Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

NJ Real Estate > NJ Real Estate > Flashcards

NJ Real Estate Flashcards

1
Q

Licensees are required to provide their customer with a document called the Consumer Information Statement on NJ RE relationships except in this situation:

A

Non-residential sale and lease transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How many days does an attorney have to review signed contracts after it is delivered to both parties? (Attorney review clause)

A

3 business days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

NJ Law against discrimination applies to which specific group?

A

Private club renting only to its members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A licensee must deliver a duplicate original of a signed contract to all parties within how many days?

A

Immediately

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How long does a broker have to maintain a record of his client submitting an offer that was NOT accepted and a listing contract that expired without a sale?

A

6 months from offer or from expiration of listing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Is a Judgement a special or general lien?

A

General

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Which type of deed would not normally be used to transfer title?

A

Quitclaim deed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Title is transferred at the time of?

A

Settlement (closing)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When a deed or other document is recorded, what kind of notice is given?

A

Constructive notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Granting Clause

A

Component of a deed where the grantor expresses a desire to transfer interest in the property to the grantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Legal process know as Attachment is:

A

When the court decides to take custody of the property so that the defendant (owner) cannot dispose of the property before the court case is decided

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Do trade fixtures have to remain if they are attached to the space?

A

No, if it’s business related it can be removed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Cost Appraisal/Summation approach

A

Determines the cost (or replacement cost) of constructing a building using up to date materials and techniques

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Market data approach/Sales Comparisons approach

A

Finding value by comparing a property to others in the area that are similar in size and condition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The Cost Approach to value a building is helping when:

A

Very few buildings nearby are similar (church etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Cap Rate (%) Formula

A

NOI/Asset Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The Quantity Survey Method

A

When an appraiser analyzes data on labor costs, material costs, and amount of materials needed to determine the structure’s replacement cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

If a buyer gives a salesman a cash deposit, can he deposit it with or without the owners consent?

A

Without for a CASH deposit as earnest money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Novation

A

Substitution of a new obligation between the same parties with the consent of both parties. Original contract is discharged, also happens when a member of a contract is replaced

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Transaction broker owes fiduciary duty to who?

A

Nobody. They work with a buyer and seller without repping anyone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Conversion Funding

A

When a Salesperson uses a clients funds for his own use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Private Well Testing Act

A

Buyer and seller must certify in writing that they have received and reviewed water test results at closing (only applicable where water sources are drinkable)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Bridge Mortgage/Loan

A

Short term financing where money is lent during the gap between two closings (buying house and then other house sells so you don’t need the loan anymore)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Chattel Mortgage

A

Using personal property as security

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Closed Mortgage

A

Locked in and cannot be paid off before maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Shared Appreciation Mortgage

A

The lender gets some or all payment in the form of a share of the increased value or appreciation of the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Equitable Right of Redemption

A

Ability for the mortgagor in default to pay back his loan and redeem the property before it is auctioned away at a foreclosure sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Ginnie Mae purchases loans on which market?

A

Secondary Mortgage Market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Alienation Clause, aka due on sale clause

A

Requires mortgagor to pay off loan all at once if there is a sale or transfer of title

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Habendum Clause

A

Deed or lease that details the interests and rights to be enjoyed by grantee or lessee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Demise

A

The transfer in estate by way of lease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Estate at Will

A

Tenant occupies space without a definite time period or regular payment of rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Estate for Years

A

Leasehold for a specific amount of time (years or just months)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Periodic Tenancy

A

A periodic tenancy is a tenancy that continues for successive periods until the tenant gives the landlord notification that he wants to end the tenancy.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Purpose of Real Estate Settlement Procedure Act (RESPA)

A

To Eliminate kickbacks and referral fees from settlement service providers and to help consumers become better shoppers and more informed (1974)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Reappraisal Lease

A

A lease in which the rent is adjusted based on an independent appraisal of the value of the property; frequently seen with long-term ground leases.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Township measurement

A

A township measures 6 x 6 miles (36 X 36 miles)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Capitalization (Cap) Rate Formula

A

Net Operating Income/Property Asset Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Tenancy from Period to Period

A

tenancy from period to period is a type of lease that specifies a definite initial time but that is automatically renewable unless terminated by either the landlord or tenant.

40
Q

Tenancy in common

A

Each co-tenant in a tenancy in common has an interest in the property and is free to transfer this interest during life or through a will (no right to survivorship)

41
Q

Joint tenants

A

must have equal ownership interests in the property. So, three owners would each have a one-third interest in the property. If one of the joint tenants dies, his or her interest immediately ceases to exist and the remaining joint tenants own the entire property (right to survivorship)

42
Q

Tenancy by entirety

A

For married couples, protects the family and automatically passes to spouse upon death

43
Q

Liquidated Damages

A

Liquidated damages (also referred to as liquidated and ascertained damages) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance).

