chapter 1 review quiz
A license fails to renew his license. After how much time will the license be void?
2 years
How soon must an offer to purchase be forwarded to the seller?
24 hours
Under the New Jersey Multiple Dwelling Report, owners of a certain number of apartments are required to file an annual report with the Division of Civil Rights about the racial composition of tenants and methods of advertising. What is the number of apartments that triggers this requirement?
25 or more
For how long must a broker retain copies of unaccepted offers to purchase?
6 months
What document is used to transfer personal property?
A bill of sale
Which of the following is considered a dual agency?
A broker represents both the buyer and the seller in the same transaction.
The broker died. Of the following salespeople, who may be issued a temporary broker's license in order to complete transactions?
A broker-salesperson with two years of experience
The salesperson listed a newly constructed home, completed by a reputable builder. What additional information, if any, should the salesperson include with the listing information?
A certificate of occupancy
Neighbors use a driveway to reach their garage on their property. The attorney explains that the ownership of the neighbors' real estate includes an easement appurtenant giving them the driveway right. What right does the neighbor own?
A dominant tenement
A woman owned the fee simple title to a vacant lot adjacent to a hospital and was persuaded to make a gift of the lot. She had her attorney prepare a deed that conveyed the ownership of the lot to the hospital "so long as it is used for medical purposes." What does the hospital own after the completion of the gift?
A fee determinable
What is an example of an emblement?
A field of wheat
What document determines the occupancy rights of the owners in a cooperative building?
A proprietary lease
Of the following, who needs a real estate license?
A son selling a house for his parents in exchange for a new car
What allowed the homeowner to acquire the ownership of land that was deposited by a river running through her property?
Accretion
When can a salesperson begin the process to open her own office?
After working three years as a full time licensed salesperson
Which property is obligated to allow an emotional support animal?
An apartment building
What is an example of an emblement?
Annual crops
In which of the following situations is a real estate license required?
As a person employed on a fee basis by a rental referral agency
What type of agency is practiced by a broker who has no agency duties?
As a transaction broker
A property owner lost land when hurricane rains caused a swollen river to change course. What is this process called?
Avulsion
What is one reason why condominium ownership has greatly increased in the past 20 years?
Better use of scarce building land
When is a broker permitted to represent both the seller and the buyer in the same transaction?
Both parties have been informed and agree to the dual representation
What constitutes a violation of the real estate law?
Broker maintained the office in the home of a salesperson employed by that broker
What is the effect of a lis pendens on title?
Creates a cloud on the title
What agency is responsible for the enforcement of the Fair Housing Act?
Department of Housing and Urban Development
A rental referral agency charges prospective tenants an advance fee of $50. What should the agency do with this advance fee?
Deposit into an escrow account
What term refers to an easement acquired by constant, open, and adverse use?
Easement by prescription
A portion of an owner's building was inadvertently built on a neighbor's land. What is this portion called?
Encroachment
What action is considered evidence of fair housing discrimination?
Failure to display the Equal Housing Opportunity Poster
Three property owners are not cooperating with each other. One is interested in pulling out her financial investment. What is the best way that can she do this if the other owners are not interested in cooperating with her?
File a suit to partition
How does a real estate salesperson who is an independent contractor receive compensation?
From time to time based on negotiated commissions on transactions
What is an example of a violation of duty of accounting?
Holding an earnest money check for a few days until the buyer makes a deposit
Where is the phrase bundle of legal rights generally found?
In the definition of real property
Which is a characteristic regarding working as an independent contractor?
Income is based on a percentage of generated income
What is one major distinguishing factor about tenancy by the entirety in New Jersey?
It is automatically created when a married couple buys their home
What type of ownership is never permitted for a corporation?
Joint tenancy
What is legal to include in legal property advertisement?
Kosher meals available
What does the term littoral reference in New Jersey?
Land bordering water affected by tide currents
What is an example of steering?
Leading prospective homeowners to or away from certain neighborhoods
Which of the following lease provisions is illegal under New Jersey's Law Against Discrimination?
Lease is null and void upon the birth of a child
What is required of real estate brokers in New Jersey, with regards to trust accounts?
May be placed in any trust accounts in an authorized institution in New Jersey
Which is a test for determining a fixture?
Method of attachment of the item
What does "commingling" mean?
Mixing of broker funds with trust funds
Which of the following must be included in any newspaper ads?
Municipal location of the property
An individual has held a broker license for more than 35 years, first as a broker-salesperson, than as a broker and now as a broker-salesperson. How many hours of continuing education must this licensee complete?
Must complete 12 hours of approved continuing education courses
What is the condition under which an out-of-state resident can obtain a NJ real estate license?
Must file an irrevocable consent to service of process
What act prohibits discrimination based on welfare income?
New Jersey Law Against Discrimination
How soon must a broker deposit a buyer's earnest money funds into the broker's trust account?
No more than 5 business days after acceptance
Which of the following is considered to be personal property?
