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| Section | Objectives |
|---|---|
| Topic 1: Property Ownership | |
| Topic 2: Real Estate Practice and Disclosures | |
| Topic 3: Financing and Settlement | |
| Topic 4: Land Use Controls and Regulations | |
| Topic 5: Ethics and Professional Responsibility | |
| Topic 6: New Jersey Real Estate Law and Regulations | |
| Topic 7: Contracts | |
| Topic 8: Agency Relationships and Brokerage | |
| Topic 9: Valuation and Market Analysis |
Question 1
Which of the following statements correctly describes a standard feature of a buyer-agency agreement?
A. A buyer-agency agreement is an option rather than an employment contract.
B. It establishes a fiduciary relationship with the buyer.
C. A retainer fee is normally paid at the time the agreement is signed.
D. The source of compensation determines the agency relationship.
Question 2
A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two- car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck.
The ranch house is most likely to sell for around:
A. $147,500
B. $123,500
C. $128,500
D. $148,500
Question 3
If an owner wants to list a property for sale "as is," the listing agent should:
A. assume that the owner will accept a relatively low price for the property.
B. assume that the house is a "fixer-upper."
C. question the seller as to any known defects.
D. conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.
Question 4
If an owner wants to list a property for sale "as is," the listing agent should:
A. assume that the owner will accept a relatively low price for the property.
B. assume that the house is a "fixer-upper."
C. question the seller as to any known defects.
D. conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.
Question 5
A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?
A. Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.
B. Do nothing, because the seller must sell the property at the appraised value.
C. Hire an appraiser and see if a second appraisal yields a higher appraised value.
D. Make up the difference between the contract price and appraised value in cash.
Solutions:
| Question 1 Answer: B | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: C | Question 5 Answer: D |
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