NJ Real Estate 201 - Exam 2024/2025, Exams of Business Economics

Download NJ Real Estate 201 - Exam 2024/2025 and more Exams Business Economics in PDF only on Docsity! NJ REAL ESTATE 201 - CH 12 & 16 EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS A licensee-written lease must contain notice of the right to attorney review if it A. requires a security deposit B. contains an automatic renewal clause C. provides for holdover tenancy D. is for a period of one year or more - Precise Answer ✔✔D. is for a period of one year or more A lead-based paint disclosure statement must be included in the lease for any A. residential property B. living unit to be occupied by a child under the age of ten C. residential building constructed before 1978 D. residential or commercial property - Precise Answer ✔✔C. residential building constructed before 1978 A lease is considered to be A. freehold estate B. personal property C. a reversionary interest D. real property - Precise Answer ✔✔B. personal property A woman agrees to rent her upstairs apartment to a friend for only the next six months. The friend has a(n) A. estate for years B. periodic estate C. tenancy at will D. tenancy at sufferance - Precise Answer ✔✔A. estate for years The owner agrees to rent his upstairs apartment, which is not subject to rent control, to a friend from month to month. To end the arrangement, the owner must A. file a court suit to recover possession B. give at least 60 days' notice from the day the rent is due C. give at least one month's notice before the day the rent is due D. simply refuse to accept the next month's rent on the day it is due - Precise Answer ✔✔C. give at least one month's notice before the day the rent is due A tenant's lease has expired, the tenant has neither vacated nor negotiated a renewal lease, and the landlord has declared that she does not want the tenant to remain in the building. The tenancy is called A. estate for years B. periodic estate Even when there is a lease, if a landlord turns the heat down to 55 degrees, the tenant may move out and stop paying rent because of A. the demising clause B. constructive eviction C. a summary proceeding D. secondary liability - Precise Answer ✔✔B. constructive eviction In NJ, rent security deposit A. must be placed in an interest-bearing account B. belong to the landlord while in his or her possession and may be kept in the landlord's personal savings account C. may be double the rent D. must be placed in the bank within 15 days of acceptance - Precise Answer ✔✔A. must be placed in an interest-bearing account A property manager may be reimbursed with A. a percentage of rentals B. rebates from suppliers C. key money D. any of the above - Precise Answer ✔✔A. a percentage of rentals After a landlord has properly placed a tenant's security deposit in a bank account, A. annual interest earned must be credited to the tenant B. the landlord may keep, for expenses, 2% of the annual interest earned on the deposit C. the tenant can demand its return at any time D. no other tenant's security deposit can be added to that account - Precise Answer ✔✔A. annual interest earned must be credited to the tenant An owner wants to sell a rental residential property that is currently under lease for another 16 months. Regarding the security deposit made by the current tenants, the seller A. may keep it, as the new owner can collect a new security deposit from the tenants B. must return the deposit and interest earned to the tenants C. must deliver the deposit to the purchaser and notify the tenants D. must immediately terminate the current lease - Precise Answer ✔✔C. must deliver the deposit to the purchaser and notify the tenants A tenant signed an apartment lease calling for $1,000 rent per month. According to NJ law, the landlord may also request a maximum security deposit of A. $500 B. $1,000 C. $1,250 D. $1,500 - Precise Answer ✔✔D. $1,500 A woman owns a 24-unit apartment building. The building is managed by a professional management company, and a superintendent lives on the premises. As the landlord, the woman is responsible for furnishing certain information to each of her tenants. Which of the following is NOT her responsibility to provide? A. her name and address, as well as those of the managing agent and the superintendent B. information regarding the Federal Crime Insurance Program, including how the tenant may obtain coverage C. a copy of the Truth-in-Renting Statement D. the name of the local housing inspector and health officer - Precise Answer ✔✔D. the name of the local housing inspector and health officer A gross lease is most likely to be used for rental of A. an apartment B. a factory building C. land under a post office D. a farm - Precise Answer ✔✔A. an apartment With a triple net lease, the tenant pays A. rent only B. rent plus a share of business profits C. rent plus any increase in property taxes D. everything but the mortgage - Precise Answer ✔✔D. everything but the mortgage What is value? A. a relationship between desired object and the seller B. the future value of present benefits C. the amount a seller is willing to give up D. the power of an object to command other goods in exchange - Precise Answer ✔✔D. the power of an object to command other goods in exchange A house should bring $400,000 but is sold for $350,000 by a hard- pressed seller in a hurry. It is then mortgages for $300,000 and insured for $375,000. Its market value is A. $300,000 B. $350,000 C. $375,000 D. $400,000 - Precise Answer ✔✔D. $400,000 An example of an arm's length transaction is one between A. father and daughter B. employer and employee C. broker and salesperson D. two strangers - Precise Answer ✔✔D. two strangers An amenity that contributed to a property's value might be its A. updated plumbing B. ocean frontage C. sale price D. replacement cost - Precise Answer ✔✔B. ocean frontage Market value and cost are often equal when property A. remains in the family a long time B. was recently constructed C. is sold in an arm's-length transaction D. receives a weighted appraisal - Precise Answer ✔✔B. was recently constructed Highest and best use of real estate is defined as the use that produces the MOST A. benefit to the community B. conformity C. progression D. money - Precise Answer ✔✔D. money "Why should I pay more when I can buy almost the same house for less?" is an example of the principle of A. substitution B. conformity C. anticipation D. change - Precise Answer ✔✔A. substitution Houses are likely to reach their maximum value when A. a wide range of price levels is represented B. neighbors hold a mix of executive, blue-collar, and white-collar jobs C. each house is unique D. jobs, houses and price levels are similar - Precise Answer ✔✔D. jobs, houses and price levels are similar The cost approach is MOST useful for A. a library B. insurance purposes C. new construction D. all of the above - Precise Answer ✔✔D. all of the above From the reproduction or replacement cost of a building, the appraiser deducts depreciation, which represents A. the remaining useful economic life of the building B. remodeling costs to increase rentals C. loss of value due to any cause D. costs to modernize the building - Precise Answer ✔✔C. loss of value due to any cause The difference between reproduction cost and replacement cost involves Reconciliation refers to which of the following A. loss of value due to any cause B. separating the value of the land from the total value of the property in order to compare depreciation C. analyzing the results obtained by the three approaches to value to determine a final estimate of value D. the process by which an appraiser determines the highest and best use for a parcel of land - Precise Answer ✔✔C. analyzing the results obtained by the three approaches to value to determine a final estimate of value In order to become a certified general appraiser, one must have a A. fellowship B. brokerage C. bachelor's degree D. designation - Precise Answer ✔✔C. bachelor's degree Some of the country's foremost appraisers have earned the designation A. MAI B. REA C. SRE D. ARE - Precise Answer ✔✔A. MAI Real estate appraisers must be performed by a licensed or certified real estate appraiser A. regardless of the value of the property involved in the transaction B. only if the value of the property involved in the transaction is greater than $150,000 C. only if the property's fair market value is less than $1 million D. whenever a CMA has not been previously prepared by a real estate broker or salesperson - Precise Answer ✔✔C. only if the property's fair market value is less than $1 million To be certified as a residential appraiser in NJ, an applicant must complete A. 2,000 hours of apprenticeship under a residential broker and undergo a physical examination B. 165 hours of education in approved courses and undergo a criminal background check C. 1,500 hours of apprenticeship under a licensed or certified residential appraiser, and undergo a thorough psychological examination D. 200 hours in approved real estate and appraisal courses, and have 2,500 hours of experience in no less than two years - Precise Answer ✔✔D. 200 hours in approved real estate and appraisal courses, and have 2,500 hours of experience in no less than two years An apartment building has $65,000 in potential gross annual income. The vacancy rate is estimated at 5%. Total operating expenses are $29,000. The capitalization rate is 9%. What would be the value of the building using the income approach? A. $324,773 B. $363,889 C. $372,895 D. $392,367 - Precise Answer ✔✔B. $363,889 An appraiser has been asked to appraise a two-unit apartment building. In this neighborhood, the accepted gross rent multiplier is 144. The annual income on the building is $16,800 (both units rented). The monthly expenses are $300. What is the estimated market value if it is based on the sales comparison approach? A. $201,600 B. $232,500 C. $224,800 D. $258,600 - Precise Answer ✔✔A. $201,600