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Real Estate > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

When money is deposited in a client trust account:

A: The maintenance of nominal amounts of the licensee’s funds in the trust acct to meet service charges constitutes commingling
B: the deposit cannot be released without written authorization of the seller
C: deposit money must be promptly returned to the buyer if the offer is not accepted
D: Interest must be paid to the buyer until closing

A

C: deposit money must be promptly returned to the buyer if the offer is not accepted

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2
Q

Which of the following would not be a cause for disciplinary action?

A: Making promises of a nature likely to persuade or induce a prospecitve buyer
B: Failure to include a specific termination date in an exclusive listing
C: Acquiring a listing in which the broker gets to keep all monies in the purchaswe price above a specified amount
D: Failure to submit to an owner, all weritten offiers received for property listed for sale

A

A
As long as the licensee does not misrepre-
sent or defraud, he is free to exercise his
talents of persuasion.

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3
Q

If the broker terminates employment of a salesperson/ he must:

A: state reason for termination on the back of the license
B: immediately return the salesperson’s license to the REC
C:return the license within 10 days
D: give the salesperson his license

A

B: immediately return the salesperson’s license to the REC
Real Estate Commision?

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4
Q

When there is a first violation of the licensing act, the REC is empowered to:

A: impose monetary fines
B: revokd teh license
C: suspend the license
D: all of the above

A

D: all of the above

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5
Q

A brokers records must be made available:

A: to agents of the Commission providing broker receives 10 days notice of inspection
B: to memeber of the public as they contain public info
C: to members of the Commission w/out notice
D: to agents of the Commission upon receipt of 30 days notice by registered or certified mail

A

C: to members of the Commission w/out notice

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6
Q

Fiduciary relationship refers to:

A:the relationship between 2 brokers
B: the relationship created between plaintiff and defendant
C:the position of trust between broker and his principal
D: None of the above

A

C:the position of trust between broker and his principal

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7
Q

A broker incorporates his business and subsequently dies, and another person becomes the broker for the corporation

A: Any listings he has secured are immediately terminated
B: All his listings may be canceled by the principals w/out further notice
C: New listings must be secured from the owners of all properties being handled by the office
D: Contracts with principals do not terminate upon death of the broker under these circumstnaces

A

D: Contracts with principals do not terminate upon death of the broker under these circumstances The contracts remain in force

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8
Q

A newly licensed broker can maintain an office in ALL BUT ONE of the following:

A: His residence, provided that is zoned for that use
B: A commercial building
C: the home of a salesperson in his employ
D: A marina

A

C: the home of a salesperson in his employ

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9
Q

When a Licensee is guility of violating the NJ Real Estate License Act or the Rules and Regulations of the NJ Real Estate Commission, the Commission may for the first violation:

A: impose a fine of not more than $500
B: Impose a fine of not more than $5000
C: Impose a fine of not more than $2000
D: The Real Estate Commission cannot impose fines

A

B: Impose a fine of not more than $5000

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10
Q

a real estate broker typically can:

A: prepare an abstract of title
B: prepare a deed
C: prepare a purchase and sale agreement
D: none of the above

A

C: prepare a purchase and sale agreement
the others are restricted to attorneys

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11
Q

Unless othewise agreed to in writing, the employing broker must pay all commissions due a salesperson within how many days after receipt by the broker?

A: 10 days
B: 30 days
C: Immediately
D: 7 calendar days

A

A: 10 days

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12
Q

After completion of the real estate license preparation course, what period of time does the applicant have in which to pass the state exam and request issuarnce of his license?

A: 6 months
B: 1 year
C: 5 years
D: the applicant can apply anytime

A

B: 1 year

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13
Q

Regarding a dispute between licensees concerning the division of commisssions, which of the following is correct?

A: the REC can demand an accounting (explanation)
B: the REC is responsible for settling disputes between licensees
C: a salesperson cannot sue his broker for a commisssion he feels he has earned but not be paid
D: Only the broker can file a complaint with the REC

A

A: the REC can demand an accounting (explanation)

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14
Q

Real estate licenses are renewed:

A: annually on Jan 1st
B: biennially on July 1st in odd numbered years
C: one year form the date they are issued for the first time
D: every 5 years

A

B: biennially on July 1st in odd numbered years
Meaning all real estate licenses expire at midnight of June 30, once every 2 years

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15
Q

Pertaining to the salepersons license, which of the following is true?

A: it must be prominently displayed in the brokers main office
B: it must be prominently displayed in the branch office where the salesperson is employed
C: the salesperson must carry it
D: it is a right and not a privilge

A

A: it must be prominently displayed in the brokers main office

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16
Q

a salesperson may accept a commission from which of the following:

A: the employing broker
B:the employing broker or another salesperson
C: any Licensed real estate broker
D: Only the seller or employing broker

A

A: the employing broker

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17
Q

Which of the following statements concerning branch offices is correct?

A: the branch office must be open to the public during normal business hours
B: The business office can be open only during evening hours or wkends
C: the broker can have one manager in charge of serveral offices
D: the branch office manager must be licensed as a salesperson for 2 years.

