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NEW QUESTION # 83
A licensee listed a house for $187,500, and a dual agency does not exist. A buyer is willing to offer $184,000.
The licensee explains that the seller will take no less than $186,500. The buyer agrees to offer $186,500. Did the licensee act properly?
Answer: D
Explanation:
Under fiduciary duties of a seller's agent in New Jersey:
A licensee must act in the best interest of their client (the seller).
The agent cannot disclose the seller's bottom line or confidential financial information without the seller's explicit consent.
Disclosing "the seller will take no less than $186,500" violated confidentiality and the duty of loyalty.
Thus, the licensee acted improperly.
Reference: NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Agency Duties and Disclosure.
NEW QUESTION # 84
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?
Answer: C
Explanation:
Principle of anticipation: Value is created by the expectation of future benefits (e.g., new park development).
Change: value is constantly influenced by natural and economic changes.
Contribution: value of an improvement is measured by its contribution to the property's value.
Highest and best use: most profitable legal use of the land.
Here, the increase is due to anticipated future benefits # C.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Appraisal Principles.
NEW QUESTION # 85
A couple secured a home mortgage loan from a lender who appraised the property at $92,500. If the loan-to- value ratio on the property was 85%, what was the minimum amount the couple needed for the down payment?
Answer: B
Explanation:
The loan-to-value (LTV) ratio is based on the appraised value (or purchase price, whichever is lower).
Appraised Value = $92,500
LTV = 85% # Loan Amount = $92,500 × 0.85 = $78,625
Down Payment = $92,500 - $78,625 = $13,875
Wait - let's carefully match the options:
$13,875 is Option D.
Corrected answer: D
# The couple must provide $13,875 as the minimum down payment.
Reference: NJ Real Estate Salesperson Study Guide, Real Estate Finance chapter; Loan-to-Value Calculations.
NEW QUESTION # 86
According to the New Jersey Law Against Discrimination, which of the following descriptions may be used in advertising properties in a townhome development?
Answer: B
Explanation:
Under the New Jersey Law Against Discrimination (LAD) and HUD advertising guidelines:
Ads cannot reference religion, ethnicity, or familial status (e.g., "singles only" or "close to synagogues").
However, housing for older persons (senior housing) is a permitted exception under the Housing for Older Persons Act (HOPA).
Correct answer = D. Senior housing.
Reference: NJ Law Against Discrimination (N.J.S.A. 10:5-1 et seq.); HUD Fair Housing Advertising Guidelines.
NEW QUESTION # 87
A seller refuses to honor a sales agreement. The buyer could seek specific performance, which is a legal request to:
Answer: D
Explanation:
Specific performance is a legal remedy requiring a party to perform as agreed in the contract, rather than just pay damages.
In real estate, because every parcel of land is unique, buyers often sue for specific performance to force the seller to transfer the property.
Options A and B describe rescission and compensatory damages.
Punitive damages are rare in contract law.
Correct answer = C.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Contracts and Remedies.
NEW QUESTION # 88
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