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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If accepted, which of the following will be true?

A) The loan will still be assumable.
B) Because it is voluntary, it will not be an adverse item on the buyer's credit.
C) The lender will usually retain rights under mortgage insurance or VA guarantee.
D) The lender will take the title subject to any junior liens.

2. A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year- old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statements regarding this situation is true?

A) Deed restrictions always take priority over city codes.
B) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed.
C) This deed restriction is more restrictive and will, therefore, take precedence.
D) City code always takes priority over deed restrictions.

3. A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash.
The broker

A) must forward the offer to the seller's attorney for consideration.
B) may accept the offer.
C) may not accept the offer until the seller returns.
D) may sign a deed of conveyance if the seller does not return on time.

4. A salesperson is selling a leased commercial property. What will happen to the lease after the sale is consummated?

A) The tenant and the new owner must negotiate a new lease.
B) The lease is assigned to the new owner.
C) The new owner has the option of canceling the lease or accepting the lease.
D) The lease expires and the tenant must move.

5. After announcing that a new city park will soon be developed, homes in the immediate area experience a rise in value. This is an example of which of the following principles of value?

A) anticipation
B) contribution
C) change
D) highest and best use

Solutions: