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231 Cards in this Set
- Front
- Back
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Number of days you can hold a trust account check |
5 |
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Number of square feet in an acre |
43,560 |
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Dollar amount a first time homebuyer can withdraw penalty-free from an IRA to use for the purchase of a home |
10,000 |
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Number of hours a broker candidate must attend class for in order to qualify to take the Broker's Test |
150 |
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New Jersey Real Estate License Act known as Title_____ Chapter______ |
45 & 15 |
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Number of members on the real estate commission |
8 |
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Bi-annual fee to renew a real estate salesperson license |
100 |
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a salesperson must be paid within ____business days after the broker is paid |
10 |
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Length of time a Listing Salesperson has to transmit all written offers to seller |
24 hours |
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Any cash deposit of _______or more given to a Broker must be reported to IRS |
10,000 |
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Minimum age a person must be to qualify for a Real Estate License |
18 |
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Cost to activate a new Real Estate Salesperson's License |
$160 |
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Period of time Brokers must maintain files of closed transactions |
6 years |
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For the purposes of proration and testing all months have _____days and a year has ____ |
30 & 360 |
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IF a building was constructed before _____ the Lead Paint Disclosure form must be used |
1978 |
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Adverse Posession in New Jersey must be for ___ years or more |
20 |
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If a salesperson leaves a broker, the broker must give a written account to the Salesperson of all monies due within _____ of the Salesperson's departure |
30 days |
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Under Truth-in-Lending Laws, for second mortgages and home equity loans, the buyer has a right of rescission period of ____ business days |
3 |
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Tenancy at Will may be terminated at any time by either upon ____ months notice |
3 |
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Period of time a Broker must maintain files of rejected offers and expired listings |
6 Months |
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______ feet in a mile |
5280 |
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Right of redemption period a seller has to pay the tax lien and get his property back after a tax sale to a private party |
2 years |
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A radon test reading of ____ picocuries or higher requires remediation |
4 |
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If a Real Estate Licensee has been convicted of forgery within ____ years, the Real Estate Commission will not issue a license |
5 |
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The Real Estate Commission may impose fines up to $_____ for a first offense, and $_____ for a subsequent offense |
5,000 & 10,000 |
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Attorney Review is ____business days, counted from the delivery of the contract to both attorneys |
3 |
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The date that Dower and Curtesy rights were abolished |
May 28, 1980 |
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The amount of notice the Real Estate Commission must give when checking a Broker's files |
0 |
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A real estate licensee has ______ after successfully completing the School Course to take the State Test and activate the license |
1 year |
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The fine for a first time violation of the Federal Fair Housing Act could be as much as |
$16,000 |
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Capital gains exclusions of ______ for single persons and _____ for married couples are allowed every ___years provided the home was used as a primary residence for ____out of the last ____ years |
$250,000, $500,000, 2 years, 2 out of 5 years |
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Length of time a qualified Salesperson has to notify the Real Estate Commission of the Death of his broker, and apply for a temporary Broker's license |
30 days |
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After a death of a broker, the length of time a qualified salesperson has to take the Broker's course and pass the state test to and activate the license |
1 year |
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Right of rescission with the Real Estate Sales Full Disclosure Act |
7 Calendar days |
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Right of rescission with the Planned Real Estate Development Act |
7 Business days |
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A tenant with a one-year lease needs to give ____ notice if he/she intends to vacate the premises as of that date |
0 days |
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Seniors of 65, disabled persons and war veterans with combat related disability get a property tax reduction of ____ per year |
$250 |
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The Civil Rights Act was passed in ______ |
1866 |
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A tenant with a month to month lease must give ______ notice if he intends to vacate the premises. |
1 month |
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The maximum amount the Guaranty Fund van pay an aggrieved person, per offense: |
$20,000 |
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The Federal Fair Housing Act was passed in ____ |
1968 |
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The bi-annual fee to renew a Real Estate Broker License is ____ |
$200 |
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The date all Real Estate Licenses expire _______ in every odd year |
June 30 |
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Number of classroom hours a Salesperson must complete, in order to take the state exam |
75 hours |
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A Township is ___ miles by ____ miles |
6 & 6 |
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A section is ____ mile by ____ mile |
1 & 1 |
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How many acres in a section ____; in a half section _____; and a quarter section _____ |
640, 320, 160 |
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If you feel that you have had your civil rights violated or discriminated against, how long do you have to file a Federal Suit? |
2 years |
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In New Jersey you have _______ to file a discrimination claim |
180 days |
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State agency that approves and registers some out of state property |
Bureau of subdivided land sales control |
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State agency that approves and registers some out of state property |
