Unit 2 Flashcards

1
Q

An escrow account may be opened in a?

A

Any authorized New Jersey financial institution

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2
Q

A broker must keep copies of?

A

Contracts for six years

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3
Q

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

A

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

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4
Q

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

A

$25,000

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5
Q

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

A

Three

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6
Q

Rebate of part of commission may be paid to a?

A

Buyer only

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7
Q

Copy of real estate contract with original signatures

A

Duplicate original

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8
Q

Mixing brokers money with that of other

A

Commingling

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9
Q

Cancellation of real estate license

A

Revocation

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10
Q

In March 1995 New Jersey Supreme Court ruled?

A

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

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11
Q

No ad can refer to financing without including the words?

A

to a qualified buyer

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12
Q

Each broker maintains a special trust account also known as ?

A

Escrow account

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13
Q

Brokers must deposit other persons fund within how many day?

A

Five business days

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14
Q

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

A

eight members and appointed by the governor

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15
Q

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

A

Letter of intent

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16
Q

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

A

Waiver of Broker Cooperation form

17
Q

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

A

10

18
Q

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

A

Guilty knowledge

19
Q

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

A

illegal price-fixing

20
Q

Known as the client?

A

The principal

21
Q

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

A

Fiduciary relationship

22
Q

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

A

Fiduciary

23
Q

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

A

special agent

24
Q

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

A

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

25
Q

The agent is obligated to obey the principal’s _____

A

Lawful Instructions

26
Q

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?

A

Consumer Information Statement (CIS)

27
Q

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

A

Consumer Information Statement (CIS)

28
Q

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.

A

Conflict of interest

29
Q

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

A

Latent defects

30
Q

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

A

Megan’s Law

31
Q

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

A

Megan’s Law Statement