NJ Real Estate Exam Part 2 Questions With Verified Answers

broker's additional place of business - Answer Branch Office mixing broker's money with that of others - Answer commingling copy of a real estate contract with original signatures - Answer duplicate original least severe discipline by the real estate commission - Answer probation leave one broker and affiliate with another - Answer A licensed salesperson is allowed to a broker - Answer Under some circumstances, a real estate office may be in the home of a broker-salesperson - Answer Broker Waldo Rodriguez wants to open a branch office in a new shopping mall in the next town. The office can be supervised by deposit it within 5 days in a trust account - Answer Salesperson Stan Clemenzio accepts an earnest money deposit and turns it over to his broker, Roberta Lee. Roberta must In any financial institution in NJ - Answer An escrow account may be opened 6 - Answer A broker must keep copies of contracts for ____ years Immediately - Answer Every person who signs a contract is entitled to receive a duplicate original. When? the buyer and seller may seek 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 the buyer are entitled to a. preferential treatment b. first loyalty c. fair dealing d. negotiated fees $5,000 - Answer For a first offense, the Real Estate Commission could fine a licensee as much as Three - Answer The commision will rule that someone could never again get a license after how many violations? Suspend his license - Answer Salesperson Joe Kenty is indicated for possession of a controlled substance with intent to sell and is out on bail until the trial. The Real Estate Commission may 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 Sun City Realty holds a door-prize drawing at a weekend open house it runs. This practice... Yes, as soon as she meets a prospective buyer - Answer Donna White, a broker, is offering her mother's house for sale and will charge no commission. Should she reveal that she is a licensed agent? contracting with a professional to perform an in-depth inspection of the property prior to entering into any agency agreement with the seller - Answer The "reasonable effort" licensees are required to make to determine all material information about a property's physical condition could normally include all of the following EXCEPT a. asking the seller about the property's condition b. performing a visual inspection c. asking the seller's agent about the property's condition d. contracting with a professional to perform an in-depth inspection of the property prior to entering into any agency agreement with the seller illegal price fixing - Answer Any agreement between competing offices to establish standard commission rates i referred to as a. the preliminary marketing contract b. price gouging c. illegal price fixing d. legal industry practice under NJ laws will be suspended or revoked only if Betty knew about the salesperson's activities and did nothing about it - Answer A salesperson working for Broker Betty 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 Betty's license... a. will automatically be suspended because Betty is responsible for all salespersons in her office b. will not be suspended because the salesperson, not betty, was disciplined for wrongdoing. c. will be suspended or revoked only if Betty knew about the salesperson's activities and did nothing about it d. will be suspended, but the licenses of any other salespersons in her brokerage will not be affected buyer only - Answer Rebate of part of a commission may be paid to a a. seller only b. buyer only c. home inspector d. seller or buyer regulations preventing price fixing - Answer Antitrust laws person authorized to act under a power of attorney - Answer Attorney in fact one authorized to act for another in real estate transactions - Answer broker written explanation of a business relationship must be given before any discussion of finances or any property is shown - Answer Consumer Information Statement (CIS) problem not discoverable by normal inspection - Answer Latent Defect Rules governing conduct of agents - Answer Law of agency agreement between a buyer and seller on major points - Answer Meeting of the Minds Real estate equivalent of malpractice insurance - Answer errors and omissions insurance Special Agency - Answer The legal relationship between a buyer and seller goes bankrupt - Answer A listing may be terminated when either broker or principal a. gets married b. goes bankrupt c. overfinances other property d. turns 21 years of age honest treatment - Answer When retained by the seller, the broker owes a prospective buyer: a. obedience to lawful instructions b. confidentiality about the buyer's financial situation c. honest treatment d. first loyalty d. malfunctioning septic system - Answer An example of a latent defect is: a. a large crack in the ceiling b. a roof with warped shingles c. used-car lot next door d. malfunctioning septic system c. commissions on sales - Answer An independent contractor may be paid a. a regular draw against earnings. b. reimbursed car