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Flashcards in NJ Real Estate Deck (96)
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1

Licensees are required to provide their customer with a document called the Consumer Information Statement on NJ RE relationships except in this situation:

Non-residential sale and lease transactions

2

How many days does an attorney have to review signed contracts after it is delivered to both parties? (Attorney review clause)

3 business days

3

NJ Law against discrimination applies to which specific group?

Private club renting only to its members

4

A licensee must deliver a duplicate original of a signed contract to all parties within how many days?

Immediately

5

How long does a broker have to maintain a record of his client submitting an offer that was NOT accepted and a listing contract that expired without a sale?

6 months from offer or from expiration of listing

6

Is a Judgement a special or general lien?

General

7

Which type of deed would not normally be used to transfer title?

Quitclaim deed

8

Title is transferred at the time of?

Settlement (closing)

9

When a deed or other document is recorded, what kind of notice is given?

Constructive notice

10

Granting Clause

Component of a deed where the grantor expresses a desire to transfer interest in the property to the grantee

11

Legal process know as Attachment is:

When the court decides to take custody of the property so that the defendant (owner) cannot dispose of the property before the court case is decided

12

Do trade fixtures have to remain if they are attached to the space?

No, if it's business related it can be removed

13

Cost Appraisal/Summation approach

Determines the cost (or replacement cost) of constructing a building using up to date materials and techniques

14

Market data approach/Sales Comparisons approach

Finding value by comparing a property to others in the area that are similar in size and condition

15

The Cost Approach to value a building is helping when:

Very few buildings nearby are similar (church etc.)

16

Cap Rate (%) Formula

NOI/Asset Value

17

The Quantity Survey Method

When an appraiser analyzes data on labor costs, material costs, and amount of materials needed to determine the structure's replacement cost

18

If a buyer gives a salesman a cash deposit, can he deposit it with or without the owners consent?

Without for a CASH deposit as earnest money

19

Novation

Substitution of a new obligation between the same parties with the consent of both parties. Original contract is discharged, also happens when a member of a contract is replaced

20

Transaction broker owes fiduciary duty to who?

Nobody. They work with a buyer and seller without repping anyone

21

Conversion Funding

When a Salesperson uses a clients funds for his own use

22

Private Well Testing Act

Buyer and seller must certify in writing that they have received and reviewed water test results at closing (only applicable where water sources are drinkable)

23

Bridge Mortgage/Loan

Short term financing where money is lent during the gap between two closings (buying house and then other house sells so you don't need the loan anymore)

24

Chattel Mortgage

Using personal property as security

25

Closed Mortgage

Locked in and cannot be paid off before maturity

26

Shared Appreciation Mortgage

The lender gets some or all payment in the form of a share of the increased value or appreciation of the property

27

Equitable Right of Redemption

Ability for the mortgagor in default to pay back his loan and redeem the property before it is auctioned away at a foreclosure sale

28

Ginnie Mae purchases loans on which market?

Secondary Mortgage Market

29

Alienation Clause, aka due on sale clause

Requires mortgagor to pay off loan all at once if there is a sale or transfer of title

30

Habendum Clause

Deed or lease that details the interests and rights to be enjoyed by grantee or lessee