Practice of real estate

Question 1

the purpose of a _______ is to ensure that buyers, who pay an Ernest money deposit when they go to contract, can know their money is safe

Answer 1

trust account

Question 2

agents who receive Ernest money deposit must pass it over to their broker _________

Answer 2

immediately

Question 3

a broker must place Ernest money deposits into the trust account promptly, which the commission defines promptly as ______

Answer 3

within five business days

Question 4

if a contract is canceled the broker can only release the escrow deposit after securing a _________ form signed by all parties named in the contract

Answer 4

release of escrow

Question 5

when a clients deposit money is mixed in with the funds from other parties

Answer 5

commingling

Question 6

when a licensee uses a clients money for a purpose other than it was intended by the client

Answer 6

conversion

Question 7

the ____________ reaffirmed the protection against discrimination based on race and color and added 2 additional, religion and national origin, later adding sex, marital status and disabilities

Answer 7

1968 Federal Fair Housing Act

Question 8

the federal fair housing act is administered by the ________

Answer 8

U.S department of housing and urban development

Question 9

occurs when salespersons tell homeowners that a minority group is about to move into their neighborhood as scare tactics in order to obtain listings

Answer 9

block busting

Question 10

New Jersey law requires licensees to keep copies for _____ of all solicitations used when they send them to three or more houses within a single month long time period.

Answer 10

one year

Question 11

when banks or insurance companies refuse to give loans or insurance policies based simply on the geographic area in which consumers live

Answer 11

redlining

Question 12

when real estate agents take clients to neighborhoods based on the ethnicity of the client or the predominant community ethnicity, instead of the clients housing needs.

Answer 12

steering

Question 13

in New Jersey commissions are ______

Answer 13

negotiable

Question 14

implements conditions contained with federal TILA created to inform borrowers com cost associated with borrowing

Answer 14

regulation Z

Question 15

real estate professionals must included the ______ logo on all residential advertising

Answer 15

HUD fair housing

Question 16

the time after a buyer and seller have agreed on terms when the buyer can check things out. In NJ it is the time after the attorney review period has been successfully completed.

Answer 16

due diligence

Question 17

____ laws exist to protect the public from monopolistic trade practices which lead to higher prices and less competition.

Answer 17

antitrust

Question 18

_______ liability, where an agent creates liability for their broker

Answer 18

vicarious

Question 19

the broker has _______ when they introduced a ready, willing, and able buyer on terms that are acceptable by the seller

Answer 19

earned a commission

Question 20

brokers must maintain accurate records of all commission earned and commissions paid for ___ years

Answer 20

six

Question 21

the New Jersey real esate commission maintains a trust fund to help members of the public who have been disadvantaged by a real estate agent such as theat, commingling, etc. called the

Answer 21

Guaranty fund