Chapter 27 Flashcards
Consumer
Information
Statement
A document provided to
consumers by real estate
agents that outlines their rights
and obligations in a
transaction
material fact
Important information about a
property that could influence a
buyer’s decision-making
process.
rental referral
agency
A company that assists
individuals in finding rental
properties by providing
information and referrals to
available rentals.
New Jersey
Consumer
Fraud Act
Legislation in New Jersey that
protects consumers from
fraudulent or deceptive
practices in consumer
transactions.
prohibited
activities
Actions that are not allowed or
are restricted by law or
regulations.
dual agency
Representation of both the
buyer and the seller by the
same real estate agent or
brokerage firm in a transaction
offsite
conditions
Environmental or physical
conditions outside the property
boundaries that may affect the
property’s value or use.
NJ Real Estate
Full
Disclosure
Act
Legislation in New Jersey that
requires sellers to disclose
certain information about the
condition of the property.
broker
cooperation
Collaboration and sharing of
information between real
estate brokers or agents
representing buyers and
sellers.
Megan’s Law
Legislation requiring law
enforcement authorities to
make information about
registered sex offenders
available to the public.
Which of the following is NOT a violation of license law?
Promoting the sale of real estate through a lottery
Paying a rebate to a residential property buyer
Not disclosing the licensee’s own interest in the property for sale
Commingling funds that belong to others with the broker’s own funds
Paying a rebate to a residential property buyer
A rental referral agency is required to check the availability of properties. Which of the following updating requirements is correct?
An advertised property every day
Which of the following statements is FALSE?
Megan’s Law requires community notification regarding sex offenders in the area
State level Megan’s Laws require sex offender registration and community notification
Megan’s Law requires an offender’s passport to have an identifier
Megan’s Law requires real estate licensees to provide sex offender information to homebuyers
Megan’s Law requires real estate licensees to provide sex offender information to homebuyers
When performing a comparative market analysis, the agent should look at
properties similar in style and size
properties in the same geographical area
properties that have been listed but did not sell
all of the above
all of the above
What is the rescission time for a buyer of out-of-state property?
7 calendar days
Under New Jersey law, when is compensation due to a licensee?
Within 10 business days of the broker receiving the associated funds
The Truth-in-Lending Act and _____________ require consumer credit institutions to disclose actual credit terms and rates to borrowers in writing
Regulation Z
The penalty for being found guilty of consumer fraud is __________ for the first offense
$10,000
Salesperson Tonya received a check from her client for earnest money on a property the client wanted to purchase. Tonya gave the client a receipt for the funds and turned the check over to her broker, Terry, for deposit. Broker Terry immediately deposited the check in his business account. What illegal act has occurred?
Terry commingled funds
Is representing more than one party in the same transaction a license law violation?
Yes, if undisclosed
When an agency agreement is established through the actions of the involved parties, this means of creation is called
implied authority
Which of the following is NOT an example of price-fixing?
Two brokers discussing what commission rate each charges
Two brokers agreeing to pay a set referral rate
Two brokers setting the same commission percentage to charge all clients
A broker telling a client the commission rate being charged is the standard rate
Two brokers discussing what commission rate each charges
When may licensees inform buyers that a list of sex offenders living in the area is available at the county prosecutor’s office?
After the sale is final
What is the very first disclosure licensees are required to provide customers?
Customer Information Statement
Making an untrue statement of fact, without knowing the truth, is considered
unintentional misrepresentation
