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Questions and Answers
Which of the following is not considered an improvement to land?
Which of the following is not considered an improvement to land?
To the seller's agent, the buyer is properly described as a?
To the seller's agent, the buyer is properly described as a?
customer
Which appraisal approach computes the value of the land separately from the buildings?
Which appraisal approach computes the value of the land separately from the buildings?
A person who has absolute control of a parcel of real estate is said to own a?
A person who has absolute control of a parcel of real estate is said to own a?
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If Jim Thomas lets his neighbor store her camper in his yard for a few weeks without charging rent, he has given her a?
If Jim Thomas lets his neighbor store her camper in his yard for a few weeks without charging rent, he has given her a?
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The HUD-1 statement will still be used for a mortgage secured by a?
The HUD-1 statement will still be used for a mortgage secured by a?
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A legal description that defines the boundary lines is called?
A legal description that defines the boundary lines is called?
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Which of the following is considered dual agency?
Which of the following is considered dual agency?
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Which of the following is a lien that does NOT need to be recorded?
Which of the following is a lien that does NOT need to be recorded?
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Depreciation refers to?
Depreciation refers to?
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Whether a salesperson is associated with a broker as an employee or as an independent contractor is important?
Whether a salesperson is associated with a broker as an employee or as an independent contractor is important?
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A township contains?
A township contains?
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A merchant signs a lease for $800 a month or 6% of gross sales, whichever is more. In July gross sales were $14,000. How much is the rent for July?
A merchant signs a lease for $800 a month or 6% of gross sales, whichever is more. In July gross sales were $14,000. How much is the rent for July?
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Jane Smith gave the hospital a vacant lot for 'as long as it is used for hospital purposes.' The hospital owns a?
Jane Smith gave the hospital a vacant lot for 'as long as it is used for hospital purposes.' The hospital owns a?
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The buyer moves in and pays expenses and loan payments but the seller retains title in a?
The buyer moves in and pays expenses and loan payments but the seller retains title in a?
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A tenant's written, one-year lease expires on May 1. To obtain possession on May 1, the landlord must give the tenant?
A tenant's written, one-year lease expires on May 1. To obtain possession on May 1, the landlord must give the tenant?
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Which of the following situations will NOT delay closing under the TRID rules?
Which of the following situations will NOT delay closing under the TRID rules?
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The Jensons own property that the city wants to use to extend the airport runway. The Jensons refuse to sell. The city may acquire this property by its right of?
The Jensons own property that the city wants to use to extend the airport runway. The Jensons refuse to sell. The city may acquire this property by its right of?
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Georgia Brown sold her listed home herself and didn't owe anyone a commission. The listing she had signed was probably?
Georgia Brown sold her listed home herself and didn't owe anyone a commission. The listing she had signed was probably?
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Federal income tax regulations allow a homeowner to reduce taxable income by amounts paid for?
Federal income tax regulations allow a homeowner to reduce taxable income by amounts paid for?
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A grantor becomes a lessee, and the grantee becomes the lessor, in a?
A grantor becomes a lessee, and the grantee becomes the lessor, in a?
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Ben Wolfe has defaulted in payment of several debts, and a court has ordered his property sold to satisfy them. Which of the following would be considered the prior lien?
Ben Wolfe has defaulted in payment of several debts, and a court has ordered his property sold to satisfy them. Which of the following would be considered the prior lien?
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A guarantee that the lender will commit to a certain percentage for the cost of the loan is called?
A guarantee that the lender will commit to a certain percentage for the cost of the loan is called?
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What is the function of Fannie Mae?
What is the function of Fannie Mae?
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Continuing education courses may be taken?
Continuing education courses may be taken?
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As an agent for the seller, a real estate broker may?
As an agent for the seller, a real estate broker may?
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The new combined federal TRID requires a lender to provide a loan estimate within how many business days of a completed loan application?
The new combined federal TRID requires a lender to provide a loan estimate within how many business days of a completed loan application?
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The amount of money that would be paid by a buyer to a seller, both well-informed and neither under duress, is real property's?
The amount of money that would be paid by a buyer to a seller, both well-informed and neither under duress, is real property's?
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Property is listed for $160,000 and sells for $150,000, in a town that reassesses at sales price on transfer. The tax rate is $1.93 per $100. How much is the tax bill?
Property is listed for $160,000 and sells for $150,000, in a town that reassesses at sales price on transfer. The tax rate is $1.93 per $100. How much is the tax bill?
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A real estate broker who received a commission for the sale of a home in a transaction in which neither the buyer nor the seller was a principal acted as a?
A real estate broker who received a commission for the sale of a home in a transaction in which neither the buyer nor the seller was a principal acted as a?
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Which of the following is NOT essential to an enforceable real estate sales contract?
Which of the following is NOT essential to an enforceable real estate sales contract?
