NJ Real Estate Exam Questions & Answers 100% Correct

owns MUST? a) list the same property with another licensee in the same office b) disclose the ownership interest in any advertisement of the property c) disclose the ownership interest in any notice submitted on the listing to the MLS d) disclose in the contract of sale that the seller holds a New Jersey Real Estate license - Answer d. disclose in the contract of sale that the seller holds a New Jersey Real Estate license With respect to the Mount Laurel requirements, Which of the following statements is correct? a) It is unlawful for a landlord to refuse to rent to a couple because they have children under the age of 14 b) under certain circumstances, a tenant has the right to have a repair made and deduct the cost from the repair from the rent c) lower and moderate income people may not be excluded from New Jersey municipalities by zoning ordinances d) minority prospects may not be directed to minority populated communities without being offered opportunities in other areas in that price range - Answer c. lower and moderate income people may not be excluded from New Jersey municipalities by zoning ordinances In New Jersey, the realty transfer fee appears on the closing statement as: a. debit to the seller b. debit to the buyer c. credit to the seller d. credit to the buyer - Answer a. debit to the seller A residential developer desires to limit all construction in a subdivision to single family houses of at least 3,000 square feet. Which of the following is the BEST way for the developer to ensure this will take place? a. have an architectural review committee approve building plans b. establish a homeowners association c. Petition for a zoning change d. create deed restrictions - Answer c. petition for a zoning change Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer's allegation of discriminatory treatment by a licensee in a brokerage office? a. Records of the houses shown and properties suggested to the prospective buyer b. Whether or not the HUD Equal Housing Opportunity post is displayed in the office c. Whether the licensee believed she was acting in the best interests of the prospective buyer d. The reports of undercover testers who visited the office - Answer a. Records of the houses shown and properties suggested to the prospective buyer A licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following must be included in the email? A. opt-out provision B. how the recipient's name was obtained C. complete property address D. listing sale price - Answer A. Opt out provision A complaint must be filed with HUD within what period of time after fair housing violation has occurred a. 1 month b. 1 year c. 10 years d. indefinitely - Answer b. 1 year A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure, he accepts, which of the following will be TRUE? A. Because it is voluntary it will not be an adverse item on the buyer's credit B. The lender will take the title subject to any junior liens C. The lender will usually retain his rights under mortgage insurance or VA guarantee. D The loan will still be assumable - Answer c. The lender will usually retain his rights under mortgage insurance or VA guarantee. According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions? a. 10 days b. 1 year c. 6 months d. 6 years - Answer d. 6 years Standard title insurance would protect a buyer a. when the seller has forged his ex wife's signature on the deed b. After the HOA has placed a lien on the property for the previous owners unpaid dues c. in a purchase where the buyer had knowledge of a shed violating setback requirements d. For the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property - Answer a. when the seller has forged his ex wife's signature on the deed Which of the following is not a legal test for a fixture? A) intention of party doing attaching B) method of attachment C) adaptation of item to use of property D) Cost of replacement of item - Answer d. Cost of replacement of item Real estate taxes that are paid in advanced are prorated on the closing statement as. a. no entry to buyer; a credit to seller. b. no entry to buyer; a debit to seller. c. a credit to buyer; a debit to seller. d. a debit to buyer; a credit to seller. - Answer d. a debit to buyer; a credit to seller. Which of the following statements about branch offices is INCORRECT? a. The name of the branch office supervisor mist be recorded with the commission b. a licensed broker-salesperson must supervise the office on a full time basis c. two salespersons may be designated to share supervising responsibilities d. the employing broker is ultimately responsible for all licensees employer at the office - Answer c. two salespersons may be designated to share supervising responsibilities A licensee may use the term REALTOR or REALTOR ASSOCIATE only if the licensee is a. duly licensed by the state real estate commission b. a member of the national association of REALTORS c. an owner and a manager of a real estate company d. a member of a national franchise - Answer b. a member of the national association of REALTORS According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions? a. b. Files must be kept on a public online database indefinitely b. Files must be kept on a public online database for up to 10 years c. Files must be kept on premises and available to the public at any time. d. kept on file for 6 months - Answer c. Files must be kept on premises and available to the public at any time. A contract of sale prepared by a licensee MUST include an attorney review clause if it pertains to which of the following types of properties? a. any commercial real estate b. an apartment building c. a six family dwelling unit d. a single family residential vacant lot - Answer d. a single family residential vacant lot A seller is interested in providing financing to the buyer of her homes, but she wants to retain title until the loan balance is paid off. Which of the following would be the best loan option? a. asset integrated mortgage b wraparound mortgage c. contract for deed d. subordination of deed - Answer c. contract for deed A neighborhood grocery store no longer complies with the law because a new zoning ordinance is adopted so that the property is