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NJ Real Estate Exam Practice Flashcards | StudBud
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NJ Real Estate Exam Practice
NJ Real Estate Exam Practice
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1
Which of the following is an example of a building code?
Asbestos Prevention Code
Escheat Code
Uniform Commercial Code
Zoning Ordinance Code
2
All copies of contracts of sale and listing agreements must be kept for
6 years
5 years
5 days
6 months
3
When a landlord pays for expenses and the tenant pays a higher rent than net, the tenant has signed a
Gross lease
Net lease
Proprietary lease
Jont lease
4
A real estate transfer tax is only charged if a seller pays above asking price
True
False
5
Which of the following can lead to license probation, suspension, or revocation?
An unintentional typo in a real estate contract
Splitting commission with another agent
Using an MLS to list property
Promoting the sale of real estate by means of a lottery
6
Any area that is heated or cooled, where resident spends his/her time
Surface area
Rentable area
Useable area
Livable area
7
It is legal to advertise for both free appraisals and offering comparative market analysis
True
False
8
A law that states that residential sellers may not discriminate on the basis of race, religion, color, or nationality
Civil Rights Act of 1968
Federal Fair Housing Act of 1968
Protected Class Act of 1968
Americans With Disabilities Act
9
Refusing to make mortgage loans or issue insurance policies in specific geographic areas due to applicant's SES
Steering
Red lining
Red shirting
Blockbusting
10
Under the New Jersey Law Against Discrimination, NJ laws apply to all
Residential real estate
Personal property
Real property
Commercial real estate
11
A federal law that obligates a lender to fully disclose in writing what is needed to obtain credit
Credit Scoring Act
Debt Ratio Act
Truth In Lending Act
Equal Credit Opportunity Act
12
Which of the following is true of a joint tenancy ownership?
Is part of an HOA
A tenant can sell without consent from the other tenants
Has survivorship
Unequal interests
13
Which of the following is an example of a protected class under the Federal Fair Housing Act of 1968?
How long a couple has been married
Lawful source of income
Number of children a family has
Clothing styles
14
These laws regulate and control the use of land and structures within designated districts
Municipal land use
Mount Laurel Requirements
Zoning ordinances
Building codes
15
A homeowner's association has the right to regulate
The color of the walls of the house
A tax decrease
The type of landscaping allowed outside of a home
How many children can live in each household
16
In order to qualify under the Farmland Reassessment Act, the land must be at least _____ in size
10 acres
2 acres
5 acres
4 acres
17
An easement appurtenant would be granted to
A fence built beyond the property line
One property to another for access to a public road
A seller putting a driveway on his property so it is not landlocked
A property owner from obstructing another's ocean view
18
What is a possible reason for a recission of contract?
The seller suddenly backs out of the sale
The buyer sends a written cancelation request within 5 business days
There is an assignment of contract
There are multiple offers on one listing
19
An example of an ADA accommodation would be
Adding wheelchair accessible ramps to all entrances/exits
Adding an escalator inside a high-rise apartment building
Requiring a property manager to be bilingual
Repairing a leaky roof
20
All copies of contracts of sale and listing agreements must be kept for six years
True
False
21
Which of the following may lead to the termination of agency?
If a prospective buyer puts in an offer lower than the asking price
If a property is placed in the multiple listing service
If an agent follows COALD duties
If a house burns down before it can be sold
22
The physical boundaries of land include
Surface of the earth & infinite space above the surface
Center of the earth & infinite space above the earth
Surface of the earth & the air rights above the surface (zoning)
Surface of the earth, all water & minerals on or below surface
23
The New Jersey Real Estate Sales Full Disclosure Act requires a _____ be given to the buyer before contracting
Right to recission
Public offering statement
Attorney general memorandum
Consumer information statement
24
Entering premises, receiving payments, and pursuing remedies are all examples of
Tenant obligations
Landlord rights
Tenant rights
Landlord obligations
25
An errors and omissions policy covers
Metes and bounds
Unintentional measuring errors
Mortgage loan defaults
Fraudulent measurements
26
Net listings are not allowed in New Jersey
False
True
27
Most real estate salespeople are independent contractors
True
False
28
All of the following are forbidden under the New Jersey Law Against Discrimination EXCEPT
Refusing to negotiate transactions with a Jewish man
Lying about the availability of property to a black family
Declining a loan offer to someone with a low credit score
Changing the terms of a real estate transaction because the buyer is female
29
How many sections are there per township?
30
16
36
26
30
Which of the following is an example of encroachment?
A fence extending onto a neighbor's property
Collateral for an unpaid debt
Three homes on the shore of the same lake
A street sign directly next to a residence
31
A contract can be considered void if it
Expires upon closing
States a definite price
There is no mutual assent
Includes competent parties
32
One possible duty of a property manager is
Act as fiduciary for each individual in the community
Enforce evictions
Cleaning the apartments or homes on the property
Handle trust funds
33
Real estate licenses are issued, reissued, and reinstated on a biennial term; on June 30 of _______ years
Odd-numbered
Even-numbered
34
An essential provision of the NJ Real Estate Time Share Act is
Must provide escrow for deposits property
Requires permitting for dredging, docks, piers, roads, bridges, etc.
