NJ Real Estate Exam Questions & Answers

Title 45 - Answer New Jersey's real estate license law is known as Draw up a binding lease for a new tenant in a property the resident owns - Answer an unlicensed New Jersey resident may two years - Answer a real estate license is valid for 18 - Answer according to the law, to obtain a salesperson's license one must reach the age of 150 - Answer a broker must have completed how many hours of study in addition to the original salesperson's course? one year - Answer the prelicense course must be taken over if the student does not apply for a license within agree to be sued in New Jersey - Answer A nonresident broker requesting a New Jersey license must be exempt from payment of license fees - Answer An honorably discharged war veteran with a service connected wound or disability may Have one of their members apply for a temporary broker's license - Answer if a principal broker dies, associated salespersons should promptly 8 - Answer the Real Estate Commission has how many members in every two-year period - Answer continuing education courses must be taken insurance brokers - Answer which of the following are never allowed to sell real estate without a license? fees paid at first-license application - Answer the Guaranty Fund is funded by out of state properties - Answer Real estate brokers may need special registration when selling some Furnish prospective tenants with a written contract - Answer rental referral companies must give no answer to questions about the property - Answer an unlicensed assistant is asked over the telephone, "how many bedrooms are there in that house at 78 oak street?" the assistant is allowed to 3 days - Answer an apartment is listed with a rental referral company, but it is not actively advertised to the public. How frequently must the company check the apartment's availability? SLWRERC - Answer certification that legal restrictions have been reviewed with the certifying broker is required for which license? ethics - Answer continuing education requirements mandate at least two hours instruction in april 30 - Answer in order to avoid an additional processing fee, licensees should complete their required continuing education courses during the renewal year on or before 6 years - Answer a broker who goes out of business must provide a name and address where past records will be available for broker - Answer Individual licensed to charge the public for real estate services Broker-salesperson - Answer Fully qualified broker who remains under another broker's supervision Continuing Education - Answer Classes required for license renewal Guaranty Fund - Answer Reimburses people defrauded or badly served by licensees in real estate transactions New Jersey Real Estate Commission - Answer Administrator of real estate licenses Real Estate License Act - Answer Law governing the practice of real estate in New Jersey REALTOR - Answer member of a private real estate trade organization REALTOR-ASSOCIATE - Answer Salesperson who joins a particular real estate trade group referral fee - Answer Money paid another broker for sending a client or customer salesperson - Answer One licensed to assist a broker in real estate transactions Title 11, Chapter 5 - Answer state rules and regulations for real estate licensees branch office - Answer broker's additional place of business Commingling - Answer mixing broker's money with that of others Duplicate original - Answer copy of a real estate contract with original signatures escrow account - Answer Place for money belonging to clients and customers guilty knowledge - Answer awareness of wrongdoing with no attempt to stop it probation - Answer Least severe discipline by the Real Estate Commission Revocation - Answer cancellation of a real estate license suspension - Answer Temporary lifting of a real estate license Trust Account - Answer another name for escrow account Waiver of Broker Cooperation - Answer form sellers must sign for an office-exclusive listing Leave one broker and affiliate with another - Answer A licensed salesperson is allowed to a broker, if visible from the street - Answer under some circumstances, a real estate office may be in the home of Deposit it within 5 days in a trust account - Answer a salesperson accepts an earnest money deposit and turns it over to his broker. the broker must any authorized new jersey financial institution - Answer an escrow account may be opened in contracts for 6 years - Answer a broker must keep copies of immediately - Answer every person who signs a contract is entitled to receive a duplicate original. when are they entitled to receive it? the buyer and the seller may seek an attorney review within three business days - Answer every sales contract prepared by a broker must contain a notice that fair dealing - Answer even when the broker is the seller's agent, buyers are entitled to 50,000 - Answer for a license law violation, the real estate commission could fine a license as much as 3 - Answer the commission will rule that someone could never again get a license after how many violations? buyer only - Answer rebate as part of a commission may be paid to a 10 days - Answer the real estate commission must give a licensee how much notice before a hearing is held on a possible violation violates