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The lender has agreed to finance furnished condominium units. The lender has agreed to a?
The lender has agreed to finance furnished condominium units. The lender has agreed to a?
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A married couple who meet the ownership and occupancy requirements may sell a principal residence with no federal capital gains tax on profit of up to?
A married couple who meet the ownership and occupancy requirements may sell a principal residence with no federal capital gains tax on profit of up to?
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The amount of commission due a salesperson is determined by?
The amount of commission due a salesperson is determined by?
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The practice of refusing to lend mortgage money in certain neighborhoods is called?
The practice of refusing to lend mortgage money in certain neighborhoods is called?
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In a real estate sale, transfer tax fees are usually paid by the?
In a real estate sale, transfer tax fees are usually paid by the?
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Which of the following should you accept as evidence or proof of ownership of an estate in land?
Which of the following should you accept as evidence or proof of ownership of an estate in land?
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An appraiser would NOT generally use which of these items to determine the replacement cost of the building?
An appraiser would NOT generally use which of these items to determine the replacement cost of the building?
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Which of the following hazards requires a federal disclosure form in a residential purchase?
Which of the following hazards requires a federal disclosure form in a residential purchase?
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Franks rents an apartment under a two-year written lease. After one year, the building is sold. Which statement is TRUE?
Franks rents an apartment under a two-year written lease. After one year, the building is sold. Which statement is TRUE?
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In 1977, a family purchased their house and lot for $53,000. They made no major improvements. They recently sold it for $224,550. How much do they owe on their gain?
In 1977, a family purchased their house and lot for $53,000. They made no major improvements. They recently sold it for $224,550. How much do they owe on their gain?
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A REALTOR is?
A REALTOR is?
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A broker received two offers at once, one through a salesperson in his office and one from a competitor. The broker should?
A broker received two offers at once, one through a salesperson in his office and one from a competitor. The broker should?
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The act by which all parties agree to the terms of a contract is known as?
The act by which all parties agree to the terms of a contract is known as?
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A refusal to rent to a couple because they are unmarried violates?
A refusal to rent to a couple because they are unmarried violates?
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Exemption from a portion of property taxes is available to?
Exemption from a portion of property taxes is available to?
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Those who are entitled to inspect all documents recorded in the county clerk's office include?
Those who are entitled to inspect all documents recorded in the county clerk's office include?
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If a seller lists a home for $400,000 and the listing broker tells a prospective buyer to submit a low offer because the seller is desperate, the buyer offers $320,000 and the seller accepts. In this instance?
If a seller lists a home for $400,000 and the listing broker tells a prospective buyer to submit a low offer because the seller is desperate, the buyer offers $320,000 and the seller accepts. In this instance?
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When real property is sold at a foreclosure sale and not enough money is realized to pay the mortgage, the lender may?
When real property is sold at a foreclosure sale and not enough money is realized to pay the mortgage, the lender may?
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Which of the following represents economic obsolescence?
Which of the following represents economic obsolescence?
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The law that requires MOST real estate contracts to be in writing is known as the statute of?
The law that requires MOST real estate contracts to be in writing is known as the statute of?
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Bart O'Malley is a licensed salesperson who completed a difficult transaction. Bart may accept a bonus from?
Bart O'Malley is a licensed salesperson who completed a difficult transaction. Bart may accept a bonus from?
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A custom-built house containing 2,320 square feet has been constructed on a $28,000 lot. Construction costs are $50.25 per square foot. Other fees and costs total $2,780. What is the total cost of the property?
A custom-built house containing 2,320 square feet has been constructed on a $28,000 lot. Construction costs are $50.25 per square foot. Other fees and costs total $2,780. What is the total cost of the property?
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From whom does one obtains an FHA loan?
From whom does one obtains an FHA loan?
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A broker may not act for both buyer and seller without?
A broker may not act for both buyer and seller without?
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A building sold for $949,000. The total commission was $56,940. What was the rate of commission?
A building sold for $949,000. The total commission was $56,940. What was the rate of commission?
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In the purchase of real estate, the buyer is held responsible for facts and information obtainable through actual notice and also through?
In the purchase of real estate, the buyer is held responsible for facts and information obtainable through actual notice and also through?
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The power of eminent domain is exercised through the court proceeding known as?
The power of eminent domain is exercised through the court proceeding known as?
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The gross income from a small office building is $73,500 and the annual expense total is $52,300. If the owner expects to receive an 11% return on her investment, what should she be willing to pay for the building?
The gross income from a small office building is $73,500 and the annual expense total is $52,300. If the owner expects to receive an 11% return on her investment, what should she be willing to pay for the building?
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A home seller may avoid federal capital gains tax on profit from the sale of a principal residence only if?
A home seller may avoid federal capital gains tax on profit from the sale of a principal residence only if?
