State Exam Ch 23

Front 1

Chapter 23

A broker's license requires at least?

Back 1

225 hours

75 Pre-license + 150 Brokers = 225

Front 2

The authorized broker, for a real estate company, is officially called the?

Back 2

Broker of record.

Front 3

All sales contracts, prepared by licensees, must?

Back 3

Contain the notice, to buyer, and seller.

Front 4

Accretion

Back 4

The increase of the land, caused by, a gradual depositing, of solid material, by the action of water.

Front 5

Real property, can be changed to personal property, through the process, known as?

Back 5

Severance.

Front 6

Intent of the parties, and method of attachment, are two of the tests, of an?

Back 6

Fixture - Article that was once personal property but has been attached to the land or building.

Front 7

Reversionary interest

Back 7

And owners right, to regain possession, of a leased property, upon termination, of the lease agreement.

Front 8

If a husband owns, the family home, in his name, can he sell it, without his wife's signature?

Back 8

Not in New Jersey.

Front 9

The Buyer, of a condominium apartment, receives?

Back 9

An individual, property tax bill.

Front 10

Either co-owner, may go to court, and ask that a property, be divided, except, in the case of?

Back 10

Tenants by the Entirety. Married.

Front 11

The Smiths, bought their home for $17,000, they move to Florida and sold the home for $325,000. The IRS says, their profit will be?

Back 11

Completely free from any federal tax.

Florida does not pay taxes.

Front 12

The lien, with priority, on a given parcel of real estate, would usually be?

Back 12

The current year's, property taxes.

Front 13

Federal civil rights legislation, forbids housing discrimination, based on?

A. Political affiliation.

B. Source of income.

C. Country of origin.

D. Prison record.

Back 13

Answer.

C. Country of origin.

Front 14

Although a property owner may be exempt sometimes, from discrimination laws, a real estate licensee?

Back 14

May not participate, in the transaction, in any way!

Front 15

For someone, specifically retain as a buyer broker, sellers would be, in the position, of?

A. Clients.

B. Principals.

C. Customers.

D. Employers.

Back 15

Answer.

C. Customers.

Front 16

A broker's principal, is the one who?

A. Pays the commission.

B. Is the seller.

C. Hires the agent.

D. Brings the meeting of the mines.

Back 16

Answer.

C. Hires the agent.

Front 17

The listing broker, must advise the seller, about the firm's plans to?

Back 17

Share or not share, the commission, with another broker, who produces the buyer.

Front 18

The listing agent, who tells sellers, that commission rates are standard, in this community, is in violation of the?

Back 18

Sherman Antitrust Act.

Price Fixing

Front 19

Sherman Antitrust Act

(Price fixing)

Back 19

prohibits price-fixing, group boycotting, the allocation of customers or markets, and tie-in agreements. Price fixing is prohibited.

Misdemeanor punishable by a maximum $1,000,000 fine and 10 years in prison?

Front 20

A subdivision has a deed restriction of only a 5 Acre lot, but the town requires 1/3 acre lot. Tom buys one acre in the subdivision, can he obtain a building permit from the town?

Back 20

Yes, but the neighbors can ask the Court to enforce the restriction, and Order his house pulled down.

Front 21

The owner, who retains the right to sell, without paying a commission, to the one agent hired, has what type of listing ?

Back 21

Exclusive agency.

Front 22

A competitive market analysis, should take into consideration, the?

Back 22

Recent sale prices of nearby homes.

Front 23

A broker, would need the sellers permission, to advertise?

Back 23

Try bidding low.

Front 24

Kim takes out a mortgage loan, then she discovers a loan with a more favorable rate from a different lending Institution. Can she cancel the first loan?

Back 24

She may not resend the mortgage.

Front 25

In order to be legally enforceable, which contract, must be written, according to, the statute of frauds?

A. Independent contractor agreement.

B. All contracts.

C. Leases for more than three years.

D. Management agreement

Back 25

Answer.

C. Leases for more than three years.

Front 26

New Jersey statute of frauds, states that a contract, for the sale of real estate, in any Lease for more than three years:

Back 26

Must be in writing and signed in order to be enforceable.

Front 27

Tenants, renting from month to month, who want to move, must give how much notice?

Back 27

One month, from a date, before the rent is due.

Front 28

Specific performance

Back 28

Court action, asking that the parties complete, the transaction as contracted.

Front 29

The word executed when applied to a contract means fulfilled, but is also used, to mean.

