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