NJ Title Insurance RE Practice Exam with Correct Questions and Answers

NJ Title Insurance RE Practice Exam with Correct Questions and Answers Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of a - CORRECT ANSWER-a unilateral contract in which only seller A has made a promise to perform. The purchased price for a new home was $230,000. The buyer put down 20%, and the balance was a mortgage for 80%of the purchase price. The appraised value at the time of closing was $220,000. What will the buyer pay for one year's property taxes, if her rate is 0.2%? - CORRECT ANSWER-Assessed value: 220,000 * 0.2% = 440 *look at what property tax they gave you first Which of the following actions is NOT prohibited by the New Jersey Real Estate Commission rules? - CORRECT ANSWER-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)? - CORRECT ANSWER-*18 days in between June: 980 * 3/365 = 8.054 July: 980 * 15/360 = 40.273 Taxes cost in total: $48.33 A home is being purchased for $275,000. The buyer agrees to an 80% loan with the seller paying $5,000 of the buyer's closing costs. What amount will the buyer have to meet his down payment? - CORRECT ANSWER-275,000 * 20% = 55,000 down payment In order to collect a commission, which of the following is a REQUIREMENT for a broker with an open listing? - CORRECT ANSWER-the broker or one of his licensees must be the procuring cause for the sale. The seller has entered into an exclusive right to sell agreement with Terry Hill. Ms. Hill presents the seller with an offer to purchase which is 20% less than the list price. Which of the following? - CORRECT ANSWER-the seller is under no obligation to accept the offer or make a counter offer. A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by the seller. The buyer - CORRECT ANSWER-Must go through with the purchase because the house is being sold as is. A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this? - CORRECT ANSWER-Alienation Clause A buyer informs a listing salesperson that the buyer plans to subdivide the property and then list it with the salesperson as soon as the offer is accepted. The salesperson makes no mention of the seller and the buyer's offer is then accepted. The salesperson's conducted is in violation of the New Jersey License Law because the salesperson failed to? - CORRECT ANSWER-Disclose to the seller a potential conflict of interest Latino families were beginning to move into a neighborhood that had previously been all white. A local broker passed out flyers to homeowners that said, "sell now before it's too late! We have homes with attractive financing and good schools." These flyers would be viewed by the courts as? - CORRECT ANSWER-Blockbusting Which of the following statements about airborne radon is TRUE - CORRECT ANSWER-It is inexpensively detected and mitigated Which of the following statements would most likely be considered mere "puffing"? - CORRECT ANSWER-- This area is expected to increase in value by 25% within the next year - Best buy you will find all year A licensee has signed a listing with a seller to market a commercially zoned building and lot. The licensee's responsibility to the prospective buyer must include? - CORRECT ANSWER-Providing agency disclosure to prospective buyers. A landlord's lease prohibits tenants from altering the property in any way. a woman who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addition she cannot access the bathroom facilities in her wheelchair. Which of the following is true? - CORRECT ANSWER-The tenant is entitled to make the alterations necessary for apartment accessibility. Which if the following statements concerning an agreement of sale prepared by a licensee in accordance with New Jersey License Law is correct? - CORRECT ANSWER-The contract must include the attorney general memorandum on discrimination Mr. Jones owns a multi-tenant office building and leases individual spaces. The monthly fixed rent payment includes all operating expenses. This form of lease is called a? - CORRECT ANSWER-Triple Net Lease A seller discovers that the property he owns is worth less than the outstanding mortgage balance. He may be able to sell the property if this lender agrees to a? - CORRECT ANSWER-A short sal