zoned for residential use. Nevertheless, the owner is allowed to continue to operate the grocery store. This is: a. a variance b. nonconforming use c. spot zoning d. a conditional permit - Answer b. nonconforming use A secretary in a real estate office who does NOT have a real estate license may: a. review the consumer information statement with a prospective buyer b. perform bookkeeping function concerning escrowed funds c. sign escrow checks with the written authorization of the broker d. disclose the current status of a commercial listing - Answer b. perform bookkeeping function concerning escrowed funds The listing broker may be due a commission, even when no sale occurred, if the: a. potential buyers is unable to obtain financing b. seller decides he no longer wants to sell c. seller refused buyers reasonable offers d. broker located a buyer who made an offer that met all of the sellers terms - Answer d. broker located a buyer who made an offer that met all of the sellers terms What is the greatest ADVANTAGE of using FHA financing when purchasing a home that the buyer plans to occupy? A) FHA requires a fixed rate loan so that the buyer can rely on a fixed payment B) The required down payment may be lower than conventional loans C) The loan will be automatically assimilate to a future buyer D) FHA requires the seller to pay the buyers closing costs - Answer b. The required down payment may be lower than conventional loans a couple applied for a loan to finance the purchase of a new home. What federal act was created? A) Fair credit reporting act B) Equal credit opportunity act C) Uniform settlement act D) Real Estate settlement procedures act (RESPA) - Answer d. Real Estate settlement procedures act (RESPA) Upon termination of an agent, the broker is required to make a complete accounting in writing of all monies due to the agent as of the date of termination. the accounting must be given to the agent within how many days after termination? a. 5 days b. 10 days c. 30 days d. 60 days - Answer c. 30 days A multiple listing service decides to deny membership to brokers who charge commission below 4% on residential properties in minority neighborhoods. This restriction violates: A. redline guidelines b. EPA regulations c. blockbusting prohibitions d. antitrust regulations - Answer d. antitrust regulations A sellers property condition disclosure constitutes: a. a guarantee to the buyer of property condition b. a statement of the sellers actual knowledge c. a waiver of inspections d. an implied warranty - Answer b. a statement of the sellers actual knowledge An applicant for a real estate salesperson's license must apply for the issuance of the license within a. 30 days after accepting an offer of employment from a licensed real estate broker b. one year from the date of beginning of the prelicensure education course c. one year from the date of completion of the prelicensure education course d. one year from the date of passing the state licensing examination - Answer c. one year from the date of completion of the prelicensure education course What is required to establish mutual assent? a. meeting of the minds b. rejection of an offer c. offer and counteroffer d. an offer that meets the listing price - Answer a. meeting of the minds According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all record of Real Estate transactions? a. Files must be able to be reproduced on paper for review by commission b. Files must be kept on paper, and available for review for up to 10 years c. Files must be submitted electronically to the commission d. Files must be kept on premises & available to public at any time - Answer d. Files must be kept on premises & available to public at any time prohibitions against commingling are aimed to prevent... - Answer mixing brokers' finds with clients' funds when the brokers license is suspended or revoked, the licenses of the agents in their employ are... - Answer suspended until they are employed with another broker if a broker has no agency duties or obligations, that broker is.... - Answer a transaction broker a NJ licensed real estate salesperson may prepare a sales contract on what type of family home? - Answer 1-4, no more and no less all ads for real estate must specify the - Answer property municipal location after receiving a commission payment, a broker must pay the salesperson's share within how many days? - Answer 10 What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate? 1. market analysis 2. sales contract 3. appraisal report 4. assessor's determination - Answer 3. appraisal report The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will: 1. require the removal of all lead paint prior to the closing. 2. provide the buyer with the opportunity to wave the right to a lead paint inspection. 3. mandate the sellers remove any lead paint only on interior walls. 4. make the sellers liable of the buyer's lead related medical problems - Answer 2. provide the buyer with the opportunity to wave the right to a lead paint inspection. Zoning ordinances are typically established by: 1. the federal government 2. state governments 3. town and city governments 4. the courts - Answer 3. town and city governments A motel is the subject of an appraisal and it is determined that a rerouting of a county highway has limited customer access to the motel. This is an example of: 1. economic obsolescence 2. regression 3. functional obsolescence 4. landlocked property - Answer 1. economic obsolescence A grantor wishes to convey title to a grantee in a deed that creates the least protection for the grantee. The grantor should give the grantee a - Answer Quitclaim deed Market value is what a willing, ready and bank-qualified buyer will pay for a property and what the seller will accept for it. The transaction that takes place determines the - Answer Market price If an unmarried couple wished to purchase a home together and have the right of survivorship, which form of ownership would they choose? - Answer Joint tenancy Quality Supermarkets has taken occupancy of a retail building and has a long term lease. As part of the their fit-up, they bolt to the floor their meat and dairy coolers, and shelves. When Quailty Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures? 