44
Q

Contract for Deed

A

A bond for deed (or land contract) is a contract to sell real property in which the purchase price is to be paid by the buyer to the seller in installments and in which the seller, after payment of a stipulated sum, agrees to deliver title to the buyer. It may also be called a “contract for deed”.

45
Q

Reverse Annuity Mortgage

A

type of mortgage in which a homeowner can borrow money against the value of his or her home, receiving funds in the form of a fixed monthly payment or a line of credit. No repayment of the mortgage (principal or interest), is required until the borrower dies, moves away permanently or sells the home

46
Q

Loan to Value Ratioo

A

Loan Amount/Property Value

47
Q

Blanket Mortgage

A

A blanket mortgage is a loan that covers more than one piece of property. It sometimes is used to finance a subdivision development. Say, for example, that a builder buys six lots on which he plans to build houses and sell them

48
Q

Home Equity Loan

A

A home equity loan seeks to use the equity that a mortgagor has built up in a property either for improving the property or some other use

49
Q

Open Mortgage

A

An open mortgage is a mortgage loan that can be paid back at any time without a prepayment penalty

50
Q

Package Mortgage

A

A package mortgage is a loan that covers real estate and personal property being sold with the real estate. The buyer of a house in which furniture is being included in the sale may want to apply for a package loan. For example, this loan can be used to purchase a furnished vacation home

51
Q

Wraparound Mortgage

A

A wraparound mortgage is a new mortgage that literally wraps around an old mortgage. A seller sells a property to a buyer, but the seller doesn’t pay off an existing mortgage. The buyer gives a new, larger mortgage to the seller

52
Q

Net Listing

A

Imagine a situation where a real estate broker said “your home is worth $300,000. But instead of taking a commission on that $300,000 value, my fee will be limited to everything above that figure.”

Sounds pretty good – unless the home is worth substantially more than $300,000 (Illegal in NJ)

53
Q

New Jersey MLS

A

Multiple Listing Service

54
Q

A Variance

A

a request to deviate from current zoning requirements. If granted, it permits the owner to use his land in a way that is ordinarily not permitted by the zoning ordinance. It is not a change in the zoning law, but a waiver from the requirements of the zoning ordinance

55
Q

Easement by necessity

A

Allows an owner of a landlocked parcel to cross over another’s land to access a public road. Easements by necessity are known as appurtenant. This means that they benefit a particular piece of land, rather than an individual person

56
Q

Appurtenance

A

A legal term denoting the attachment of a right or property to a more worthy principal. Appurtenance occurs when the attachment becomes part of the property such as a furnace or air conditioning unit.

57
Q

Void Contract vs. Voidable

A

void contract is not a contract and has no effect in a court of law and cannot be enforced in a court of law. Most commonly, a void contract will be missing one or all of the essential elements needed for a valid contract. Neither party needs to take action to terminate it, since it was never a contract to begin with

a voidable contract is a contract which may appear to be valid and has all of the necessary elements to be enforceable, but has some type of flaw which could cause one or both of the parties to void the contract. The contract is legally binding, but could become void. If there is an injured party involved, the injured party or the defrauded must take action, otherwise the contract is considered valid (ex. A contract entered into with a minor could be voidable)

58
Q

Unenforceable Contract

A

an unenforceable contract is a contract which cannot be enforced in a court of law. This could happen because the terms of the contract are ambiguous, if one party has a voidable contract or if the Statute of Limitations has expired

59
Q

The Statute of Limitations

A

requires that lawsuits be filed within a certain period of time following a breach

60
Q

Doctrine of Laches

A

This principal states that a court has determined a contract is unenforceable due to needless delay or neglect in filing a claim even though the statute of limitations may not have expired

61
Q

Subagency vs. dual agency

A

Subagency refers to a specific client representation relationship between a property listing broker or real estate agent and another real estate broker or agent who brings the buyer to purchase the property.