A

A: the branch office must be open to the public during normal business hours

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18
Q

Brokers real estate ads in NJ must include:

A: the address
B: the name of the brokerage firm
C: the name of the listor
D: the name of the agent showing the property

A

B: the name of the brokerage firm

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19
Q

When a real estate broker advertises in the local newspaper, he must:

A: state the price of the house
B: give the address of the house
C: specify the municipality within which the property is located
D: give the name of the authorized broker

A

C: specify the municipality within which the property is located

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20
Q

Should the employing broker die, a temporary broker license may be issued to a salesperson provided:

A: that the request is made within six months of the brokers death
B: that the request is make within 30 days of the brokers death and that the applicant has 3 years prior experience
C: that the application is made within 2 weeks of the brokers death
D: a salesperson cannot be issued a temporary licence under any condition

A

B: that the request is make within 30 days of the brokers death and that the applicant has 3 years prior experience

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21
Q

Which of the following requires licensees to provide owners with a copy of the Attorney Generals Memorandum on the Law Against Discrimination?

A: the NJ Law against Discrimination
B: The rules and regulations of the NJ REC (Real Estate Commission)
C: the NJ Division of Civil Rights
D: all of the above

A

B: The rules and regulations of the NJ REC (Real Estate Commission)

22
Q

The REC may suspend or revoke a license:

A: when a broker charges more than 6% commission
B: for splitting commission with a broker from out of state
C: for using the insignia of membership in a real estate organization of which licensee is not a member
D: for being committed for observation in a mental institute

A

C: for using the insignia of membership in a real estate organization of which licensee is not a member

23
Q

In advertising a listed property for sale, a broker may NOT legally:

A: run an ad which does not give the listing price fo the property
B: state the kind of financing available
C: fail to state the street address of the property
D: run an ad giving the impression that the is the owner of the property

A

D: run an ad giving the impression that the is the owner of the property

an ad which does not clearly indicate that the advertising licensee is engaged in the real estate brokerage business is referred to as a “Blind Ad” and is improper conduct.

24
Q

The Realtor Code of Ethics is:

A: a code put into law by the REC of NJ
B: a code obligatory upon members of the National Association of Realtors
C: part of an act pertaining to prevention of discrimination in real property transactions
D: part of the Statutes of NJ pertaining to licensed real estate sales persons and brokers

A

B: a code obligatory upon members of the National Association of Realtors

25
Q

Who is required to comply with the State licensing laws?

A: An individual employed to handle the sale of units in a condo building
B: One who for compensation effects an “exchange” of real estate
C: One who auctions real estate
D: All of the above

A

D: All of the above

26
Q

A principal broker for a corporation must be:

A: a citizen of the USA
B: a NJ resident
C: responsible for every licensee and clothed with full authority even if he has no ownership interest
D: given a contract for a fixed term unless he has a substantial ownership interest

A

C: responsible for every licensee and clothed with full authority even if he has no ownership interest

27
Q

A salesperson who has completed a sale would ordinarily receive his commission from the:

A: seller
B: buyer
C: seller and buyer with their permission
D: none of the above

A

D: none of the above

28
Q

A real estate deal is made between a seller and buyer, without the services of a broker. They arrange with a licensed broker, for a fee, to prepare certain instruments. He may lawfully prepare:

A: agreement of sale
B: deed
C: purchase money mortgage
D: None of the above

A

D: None of the above

Preparation of the sales contract would constitute the illegal practice of law, because the broker was not acting as the broker in this transaction

29
Q

If a licensee is convicted of forgery, the REC will NOT grant a license within:

A: 1 year
B: 2 years
C: 3 years
D: 5 years

A

D: 5 years

30
Q

To be licensed as a NJ Real Estate Broker , you must be:

A: of legal age
B: a citizen of the USA
C: a resident of NJ
D: All of the above

A

A: of legal age

Citizenship and residency are not requirement for licensing

31
Q

A broker may properly advertise:

A: free appraisal
B: free cooking gas
C: free wall to wall carpeting
D: free market study

A

D: free market study

32
Q

With regard to the maintenance fo trust acounts, which of the following statements is NOT true?

A: the account may be designated “trust account”
B: the account may be designated “escrow account”
C: a broker may establish a special interest-bearing account for the deposit of monies from a specific transaction
D: teh depository institution may be located in another state if it is an approved depository in the other state

A
33
Q

A real estate licensee brings a prospective buyer to see a property and the property owner requests identification from the licensee indicating her licensure status. The proper identification for the licensee to produce is a:

A: a drivers license
B: real estate license
C: Realtor membership card
D: pocket card

A

D: pocket card

34
Q

Monies may be paid out of the Guaranty Fund in the event:

A: a seller suffers a monetary loss due to the embezzlement of money by a licensed broker, a licensed real estate salesperson or an unlicensed employee of a real estate broker
B: A salesman does not get paid by his broker in accordance with his written agreement
C: an aggrieved party did not sue
D: a co-worker did not honor his agreement