Patio furniture
What activity can an unlicensed assistant perform?
Place a For Sale sign on the property
What are required unities to create a joint tenancy relationship in the ownership of real estate?
Possession, time, interest, and title
Which of the following is an essential element of a fiduciary relationship?
Puts the principal's interests above all others
What violation is the refusal of a lending institution to make a residential real estate loan strictly because of the racial or ethnic composition of the neighborhood?
Redlining
Which of the following factors applies to the New Jersey salesperson's license examination?
Retakes are permitted
A man conveys the ownership of his house to his mother and stipulates that upon her death he will recapture the ownership. What interest did the man convey?
Reversion estate
The buyers discovered a sewage problem after closing, and they feel that their buyers' agent should have told them about it. What is one action that lessens the agent's possible liability?
Salesperson had advised the buyers to hire a home inspector
A licensee is qualified to be a broker. However, she does not want to open her own office, but wishes to work for another broker. What should she do with her broker's license?
She can use it to list and sell as a broker-salesperson.
Which of the following is necessary for someone to file a fair housing complaint against a real estate licensee?
That discrimination occurred
What New Jersey act regulates the creation of condominiums?
The NJ Horizontal Properties Act
A rancher owns a parcel of land on which oil was discovered. If the rancher has not previously conveyed the oil rights, who owns the oil?
The rancher
Which of the following is a legal action?
The salesperson fills in the blanks of a sales contract for the purchase of a four-family home.
To whom can a referral agent refer prospects for brokerage services?
The supervising broker or the broker's designate
What should a buyer's broker disclose to the seller?
The written offer made by the buyer
What happens to the licenses of the agents in a brokerage when the broker's license is revoked?
Their licenses are suspended.
In which regulation is the Fair Housing Act contained?
Title VIII of the Civil Rights Act of 1968
What are those items on the premises that were installed by the tenant and are related to the tenant's business?
Trade fixtures
The buyer makes an offer to buy a home. Part of the offer includes earnest money. What should the buyer's agent do with the buyer's earnest money?
Turn it over to the broker as soon as possible
Liens against the property must be paid prior to transferring property. Which takes precedence?
Unrecorded property taxes
What is the maximum payment allowed for a single claim from the NJ Guaranty Fund?
Up to $20,000
For how long is a power of attorney effective?
When revoked by the principal
What type of property is radiator in a single-family home?
a chattle
What estate is held by a person who has complete control over a parcel of real estate?
a fee simple estate
Which of the following is considered the highest interest recognized by law?
a fee simple state
What is the electronic key to an attached garage considered?
a fixture
A man and a woman are next-door neighbors. The woman tells the man that he can store his bulldozer in her yard for a few weeks. The woman did not charge the man rent for the use of her yard. What right did the woman convey to the man?
a license
Who is considered a protected class under federal Fair Housing Laws?
alcoholics
How many trust accounts is a broker required to maintain?
at least one
When does the listing broker typically receive the sales commission?
at the time the transaction is closed
What document transfers personal property?
bill of sale
A man purchased a house about five years before he married. Now he plans to sell the house. At the present time, who must sign the deed?
both husband and wife
Who may provide a purchaser of real estate with a portion of the broker's commission in the form of a rebate?
broker
Which of the following phrases is legal to use when advertising real estate for sale or rent?
chapel on premises
What is an example of a trade fixture?
chicken coop
Which type of ownership is regarded in the same light as that of the owner of a single family dwelling?
condominium ownership
What type of deposit into an escrow account is prohibited?
credit card
What duty requires that a real estate broker is responsible for keeping the principal informed of all of the facts that could affect a transaction?
disclosure
A power company has the right to install electric lines across property controlled by different owners. What right is held by the power company?
easement in gross
A rental referral agency advertises the availability of an apartment. How often must they check the availability of the unit?
everyday
The broker's salesperson told a prospective buyer that the house she was looking at is "the best house in the area." What is this type of comment called?
ex of puffing
For which of the following crimes does the New Jersey Real Estate Commission have the power to promptly revoke the license of an agent awaiting trial?
forgery
A seller is unhappy with the marketing activities of the real estate broker. How can the seller terminate the agency relationship?
hire another broker or revoke the listing agreement
Which of the following is one of the four unities of joint tenancy?
interest
What encumbrance affects the title to property and is considered a general lien?
judgement
What monetary lien was probably issued by a court?
judgement
How long does an individual have to pass the state exam and apply for a permanent license after completing a NJ real estate licensing course?
one year
Which is an example of an involuntary, specific lien?
property taxes
What protected class is protected by the Civil Rights Act of 1866, with no exceptions?
race
What penalty may the New Jersey Real Estate Commission impose for a violation of the license act?
suspend a license
What is the term applied to undercover volunteers who visit real estate offices to determine if all applicants are treated fairly?
testers
Which of the following best describe the fiduciary relationship between an agent and the agent's principal?
trust and confidence
