Unit 2

Question 1

An escrow account may be opened in a?

Answer 1

Any authorized New Jersey financial institution

Question 2

A broker must keep copies of?

Answer 2

Contracts for six years

Question 3

Every sales contract prepared by a broker must contain a notice that?

Answer 3

Buyer and Seller may seek attorney review within three business days.

Question 4

For a license law violation, the Real Estate Commission could fine licensee as much as

Answer 4

$25,000

Question 5

The commission will rule that someone could never again get a license after how many violations?

Answer 5

Three

Question 6

Rebate of part of commission may be paid to a?

Answer 6

Buyer only

Question 7

Copy of real estate contract with original signatures

Answer 7

Duplicate original

Question 8

Mixing brokers money with that of other

Answer 8

Commingling

Question 9

Cancellation of real estate license

Answer 9

Revocation

Question 10

In March 1995 New Jersey Supreme Court ruled?

Answer 10

Attached to the cover sheet the notice advising buyers and sellers of their right to hire an attorney.

Question 11

No ad can refer to financing without including the words?

Answer 11

to a qualified buyer

Question 12

Each broker maintains a special trust account also known as ?

Answer 12

Escrow account

Question 13

Brokers must deposit other persons fund within how many day?

Answer 13

Five business days

Question 14

New Jersey Real Estate Commission has how many members and who appoints them?

Answer 14

eight members and appointed by the governor

Question 15

A _____ is generally a non-binding document that references what the parties plan to do?

Answer 15

Letter of intent

Question 16

Anytime a seller directs a broker not to cooperate with other brokers, seller must sign?

Answer 16

Waiver of Broker Cooperation form

Question 17

Before suspending or revoking a license, the commission must provide the licensee at least ___ day’s advance notice of a hearing.

Answer 17

10

Question 18

When a salesperson is disciplined, the broker’s license may or may not be affected, depending on whether the broker had?

Answer 18

Guilty knowledge

Question 19

Any agreement between competing offices to establish standard rates is referred to?

Answer 19

illegal price-fixing

Question 20

Known as the client?

Answer 20

The principal

Question 21

Is one of trust and confidence in which an agent is responsible for the money and/or property of others?

Answer 21

Fiduciary relationship

Question 22

It requires putting the principal interest above all others, including the broker’s own interest?

Answer 22

Fiduciary

Question 23

Is authorized to represent the principal in one specific capacity only?

Answer 23

special agent

Question 24

This confident relationship carries with it certain duties that the agent must perform?

Answer 24

Care, Obedience, Accounting, Loyalty, Disclosure. Known as COALD

Question 25

The agent is obligated to obey the principal's _____

Answer 25

Lawful Instructions

Question 26

New Jersey regulations require licensees to present to all sellers, buyers, landlords and tenants on the sale or rental of all one-to-four family residential properties or vacant one-family lots?

Answer 26

Consumer Information Statement (CIS)

Question 27

Before any discussion with seller, buyers, landlords or tenants agents are required to furnish a ?

Answer 27

Consumer Information Statement (CIS)

Question 28

May occur when the agent is called to a listing interview and finds a seller ready to let property go at a ridiculously low price.

Answer 28

Conflict of interest

Question 29

Sellers should be aware, however, that courts have ruled that they are responsible for revealing any hidden or _______ to their real estate agents.

Answer 29

Latent defects

Question 30

Requires that a community be alerted to the presence of convicted sex offenders.

Answer 30

Megan's Law

Question 31

In New Jersey, all contracts and leases on residential real estate that are prepared by licensee must include a statement of which law?

Answer 31

Megan's Law Statement