Under the Comprehensive Environmental Response, Compensation and Liability Act, liability for the release of a hazardous substance on an owner's property is placed on the

Group of answer choices

the party who caused the hazard.

current occupant.

local environmental protection agency.

landowner.

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Question 31

0.91pts

Unlike employees, salespersons who are independent contractors cannot rely on their brokers for

Group of answer choices

mentoring.

health insurance benefits.

office space.

compensation due to them after leaving the firm.

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Question 32

0.91pts

A meeting of the minds is said to have taken place when parties are in an agreement on price, down payment, and

Group of answer choices

closing date.

commission.

earnest money.

financing method

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Question 33

0.91pts

After receiving a commission payment, a broker must pay the salesperson's share within

Group of answer choices

five days.

ten days.

72 hours

two days.

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Question 34

0.91pts

In acting as fiduciary for a principal, the broker must

Group of answer choices

accept responsibility for the principal's debts.

place the principal's interest above all others'.

represent the principal in one specific capacity only.

act for the principal in a legally binding capacity.

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Question 35

0.91pts

Licensees must provide sellers, buyers, landlords, and tenants with the Consumer Information Statement before any

1. written documents are completed.
2. properties are shown.
3. discussion of that party's "motivation or financial situation."
4. offers are created or presented.

Group of answer choices

properties are shown.

written documents are completed.

offers are created or presented.

discussion of that party's "motivation or financial situation."

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Question 36

0.91pts

Agents are expected to serve principals with informed knowledge and skills. This is referred to as their duty of

Group of answer choices

accounting

care.

loyalty.

obedience.

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Question 37

0.91pts

New Jersey's license law forbids an agent to represent both the seller and the buyer except with the written consent of

Group of answer choices

both parties.

both attorneys.

the court.

a supervising broker.

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Question 38

0.91pts

A real estate broker noticed that none of the electrical outlets in one bedroom of the house he was showing worked. The fact of this electrical problem is referred to as

Group of answer choices

inspection data.

seller fraud.

an error of omissio

material information.

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Question 39

0.91pts

A Megan's Law Statement on real estate contracts and leases advises purchasers and lessees that

Group of answer choices

the country prosecutor has a list of all known sex offenders who live in the area.

licensees have the obligation to investigate and disclose the residency of sex offenders in the area.

licensees have a list of all known sex offenders who live in the area.

the country prosecutor either permits or forbids sex offenders in the area.

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Question 40

0.91pts

When answering questions about a property, a good strategy for avoiding misrepresentation is to

Group of answer choices

pass along information obtained from the seller.

consult with other licensees within the agency.

refer questioners to an expert source.

rely on one's own experiences with other properties.

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Question 41

0.91pts

Inducing homeowners to sell by telling them that minority persons are moving to their neighborhood is referred to as

Group of answer choices

redlining.

steering.

blockbusting.

subrogation.

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Question 42

0.91pts

Which of the following isNOTa reason for termination of the listing

Group of answer choices

The owner discloses the presence of asbestos

The broker and owner agree to canc

The broker declares bankruptcy

A fire destroyed the home that was listed

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Question 43

0.91pts

When talking with a broker about listing his home for sale, Frank Jackson made it clear that he "did not want to have the house shown to people who would change the neighborhood". What must the broker do?

Group of answer choices

Refuse the listing unless the Frank is willing to offer seller-financing.

Accept the listing after explaining to Frank that discrimination is illegal.

Refuse the listing if the Frank intends to violate the Law Against Discrimination.

Accept the listing on the condition that that Frank will not be present when the house is shown.

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Question 44

0.91pts

What are the four essential elements of a valid contract?

Group of answer choices

Offer and acceptance, competent parties, consideration, and notice

Offer and acceptance, consideration, written expression, and warranty

Competent parties, offer and acceptance, consideration, and legality of object

Competent parties, offer and acceptance consideration, warranty, and written expression

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Question 45

0.91pts

A comparative market analysis (CMA) offered by a broker or salesperson must never

Group of answer choices

be offered for free.

include information on nearby properties that failed to sell.

be called a free appraisal.

use comparative properties included in regular appraisals.

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Question 46

0.91pts

How many years are allowed in New Jersey for parties to a contract to bring legal suit to recover real property?