the commission's rules - Answer a real estate firm holds a door-prize drawing weekend open house it runs. this practice yes, as soon as she meets a prospective buyer - Answer a broker is offering her mother's house for sale and will charge no commission. should she reveal that she is a licensed agent? may not advertise a free appraisal, although a free CMA is permitted - Answer a broker-run advertisement in a local newspaper encourage the seller to complete a property disclosure statement - Answer what is a reasonable effort for a seller's agent to determine material information about a property's physical condition? informed, written consent of the seller, buyer, and any other agent involved - Answer a new jersey licensee if permitted to represent both parties to a transaction if her or she obtains the Illegal price fixing - Answer Any agreement between competing offices to establish standard commission rates is referred to as will be suspended or revoked only if the broker knew about the salesperson's activities and did nothing about it - Answer a salesperson working for a broker was disciplined for pursuing a flagrant and continued course of misrepresentations, making false promises, and failing to pay over money belonging to others. in this case, the broker's license Acceleration Clause - Answer clause stating that in case of default, the whole debt is immediately payable Alienation Clause - Answer clause stating that if property is sold, debt is immediately payable bond - Answer personal promise to repay money, similar to a note default - Answer failure to live up to any part of a mortgage agreement Defeasance Clause - Answer clause ensuring that after repayment, lender has no claim on property deficiency judgement - Answer court order that borrower pay money lost by lender after foreclosure Estoppel Certificate - Answer borrower's statement of how much remains on mortgage debt Foreclosure - Answer to seize and sell property pledged for a debt hypothecation - Answer pledging of property as security without surrendering possession mortgage - Answer written pledge of real estate as security for a loan Mortgagee - Answer lender Mortgagor - Answer borrower note - Answer personal promise to repay a loan; similar to a bond Reduction certificate - Answer lender's statement of how much remains on a debt REO - Answer property acquired by lenders satisfaction of mortgage - Answer lender's statement that debt has been repaid in full Sheriff's Deed - Answer document given to purchaser of foreclosed property Sherriff's Sale - Answer proceeding to auction foreclosed real estate Short Sale - Answer lender agrees to accept sale proceeds, even if less than the debt subordination agreement - Answer Arrangement by which mortgage holder gives up priority Usury - Answer charging higher interest than is allowed by law the one that was recorded first - Answer which mortgage has first priority assumes the existing loan - Answer an owner allows the buyer to take over the mortgage on her property when he buys the house. she receives the most protection if the buyer obtain the mortgagee's permission before renting a room to a boarder - Answer a mortgage document requires the mortgagor to perform certain duties. which of the following is not one of these? the original buyer - Answer a buyer borrows 120,000 to buy a house. the local factory closes down and real estate values fall. at a foreclosure auction the property sells for only 80,000. to make up its loss, the lender may seek a deficiency judgement against accept the deed in lieu of foreclosure - Answer in a friendly foreclosure, the lender agrees to mortgagor - Answer the bond accompanying a mortgage is signed by the below the applicable rate - Answer the irs taxes income not really received if a mortgage interest rate is sellers and third parties - Answer new jersey's usury limits apply to interest on mortgage loans by note and mortgage - Answer the two instruments signed by someone who pledges real estate for a loan are known as the signs the note - Answer a mortgagor is the one who Satisfaction of Mortgage - Answer a homeowner has just made the final payment on his mortgage loan. his lender must record a Seek a deficiency judgment - Answer a homeowner defaulted on his mortgage, which had a remaining principal balance of 100,000 . at the foreclosure sale, the house brought only 82,000. to recover the remaining 18,000. the lender may the mortgagor - Answer a homeowner defaulted on his mortgage, which had a remaining balance of 165,000. at the foreclosure sale, the property brought 180,000. after the debt and the costs of the foreclosure are met, who receives the remaining money? usury - Answer an interest rate that exceeds the legal rate nothing - Answer a homeowner paid off the whole of her mortgage loan several years ahead of schedule. according to new jersey law, her bank may impose a prepayment penalty of to establish the priority of the lenders lein - Answer a mortgage may be recorded a subordination agreement - Answer an existing mortgage loan may be changed to a junior lein by recorded - Answer to establish a mortgage lein's priority, the mortgage document should be cash - Answer the successful bidder at a foreclosure auction must pay for the property with lender accepts whatever the property