An apartment complex generating $70,000 annually is net income is purchase based upon a 5% cap rate. w\What would the owner's equity gain be if the net income increases to $100,00 per year?

A. $200,000

B. $400,000

C. $500,000

D. $600,000

Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of a

A-unilatleral contract in which only seller a has made a promise

B-unilateral contract in which only buyer b has made a promise

C-bilateral contact which both parties obliged to perform with a period of time

D-void contract

A broker receives an offer on one of his listings from a buyer to whom he has shown the property. Before he is able to present it to the seller, another offer on the property comes in from a cooperating agent. The broker should do which?

A) Present the first offer first, and the second offer only if the first is not accepted.

B) Present only the first offer which he had obtained.

C) Present both offers to the seller as soon as possible.

D) Present the second offer only. Presenting the first would be considered dual agency since he had obtained that offer and was the listing agent.

A complaint must be filed with HUD within what period of time after a fair housing violation has occurred?

a. 1 month

b. 1 year

c 2 years

d 2 months

A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should....

A. Refuse to write an offer

B. Relay any reservations to the seller

C. Ask for a high earnest money payment

D. Require the buyer's financial statement to accompany the offer

Which of the following statements is true of the Americans with Disabilities Acts?

A-Impairments such as autisms and bipolar disorder are not covered as disabilities;

B-The ADA does not protect current users of illegal drugs and substances.

C-Impairments such as cancer and HIV are not covered as

D-The ADA does not protect recovering addcts

A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should....

A. Refuse to write an offer

B. Relay any reservations to the seller

C. Ask for a high earnest money payment

D. Require the buyer's financial statement to accompany the offer

A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points. How much money does the buyer need up front to make the purchase?

1. $2,720

2. $24,000

3. $24,408

4. $26,720

A seller is interested in providing financing to the buyer of her homes, but she wants to retain title until the loan balance is paid off. Which of the following would be the best loan option?

A-Asset integrated mortgage

B-Wraparound mortgage

C-Contract for deed

D-Subordination of deed

the buyer wrote an offer to purchase a property and gave the broker $10,000 earnest money . the offer required the seller to respond withing six days . three days later the buyer decicded to terminate the offer and has asked for the earnest money to be refunded . what will normally happen to the earnest money in such a situatuion?

a) the broker can withdar the offer , but the seller and the broker will each retain five thoasand dollars as liquidated damges

B) the broekr will reatain the earnest money deposti in lieu of commission in the the event of terminatiion

c) the buyer cannot terminate the offer until six days are up and wll there for forgeit the earnest money depost

D) Until the seller hass accepted the offer the buyer has the right to terminate and recive the refund of the depost

A buyer has executed a contract to purchase real property. It is discovered that he is only 16 years old, the contract is

A) void

B) binding

C) unenforceable

D) voidable as to the minor's interest

When a land owner uses his land as security for a loan, the encumbrance created is called:

A-A special security

B-A mortgage or deed of trust lien

C-An involuntary lien

D-A gratuitous privelige

Under a rescission agreement, The:

a) contract is cancelled and the ourchaser is in default

b) parties are returned to their original positions and all monies must be returned

c) seller is in default because of inability to perform

d) contract is voidable by either party

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be true?

a) because its voluntary, it will not be adverse item on buyers credit

b) The lender will take the file subject to any junior liens

c) the lender will usually reatin his rights under mortagage insurance or VA guarantee

d) the loan will still be assumable

Which of the following is applicable to housing for persons with disabilities?

a.Guide dogs may be prohibited in a 6-unit building with no-pets restrictions

b.Owners are responsible for modifications required by tenants

c.Protection under the ADA applies to physical limitations, not mental limitations

d.Newly constructed residential structures of 4 units or more must have wheelchair access to ground-floor units

A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be true?

a) because its voluntary, it will not be adverse item on buyers credit

b) The lender will take the file subject to any junior liens

c) the lender will usually reatin his rights under mortagage insurance or VA guarantee

d) the loan will still be assumable

An owner who lives out of state contacts a licensee who is in the state where the owners property is located. The owner hires the licensee to sell the property for $150,000. The licensee realizes that the land is an area that has recently been rezoned for a higher use. He tells the owner he will purchase the property himself. He does so and, 3 weeks later, sells the same property for $175,000. Which of the following statements about this situation is true?

A. agree to do the needed repairs and consummate the transaction with the first offerer

B. refuse to do the repairs and still proceed with the sale in as in condition

C. terminate the first agreement in writing and sell to the secondd offerer

D. ignore the demand and sell the propter to the second offerer

1.Rents on a duplex total $600 monthly and are due the first of each month. If the sale of the duplex closes on the 15^thof a month, the rental income will be reflected on the closing statement as a

a.Debit to the seller of $300 and a credit to the buyer of $300

b.Credit to the seller of $300 and a debit to the buyer of $300

c.Credit of $600 to the seller only

d.Credit of $600 to the buyer only

2.An owner who lives out of state contacts a licensee who is in the state where the owner's property is located. The owner hires the licensee to sell the property for $150,000. The licensee realizes that the land is in an area that has recently been rezoned for a higher use. He tells the owner he will purchase the property himself. He does so, and, 3 weeks later, sells the same property for $175,000. Which of the following statements about this situation is correct?