Bureau of subdivided land sales control |
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Requires registration of out of state subdivided land offered to NJ Residents |
NJ RE Sales Full Disclosure Act |
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Title ____ Chapter ____ state rules and regulations for real estate licensees |
11 & 15 |
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Mixing escrow funds with personal funds is known as_____ |
Commingling |
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Brokers must deposit trust/escrow account funds within ____business days of receipt |
5 |
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All ads for property must name the ______ the property is located in |
Municipality |
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Ads cannot include reference to ______without also including the words "to a qualified buyer" |
Financing |
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The person who hires the broker is the _____ |
Principal or client |
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A _______ works with buyer, seller or both without representing either one in an agency relationship |
Transaction Broker |
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The principal and the agent have a _______ relationship under which the agent owes the principal the duties of care, obedience, accounting, loyalty and disclosure |
Fiduciary |
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Legislation requiring that communities be alerted to the presence of sex offenders |
Megan's Law |
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The broker is considered to have earned their fee when they have produced |
A ready, willing and able buyer |
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Written explanation of a business relationship. Required for transactions involving one to four family dwellings |
Consumer Information Statement |
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Problem not discover-able by normal prudent inspection |
Latent defect |
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Prohibits discrimination on the basis of race, color, religion, sex, national origin, handicap, or familial status in the sale or rental of residential property |
Federal Fair Housing Act |
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Some exceptions to the Federal Fair Housing Act apply to _____ but none when the discriminatory act is based on race |
Owners selling on their own |
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Complaints under the Federal Fair Housing Act are reported to and investigated by _______ |
The Department of Housing and Urban Development or HUD |
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NJ's Law Against Discrimination adds these additional protected classes: |
Creed, color, nationality, ancestry and sexual orientation |
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The illegal practice of inducing homeowners to sell their property by making representations regarding the entry or prospective entry of minority persons into the neighborhood |
Blockbusting |
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Written statement about Fair Housing Laws that must be presented to buyers and sellers |
Attorney General's Memorandum |
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Lending agency's refusal to lend in certain areas |
Redlining |
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Channeling homeseekers to or away from certain areas |
Steering |
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When a person purchases real estate, he is purchasing not only the land itself but the _____ to use the land in certain ways that formerly were held by the seller |
Bundle of rights |
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Real Estate includes surface of the earth, minerals beneath, air rights above, and all man-made _______ attached to the land and the rights that go with it |
Improvements |
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All property that does not fit into the definition of real estate is classified as________ |
Personal Property |
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When articles of personal property become affixed to the land they become _____ and as such are now considered a part of the real estate |
Fixtures |
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An increase in land caused by the gradual depositing of solid material |
Accretion |
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Solid material deposited by a body of water |
Alluvion |
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Sudden change of the course of a stream |
Avulsion |
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Tangible personal property |
Chattels |
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Crops are known as |
Emblements |
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A landowner's claim to use water in large navigable lakes and oceans adjacent to his property |
Littoral rights |
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Creation of dry land by the gradual withdrawal of water |
Reliction |
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A(n)______ is the amount and kind of interest a person holds in land |
Estate |
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Highest type of interest in real estate recognized by law. Owner is entitled to all rights of the property |
Fee Simple Estate |
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An estate in land that can terminate on the occurence or nonoccurence of a specified event |
Fee Determinable |
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An estate in land in which ownership is for an indeterminate length of time |
Freehold Estate |
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Fee simple, Fee determinable and Life estates are types of |
Freehold Estates |
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Limited to the life of a specific person. Ownership can go back to reverter (original owner) or pass to a designated third party (remainder) |
Life Estate |
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Estate of which the length can accurately be determined |
Leasehold Estate |
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Created in NJ in 1980, rights in spouses owned property |
Dower and Curtesy rights |
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A(n) _______ can be in the form of liens, deed restrictions, easements, licenses and encroachments |
Encumbrance |
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Financial claims against a parcel of real property |
Liens |
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Priority of liens is generally determined by the order in which they are placed in the public record, with the exception of ______ and _____ liens |
Tax and Construction |
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A Lenders's claim against Real Estate |
Mortgage Lien |
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A recorded notice that a lawsuit is awaiting trial in court and may result in a judgement that will affect title to a parcel of real estate |
Lis Pendens |
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The permanent right acquired by one person to use another's real estate |
Easement |
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An easement that passes with the land when connveyed |
Easement appurtenant |