1. no, because they are trade fixtures 2. yes, because they are appurtenances 3. no, because they are bolted to the floor 4. yes, if removed prior to the end of the lease - Answer 4. yes, if removed prior to the end of the lease A seller has listed a home with a broker for $112,000. The seller is leaving for a 45 day cruise midway through the listing period, and authorizes the broker through a power of attorney to accept any offer of all cash at a price 100,00 or more. Broker receives a cash offer for $110,000, what does the broker do? 1. may not accept the offer until the seller returns 2. must forward the offer to the seller's attorney for consideration 3. may accept the offer 4. may sign a deed of conveyance if the seller does not return on time - Answer 3. may accept the offer The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response would be to: 1. go the state's website and obtain the information and give it to the buyer. 2. ask the seller and then pass the seller's information along to the buyer. 3. give the buyer the website address so the buyer can look up that information 4. contact the local police department to obtain the information - Answer 3. give the buyer the website address so the buyer can look up that information A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the customers to know exactly what it will cost to list a property. This marketing plan is: 1. apostille 2. price-fixing 3. market allocation 4. consumer protection - Answer 2. price-fixing Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? 1. a broker's price opinion 2. a competitive market analysis 3. a reconciliation report for an FHA loan 4. a value analyze for a non-residential property valued below $250,000 - Answer 3. a reconciliation report for an FHA loan Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines? 1. "female seeking female roommate" 2. "nice home ideal for any family with children 3. "apartment available, No pets of children allowed" 4. "located within walking distance to a great Catholic school" - Answer 1. "female seeking female roommate" Which of the following is among the typical responsibilities of a residential property manager? 1. requesting the tenant's employer withhold the past due rent from wages 2. making decisions about structural changes that wilt enhance the property value 3. selecting tenants to provide a diverse environment 4. negotiating leases between the property owner and potential tenants - Answer 3. selecting tenants to provide a diverse environment An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A lawsuit filed by the buyers would be for: 1. specific performance 2. lis pendens 3. quiet title action 4. a deficiency judgement - Answer 1. specific performance The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He also noticed a Russian grocery store right by the neighborhood that was attractive. He decides to stop the advertising the property and started adverting the property on two different Russian internet sites. This is: 1. Acceptable because it is not print media 2. Unacceptable due to its discriminatory nature 3. Acceptable if the advertisement includes no preferential language 4. The only appropriate way to market property in this neighborhood - Answer 3. Acceptable if the advertisement includes no preferential language Market price is: 1. What the property sells for 2. The most probable price 3. The same as market value 4. The same as cost when used - Answer 1. What the property sells for In most listing contracts, a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract: 1. earns a commission at that point 2. earns a commission even if the contingencies in the contract have not been met. 3. does not earn commission unless the sale closes 4. does not earn commission if the buyer and seller agree to rescind the contract - Answer 3. does not earn commission unless the sale closes A building was purchased for $350,000 with a 20% down payment, If the lender charged the buyer three discount points, how much will the buyer need to cover these two: 1. $61,600 2. $78,400 3. $80,500 4.$360,500 - Answer 3. $80,500 A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets as the development will be signed to give access to each lot, when can he begin to list this property? 1. after he records prescriptive easements for lots that have no street frontage 2. When local authorities grant him a conditional use permit allowing residential construction 3. When he has submitted his plat map to local authorities, received approval, and recorded it 4. Immediately, as long as the current zoning ordinance permits the residential use he is planning - Answer 3. When he has submitted his plat map to local authorities, received approval, and recorded it Title insurance has allowed for more accessible loans for buyers. This is because: 1. Lender policies can add exemption to the owner's policy. 2. It reduces the risk of loss due to buyer default. 3. It reduces the risk of loss due to title defects. 4. Lender policies are paid for by buyers - Answer 3. It reduces the risk of loss due to title defects Which of the following statements is true regarding an option agreement? 1. The buyer must purchase the property at some future time. 2. The buyer is given the privilege of occupying the property. 3. The seller agrees to sell at a fixed price within a stipulated time. 4. Any payments are refunded should the buyer fail to perform on the agreement. - Answer 3. The seller agrees to sell at a fixed price within a stipulated time. Which of the following actions is NOT prohibited by the New Jersey Real Estate Commission rules? A.) Holding a deposit for thirty days before depositing it in a trust account. B.) Firing a new salesperson who did not achieve specific sales goals. C.) Routinely destroying agency records every four years. D.) Holding a drawing for a television among persons attending an open house. - Answer B.) Firing a new salesperson who did not achieve specific sales goals. Bill pays his property tax bill of $980 for the calendar years . He signs a purchase and sale contract on June 28th and closes on July 15 how much is the taxes during the month (365)? - Answer 18 days in between June: 980 3/365 = 8.054July: 980 * 15/360 = 40.273 Taxes cost in total: $48.33