a.The licensee cannot legally act as an agent for an owner who lives out of state without either an active license from that state or the help of a cooperating out-of-state licensee

b.Since the property sold at a profit within 6 months after the purchase, the licensee must inform the owner of his selling price

c.The licensee can legally purchase the property only after informing the owner of the zoning change and how it will affect the property.

d.As long as the licensee has informed the owner of his intentions to purchase the property himself, his actions are proper and legal

3.A licensee is the property manager for a shopping center. The shopping center owners tells the licensee to avoid internet marketing because he distrusts the technology. The licensee discusses this with the owner, but eventually complies. The licensee's compliance is due to the duty of

a.Care

b.Loyalty

c.Obedience

d.Fair dealing

Which of the following are MOST likely to be addressed by building codes:

A-Deed restrictions

B-Construction standards

C-Permissible uses of structures

D-Restrictive covenents

In New Jersey, the realty transfer fee appears on the closing statement as a

A-Debit to the seller

B-Debit the buyer

C-Credit to the seller

D-Credit the buyer

Which of the following is not a legal test for a fixture?

A) intention of party doing attaching

B) method of attachment

C) adaptation of item to use of property

D) Cost of replacement of item

Which of the following is NOT a test to identify a fixture?

A-Adaptation of the item to the real estate

B-Intent of the parties

C-Size and cost of the item

D-Manner of attachment of the item

New Jersey Real Estate Commission regulations required a licensee to terminate membership in a real estate board or multiple listing service whenever the organization:

A-Suggests uniform commission rules among all members brokers

B-Lobbies against legislation that the licensee personally favors.

C-Charges dues that the licensee feels are excessive

D-Advocates rules, practices, and/or standards with the licensee does not agree.

Which type of deed offers the purchaser the greatest amount of protection?

a. General Warranty Deed

b. Quitclaim Deed

c. Bargain and Sale Deed

d. Fiduciary Deed

When is brokers compensation negotiable ?

a) only if agreed on by the client

B) if a written contract is signed

c)when the broker is an independent contractor

D) IN EVERY CASE

A seller's property disclosure form states that there are no known material defects with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the basement. The licensee should

A. disclose the existence of asbestos to all potential buyers

B. ask the seller's permission to disclose and abide by the sellers wishes

C. suggest the buyers have a home inspection and leave discovery up to the inspector

D. suggest to the seller that he wrap the pipes to contain potential airborne contamination

Which of the following represents the basic distinction between a bilateral contract and a unilateral contract

a. The rights under a bilateral contract are assignable, whereas rights under a unilateral contract are not assignable.

b. Only one promise is involved ifthe contract is unilateral but two promises if the contract is bilateral.

c. Specific performance is available if the contract is unilateral whereas it is not if the contract is bilateral.

d. The Statue of Frauds applies to a bilateral contract but not to a unilateral contract.

which of the following represents the basic distinction between a bilateral contract and a unilateral contract

a) specific performance is available if the contract is unilaterial whereas it is not if the contract is bilateral

b) only one promise is involved if the contract is unilateral but two promises if the contract is bilateral

c) The Statue of Frauds applies to bilateral contract but not to a unilateral comtract

d) The rights under a bilasteral contract are assignable whereas rights under a unilateral contract are not assignable

According to the New Jersey law against discrimination, which of the following classes is NOT protected?

a) civil union status

b) convicted felons

c) domestic partner status

d) gender identity or expression

The seller responded to the buyers offer, proposing changes to some of the terms. In this case, the seller would be the:

a) offeree giving counteroffer

b) offeror giving counteroffer

c) offeror giving an amended offer

d) offeree giving an amended offer

The market value of a property is determined by:

A-How much a landing institution will lend on the property.

B-The value for which the property is insured.

C-The amount reflected on the property tax rolls.

D-how much a willing seller will accept and how much a willing buyer will buy.

A real estate licensee representing a buyer may do all of the:

A- how much a willing seller will accept and how much a willing buyer will buy.

B- Identify latent property defects

C- Prepare a competitive market analysis (CMA)

D-disclose the highest price the buyer is willing to pay.

In order to qualify for payment from the Real Estate Guaranty Fund to replace trust funds misappropriated by a licensee, A claimant must:

a) obtain a civil judgement and file a criminal complaint against the offending licensee

b) have an attorney file proof of claim worth the superior court

c) file an application for recovery with attorney general

d) submit proof of loss to Real Estate commission

what type of mortgage loan is likely to be tied to a publicly available index that is mutually acceptable to the lender and the borrower?

a) renegotiable rate mortgage

b) graduated payment mortgage

c) adjustable rate mortgage

d) freddie mac

A house that was listed for $164,000 sold for $158,000. The new loan amount was $124,000. The state where the sale occurred charges a transfer fee which is completed at the rate of $3 per $1,000. What is the transfer for this transaction?

a.372

b.474

c.492

d.4,740