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An easement right such as that granted to utility companies to maintain poles, wires, and pipelines |
Easement in gross |
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Right of access to a landlocked parcel, can be acquired to give access to land |
Easement by necessity |
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An easement acquired by continuous, open, uninterrupted, exclusive, and adverse use of the property for the period of time prescribed by state law (20 years) |
Easement by prescription |
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Permission to enter another's property for a specific purpose |
License |
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The extension of an improvement beyond the land of the owner, illegally intruding on land of an adjoining owner |
Encroachment |
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Title is held by one person or entity |
Tenancy in Severalty/Sole ownership |
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A form of co-ownership by which each owner holds an undivided interest in real property as if he were sole owner. Each individual owner has the right to partition. No right of survivorship |
Tenancy in common |
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Ownership of real estate between two or more parties who have been named in one conveyance specifically as joint tenants. Upon the death of one, their interest passes to surviving tenant or tenants |
Joint tenancy |
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Joint ownership of property acquired by husband and wife during marriage |
Tenants by the Entirety |
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A situation in which a tenant comes into possession of land by lawful title and keeps it afterward without any right at all |
Tenancy at Sufferance |
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An estate that gives the lessee the right to possession until the estate is terminated by either party; the term is indefinite. |
Tenancy at Wil |
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A person named in a will to inherit real estate |
Devisee |
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A municipality's financial claim claim against real property |
Tax Lien |
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Collection of overdue taxes through public auction of property |
Tax Sale |
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Tax only on property directly benefiting from an improvement |
Special Assessment |
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List of all taxable property |
Assessment Roll |
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A period of time established by state law during which a property owner has the right to redeem his or her real estate from a tax sale by paying the sales price, interest and costs. 6 months to do so |
Redemption period |
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Reversion of property to the state when intestate owner dies without heirs |
Escheat |
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Control the construction of buildings by specifying trade standards |
Building codes |
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Type of listing that is given to any number of agents, with the commission going to the one who effects the sale--the owner may sell on their own without owing any commission |
Open Listing |
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Type of listing that authorizes one broker to handle the property with the owner reserving the right to sell on his own without paying commission |
Exclusive agency listing |
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Type of listing authorizes one broker to handle the property and to receive the commission if the property is sold by anyone during the listing period |
Exclusive right to sell listing |
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Organized by a group of brokers who cooperate in the sale of each other's listings. Option to the seller whether or not to include their listing in it |
Multiple Listing Service (MLS) |
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Borrower's statement of the remaining debt and interest rate |
Estoppel Certificate |
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Clause stating that in case of default, whole debt is immediately payable. |
Acceleration clause |
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Clause ensuring that after repayment, lender has no claim on property |
Defeasance Clause |
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Personal promise to repay a loan |
Note |
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The lender's acknowledgement that the debt has been paid down to a certain amount. |
Reduction |
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The charging of a higher interest rate than is legally allowed |
Usury |
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Public auction where the successful bidder receives a deed ten days after the sale. The original owner of the property can redeem the property by coming forward with all the money due. |
Sheriff's sale |
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Plan with interest rate changed either up or down periodically. |
Adjustable rate mortgage |
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Appraisal approach that computers the value of the land separately from the buildings |
Cost |
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A township contains |
36 Sections (1x1 each) |
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The buyer moves in and pays expenses and loan payments but the seller retains title in a _____ |
Land contract |
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Federal that requires a lender to estimate a borrower's approximate loan closing costs on a residential mortgage |
RESPA |
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Money deposited by a buyer that is applied to the purchase price if the sale is closed |
Earnest money |
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The ______ states that a contract for the sale of real estate (and any lease for more than three years) must be in writing and signed in order to be enforceable. |
The Statute of Frauds |
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In a(n)______the parties state the terms and show their intentions in words. Can be written or oral |
Express Contract |
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In a(n) _______ the agreement of the parties is demonstrated by their acts and conduct. |
Implied Contract |
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In a _______, both parties promise to do something; one promise is given in exchange for another |
Bilateral Contract |
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In a ______, one party makes a promise to induce a second party to do something. The second party is not legally obligated to act; however, if the second party does comply, the first is obligated to keep the promise. |
Unilateral Contract |
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A fully _____ is one in which both parties have fulfilled their promises and thus performed the contract. Signed by all parties |
Executed Contract |
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A(n) _____ exists when something remains to be done by one or both parties. |
Executory Contract |
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A _______ contains all essential elements of a contract and is binding on and enforceable by both parties |
Valid Contract |