brings on the market - Answer a short sale is one in which the prepayment - Answer borrowers decided to accelerate their mortgage payments. this is called agent - Answer one authorized to act for another antitrust laws - Answer regulations prohibiting price-fixing Attorney-in-fact - Answer person authorized to act under a power of attorney Broker - Answer one authorized to act for another in real estate transactions buyer's broker - Answer agent who takes a buyer as the principal client - Answer principal who engages an agent commission - Answer broker's usual compensation consumer information statement - Answer written explanation of a business relationship customer - Answer third party in a transaction, not the principal disclosed dual agent - Answer one who works for both the seller and the buyer disclosure - Answer revealing to another any pertinent information Dual Agency - Answer brokers taking both parties as principals employee - Answer salesperson whose broker pays Social Security, regulates hours, etc. Fiduciary - Answer one who owes special duties to another fiduciary relationship - Answer trust and confidence between parties fraud - Answer intentional or unintentional misleading of another, who is harmed thereby General Agent - Answer One empowered for a wide range of actions Independent Contractor - Answer salesperson who sets own hours, pays own estimated income taxes, etc. kickback - Answer Illegal sharing of a commission with seller Latent Defect - Answer problem not discoverable by normal prudent inspection Law of Agency - Answer rules governing conduct of agents Listing Agreement - Answer contract by which the owner retains a broker to find a buyer Meeting of the minds - Answer agreement between a buyer and seller on major points Megan's Law - Answer legislation requiring that communities be alerted to the presence of sex offenders power of attorney - Answer written authorization allowing one person to act on behalf of another principal - Answer the one employing an agent; the client Procuring Cause - Answer the one who brings about a sale Puffing - Answer harmless exaggeration as salesmanship ready, willing, and able buyer - Answer one qualified and prepared to purchase Special Agent - Answer one authorized to act for another in a specific transaction Subagent - Answer agent of an agent Transaction Broker - Answer one who facilitates a transaction without functioning as an agent code of ethics - Answer standards of conduct adopted by REALTORS conflict of interest - Answer problem when serving best interests of both the client and oneself Errors and Omissions Insurance - Answer real estate equivalent of malpractice coverage Fraudulent Misrepresentation - Answer intentional fraud Graduate, REALTOR Institute - Answer designation awarded for advanced study innocent misrepresentation - Answer unintentional deception committed in ignorance national association of REALTORS - Answer private nationwide organization of brokers and salespersons Negligent Misrepresentation - Answer fraud committed by someone who should have known better New Jersey REALTORS - Answer statewide group of real estate licensees who choose to join standard of care - Answer competence normally expected special agency - Answer the legal relationship between a broker and seller is generally a someone must have agreed to pay a commission to the broker for selling the property - Answer the statement "a broker must be employed to recover a commission for his or her services" means sometimes hard to determine - Answer the procuring cause of a sale is goes bankrupt - Answer A listing may be terminated when either Broker or Principal honest treatment - Answer when retained by the seller, the broker owes a prospective buyer dual agency - Answer the salesperson who sincerely tries to represent bother buyer and seller is practicing May be held liable for money and time expended by the broker - Answer a seller who wishes to cancel a listing agreement in new jersey after the sale of the property has closed - Answer in new jersey, The buyer of residential property is entitled to find out about the presence of a convicted sex offender in the neighborhood insurance claims for the past five years - Answer what are buyers who ask to see the owner's Comprehensive Loss Underwriting Exchange looking for? malfunctioning septic system - Answer an example of a latent defect is a Commissions on sales - Answer an independent contactor may be paid the seller accepts the buyers offer without conditions - Answer commissions usually are earned when seller simply backed out - Answer even if a property transaction does not go through, the broker sometimes may collect a commission where the paid within 10 days the broker is paid for the transaction - Answer a salesperson's commission on a real estate transaction is Be the procuring cause of the transaction - Answer The be entitled to collect a commission on a real estate transaction, an agent must the selling broker - Answer the seller lists his house with a broker offering a bonus commission of $500 to the agent who brings a good buyer before Thanksgiving. An agent with a cooperating firm effects the sale on Nov 1. the buyer agent may collect that bonus from agreement between seller and broker - Answer commission rates are set by