NJ Real Estate Exam Prep Questions With Verified Answers

An Appraisal made by a Certified appraiser is REQUIRED? - Answer WHEN THE BUYER IS USING A FHA LOAN TO PURCHASE Greatest advantage of using FHA financing when buyer plans to occupy? - Answer THE REQUIRED DOWN PAYMENT MAY BE LOWER THAN CONVENTIONAL LOANS What should buyer put in purchase offer to make sure they would NOT have to purchase, if they CANNOT obtain financing? - Answer Contingency Conditions does NOT create stigmatized property that may or may not be disclosed under the law of some state? - Answer THE OWNER OF THE PROPERTY HAS AIDS Mortgage lender rely on deciding how much is safe to lend on a parcel of RE? - Answer APPRAISAL REPORT NJ Private Well Testing Act (PWTA) requires? - Answer The buyer & seller to certify receipt of test results before title transfer What is acceptable offering? - Answer A FREE DINNER FOR ATTENDEES AT HOMEBUYERS SEMINAR Individual is not required to be a RE licensee in NJ UNLESS engages in the following activities? - Answer SOLICITING TENANTS FOR VACANT RENTAL UNITS Statement about branch office is INCORRECT? - Answer TWO SALESPERSONS MAY BE DESIGNATED TO SHARE SUPERVISING RESPONSIBILITIES Statement in advertisement example of non-discriminatory language under HUD? - Answer "FEMALE SEEKING FEMALE ROOMATE" If a seller request for earnest money prior to the property inspection what should a broker do? - Answer CAN BE RELEASED WHEN WRITTEN PERMISSION FROM BOTH PARTIES Earnest money on a settlement statement is identified as? - Answer CREDIT TO A SELLER Which of the following property valuation estimates or reports have been prepared by a licensed or certified appraiser? - Answer A RECONCILIATION REPORT FOR A FHA LOAN A secretary in a real estate office who does not have a real estate license may? - Answer PERFORM BOOKKEEPING FUNCTIONS CONCERNING ESCROWED FUNDS A land owner uses his land as security for a lone the encumbrance created is called? - Answer AN INVOLUNTARY LIEN Which of the following are most likely to be addressed by building code? - Answer CONSTRUCTION STANDARDS Which disclosure is the most commonly required in a residential RE sale? - Answer LEAD-BASED PAINT When the buyer gives a sellers broker info about possible financial problems in completing the purchase, the broker should? - Answer INFORM THE SELLER IMMEDIATELY Title insurance allows accessible loans to buyers, this is because: - Answer IT REDUCES THE RISK OF LOSS DUE TO TITLE DEFECTS Buyer made an offer to purchase property, Owner counteroffer, buyer reviewed counteroffer, the owner received a better offer, the owner can accept the second offer if: - Answer THE OWNER WITHDRAWS THE COUNTEROFFER BEFORE IT IS ACCEPTED RE salesperson represents ONLY the buyer, Which of the following is a violation of the salespersons agency duties to the client? - Answer DISCLOSING THE HIGHEST PRICE TO THE BUYER IS WILLING TO PAY Most lenders require if buyer is putting 20% down? - Answer PRIVATE MORTGAGE INSURANCE In a mortgage/trust deed form of loan, the terms & interest rates would be found? - Answer PROMISSORY NOTE MAJOR difference between FREEHOLD & NON-FREEHOLD estates is that all NON-FREEHOLD? - Answer TERMINATED UPON DEATH OF THE PERSON ON WHOSE LIFE THEY ARE BASED A licensee must provide a CIS in all transactions EXCEPT when the? - Answer SUBLEASE OF A STUDIO APARTMENT FOR 2 MONTHS Which of the following is LEAST likely considered establishing the value of property by the SALES COMPARISON APPROACH? - Answer THE CAPITALIZATION RATE Minors are held liable for RE contracts obligations if they: - Answer HAVE THEIR GUARDIAN CO-SIGN Broker has a single agency relationship with seller, Any REQUIRED property condition disclosure is completed by: - Answer THE SELLER A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure, if he accepts which of the following will be true? - Answer THE LENDER WILL USUALLY RETAIN HIS RIGHTS UNDER MORTGAGE INS OR VA GUARANTEE A correct statement about a transaction broker is that they: - Answer REPRESENT NEITHER THE BUYER NOR THE SELLER Pass the pre-licensure course exam on 11/8, the candidate must apply for license within? - Answer ONE YEAR FROM THE DATE OF COMPLETING THE PRE-LICENSURE ED. COURSE Estimate value of a 50 unit apartment complex, accurate estimate? - Answer GROSS RENT MULTIPLIER