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A _____ is one that has no legal force or effect because it does not meet the essential elements of a contract. |
Void Contract |
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A(n) ______is one that seems on the surface to be valid but may be rescinded, or disaffirmed by one of the parties. Valid if the party who has option to disaffirm the agreement does not do so within a prescribed period of time. |
Voidable Contract |
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A(n)_____ is when neither party can successfully sue the other to force performance. The contract is said to be "valid between the parties" |
Unenforceable Contract |
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______ refers to a transfer if rights and/or duties under a contract. Unless a contract specifically forbids it, rights may be moved to a third party. ______ maintains secondary liability if the ____ breaches the contract. |
Assignment, Assignor, Assignee |
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A substitution of a new contract for an existing agreement is known as ______. The new agreement may be between the same parties or a new party may be substituted for either. The old contract no longer has any force. |
Novation |
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A ______ is a violation of any of the terms or conditions of a contract without legal excuse. |
Breach of contract |
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If the seller defaults, the buyer has three alternatives: |
1. Rescind or cancel the contract and recover earnest money deposit 2. File court suit for specific performance to force the seller to perform the contract. 3. The buyer may sue the seller for compensatory damages |
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If the buyer defaults, the seller may pursue one of four courses: |
1. Declare the contract forfeited and potentially retain earnest money and all payments from buyer as liquidated damages 2. Rescind the contract as if it was never made and return all payments made by the buyer 3. Sue for specific performance 4. The seller may sure for compensatory damages |
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How long does New Jersey allow parties to a contract to bring legal suit to enforce their rights and what it is this called? |
Statute of Limitations & 6 Years |
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New Jersey allows brokers (or their agents) to complete residential leases and standard approved sales contracts for one to four family residences and vacant single lots. Brokers (and their salespersons) may not: |
Draft commercial leases, option agreements, or sales contracts on tracts of vacant land, commercial property or industrial property. |
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If an attorney is consulted to review a contract, the attorney must complete his or her review of the contract within a _____ period. Contract is legally binding at the end of this period |
Three business days |
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Any attempt by the seller to change the terms proposed by the buyer creates a _______. The buyer is relieved of his or original offer because the seller has in effect rejected it. |
Counter offer |
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An offer is not considered accepted until the person making the offer has been: |
notified of the other party's acceptance |
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A cash deposit, or_____ is customary when making a an offer to purchase real estate. This "good faith deposit" gives evidence of the buyer's intention to carry out the terms of the contract. |
Earnest Money Deposit |
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Earnest money must be deposited by a broker within _____ in a special trust, or escrow bank account. |
5 days |
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Parts of a sales contract |
1. Contract in writing 2. Competent parties 3. Agreement to buy and sell 4. Adequate description of the property 5. Consideration (price and terms of payment) 6. Grantor's agreement to convey (type of deed specified) 7. Place and time of closing 8. Signature of the parties |
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_______ are an amount of money, agreed to in advance by buyer and seller, that serves as compensation if one party does not live up to the contract. |
Liquidated damages |
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A(n) _____ is a contract in which a(n)______ gives a(n)______ the right to buy or lease the owner's property at a fixed price within a stated period of time. Contract binding one party; other party free to act or not |
Option; Optionor; Optionee |
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Under a typical _______ the seller retains fee ownership and the buyer secures possession and an equitable interest in the property. |
Land Contract |
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Convention that a written contract overrides spoken promises |
Parol evidence rule |
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Law requiring certain contracts to be in writing |
Statue of Frauds |
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One sided promise, valid only if other party acts |
Unilateral Contract |
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In New Jersey a valid contract for the sale of real estate must include |
An adequate description of the property |
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Transfer of interest in a contract to a third party |
Assignment |
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A leasehold estate that runs for a specific time of length. Requires no advance notice to terminate at the end of the lease |
Estate for years |
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A leasehold estate that runs for an indefinite period of time |
Periodic Estate |
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Tenancy for an indefinite period of time. May be terminated by giving three months notice |
Tenancy at Will |
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A situation in which a tenant comes into possession of land by lawful title and keeps it afterward without any right at all |
Tenancy at Sufferance |
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Suit for possession; legal removal of tenant |
Actual Eviction |
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Tenant is forced to move because apartment is uninhabitable |
Constructive Eviction |
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Lease in which tenant pays expenses like property taxes, insurance, etc. |
Net Lease |
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Lease under which Landlord pays taxes, insurance, and other expenses. Tenant pays ficed rent |
Gross Lease |
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Lease where rent is based on a percentage f the gross income received by the tenant doing business on the leased property |
Percentage Lease |
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Possession, Interest, Title and Time are related to |
Joint Tenancy |
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Court order that an individual is indebted to another is a |
Judgement |
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An In Rem proceeding is directly associated with |
Tax Foreclosures |
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A lien is not a usage/physical encumbrance but rather a |
Financial Emcumbrance |
