NJ Title Insurance Producer Final Exam Set with Q&A

NJ Title Insurance Producer Final Exam Set with Q&A "A" and "B" bought a house as tenants in common. If "A" dies which of the following statements about ownership of the house is correct? A) It automatically becomes tenancy in severalty. B) It is divided, with B retaining their original interest and the balance going to A's estate. C) B holds fee simple ownership to A's share of the property D) B holds a life estate ownership to A's share of the property - CORRECT ANSWER-B) It is divided, with B retaining their original interest and the balance going to A's estate. The difference between the value of a property and the total amount of liens against it is known as: A) A down payment B) Equity C) Actual cash value D)Collateral - CORRECT ANSWER-B) Equity If a husband and wife take title to a property as tenants in common, they may also have elected to have: A) Title in severalty B) Separate life estates C) The right of survivorship D) Unequal shares of ownership - CORRECT ANSWER-D) Unequal shares of ownership A person who openly, continuously and hostilely occupies another's land for a period set by a statute may gain title by means of: A) Voluntary alienation B) Accretion C) Prescription D) Adverse possession - CORRECT ANSWER-D) Adverse possession Truth-In-Lending Act requires the lender to furnish an applicant for a real estate loan with a copy of an: A) Amorization schedule B) Disclosure statement C) Deed D) Financial statement - CORRECT ANSWER-B) Disclosure statement The seller is responsible for which of the following costs at closing: A) The realty transfer tax B) The title search C) The Deed recording fee D) Title insurance - CORRECT ANSWER-A) The realty transfer tax When private property is abandoned the state may acquire title to that property under the right of : A) Escheat B) Eminent domain C) Police power D) Taxation - CORRECT ANSWER-A) Escheat The term hypothecation most closely means: A) Conditional security for debt B) Conditional ownership of property C) A right of first refusal D) Conditional mortgage commitment - CORRECT ANSWER-A) Conditional security for debt A CORRECT statement about condominium and cooperative apartment owners is that they both: A) Receive an annual real estate tax bill B) Must pas assessments C) Own shares of stock D) Own real property - CORRECT ANSWER-B) Must pas assessments Which of the following is not necessary to a valid contract: A) Consideration B) Contractual ability C) Legal purpose D) The signature of both parties - CORRECT ANSWER-D) The signature of both parties Which is NOT true of a tax lien sale? A) Title passes with the sale B) The lien holder is the lowest interest bidder C) The municipality may hold the lien D) The property owner has two years to pay the lien - CORRECT ANSWER-A) Title passes with the sale Which would be a credit to the purchaser at settlement? A) The balance of an existing mortgage to be assumed B) Taxes overpaid by the seller C) Fuel oil remaining in the tank D) Unpaid new mortgage - CORRECT ANSWER-A) The balance of an existing mortgage to be assumed In a condominium apartment project, the BEST term to describe a swimming pool and laundry room for the use of unite owners is? A) Common elements B) Limited common elements C) Fee simple elements D) Leasehold elements - CORRECT ANSWER-A) Common elements When homeowners itemize deductions in computing their annual taxable income they may deduct: A) Payments of principal on the home mortgage B) Interest paid on the home mortgage C) Depreciation of the home D) Cost of repair - CORRECT ANSWER-B) Interest paid on the home mortgage Dual Agency is best described as: A) Two companies working together B) Owing special duties to another person C) Brokers taking both parties as principals D) None of the above - CORRECT ANSWER-C) Brokers taking both parties as principals The use of a property that was lawful at the time of enactment but is now in violation of a zoning regulation is an example of? A) Non conforming use B) Exclusionary zoning C) Variance D) Spot Zoning - CORRECT ANSWER-A) Non conforming use R.E.S.P.A (Real Estate Settlement Producers Act) requires: A) Full disclosure of finance costs B) Estimated closing costs from a lender C) Revealing the true interest rate D) A complete mortgage pay back statement - CORRECT ANSWER-B) Estimated closing costs from a lender The act of recovering title to property lost through foreclosure on a mortgage is called: A) Redemption B) Reclamation C) Restitution D) Reparation - CORRECT ANSWER-A) Redemption Tenancy in Common would indicate: A) The right of survivorship B) The right of Joint Possession C) The right of devise D) Equal shares of ownership - CORRECT ANSWER-C) The right of dev