensive house in a neighborhood,is
(22) traditionally considered, a good investment,
The sales comparison approach Is essential in almost every appraisal of real estate.it is considered the most reliable of the
three approaches in appraising residential property, (CMA)
(23)
The cost approach, The cost approach is most helpful in the appraisal of schools, churches,public
To value, buildings,such properties are difficult to appraise.
(24) The cost approach to value is based on the principle of substitution, or reproduction,
