New Jersey Real Estate Final Practice Test Questions & Answers Solved 100%

Who appoints the 8 members of the New Jersey Real Estate Commission? - Answer Governor Who makes the payments to a claimant from the Guaranty Fund? - 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? - Answer For Steering Beth decides she wants to change brokers. How long does her broker have to return her license? - 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? - Answer Obtain written consent of principals At time of license renewal, what is the renewal charge for a salespersons license? - 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? - 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? - 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? - 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 - 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? - Answer tenancy in common What is an involuntary specific lien? - Answer mechanic's lien Encumbrances on real estate - Answer may include easements, liens, and deed restrictions Which would NOT result from the exercise of police power? - Answer developer's restrictive covenants Which gives a government the right to take private property for public use provided the owner is given just compensation? - 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? - Answer appropriative rights What is the best example of functional obsolescence? - 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 - Answer interest expense What is an appraisal? - Answer an opinion of value for the day of the appraisal only Reproducing a structure best describes building - Answer an exact replica of the structure According to USPAP, what is the definition of market value? - Answer the most probable price a property will bring