final test practice for new jersey real estate test (NJ Title Insurance)

final test practice for new jersey real estate test (NJ Title Insurance) Who appoints the 8 members of the New Jersey Real Estate Commission? - CORRECT ANSWER-Governor Who makes the payments to a claimant from the Guaranty Fund? - CORRECT ANSWER-The state treasurer Agent Louis Lee is working with several people from his home town in Hong Kong. They sought him out because he speaks their native language. The Chans are anxious to purchase a house before the school year starts. Agent Lee listens to their needs and tells them, "I know exactly where you will be comfortable". Has agent Lee committed any violation? - CORRECT ANSWER-For Steering Beth decides she wants to change brokers. How long does her broker have to return her license? - CORRECT ANSWER-5 days after her request Agent Mike Brown is representing both buyer and seller in the same transaction. Since the contract was signed by all parties, did Mike have any other obligation? - CORRECT ANSWER-Obtain written consent of principals At time of license renewal, what is the renewal charge for a salespersons license? - CORRECT ANSWER-100 Marie is a buyer agent. She shows many listings each week. Marie has a very good working relationship with both buyers and sellers. Who does Marie owe a fiduciary relationship to? - CORRECT ANSWER-The buyer John a licensee is a dual agent in this transaction. Both parties have agreed to compensate him for a job well done. John is very happy about the dual payment. He feels he deserves it as a top notch producer. What statement is true regarding this transaction? - CORRECT ANSWER-John violated the NJ License Act Julie is the new owner of a house and decides to remove the carpet. After doing so, she discovers there is significant pet damage to the hardwood floor beneath the carpet. Julie cuts most of the center of the floor out and replaces it with subfloor. Julie then places a Persian rug over the subfloor. When the Julie sells, can she remove the Persian rug? - CORRECT ANSWER-No, anything that covers subflooring becomes real property Property accumulated by husband and wife by the efforts of either, which is equally divisible at time of divorce or dissolution, is called - CORRECT ANSWER-community property Bob and Jerry take title together. Both Bob and Jerry own one-half of the same property. What form of co-ownership does the law presume? - CORRECT ANSWERtenancy in common What is an involuntary specific lien? - CORRECT ANSWER-mechanic's lien Encumbrances on real estate - CORRECT ANSWER-may include easements, liens, and deed restrictions Which would NOT result from the exercise of police power? - CORRECT ANSWERdeveloper's restrictive covenants Which gives a government the right to take private property for public use provided the owner is given just compensation? - CORRECT ANSWER-eminent domain A landowner needs water. His land has no access to a water source. However, the landowner is granted the right to use water from a nearby river, to irrigate his land. What right grants this permission? - CORRECT ANSWER-appropriative rights What is the best example of functional obsolescence? - CORRECT ANSWER-walking through on bedroom to reach another While determining the net operating income of an investment property, an appraiser will not take into account - CORRECT ANSWER-interest expense What is an appraisal? - CORRECT ANSWER-an opinion of value for the day of the appraisal only Reproducing a structure best describes building - CORRECT ANSWER-an exact replica of the structure According to USPAP, what is the definition of market value? - CORRECT ANSWER-the most probable price a property will bring What is NOT part of the secondary market? - CORRECT ANSWER-Federal Universal Mortgage Association What document uses legal title to real property to secure debt? - CORRECT ANSWERmortgage A note that calls for periodic payments of principal only, with a balloon payment at the end of the loan term, is called a(n) - CORRECT ANSWER-installment note