A

A: a seller suffers a monetary loss due to the embezzlement of money by a licensed broker, a licensed real estate salesperson or an unlicensed employee of a real estate broker

35
Q

The responsibilities of the REC (Real Estate Commission) include:

A: setting the fees for licensing exams
B: promulgating real estate laws
C: setting license fees
D: None of the above

A

D: None of the above

36
Q

A real estate salesperson may lawfully accept a bonus for the completion of a difficult sale:

A: if the sellers wish to give one
B: if they pay taxes on the income
C: only from his or her employing broker
D: if he or she receives it from the buyer

A

C: only from his or her employing broker

37
Q

A broker owes an obligation to:

A: divide the commission with another broker chosen or preferred by the buyer
B: divulge to the buyer the lowest price at which the seller will sell
C: present to his principal all written offers he receives, including all the terms and conditions of each offer signed by a prospective buyer
D: nobody

A

C: present to his principal all written offers he receives, including all the terms and conditions of each offer signed by a prospective buyer

38
Q

You are the seller’s broker negotiating a difficult sales contract between an experienced seller of real estate and a novice purchaser.
A: you have no concern about the buyer’s lack of experience
B: you refuse to continue to negotiate with the purchaser
C: you recommend that purchaser employ an attorney
D: you suggest that the purchaser consider employing another broker

A

C: you recommend that purchaser employ an attorney

39
Q

A real estate broker hires a secretary who does not have a real estate license and agrees to pay her a fixed salary. Which of the following duties may be performed by her?

A: Giving information over the telephone as to selling price of the office listings
B: Collecting rents from the lessees of property managed by the broker
C: Telephone solicitation of listings from the prospective sellers
D: Typing contracts for the salespersons in the brokers office

A

D: Typing contracts for the salespersons in the brokers office

In practice most brokers secretaries are licensed so they can perform the other tasks

40
Q

A salesperson may advertise a property for sale only:

A: if he personally listed the property.
B: if the name of his brokerage is included in the ad
C: if his broker is entitled to use the term “Realtor”
D: if he pays for the ad himself out of his commission.

A

B: if the name of his brokerage is included in the ad

41
Q

A broker must keep permanent records of how he handled other persons funds for:

A: 60 dyas
B: 2 years
C: 6 years
D: 10 years

A

C: 6 years

42
Q

A broker must transmit to his principal:

A: all offers
B: all offers to purchase at the listed price
C: all offers reasonably near the listed price
D: all written offers

A

D: all written offers

43
Q

Residential rental referral agencies must include which of the following in their contract with a prospective tenant?

A: the date and duration of the contract
B: the refund policy
C: a statement that the business is licensed by the NJ REC (Real Estate Commission)
D: All of the above

A

D: All of the above

44
Q

With regard to the Real Estate Sales Full Disclosure Act, which of the following statements are NOT true?

A: Cemetery lots are exempt from the law
B: the display of model homes is considered a form of advertising
C: the rescission period is 3 days
D: Subdivisions containing fewer than 100 lots are generally exempt from the act

A

C: the rescission period is 3 days

45
Q

A salesperson has listed a house for sale and has knowledge of a latent defect in the building. His responsibility is to:

A: ignore it
B: disclose it to the buyer
C: report it to the building department
D: Correct the condition

A

B: disclose it to the buyer

46
Q

A NJ broker named I. M first listed a house at 326 Cove Drive in Mantoloking. She may refuse to cooperate with another licensee if:

A: she has an exclusive right to sell the listing
B: she has an exclusive agency listing
C: the other broker refused to cooperate with her last month
D: the owner of the home signs a statement directing her not to cooperate

A

D: the owner of the home signs a statement directing her not to cooperate

47
Q

The maximum fine for violations of the Real Estate Sales Full Disclosure Act is:

A: 250 per violation
B: 2000 per violation
C: 5000 per violation
D: 50,000 per violation

A

D: 50,000 per violation

48
Q

When a broker prepares a document pertaining to a real estate transaction:

A: he must give a copy to all parties signing it a the time the signature is obtained
B: He must sign the document himself
C: he is violating the law
D: he should record the contract.

A

A: he must give a copy to all parties signing it a the time the signature is obtained

49
Q

Funds received for deposit in the Guaranty Fund:

A: may not exceed 150,000
B: may be used for educational purposes by the Board of Realtors
C: may be used to settle commission disputes between licensees
D; are used to indemnify aggrieved participants in real estate transactions

A

D; are used to indemnify aggrieved participants in real estate transactions

50
Q

Every broker must maintain records of all funds and property of others for not less than 6 years, except in two cases where records have to be kept for only 6 months. Name the two exceptions:

A; Unaccepted offers and expired listings that did not sell.
B: Copies of leases and property management agreements
C: Copies of all offers and contracts of sale.
D: all bank statements and duplicate deposit slips

A

A; Unaccepted offers and expired listings that did not sell.

Real Estate (19 decks)

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