Back 29

Signed

Front 30

George Signs a contract agreeing to sell his house to Debbie. He later changes his mind and refuses to sell. Debbie, can sue for?

Back 30

Specific performance.

Front 31

A land contract, Is sometimes known as a?

Back 31

Contract for deed

Front 32

The buyer, who takes over a mortgage, already on the property, is not personally responsible, for a debt if he or she?

A. Assumes the loan.

B. Takes title subject to the loan.

C. Receives a reduction certificate.

D. Sign a satisfaction certificate.

Back 32

B. Takes title subject to the loan.

Front 33

The mortgage lender, may also be known as a?

Back 33

Mortgagee

Front 34

Negative amortization. The monthly payments, are not enough to cover interest due, the shortfall is sometimes added to the principal amount.

Back 34

As a result the debt increases, rather than taking its normal downward path

Front 35

Artificially low "teaser" rates are a feature of?

Back 35

Adjustable Rate Mortgages (A.R.M.)

Front 36

With many loan plans, the rate during the first year, or the first adjustment, is set artificially low ("teaser" rate)

Back 36

This enables some buyers, whose income might not otherwise be qualified, to place new mortgage loans

Front 37

Which of these appraisal methods, uses of rate of, investment return?

Back 37

Income approach.

Front 38

Below~Market interest rates, are offered to, qualified borrowers by?

Back 38

N. J. H. M. F. A. - New Jersey housing and Mortgage Finance Agency

Front 39

If a Mortgage Debt grows, gradually larger, instead of being paid down, the borrower has a?

Back 39

Negative amortization.

Front 40

The amount of money, a property is most likely to bring, if widely advertised for sale is its?

Back 40

Market Value

Front 41

For appraisal purposes, depreciation is related to?

Back 41

Obsolescence.

Front 42

Competitive market analysis, is somewhat similar to?

Back 42

Sale comparison appraisal.

Front 43

The I. R. V. formula, (income rate value) is particularly useful in calculating?

Back 43

A Capitalization rate.

Front 44

Personal property, is transferred, using the regulations of the?

Back 44

Uniform Commercial Code (UCC)

Front 45

Betty exchanges her shopping plaza, for Harold's apartment house, which is of equal value, tax on the accumulated gain, on Betty's Plaza is?

Back 45

Deferred

Front 46

A studium would be best appraised using the?

Back 46

Cost Approach.

Front 47

Regression - the least expensive neighboring house, holds down the value, of a better property.

Back 47

Progression - the worth of a lessor property, is increased if its neighbors property, are more valuable. This is why the least expensive home, in a neighborhood, is traditionally considered, a good investment.

Front 48

The IRS, allows up to $25,000, in losses from rental property, to offset other types of income, only if, the?

Back 48

Investors other income, is more than, $100,000.

Front 49

The word plat, basically means the same thing as?

Back 49

Map

Front 50

The typical developed lots, sells for roughly, how many times, the cost, of the raw Land?

Back 50

Five.

Front 51

A legal description, can be determined by, a title attorney, or?

Back 51

A surveyor.

Front 52

Voluntary alienation, includes, a transfer, of real property, by?

Back 52

A sale or gift.

Front 53

A landowner, who dies, without leaving a will, is said to have been?

Back 53

Intestate.

Front 54

The buyer of, a new home construction, receives a warranty, on any type of defect, for at least?

Back 54

One year.

Front 55

Master plans, are usually adopted by the?

Back 55

Local communities.

Front 56

When a person dies, without a will, without natural heirs, or more distant relatives, his or her a estate, becomes the property, of the state?

Back 56

A year after, a public sale.

Front 57

Within 3 days, of a loan application, the borrower, must receive, an?

Back 57

Good-faith estimate, of settlement cost

Front 58

The State of New Jersey, requires the borrower, to be notified that?

Back 58

The title policy, required by A lender, does not protect the owner.

Front 59

An affidavit, of title, is signed at the closing, by the?

Back 59

Seller.

Front 60

The term, proration, refers to?

Back 60

The costs that are divided between buyer and seller.

Front 61

This year's taxes on the property, $2,400 have not been paid. At the Aug 1st closing, how are they accounted for?

Back 61

Debit buyer $1200 Debit seller $1200

Front 62

Certain Property owners, are required, to carry flood insurance, by?

Back 62

HUD - Department of Housing and Urban Development

Chapter 23