Buyer gets ownership/usage rights of a unit for less than a year recurring
Document is stamped or imprinted to indicate that tax has been paid
35
The Truth In Renting Act applies to all of the following EXCEPT
Commercial real estate
Condominiums
Residential real estate
Mobile homes
36
A broker must keep copies of all unaccepted offers to purchase for ______ from the date of the initial offer
6 weeks
6 days
6 months
6 years
37
When a buyer has specifically hired his or her own broker, the buyer sometimes pays commission
True
False
38
To get a 5.0% rate, the lender charges 1.75 points on a $335,000 loan. How much does this loan discount cost?
$5862.50
$5863.90
$5962.50
$5963.45
39
"Conveyance" is the written contract between the seller and the buyer stating which of the following?
Agreed-upon purchase price
Date of actual transfer
Obligations of both parties
Original offer price
40
In an ad designed to sell real estate, financing should be
Promised to anyone interested
Described as offered "to a qualified buyer"
Explained in exact terms
Linked to a lottery or contest
41
Which of the following may associate his or her name with the term "REALTOR®"?
Any active or inactive broker in the country
Any licensed, active agent or broker
Only members of the National Association of Realtors®
Any person working for a real estate firm
42
If lead paint is found on a property, the buyer has the right to void the contract
True
False
43
Race is never exempt from discrimination laws
True
False
44
"Metes and bounds" describes
The area by using air rights rules
The surface area of a parcel of land
The perimeter by using lines of symmetry
The perimeter by using landmarks, monuments, distance, and angles
45
What is the down payment needed if the lender will finance 80% of the purchase price for a home selling for $295,000?
$254,000
$246,000
$236,000
$263,000
46
An example of "real estate" is
Wells, driveways, and signs on a parcel of land
Cut timber lying on a parcel of land
Mobile homes temporarily parked on a parcel of land
Business equipment placed on a parcel of land by the owner
47
Dual agency is illegal in New Jersey
False
True
48
The NJ Real Estate Commission's regulations regarding real estate ads are called
Truth in agency
Truth in brokerage
Truth in lending
Truth in advertising
49
The rights to possess, use, transfer, encumber, and exclude (PUTEE) are known as
Tenant's rights
Riparian rights
Bundle of rights
Mineral rights
50
Ryan's house was painted with lead-based paint. Ryan should inform any prospective buyers of this fact.
True
False
51
The loan amount is $250,000. The value of the property is $290,000. What is the loan-to-value ratio?
54%
99%
86%
68%
52
A bargain and sale deed with CAG is the normal deed used in a transfer of property in NJ
False
True
53
A homeowner's property contains a pier on a large lake. His/her water rights extend to...?
The low water mark of the body of water at the shore line
The center of the lake
The end of the pier
The high water mark of the body of water at the shore line
54
A real estate tax lien is an example of a
General lien
Junior lien
Voluntary lien
Superior lien
55
This practice was created to keep low and moderate-income families out of suburban communities & is illegal in NJ
Inducements
Steering
Exclusionary zoning
Blockbusting
56
A freehold estate is distinguished by its specific duration as stated by the lease term
True
False
57
Rights applying to navigable lakes, seas, and oceans
Riparian rights
Littoral rights
58
A lead-based paint survey should be conducted on any property built before
1978
1989
1965
1999
59
Brokers Steven and Jules agree to divide markets to avoid competition. They have just committed which antitrust act?
Sherman Antitrust Act
Price fixing
Steering
Allocation of customers or markets
60
Which situation can be exempted from federal fair housing laws?
A condominium complex that only sells to doctors and lawyers
An agent refusing to work with a previous client's family member
A housing complex owned by a religious-based organization
An apartment complex without wheelchair ramps
61
A homeowner borrows $5000 to pay for a new roof from a lender. Can the lender place a lien on the property?
Yes, as security for the debt if the owner defaults on the loan
Yes, to insure the project in case something goes wrong
No, the lender has no right to force the sale of property in this case
No, because the homeowner is just fixing part of the property
62
An illegal act in which a broker uses trust monies for personal use
Escrow
Earnest Money
Commingling
Conversion
63
Which of the following is true of an eminent domain proceeding?
It leaves the property owner with equitable title in place of legal title
It cancel's the property owner's mortgage loan balance
It clouds the chain of title by canceling the original grant
It conveys legal title to the acquiring entity
64
Tangible personal property, such as clothes
Trade fixtures
Buildings
Chattels
Emblements
65
Which of the following affects property ownership?