Group of answer choices

Three

Six

Eight

Ten

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Question 47

0.91pts

In New Jersey, brokers are allowed to complete standard approved sales contracts for one-family to four-family residences and vacant lots and to

Group of answer choices

draft promissory notes.

draft commercial leases.

complete tax reports.

complete residential leases.

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Question 48

0.91pts

New Jersey requires that specific language appear in exact form at the top of the first page of the sales contract that alerts signers that

Group of answer choices

risk of loss or damage to the property is on the seller until closing.

brokers are responsible for disclosing any defects of a material nature that affect the property.

the contract is legally binding.

buying without a lawyer runs special risks.

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Question 49

0.91pts

The buyer of residential property constructed before 1978 must be offered, in the sales contract, a 10-day opportunity to examine the property for

Group of answer choices

radon.

asbestos.

lead-based paint.

urea-formaldehyde.

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Question 50

0.91pts

In contract negotiations, an offer is not considered accepted until the person making the offer

Group of answer choices

signs the offer.

receives written confirmation of the acceptance

provides earnest money.

has been notified of the other party's acceptance

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Question 51

0.91pts

Special contingency clauses providing that the contract may be voided if the property appraises below the sale price must be part of contracts for

Group of answer choices

all single-family homes in New Jersey.

planned unit developments.

homes constructed before 1978.

home financed by FHA and VA loans.

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Question 52

0.91pts

Earnest money from the purchaser must be kept in a special account and mustNOTbe

Group of answer choices

mixed with the broker's former spouse

placed in a bank.

mixed with the broker's own funds.

disclosed to the seller.

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Question 53

0.91pts

An amount of money that will serve as compensation if one party to a contract does not live up to the contract is called

Group of answer choices

liquidated damages.

earnest money.

earnest money.

encroachment.

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Question 54

0.91pts

When home purchasers apply for mortgage loans, the right of rescission

Group of answer choices

is determined between the applicant and the lender.

does not apply.

gives them three days to change their minds.

gives them five days to change their minds.

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Question 55

0.91pts

Land contracts are a means of

Group of answer choices

subdividing.

purchasing vacant lots.

leasing.

seller financing.

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Question 56

0.91pts

A business signed a lease on a property for 24 months. This type of lease is referred to as

Group of answer choices

a tenancy at will.

an estate for years.

a tenancy at sufferance.

a periodic estate.

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Question 57

0.91pts

In New Jersey, a lease prepared by a licensee must indicate the

Group of answer choices

fees that the firm will earn from arranging the lease.

firm's adherence to fair housing requirements.

licensee's prior experiences with preparing leases for the same property.

business relationship the firm has with respect to parties named in the lease.

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Question 58

0.91pts

If a tenant makes improvements to a property, the improvements

Group of answer choices

must be paid for by the landlord.

become fixtures.

violate the lease.

become the property of the tenant.

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Question 59

0.91pts

Constructive eviction refers to an action taken by

Group of answer choices

licensees.

landlords.

tenants.

lenders.

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Question 60

0.91pts

The two main documents in a mortgage are the mortgage and the note. The note is

Group of answer choices

an appraisal.

a security instrument.

a disclosure statement.

a financing instrument.

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Question 61

0.91pts

The acceleration clause in a mortgage

Group of answer choices

explains limits of future interest rates.

specifies penalties for prepayments.

assists the lender if the borrower defaults.

prevents future purchasers from assuming the loan.

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Question 62

0.91pts

An alternative to foreclosure is for the mortgage lender to accept

Group of answer choices

an estoppel certificate

a lis pendens.

a reduction certificate.

a deed in lieu of foreclosure.

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Question 63

0.91pts

In a fully-amortized mortgage loan, regular payments are applied first to

Group of answer choices

principal only.

first mortgage, then junior liens

principal and interest equally.

interest owed.

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Question 64

0.91pts

By definition, an "estate for years

Group of answer choices

is for a fixed term

requires a written lease.

has no termination date.

must be for at least two years.

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Question 65

0.91pts

The main type of mortgage loans that shift interest-rate risk from the lender to the borrower is the

Group of answer choices

adjustable-rate mortgage

bi-weekly mortgage.

conventional mortgage

FHA mortgage.

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Question 66

0.91pts

In mortgage lending, points are a form of

Group of answer choices

closing fees

sales tax.

escrow payment

prepaid interest.

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Question 67

0.91pts

The term used to describe mortgage loans that are arranged entirely between the borrower and the lending institution is

Group of answer choices

conventional loan.

private loan.

conforming loan.

dominant loan.

