NJ REAL ESTATE PRACTICE EXAM 2023 QUESTIONS WITH CORRECT ANSWERS

The type of deed that warrants only that the grantor has not impaired the title during the term in which he held it is referred to as. 1. Quitclaim Deed 2. General Warranty Deed 3. Bargain and Sale Deed 4. Bargain and Sale Deed, CAG - Answer Bargain and Sale Deed, CAG Taxes raised to pay for improvements that benefit real estate are referred to as 1. Special Assessments 2. Facilities Taxes 3. Ad Valorem Taxes 4. Luxury Rates - Answer Special Assessments After Borrowers have indicated an intent to proceed, the lender 1. is prohibited from asking for any additional information 2. approves their loan application 3. can ask for additional fees to process the loan application. 4. can provide a temporary approval letter - Answer In a blanket mortgage, the clause that allows the developer the right to sell an individual lot without having to pay off the entire principal amount is called a 1. Partial Release Clause 2. Subordination Clause 3. Defeasance Clause 4. Prepayment Clause - Answer Partial Release Clause Which of these documents is typically recorded in the public records? 1. Sales Contract 2. Deed 3. Closing statement (CD) 4. Loan Estimate (LE) - Answer Deeds- Must be notarized Which law prohibits ALL racial discrimination in housing, with no exceptions? 1. Jones v Mayer Act 2. Fair Housing Act of 1968 3. Civil Rights Act of 1965 4. Civil Rights Act of 1866 - Answer Civil Rights Act of 1866 In order to convert an oral agreement into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days? 1. 5 days 2. 10 days 3. 30 days 4. 1 day - Answer 5 Days In New Jersey, a conveyance to a married couple creates a 1. Tenancy by the entirety 2. Partnership 3. Tenancy in common 4. Joint Tenancy - Answer Tenancy by the entirety A seller's broker must transmit to her principle 1. All written offers 2. All reasonable written offers 3. All reasonable offers 4. Copies of all advertisements on the property. - Answer Which of these protects suppliers and laborers? 1. Encroachment 2. License 3. Mechanic's or construction lien 4. Easement - Answer Mechanic's or construction lien A man and a woman are not married but own property together. The man dies in an accident and the woman now owns the property in severalty. The man and woman held the title in 1. Tenancy in Common 2. Tenancy by the entirety 3. Joint Tenancy 4. Life Tenancy - Answer The approach that uses the concept of deprecation is the 1. Cost Approach 2. Income Capitalization Approach 3. Reconciliation Approach 4. Sales Comparison Approach - Answer Cost Approach A property manager's responsibilities generally do NOT include which of the following? 1. Investing profits 2. Renting Units 3. Paying Utilities 4. Collecting security deposits. - Answer Investing Profits The law of descent applies to what remains of an estate after 1. All real estate has been sold 2. The will has been executed 3. The surviving spouse receives 50 percent. 4. Payment of all debts. - Answer Payment of all debts. In a real estate advertisement that includes information on mortgage financing, which of the following is permissible under the truth-in-lending law, without the qualifying words. 1. Liberal Terms available 2. Interest Rate is only 8 percent 3. Two thousand dollars down 4. Monthly payments only $600 - Answer What is the intent of the federal fair housing law? 1. To allow the neighbors to choose buyers based on race and nationality 2. To allow people to buy a home in whatever neighborhood they can afford 3. To ensure that all neighborhoods are integrated 4. To maintain a status quo in most neighborhoods - Answer To allow people to buy a home in whatever neighborhood they can afford The Federal Fair Housing law makes it illegal for a 1. Non-profit club to restrict its housing to its members only 2. landlord of a two-unit residential dwelling to deny a unit to a member of a protected class if the landlord does not occupy one of the units 3. seller to deny a mortgage loan to a buyer who is a member of a minority group 4. Landlord to deny commercial space to a prospective tenant who is a member of a minority group. - Answer landlord of a two-unit residential dwelling to deny a unit to a member of a protected class if the landlord does not occupy one of the units What is required to form a valid purchase contract in New Jersey? 1. One of the parties must be a minor 2. Must be accompanied by an earnest money deposit 3. An adequate description of the property. 4. Omits an attorney review clause - Answer An adequate description of the property.