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The selling landlord has collected the September rents from all five tenants: Two at $345 and three at $425. The sale is closed on September 20. How much credit should the buyer be allowed?
The selling landlord has collected the September rents from all five tenants: Two at $345 and three at $425. The sale is closed on September 20. How much credit should the buyer be allowed?
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Real estate brokers may protect themselves in case of professional lawsuits through a special type of insurance known as?
Real estate brokers may protect themselves in case of professional lawsuits through a special type of insurance known as?
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The amount of commission due on a sale is determined by?
The amount of commission due on a sale is determined by?
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No exceptions are permitted by federal law when the discrimination is based on?
No exceptions are permitted by federal law when the discrimination is based on?
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Regulation Z would require full disclosure of all financing terms if an advertisement mentioned?
Regulation Z would require full disclosure of all financing terms if an advertisement mentioned?
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A purchaser in a cooperative usually receives?
A purchaser in a cooperative usually receives?
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A comparative market analysis?
A comparative market analysis?
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A developer is planning a building containing 103,000 square feet. Construction costs are estimated at $42 per square foot; 90% financing is available. How much money must the developer put up to complete the project?
A developer is planning a building containing 103,000 square feet. Construction costs are estimated at $42 per square foot; 90% financing is available. How much money must the developer put up to complete the project?
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Which of the following represents functional obsolescence?
Which of the following represents functional obsolescence?
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Mr. Martinez purchased a duplex for $300,000, paying $37,500 down and financing the balance. About two years later he sold the property for $345,000. He has realized?
Mr. Martinez purchased a duplex for $300,000, paying $37,500 down and financing the balance. About two years later he sold the property for $345,000. He has realized?
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When real estate is operated by a general partner who is fully liable for operating losses and is owned jointly with several passive partners who are liable only to the extent of their investment, this form of ownership is called a?
When real estate is operated by a general partner who is fully liable for operating losses and is owned jointly with several passive partners who are liable only to the extent of their investment, this form of ownership is called a?
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Every deed in the subdivision has a restriction forbidding toolshed or doghouses. Mr. Appleton erects both in his backyard. His neighbors may?
Every deed in the subdivision has a restriction forbidding toolshed or doghouses. Mr. Appleton erects both in his backyard. His neighbors may?
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Estimating market value by considering sales of similar properties is used in which appraisal approach?
Estimating market value by considering sales of similar properties is used in which appraisal approach?
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In a new subdivision, streets, sidewalks, and curbs are usually provided by the?
In a new subdivision, streets, sidewalks, and curbs are usually provided by the?
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Amy holds a proprietary lease on her apartment and directs that shares of stock in the corporation that owns the building be registered in the name of Amy Martin. She owns a?
Amy holds a proprietary lease on her apartment and directs that shares of stock in the corporation that owns the building be registered in the name of Amy Martin. She owns a?
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The appraiser estimates the replacement cost of a building at $560,000. The building has an estimated life of 40 years and a current estimated remaining life of 30 years. What is the current value of the building?
The appraiser estimates the replacement cost of a building at $560,000. The building has an estimated life of 40 years and a current estimated remaining life of 30 years. What is the current value of the building?
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The term condominium refers to?
The term condominium refers to?
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What is radon?
What is radon?
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A percentage test?
A percentage test?
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The current value of a piece of property is $350,000 and the assessed value is 40% of its current value. The tax rate is $4 per $100. What is the amount of the tax?
The current value of a piece of property is $350,000 and the assessed value is 40% of its current value. The tax rate is $4 per $100. What is the amount of the tax?
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In New Jersey, a lease for four years?
In New Jersey, a lease for four years?
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A broker's license is suspended by the Real Estate commission. His salespeople must immediately?
A broker's license is suspended by the Real Estate commission. His salespeople must immediately?
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Although federal law does not mention it, New Jersey law forbids discrimination on the grounds of?
Although federal law does not mention it, New Jersey law forbids discrimination on the grounds of?
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The real estate commission prohibits?
The real estate commission prohibits?
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Jefferson bought acreage in a distant county, never went to see it, and did not use it. Impson moved his mobile home onto the land, had a well drilled, and lived there for the past 22 years. A court might find Impson has become the owner of the land through?
Jefferson bought acreage in a distant county, never went to see it, and did not use it. Impson moved his mobile home onto the land, had a well drilled, and lived there for the past 22 years. A court might find Impson has become the owner of the land through?
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Commingling refers to?
Commingling refers to?
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A real estate broker must keep all documents relating to a real estate transaction for how long?
A real estate broker must keep all documents relating to a real estate transaction for how long?
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A duly licensed sales person may accept a bonus from?
A duly licensed sales person may accept a bonus from?
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The New Jersey real estate commission is under the department of?
The New Jersey real estate commission is under the department of?
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The Multiple Dwelling Reporting Rule is required by the?