Square footage of a home
Joint tenancy
Mineral rights
Easements
66
True or false: fences, streets, buildings, sewers, wells, sidewalks, and piers are all examples of property improvements
True
False
67
Among the fiduciary duties of a real estate agent is the requirement to
Advise the principal against accepting a lower-priced offer
Refuse offers the agent knows the principal won't accept
Encourage a prospective buyer to make a better offer
Present all offers to the principal regardless of the amount
68
Lawsuit filed for illegal discrimination against low-income and moderate-income persons
Mount Laurel II
Mount Laurel I
Zoning Ordiance
Pinelands Protection Act
69
A contract for the sale of real estate is only enforceable if it is in writing
True
False
70
The loan required a 5% down payment. The selling price of the home is $175,000. What is the required down payment?
$8643
$8570
$8475
$8750
71
Riparian rights concern which of the following bodies of water?
Seas
Lakes
Rivers and streams
Oceans
72
Dale sells property for $350,000 with a commission rate of 6%. How much commission will Dale receive from the sale?
$21,000
$22,500
$21,500
$23,000
73
An amortized loan
Is only eligible for rural homebuyers
Requires a zero down payment
Applies the first payment to the principal
Is regularly applied to the interest first
74
In this type of listing, a broker gets commission unless the owner sells
Multiple listing
Exclusive agency
Open listing
Exclusive right-to-sell
75
Established to reimburse members of the public who suffer a monetary loss due to wrongdoing in a real estate transaction
Guaranty Fund
Inducements
Realty Transfer Fee
Escrows
76
Examining the price of similar properties in order to offer a price to a buyer is called
Comparative market analysis
Principle of substitution
Income analysis
Highest and best use
77
An uncanceled prior owner mortgage is an example of a(n)
Alienation
Marketable title
Title abstract
Insurable title
78
In NJ, a seller of real estate does not have to disclose any latent defects to prospective buyers
True
False
79
A mortgage is $42,506 through 4/30, and the rate is 6.2%. Closing is on 5/21. Calculate the prorated interest for May
$144.40
$150.35
$145.50
$160.19
80
A deed restriction enables an owner to specify how a property may be used
True
False
81
Broker Tina just hired Salesperson Louis. Tina cannot require Louis to work a certain amount of hours. Louis is a(n)
independent contractor
employee
82
Under New Jersey law, real estate contracts do not become binding on either party until attorney review is concluded.
True
False
83
An appraisal of property is required when a buyer secures which type of loan?
Conventional loan
FHA loan
All of the above
VA loan
84
What type of real estate license is required in order to auction real estate?
Salesperson license
Instructor
Referral agent
Broker license
85
Rent for a home is $900/mo, due 6/1. The home sells & closes on 6/15. How much does the seller earn from 6/1-6/14?
$460
$490
$420
$480
86
In this type of listing, all sale proceeds above a seller’s minimum price go to the broker
Net listing
Exclusive agency
Exclusive right-to-sell
Open listing
87
A condition that must be met before the contract is enforceable
Clause
Addendum
Counteroffer
Contingency
88
Novation is
The transfer of rights and/or duties under a contract
The cancelation of a contract
An example of mutual assent
The substitution of a new contract for an existing agreement
89
Can represent in single-business transaction and characterizes the brokerage relationship
Double agent
Special agent
Universal agent
Specific agent
90
A real estate sales contract is executory until
All the obligations were performed and the transaction is closed
The loan has been approved
The buyer/seller have agreed to all provisions & signed
The completed sales transaction is recorded
91
Includes land, buildings, fixtures, and attachments
personal property
Real property
conveyance
Chattel
92
Littoral rights attach to the property
False
True
93
A salesperson license allows a person to do all of the following EXCEPT...?
Handle resale of mobile homes
Negotiate real estate loans
Selling lots or other parcels for a developer
List real estate for sale
94
Salesperson Lisa works for Broker Bob. Lisa receives health insurance benefits from Bob. Lisa is a(n)
Employee
Independent contractor
95
If the duration of an owner's rights in an estate is not determinable, the owner has
A tenancy at sufferance
A leasehold estate
A freehold estate
A leased fee simple estate
96
Which of the following is an example of blockbusting?
Telling a prospective homebuyer the + and - about a neighborhood
Showing a South Asian couple a home in a predominantly white neighborhood
Persuading a white family to sell because a black family moved in next door
Showing a Hispanic family a home in a Hispanic community
97
A deed that carries no covenants and conveys only such interest as the grantor may have when the deed is delivered
Covenant of quiet enjoyment
Quitclaim deed
CAG deed
Bargain and sale deed
98
The property’s assessed value is $100,000. The tax rate is $.020 mills per $1 of assessed value. The tax is
$20000
$200000
$200
$2000
99
An example of an environmental hazard on a property would be
A house on the edge of a forest
Groundwater under a house
A basement tested positive for radon
A house with baseboard heaters
100
In order to qualify as a "broker-salesperson", one must
Fulfill requirements of broker yet work for another broker
Take a specific class
Be employed under another broker for 2 years
Only pass the NJ Real Estate Salesperson Exam