point out to the rival that it is a violation of federal antitrust law for competing brokers to discuss any aspect of commission rates - Answer at a booth in the neighborhood coffee shop, a broker is seated with her friendly rival. her rival says, "did you hear about the firm that's charging a flat fee for selling property? Do you think they'll make it?" the broker's proper response is to no one - Answer the transaction broker represents one- to four-family dwellings - Answer a consumer information statement is required for transactions involving the right price to accept - Answer a dual agent cannot provide advice on the right price to accept The previous owner's suicide - Answer the seller may remain quiet about suggest an offer under the listed price - Answer the duty of loyalty forbids the seller's broker to inform the seller immediately - Answer when the buyer gives a seller's broker information about possible financial problems in completing the purchase, the broker should explain to the buyer that not revealing the problem to the seller may constitute concealment of material defect - Answer when the buyer gives their broker information about possible financial problems in completing the purchase, the broker should the speaker should know the statement is false - Answer negligent misrepresentation occurs when members of a private organization - Answer the term REALTOR applies only to allows exemption from liability in some circumstances - Answer New jersey's consumer fraud act attorney generals memorandum - Answer statement about discrimination everyone listing property must receive Blockbusting - Answer Inducing panic selling based on prejudice civil rights act of 1866 - Answer federal law; protected classes are race and color; no exceptions Department of Housing and Urban Development - Answer federal agency enforcing civil rights compliance Federal Fair Housing Act of 1968 - Answer federal law setting many protected classes; some exceptions Mount Laurel I and II - Answer court cases covering moderate-income housing protected class - Answer specific group that may not be discriminated against Redlining - Answer refusal to lend in certain areas, usually inner-city reverse discrimination - Answer "benign" discrimination intended to correct past wrongs steering - Answer channeling homeseekers to or away from certain areas tester - Answer undercover checker who monitors fair housing practices title viii - Answer section of federal Civil Rights Act that covers housing the new jersey law against discrimination, federal fair housing laws, and new jersey federal fair housing laws - Answer at the time the owner listed his home with a salesperson, he informs her of his general dislike of members of a particular ethnic group. the salesperson later shows the home to two prospective buyers, one of whom is a member of this group, and both make an offer. when the owner contacts the agent again, she does not present him with the lower offer, which was made by the member of the minority group. the salesperson has violated refusing to sell a home to an individual because he or she has poor credit history - Answer which of the following acts is permitted under the federal fair housing act covers only the areas of race and color - Answer the civil rights act of 1866 is unique because the act the owner of a 20-unit apartment building rents to women only - Answer which would not be permitted under the federal fair housing act 62 - Answer under federal law, families with children may be refused rental or purchase in buildings when occupancy is reserved exclusively for those aged at least new jersey statutes - Answer refusal to rent to someone because they receive public assistance violates no law - Answer A policy of never renting to persons with prison records violates the law against discrimination - Answer refusing an apartment to a couple because they are unmarried an injunction - Answer a mortgage company makes it a practice not to lend money to potential homeowners attempting to purchase property located in predominantly black neighborhoods. this practice is known as Disability and familial status - Answer the federal fair housing amendments of 1988 added which of the following as new protected classes 21,039 - Answer the fine for a first violation of the federal fair housing act could be as much as didn't occur - Answer the only defense against an accusation of illegal discrimination is proof that it voluntary - Answer participation in the HUD/NAR fair housing partnership is must be filed within 180 days after the alleged discriminatory action occurs - Answer complaints brought under the new jersey law against discrimination permits an owner-occupant of a one- or two- family residence to deny housing to a tenant based on the applicant's age - Answer the new jersey law against discrimination income - Answer the mount laurel court decisions attempt to correct housing discrimination based on 90,000 - Answer the homeowners purchased their home for 250,000 using a conventional loan of 200,000. they now want to refinance their home to take advantage of lower interest rates. the appraisal comes in at 275,000, but they still owe about 185,000 on their mortgage. how much equity have they built up. either the buyer or the seller - Answer who pays points