Mulroy school of real estate final exam – Flashcards
94 test answers
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Non-conforming use
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Grandfathered in. A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area
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Leverage
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Using as little amount of cash to finance properties
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To increase value of income property
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Lower the cap rate
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Truth in lending act
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Informs the borrower of true cost of loan
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Does power of attorney have to be in writing
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Yes
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Blanket mortgage
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Covers more than one parcel of real estate like in a subdivision
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Income approach
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Aka capitilization approach, value method used to evaluate an apartment house
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Do condo owners pay a stock transfer fee
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No, they pay real estate transfer tax
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Purpose of an option
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Unilateral contract where buyer doesnt have to buy but the seller must sell
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Exclusive right to sell listing
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Broker gets paid no matter who sells the property
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Second mortgage
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Not the purchase-money mortgage
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Responsibilities of property manager
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Budgeting, renting, maintaining property
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Open listing
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More than one broker, not in mls, seller retains rigt to sell
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Restrictive covenant
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Binding on future owners
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Reconciliation
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Using all three approaches to estimate value
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Commingling
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Mixing broker funds with those of clients
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When is bill of sale used?
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Conveying personal property
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Estate for years
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No termination notice required and a defined ending period
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Exclusive agency listing
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One broker, in mls, and seller still has right to sell
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Land contract (contract for deed)
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Installment sales contract. Seller financing installment payments by buyer. Deed and title dont pass until after last payment is made
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Right of refusal
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Tenants right to purchase the leased property
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Triggering term
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Terms that trigger further required informatiom
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Liquidated damages
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Sum agreed upon to serve as compensation if one party defaults
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Who receives real estate when the owner dies intestate
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The state (bc there is no will)
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What is the fee for property management usually based on?
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Salary and percentage of gross income
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Market value
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Closed sales
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Tenancy in common
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Two or more people with the ability to pass onto heirs
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Under what circumstances may a tenant be released from a lease?
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Constructive eviction "unliveable"
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FANNIE MAE
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Buy mortgages in the secondary market
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What must we do if a seller says "no Irish"
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Refuse listing
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In the replacement costs, what factors are included?
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Properties with similar use and current cost of material
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External (economic) obsolescence
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Outside property lines
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Does death of seller void the option
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No
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With offers on three listings at the same time, what does the broker have to do with deposit checks
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Deposit all in 5 business days
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Purpose of a real estate contract
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Binding two people under agreeable terms
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Time-share
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Fee-simple ownership of vacation property
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Net lease
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Pays rent and taxes and property expenses. Triple net lease
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Option
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Unilateral contract bimdimg the seller not the buyer
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Condominium ownership
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Fee simple, highest degree of ownership of apartment and all common areas
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Is seller required to list setbacks, ownership,time and lowest price in listing agreement
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No
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What disclosures are required under regulation z
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Besides triggering term requirements, any prepayment penalties
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Joint tenancy
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2 unmarried people - TTIP
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Is a lease terminated by eminent domain
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Yes
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What does "highest and best" use mean
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Brings the highest return to the property
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What happens when to value when many foreclosure are in the marketplace?
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Values drop with large supply of homes and duress sellers
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To whom do we have to disclose agency relationship
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Everyone
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Right of redemption
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Right to redeem the property after a sheriff sale
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Who is the mortgagor
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The borrower
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Time-share
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Fee simple ownership of a vacation property
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Lease-option
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Leases which include an option to purchase the property in a set time frame
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What is your obligation when you receive multiple offers on your listing?
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Present them all
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Escheat
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Reversion of property to the state when owner dies without heirs (intestate)
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Is a fixed rent long-term lease in the best interest of a property?
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Both - depends on the market at the time with inflation. No but if market goes down then yes
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Lis pendens notice
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Notice of future foreclosure
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Do you need a real estate license to sell shares in a limited partnership
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No
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Acceleration clause
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Due on default - whole mortgage
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Holographic will
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Handwritten will with no notice
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Mandatory rental pool
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B on the exam
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Who is the landlord in a sale-leaseback
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The buyer
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Direct endorsement letter
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Allows them to their own underwriting decisions on fha insured loans
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What type of insurance covers mineral rights
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Title insurance
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The broker must keep u accepted offers for
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6 months
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What license is in the branch office
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Branch license
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Max claim for guaranty fund
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$20,000
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What happens to your license when your brokers license is suspended
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Your license is suspended as well
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The broker must pay your commission within
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10 days
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The broker must give you an accounting within how many days of your termination?
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30
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What is the offense that will automatically revoke your license
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Forgery
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What is the most important thing every listing must habe
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Definite termination date
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How long does a broker have to keep trust account records
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6 years
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All deposits to the brokers trust account must be placed within
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5 business days
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Where do the NJ rules and regulations come from
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Code of ethics
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Net listing
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Illegal in NJ allows agent to dictate commission
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Blockbusting
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Trying to get people to sell by saying certain people are moving to an area...."the Irish are coming. Sell now"
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What law covers marital status
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NJ law against discrimination
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When is attorney general memorandum required
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Time of listing
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In order to collect commission what does the statute of fraud require
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Written authorization from the client
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What is a dual contract
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Two contracts, same buyer, same property, one contract is higher
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What is procuring cause
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Agent entitled to commission
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Where is your license displayed
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Main office
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Do all members of REC serve for 3 years
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No
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What is the maximum violation for 1st violation
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$5000
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Who is the principal
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Seller who lists with the broker
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The agency relationship is betweem
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Broker and seller
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Fiduciary
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Relationship between broker and client or an angency
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How Milone does S.P have to take the exam
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1 year from completion of class
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What happens when the broker dies?
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Temp license goes to a salesperson with 3 years experience
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When you send license to REC, what happens
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It's voided after two years
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What are the requirements to become a broker
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3 years full-time as sales person and 150 hours class
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Do you need a brokers license to sell a home left to you in an estate
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No
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