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Question 68

0.91pts

One of the main advantages of FHA loans is that they

Group of answer choices

require very low down payments.

eliminate the possibility of foreclosure.

reduce property taxes.

are interest-free for the first four years.

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Question 69

0.91pts

For potential borrowers using FHA or VA loans, if their appraisals come in lower than the purchase price, they

Group of answer choices

must make up the difference in cash at closing.

receive the difference from the FHA or VA at closing.

can get out of the contract at no penalty.

cannot proceed with the purchase and use a VA or FHA loan.

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Question 70

0.91pts

The New Jersey Housing and Mortgage Finance Agency offers favorable mortgage terms to homebuyers who purchase homes in

Group of answer choices

landmark preservation areas.

rural areas.

urban target areas.

Industrial Site Recovery areas.

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Question 71

0.91pts

When the monthly payment on a mortgage loan in not enough to cover the interest due, the debt increases in a process known as

Group of answer choices

pyramiding.

negative amortization.

capitalization.

hypothecation.

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Question 72

0.91pts

Which of the following is an example of a second mortgage?

Group of answer choices

Purchase-money mortgage

Home equity loan

Reverse mortgage

Construction loan

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Question 73

0.91pts

Bridge loans are commonly used by homeowners who

Group of answer choices

cannot afford the down payment.

need to tap their home equity for income

are refinancing their first mortgages

are selling one home and buying another.

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Question 74

0.91pts

Mortgage lenders make many loans with the intention of selling them on the

Group of answer choices

secondary market.

mortgage exchange.

government mortgage buyout

automated clearinghouse.

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Question 75

0.91pts

Mortgage loans for very high amount of money are referred to as

Group of answer choices

elite loans.

balloon loans.

non-restricted loans.

jumbo loans.

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Question 76

0.91pts

A lender's acceptance of a mortgage loan application is written in a form called a

Group of answer choices

promissory note.

disclosure statement.

loan commitment.

pre-approval.

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Question 77

0.91pts

Qualifying ratios are used by lenders to determine a borrower's

Group of answer choices

required downpayment.

maximum monthly payment for housing expense.

minority representation in a community.

pre-approval for a mortgage loan.

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Question 78

0.91pts

The location of a particular property and people's preference for particular locations is called

Group of answer choices

amenity.

favorable value.

situs.

substitution

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Question 79

0.91pts

The present worth of future benefits arising from the ownership of real property is called

Group of answer choices

highest and best use.

capitalization.

cost.

value.

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Question 80

0.91pts

The principle that the maximum value of a property tends to be set by the cost of purchasing another is called

Group of answer choices

supply and demand.

substitution.

contribution

conformity.

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Question 81

0.91pts

Market value presupposes an arms-length-transaction, which means that it is done

Group of answer choices

without undue pressure

with attorneys representing both sides.

without direct interaction between buyer and seller.

between relative strangers.

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Question 82

0.91pts

Which approach to value is most often used by brokers and salespeople when helping setters set prices for their residential real estate?

Group of answer choices

Sales comparison method

The cost approach

Reconciliation

The income approach

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Question 83

0.91pts

External obsolescence is caused by factors not on the subject property, so it is almost always

Group of answer choices

progressive

leveraged.

irrelevant.

Incurable

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Question 84

0.91pts

A license or certificate is required to perform

Group of answer choices

residential appraisals only.

any real estate appraisal.

income property and commercial property appraisals only.

appraisals of more than $1 million only.

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Question 85

0.91pts

An investor cannot usually sell real estate quickly without taking some sort of loss, making real estate an investment that isNOT

Group of answer choices

tax advantaged.

highly liquid.

appropriate for leverage.

a hedge against inflation.

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Question 86

0.91pts

The object of owning income property is to generate spendable income, usually referred to as

Group of answer choices

cash flow.

gross income.

margin.

boot.

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Question 87

0.91pts

An investor's initial cost for real estate is referred to as

Group of answer choices

appreciation.

basis.

equity.

return.

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Question 88

0.91pts

In the sale of a business, the Bulk Transfer Act protects the

Group of answer choices

seller.

buyer.

creditors of the seller.

creditors of the buyer

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Question 89

0.91pts

Investors in real estate investment trusts (REITs) take advantage of the same tax benefits as

Group of answer choices

mutual fund investors.

owners of income property

owners of individual stocks

annuity investors.