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A general partnership is run by a |
General partner or partners |
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Original cost to owner is/isn't taken into consideration |
Isn't |
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The process of estimating the value of an income producing property by capitalization of the annual net income expected to be produced by the property during its remaining useful life |
Income Capitalization Approach |
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The Cost approach uses the concept of |
Depreciation |
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Something of value offered and accepted to perform is called_____ |
Consideration |
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In an assignment that assignor is still |
Secondarily liable |
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Seller is the only party that can sue for |
Liquidated Damages |
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A contract between an adult and a minor is |
Voidable |
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Options and first refusals place an obligation only on____ |
offeror |
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Consideration is ______ for any contract |
Essential |
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True or False: The commission rate or amount needs to be in listing |
True |
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A meeting of minds has agreement on |
Price, Down Payment and Financing |
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Liability for the release of a hazardous substance on an owner's property is placed on_____ |
Landowner |
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Regulation Z requires the disclosure of which of the following: |
Annual Percentage Rate or APR |
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_____Requires that a lender furnish a statement within three days of the closing costs to the borrower |
RESPA |
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The Federal Fair Housing Law does not apply to the sale of |
An Owner-Occupied house without the services of a broker. For selling it is one and for renting it is anything under 4 |
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Temporary financing is also known as a____ |
Bridge Loan |
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A _______ has a partial release clause that gives developer the right to sell an individual lot without having to pay off the entire principal amount. |
Blanket Mortgage |
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If a purchaser buys subject to an existing mortgage then the purchaser is/is not liable for note or bond. |
Is not |
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Sales Contracts are not typically |
Recorded in the public records |
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Bulk Transfer Act refers to _______ only |
Personal Property |
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Property Manager is to |
Fiduciary |
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A contract under Attorney Review is |
Unenforceable |
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Primary purpose of the NJREC is to |
Protect interest of the General Public |
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Payment out of the guaranty fund results in |
Automatic revocation of a license |
|
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Age is/isn't covered under Fair Housing Law |
Is not |
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An executed contract may be cancelled by midnight of the ______ following the day of the contract |
7th business day |
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In New Jersey there is/isn't a penalty on prepayment of a mortgage loan |
Isnt |
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Wounded War veterans can/can't have their apprenticeship requirements waived |
Can |
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The expiration dates for NJ Real Estate Licenses are based on a _____ year |
Fiscal |
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The Truth-in-Renting act does not apply to properties with fewer than ____ rental units |
Three |
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There is _____days to convert an oral agreement into a written listing |
5 Days |
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A(n) ____ is an estimate or opinion of value based on supportable evidence and approved methods |
Appraisal |
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______ can be defined as the present worth of future benefits arising from the ownership of real property |
Value |
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In the _____ an estimate of value is obtained by comparing the subject property with recently sold similar properties |
Sales Comparison Approach |
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In the ____ the process of estimating the value of property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building, less appreciation. Generally used for public buildings (Churches, libraries etc.) |
Cost Approach |
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In the _____ to value is based on the present worth of future rights to income. It assumes that the income derived from a property controls the value of that property. |
Income Approach |
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Gradual process by which dry land is broken off and carried away by water is called: |
Erosion |
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Market value is calculated by dividing net operating income by the capitalization rate in the: |
Income Approach |
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Option contracts are a type of ______ contract |
Unilateral |
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In a __________ the vendor is the seller |
Land sales installment contract |
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Grantee's signature is/is not essential for a deed to be valid |
Is not |
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Real property taxes and Mortgage interest can/ can not be claimed as deductions on Federal Income Tax |
Can |
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Regulation Z provides a ______day rescission period for second mortgages |
three |
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A lender uses _____ to establish the borrowers maximum monthly housing payment |
Qualifying Ratio |
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_______ mostly deals with lower income/high risk borrowers |
Ginnie Mae |
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A borrower's death is/is not a reason for discharging a mortgage |
Is not |
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It is a _____ to the seller and a _______ to the buyer when the buyer assumes the seller's mortgage |
Debit; Credit |
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A suit for constructive eviction is initiated by the: |
Tenant |
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The broker may/may not keep a small amount of his own money in the escrow account if needed to cover banks service charges |
May |
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Opinion 26 "Notice to Buyers and Sellers" Must/must not be used as a cover page of all residential sales contracts |
Must |
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In regard to Megan's Law, you must refer buyers to the county prosecutors office: True or False |
True |