expenses c. commissions on sales d. two week vacations each ear b. the seller accepts the buyer's offer without any conditions - Answer Commissions are usually earned when a. the buyer makes a purchase offer b. the seller accepts the buyers offer without any conditions c. a new mortgage has been promised by the lender d. title of the property transfers a. paid within ten days after the broker paid for the transaction - Answer A salesperson's commission on a real estate transaction is a. paid within ten days after the broker paid for the transaction b. paid at the rate set by the NJ Real Estate Commission c. always paid in cash d. generally determined, by custom, by the broker with no input from the salesperson c. Olive Olsen - Answer Henry lists his house with broker Larry. Henry offers a bonus commission of $500 to the agent who brings a good buyer before Thanksgiving. Sam, who is associated with the cooperating firm of Olive Olsen, effects the sale on Nov 1. Sam may collect a bonus from a. Henry b. Larry c. Olive Olsen d. no one seller and broker - Answer Commission rates are set by agreement between d. no one - Answer The transaction broker represents a. the seller b. the buyer c. the lending institution d. no one d. all real estate - Answer A Consumer Information Statement (CIS) is required for transactions involving: a. commercial property and vacant land b. one to four family dwellings c. farms and subdivisions d. all real estate Valerie, not Jenny has five days in which to cancel because only new construction notice contains the 5 day rescission period - Answer Jenny purchases a vintage home from an elderly woman who has lived there for many years. Valerie enters into a contract to have Boffo Builders construct a new home for her in the new Settling Pond development. If a hazardous waste landfill is discovered within a quarter mile of either of these properties, what will be the result? c. the previous owner's suicide - Answer All of the following would be considered material information in NJ except the following: a. sagging floor joints b. seasonal flooding c. the previous owner's suicide d. inadequate septic tank b. inform the seller immediately because your first loyalty lies with the seller - Answer When the buyer gives a seller's broker information about possible financial problems in completing the purchase, the broker should, a. respect the confidence and let it go no further b. inform the seller immediately c. offer to lend the buyer extra funds d. ask for written confirmation of the situation Fraud committed, not necessarily on purpose but by someone who should know better - Answer Negligent Misrepresentation c. allows exemption for liability in some circumstances - Answer NJ's Consumer Fraud Act a. does not apply to real estate b. hold licensees liable for any misrepresentation c. allows exemption from liability in some circumstances d. doesn't cover omission of material facts statement about discrimination everyone listing property must receive - Answer Attorney General's Memorandum inducing panic selling based on prejudice - Answer Blockbusting federal law; protected classes are race and color no exceptions - Answer Civil Rights Act of 1866 federal agency enforcing civil rights compliance - Answer Department of Housing and Urban Development (HUD) federal law setting many protected classes; some exceptions - Answer Federal Fair Housing Act of 1968 NJ's law governing discrimination in real estate transactions - Answer Law against discrimination court cases covering moderate income housing - Answer Mount Lauren I and II refusal to lend in certain areas, usually inner city - Answer Redlining section of federal Civil Rights Act that covers housing - Answer Title VIII c. refusing to sell a home to an individual because he or she has a poor credit history - Answer Which of the following acts is permitted under the Federal Fair Housing Act? a. advertising property for sale only to a special group b. altering the terms of a loan for a member of a minority group c. refusing to sell a home to an individual because he or she has a poor credit history d. telling a protected individual that an apartment has been rented when in fact it has not d. all of the above - Answer The Civil Rights Act of 1866 is unique because the act a. covers only the ares of race and color b. provides no exceptions c. requires a federal court suit by the complainant d. does all of the above Blockbusting - Answer "I hear they're moving in; there goes the neighborhood. Better list with me today!" is an example of? Steering - Answer The act of channeling homeseekers to a particular area, either to maintain or to change the character of a neighbor hood, is b. The owner of a 20 unit apartment building rents to women only....according to the book but I don't know why - Answer Which would NOT be allowed under the Federal Fair Housing Act? a. The Harvard Club in NY rents rooms only to graduates of Harvard who belong to the club b. The owner of a 20 unit apartment building rents to women only c. A convent refuses to furnish housing for a Jewish man d. all of the above