In subagency, the agent bringing the buyer is actually working for the seller as a subagent of the listing broker. This is important, as the agent working with the buyer actually owes fiduciary duties to the seller, not the buyer

…Dual Agent owes fiduciary duty to both

62
Q

Prior Appropriation

A

water rights with a legal doctrine that the first person to take a quantity of water from a water source for “beneficial use”—agricultural, industrial or household —has the right to continue to use that quantity of water for that purpose

63
Q

Real Property vs. Personal Property

A

Real property is immovable while personal property is anything that can be moved

64
Q

Principle of Progression and Regression

A

A real estate valuation theory which states that a property of lesser value is enhanced through proximity with higher value properties and vice versa

65
Q

Escheat

A

The reversion of property to the state (usually when owners have no heirs)

66
Q

Prescriptive Easements

A

Think of prescriptive easements as the acquisition of an easement by adverse possession or squatters rights (Homeowners who walk across a vacant commercial lot to access retail stores or mass transit )

67
Q

When a municipal tax lien is sold to a private investor, what period of time does a property owner have to redeem the property before the lien holder can start foreclosure?

A

2 Years

68
Q

Does the owner of an office in a Condo building have responsibility for common areas?

A

Yes

69
Q

If a married couple asks salesperson how they should take ownership of the estate, should salesperson tell them tenancy by entirety?

A

No, he should tell them to consult with their attorney

70
Q

An attachment is a

A

Lien

71
Q

Does Planned Unit Development provide for a degree of open space in a new residential development?

A

Yes

72
Q

In a transfer of title, is the signature of the grantee required?

A

No

73
Q

What time of lease is a CoOp granted through?

A

Proprietary lease

74
Q

Title to personal property would be transferred with a?

A

Bill of Sale

75
Q

Which appraisal method is least effective when valuing a vacant lot?

A

Cost Method

76
Q

Characteristics of value

A

Utility, Scarcity, Transferability (not cost)

77
Q

Reproduction Cost

A

The Cost to replace and existing structure using the exact same materials, construction methods, and design as the original

78
Q

Which is more important for a sellers agent to reveal to the buyer (and necessary), patent or latent defects?

A

Latent defects

79
Q

A remedy in court compelling the defendant to carry out the terms of an agreement is known as

A

Specific Performance

80
Q

Is a broker of record who also functions as the office manager required to file monthly sales figures with the New Jersey RE Commission?

A

No

81
Q

Graduated Payment Mortgage

A

A graduated payment mortgage loan, often referred to as GPM, is a mortgage with low initial monthly payments which gradually increase over a specified time frame

82
Q

Open-End Mortgage

A

An open-end mortgage is a type of mortgage that allows the borrower to increase the amount of the mortgage at a later time. Open-end mortgages permit the borrower to go back to the lender and borrow more money if certain conditions have been met. There is usually a set dollar limit on the additional amount that can be borrowed

83
Q

Can a buyer source his mortgage with the Federal National Mortgage Association (Fannie Mae)?

A

No, Fannie Mae it purchases mortgages from lending institutions to make lending activity more affordable

84
Q

Does an applicant for a VA loan for a two-family dwelling need to occupy the space?

A

No, he can give it to another VA I think…

85
Q

According to the Truth in Lending Law, what items need to be included for a “true or effective” annual interest rate?

A

Application fees, Discount points, and finance charges

- Not Recording Feeds

86
Q

Big Difference between VA and FHA

A

VA Guarantees loans while FHA insures loans

87
Q

Primary purpose of the HUD Uniform Settlement Statement

A

Outlines Closing Costs

88
Q

Sheriff’s Sales

A

A term used to refer to distressed public property auctions. Sheriff’s sales is generally the last step in the foreclosure process after the homeowner has exhausted all his/her options to avoid defaulting on a mortgage. Once the borrower has defaulted, the lender will file suit in court to recover its loan loss, and if the court awards a judgement, the property will be scheduled to be sold at a public auction

89
Q

Are the property taxes paid off after all other liens are satisfied in a Sheriff’s sale?

A

No, they’re paid off before

90
Q

Subordination Clause

A

Clause that allows tenant to be evicted before lease expires if the building is sold to a new owner who wants to expel tenant

91
Q

The Truth in Lending Act only applies to properties with how many units?

A

At least 3

92
Q

Where does the NJ RE Commission get the money to fund the Guaranty Fund?

A

New licensees are assessed a fee at the time of licensing and may be assessed further fees as deemed necessary down the road

93
Q

How do you have to renew your license before requiring further education?

A

2 years

94
Q

You have 1 year to apply for issuance of salesperson license after?

A

You complete your 75 hour course

95
Q

Who is responsible for enforcing the NJ Timeshare Act

A

NJ RE Commission

96
Q

How long does a broker have to deposit a buyers money in the BROKER’S TRUST ACCOUNT?

A

within 5 days of receipt (he must deposit it)

NJ Real Estate (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions