Real Estate Exam Questions and Answers: A Comprehensive Guide for Licensing Preparation, Exams of Real Estate Management

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COLIBRI SCHOOL EXAM NJ LATEST 2024-2025 ACTUAL

EXAM 100 QUESTIONS & CORRECT DETAILED ANSWERS

WITH RATIONALES (VERIFIED ANSWERS). GRADED A

A broker agreed to pay a bonus to all associates who sold four homes in a month. Salesperson sold four homes last month and received the bonus. This is an example of A. Voidable contract B. Unilateral contract C. Bilateral contract D. Right of first refusal - ANSB. Unilateral contract A broker could advertise A. That a brand new Cadillac sedan is included in the sale price B. Free appraisals C. A contest for the promotion of one of his listings D. Another brokers listing, provided both brokers are in the same MLS - ANSA> that a brand new Cadillac is included in the sale price

A broker has a house listed for $100,000. His daughter sees it and decides she wants to purchase it. The broker convinces the seller to accept an offer of $80, from her but doesn't reveal to the seller his relationship to the purchaser. If the seller discovers this relationship, which of the following statements is then true? A. The contract for the sale of house is void B. The contract for the sale of the house is voidable C. The broker is entitle to a commission because he is the procuring cause of the sale D. The daughter is obligated to pay the $100,000 listing price - ANSB. The contract of the house is voidable A broker is told at a closing to deduct her commission from the funds previously deposited in her escrow account. In order to avoid commingling, the amount making up the broker's commission must be paid out within A. 3 days B. 5 days C. 7 days D. 10 days - ANSB. 5 days A condemnation suit is used in

A. Police power B. Eminent domain C. Escheat D. Tax foreclosure - ANSB. Eminent domain A condensed history of all instruments affecting a particular parcel of land is the A. Abstract of title B. Chain of title C. Title report D. Evidence of title - ANSA. Abstract of title A contract between an adult and a minor is A. Void B. Voidable C. Unenforceable D. Unilateral - ANSB. Voidable

A copy of a complete accounting in writing of all monies due a terminated salesperson must be kept by the broker for how long? A. Six months B. 1 year C. 3 years D. 6 years - ANSD. 6 years A court action brought to remedy a gap in the chain of title is called A. An action in partition B. An abstract of title C. Suit to quiet title D. Torrens title - ANSC. suit to quiet title Establishes or clears up who is the actual owner of the title A court decree which declares that an individual is indebted to another and fixes the amount of the debt is called a

A. Bond B. Lien C. Judgement D. Foreclosure - ANSC. Judgement A large old home with six bedrooms and one bathroom would be an example of A. Depreciation B. Economic obsolescence C. Functional obsolescence D. External obsolescence - ANSC. Functional obsolescence A licensed broker in New Jersey may pay a referral fee to a broker in another state A. If the out of state broker has a New Jersey resident license B. If the out of state broker has a New Jersey nonresident license C. If the out of state broker has a real estate license in his own state

D. The out of state broker is not allowed to collect a referral fee under this circumstance - ANSC. If the out of state broker has a real estate license in his own state A limited partnership is A. created under the laws of the state from which it receives its charter B. Run by general partner or partners C. One in which each partner can be held personally liable for business losses and obligation D. Treated as a corporation for federal tax purposes - ANSB. Run by a general partner or partners A listing contract in which the listing brokers commission is based upon procuring a buyer before the property is sold by the owner or another broker is A. An exclusive agency listing B. An open listing C. An exclusive right to sell listing D. A multiple listing - ANSB. An open listing

A loan used for temporary financing is a A. VA loan B. FHA 203(b) loan C. Construction loan D. Land contract - ANSC. Construction loan A man and a woman are not married but own property together. The man dies in an accident and the woman now owns the property in severalty. The man and the woman must have held title in A. Tenancy by the entirety B. Tenancy in common C. Life tenancy D. Joint tenancy - ANSD. Joint tenancy A married couple, New Jersey residents would like to use some of the money they recent inherited to pay off the mortgage on their home. Will they be permitted to do so?

A. Yes, but their lender may charge them a prepayment penalty B. Yes, they will be able to pay off the loan without a prepayment penalty C. No, New Jersey law prohibits the prepayment of mortgages D. They will only be able to prepay if it Is an FHA mortgage loan - ANSB. Yes, they will be able to pay off the loan without a prepayment penalty A property manager's responsibilities generally do NOT include include which of the following? A. Paying utilities B. Investing profits C. Renting units D. Collecting security deposits - ANSB. Investing profits A sellers broker must transmit to her principal A. Copies of all advertisements on the property B. All offers that are reasonable

C. All written offers that are reasonable D. All written offer - ANSD. All written offers A transaction broker has a fiduciary responsibility to A. The seller B. The buyer C. Both the seller and the buyer D. No-one - ANSD.Noone A woman died and left a 10-acre piece of land to her brother. This is a A. Legacy B. Bequest C. Devise D. Demise - ANSC.Devise

A woman gives a parcel of land to a man with an express condition in the deed that if the man builds an office building on the land, the parcel will revert to the woman. This is an example of a A. Deed restriction B. Fee simple determinable C. Leasehold estate D. Life estate with a reversion in the remainder - ANSA. Deed restriction A woman sold her property for $150,000. She realized a 20% return on her investment. How much did she originally pay for the property? A. $115, B. $120, C. $125, D. $130,434 - ANSC. $125, After borrowers have indicated an intent to proceed the lender

A. Approves their loan application B. Can provide a temporary approval letter C. Is prohibited from asking for any additional information D. Can ask for additional fees to process the loan application - ANSD. Can ask for additional fees to process the loan application An in rem proceeding is directly associated with a A. Tax foreclosure B. Mortgage foreclosure C. Court ordered sale D. Tax appeal - ANSA. Tax foreclosure At what time must the lender provide the closing disclosure to the buyer/borrowers? A. Business day before scheduled closing B. A week before scheduled closing C. 3 days before scheduled closing

D. Day of closing - ANSC. 3 days before scheduled closing By definition, an estate for years A. Must last for a year or more B. Is a fixed term: 6 weeks, 10 months, etc. C. Must be for at least 2 years D. Requires a written lease - ANSB. Is a fixed term: 6 weeks, 10 months, etc. Compliance with the lead based paint hazard reduction act is important to real estate agents because its regulations specifically require real estate agents to A. Conduct inspections B. Ensure compliance C. Assess risk levels of listed properties D. Refuse listings of contaminated properties - ANSB. Ensure compliance Generally in New Jersey, in order to appraise property for federal related loans, a person must

A. Hold a real estate license with a specialty in appraising B. Be state-licensed or state certified appraiser C. Be a member of the appraisal institute D. Hold a bachelors degree in real estate appraising - ANSB. Be state-licensed or state-certified appraiser If a broker receives three offers to purchase a property at different times on the same day and is finally able to reach the seller later in that day, then the broker should present A. Only the highest offer to the seller B. Only the best offer to the seller C. All three offers in the order they were received D. All three offers in no specific order - ANSD. All three offers in no specific order If a licenseee is indicted for aggravated sexual assault, his license is A. Canceled

B. Revoked C. Suspended D. Placed on probation - ANSC. suspended If an owner in severalty dies testate, the property will be A. Probated and passed on to the owners heirs according to the law of descent B. Probated and passed on to the owner's devisees C. Automatically vested in the other tenant D. Automatically subject to the law os escheat - ANSB. Probated and passed on to the owners devisees If the owners of a property sell it themselves, even though they have an exclusive agency listing with a broker, they owe the broker A. The full commission B. One-half the commission C. A commission that must be settled through arbitration D. No commission - ANSD. No commission

If two similar houses are for sale in a certain location, the one with the lower price is usually bought first. This is the principle of A. Substitution B. Conformity C. supply and demand D. Progression - ANSA. Substitution In a blanket mortgage, what clause gives the developer the right to sell an individual lot without having to pay off the entire principal amount? A. prepayment clause B. Defeasance clause C. Partial release clause D. Subordination clause - ANSC. Partial release clause In a real estate advertisement that includes information on mortgage financing which of the following is permissible under the truth-in-lending law, without the necessity to add qualifying words?

A. $2000 down B. Liberal terms available C. Interest rate is only 8% D. Monthly payments only $600 - ANSB. Liberal terms available In a real estate advertisement that includes information on mortgage financing, which of the following is permissible under the truth in lending law, without the necessity to add qualifying words? A. Two thousand dollars down B. Liberal terms available C. Interest rate is only 8% D. Monthly payments only $600 - ANSB. Liberal terms available In a sale-leaseback agreement, the A. Grantor becomes the landlord B. Grantee becomes the tenant