The Multiple Dwelling Reporting Rule is required by the?
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A New Jersey real estate licensee may?
A New Jersey real estate licensee may?
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If the real estate commission wants to inspect a broker's office, how much notice must be given?
If the real estate commission wants to inspect a broker's office, how much notice must be given?
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The New Jersey real estate commission includes?
The New Jersey real estate commission includes?
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Which of the following words must be conspicuously displayed by brokers?
Which of the following words must be conspicuously displayed by brokers?
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The real estate broker who also holds an insurance license is NOT allowed to?
The real estate broker who also holds an insurance license is NOT allowed to?
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A salesperson sold a house. When her broker received the commission check, he asked her to wait for the shared until the check had cleared the bank. The broker must pay her the agreed-on split within?
A salesperson sold a house. When her broker received the commission check, he asked her to wait for the shared until the check had cleared the bank. The broker must pay her the agreed-on split within?
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A salesperson left a real estate firm to work at a bank. The broker must account for all commissions due to the former salesperson within?
A salesperson left a real estate firm to work at a bank. The broker must account for all commissions due to the former salesperson within?
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The real estate guaranty fund?
The real estate guaranty fund?
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The real estate commission does NOT allow?
The real estate commission does NOT allow?
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Broker John Bloomfield dies. A temporary broker's license to carry on the work of the office may be granted to?
Broker John Bloomfield dies. A temporary broker's license to carry on the work of the office may be granted to?
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Study Notes
Real Estate Concepts
- Improvements to land exclude crops.
- A buyer is considered a customer from the seller's agent's perspective.
- The cost approach appraises value by evaluating land and buildings separately.
- Absolute ownership of real estate is characterized as fee simple.
- A license allows storage or use of someone else's property without a fee.
Legal and Regulatory Framework
- The HUD-1 statement remains applicable for reverse mortgages.
- Metes and bounds is a legal description of property boundaries.
- Dual agency occurs when a broker represents both buyer and seller.
- Real estate taxes do not require recording as a lien.
- Depreciation signifies a loss of property value due to various causes.
Financial and Tax Implications
- Salespeople's relationships with brokers impact income tax requirements.
- A township comprises 36 sections.
- Rent calculation can involve a minimum monthly amount or percentage of gross sales, e.g., $840 for $14,000 gross sales at 6%.
- Fee determinable applies to property given for specific use, such as a hospital.
- Under a land contract, a buyer may assume responsibilities while the seller retains the title.
Closing and Property Transactions
- Notice is unnecessary to obtain possession after a lease expires.
- TRID rules outline that changes in escrow amounts don’t delay closing.
- Eminent domain permits cities to acquire private property for public use if owners refuse to sell.
- Exclusive-agency listings allow homeowners to sell independently without owing commissions.
Financing and Investment
- Homeowners can deduct interest and property taxes from federal income tax.
- Sale and leaseback transactions involve a grantor becoming a lessee.
- Prior liens include current real estate taxes despite other unpaid debts.
- Rate lock guarantees lenders a commitment to a specific interest rate.
- Fannie Mae primarily buys FHA loans, facilitating mortgage financing.
Continuing Education and Licensing
- Continuing education for real estate licenses can be completed by mail, internet, or in-person.
- Real estate brokers are allowed to solicit buyers on behalf of sellers.
- TRID requires lenders to provide a loan estimate within three business days.
- Market value indicates the price a knowledgeable buyer would pay for property without pressure.
Property valuation and taxes
- A property selling for less than listed price may still incur transfer taxes calculated on the sale price.
- A real estate broker’s commission depends on the agreement between broker and salesperson.
- Economic obsolescence is caused by external factors, such as neighboring properties.
- Redlining refers to refusing mortgage money based on neighborhood demographics.
Tenancy and Lease Agreements
- Tenants must not be discriminated against based on marital status in New Jersey.
- Tax exemptions are available to eligible veterans and senior citizens.
- Current value assesses property in accordance with its market value, taxes are based on the assessed value.
- The landlord must credit tenants for rent collected at the time of property sale.
Real Estate Practice Standards
- Brokers should maintain transaction records for a minimum of six years.
- Commingling involves mixing personal and client funds, which is prohibited.
- The New Jersey Real Estate Commission consists of eight members overseen by the Department of Banking and Insurance.
- Price fixing in commission agreements is not permissible; commissions must be determined by agreements.
Miscellaneous
- Adverse possession is a legal route to obtaining ownership through occupation.
- Salespersons may receive bonuses only from their own brokers.
- FHA loans are secured from local FHA lenders.
- The Multiple Dwelling Reporting Rule is mandated by the New Jersey attorney general.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge with these flashcards from Chapter 24 of the New Jersey Real Estate Practice license examination. This quiz covers essential concepts like land improvements, agent roles, and appraisal methods. Perfect for students preparing for the exam!
