Chapter 28

Question 1

preprinted
forms

Answer 1

Standardized documents or
forms that are already printed
with common terms and
conditions.

Question 2

contract
requirements

Answer 2

Terms and conditions that
must be included in a legally
binding agreement between
parties.

Question 3

rescission

Answer 3

The legal right to cancel or void
a contract, typically within a
specified period, without
penalty

Question 4

property
condition
disclosure

Answer 4

Disclosure of known defects or
issues with a property by the
seller to the buyer.

Question 5

statute of
limitations

Answer 5

The maximum time period
within which legal action can
be taken for a specific event or
claim.

Question 6

letter of intent

Answer 6

A written document outlining
the preliminary agreement
between parties before a
formal contract is signed

Question 7

exclusive right
to sell

Answer 7

An agreement between a seller
and a real estate agent granting
the agent exclusive rights to
represent and market the
property for sale.

Question 8

exclusive
agency

Answer 8

An agreement between a seller
and a real estate agent where
the agent has exclusive rights
to represent the seller, but the
seller retains the right to sell
the property independently.

Question 9

open listing

Answer 9

A non-exclusive agreement
between a seller and multiple
real estate agents where only
the agent who brings a
qualified buyer is entitled to a
commission

Question 10

When a seller’s agent is offering a subagency to cooperating brokers, which of the following is NOT required to be included in related documents?

Whether or not the subagent will be paid and how much

The commission split

The expiration date of the subagency

The other broker’s agency relationship in the transaction

Answer 10

The expiration date of the subagency

Question 11

Federal law requires that buyers of homes built before 1978 be given 10 days to have the property inspected for

Answer 11

lead-based paint

Question 12

What is the time frame in which an attorney may review a sales contract and then disapprove it?

Answer 12

3 business days

Question 13

A buyer who wants to cancel the sales contract for a new house after discovering offsite conditions may do so within

Answer 13

5 business days of execution

Question 14

When should a property condition statement be presented to a buyer?

Answer 14

When a buyer shows interest in making an offer

Question 15

Federal law requires that buyers of homes built before __________ must be provided with the EPA pamphlet on lead-based paint

Answer 15

1978

Question 16

In which seller listing agreement is a termination date not required?

Answer 16

Open

Question 17

Which of the following may be included on a sales contract but is not required?

The grantor’s agreement to convey

Place of transaction closing

Financing contingencies

Property description

Answer 17

Financing contingencies

Question 18

If a property seller disagrees with the Attorney General’s Memorandum, what must the licensee do?

Answer 18

Refuse to take the seller’s listing

Question 19

Which of the following would be a material fact that requires disclosure to a potential buyer?

The property is haunted

There is water leakage in the basement

The neighbors have loud parties every weekend

The previous property owner committed suicide inside the house

Answer 19

There is water leakage in the basement

Question 20

The New Jersey flood risk notification law states that landlords and sellers must disclose

Answer 20

moderate and special flood risk (100-year and 500-year floodplains.)