C. Grantor becomes the lessee D. Grantor becomes the assignee - ANSC. Grantor becomes the lessee In general, the federal fair housing law does Not apply to A. The sale of an owner-occupied house without the services of a broker B. Bank loans C. The sale of an apartment in a four family, owner occupied home D. Blockbusting - ANSA. the sale of an owner occupied house without the services of a broker In New Jersey, a conveyance to a married couple creates a A. Partnership B. Joint tenancy C. Tenancy by the entirety D. tenancy in common - ANSC. Tenancy by the entirety In New Jersey, a real estate broker

A. Must act for one party in a transaction B. Must act as an intermediary bringing together buyers and seller C. As a fiduciary, must act on behalf of both parties in a transaction D. May act for both parties with the written knowledge and consent of both - ANSD. May act for both parties with the written knowledge and concept of both In New Jersey, which of the following would NOT be required to be licensed as either a real estate broker or salesperson? A. An individual operating a rental agency B. An individual managing properties for various owners C. An attorney handling distressed property sale for his client trying to avoid possible foreclosure proceedings D. A person hired by a developer to list and sell new homes in the development - ANSC. An attorney handling distressed property sale for his client trying to avoid possible foreclosure proceedings

In order to convert an oral agreement into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days? A. 1 day B. 5 days C. 10 days D. 30 days - ANSB. 5 days Individuals found guilty of a first offense violation of the New Jersey Law against discrimination can be fired up to A. $ B. $ C. $ D. $25000 - ANSC. $ New Jersey residents who purchase newly subdivided out-of-state properties are protected by the Real Estate Sales Full Disclosure act, which allows the buyers to cancel their contracts within

A. 3 days B. 7 days C. 10 days D. 14 days - ANSB. 7 days New or altered buildings in New Jersey can only be used or occupied with the issuance of A. Evidence of compliance B. Certificate of continuing occupancy C. A completed construction permit D. Certificate of occupancy - ANSD. Certificate of occupancy Options and "first refusals" A. Are bilateral contracts B. Cannot be enforced by the offer C. Can be oral agreements according to the statute of frauds

D. Place an obligation only on the offeror - ANSD. PLace an obligation only on the offeror Property located outside the state of new jersey is covered by the real estate sales full disclosure act when offered for sale in this state. Which of the following is NOT exempt from the act? A. Property sold by a court order B. A development of 50 single family homes C. A development of 25 condominiums D. Property being sold by a federal government agency - ANSC. Development of 25 condominiums Regulation Z requires the disclosure of which of following? A. Respa B. APR C. NAR D. CMA - ANSB. APR

Salesperson A shows a property owned by Seller B and listed with Salesperson C's broker. Which of the following statements about this is TRUE? A. Salesperson A is the agent of seller B B. Salesperson A is the subagent of Broker C C. Seller B is the customer of salesperson A's broker D. Salesperson A's broker is the principal of Salesperson A - ANSD. Salesperson A's broker is the principal of salesperson A Something of value offered by one part and accepted by another as inducement to perform is called A. Acknowledgment B. Boot C. Conveyance D. Consideration - ANSD. Consideration Supervisors of real state offices must be physically present at that office during business hours for how many days per calendar week?

A. 3 days B. 4 days C. 5 days D. 6 days - ANSC. 5 days Taxes raised to pay for improvements that benefit real estate are referred to as A. Ad valorem taxes B. Special assessments C. Facilities taxes D. Luxury rates - ANSB. special assessments The approach that allows for up and down adjustments to different properties to arrive at a value fora subject property is called the A. Gross net multiplier approach B. Income capitalization approach C. Cost approach D. Sales comparison approach - ANSD. Sales comparison approach

The approach that uses the concept of depreciation is the A. Sales comparison approach B. Cost approach C. Income capitalization approach D. Reconciliation approach - ANSB. Cost approach The bulk transfer act refers to A. Personal property only B. Real property only C. Both real and personally property D. Chattels and fixtures - ANSA. Personal property only The cost approach would most likely be used for which of the following? A. Single family house B. Apartment building

C. Public building D. Office building - ANSC. Public building The federal fair housing law makes it illegal for a A. Seller to deny a mortgage loan to a buyer who is a member of a minority group B. Landlord to deny commercial space to a prospective tenant who is a member of a minority group C. Landlord of a two-unit residential dwelling to deny a unit to a member of a protected class if the landlord does not occupy one of the units D. Non-profit club to restrict its housing to its members only - ANSC. Landlord of a two unit residential dwelling to deny a unit to a member of a protected class if the landlord does not occupy one of the units The federal government will require disclosure in a property of the known presence of A. Radon B. Lead C. Asbestos