NJ Real Estate Concepts Practice Flashcards

Comprehensive practice flashcards covering NJ real estate licensing, property ownership, agency, contracts, financing, and environmental regulations.

Sales License Qualification

Requirements include being at least $18$ years old, having a High School or equivalent education, possessing Good Moral Character, passing a $75\text{-hour}$ Course and State Exam, and obtaining sponsorship by a broker.

Broker License Qualification

Includes all sales license requirements plus $3$ years of full-time salesperson experience, passing a $150\text{-hour}$ Course ($90$ Hour General Broker, $30$ Hour Ethics/Agency, $30$ Hours Office Management), and passing the State Exam.

Bundle of Rights (PUDEE)

The rights of ownership: Possession, Use of property legally, Disposition or alienation, Enjoyment, and Exclusion.

Littoral Rights

Water rights related to navigable oceans, lakes, and large rivers.

Riparian Rights

Water rights related to both non-navigable and navigable streams.

Avulsion

The sudden change in the course of a stream.

Accretion

The increase of land by the gradual deposit of land.

Alluvion

The solid material deposited through the process of accretion.

Erosion

The gradual wearing away of land.

Reliction

The creation of dry land by the gradual receding of water.

Fee Simple

The most complete form of ownership with the most rights to the land.

Fee Determinable

A conditional estate with the possibility of reversion.

Life Estate Pur Outre Vie

A life estate measured by the life of another person.

Easement Appurtenant

A right-of-way between neighbors involves a dominant estate and a servient estate.

Easement by Prescription

An easement acquired by $20$ years of open, adverse, and unauthorized use.

Adverse Possession

Claiming title through continuous use for $30$ years, or $60$ years for undeveloped land.

Tenancy in Severalty

Sole ownership where the owner's interest is severed from others.

Tenancy in Common

A form of ownership where each owner has an undivided interest and the right to sell or devise their portion; owners can sue for partition.

Joint Tenancy

Ownership where parties are joined to the property and each other with rights of survivorship; it cannot be willed but owners can sue for partition.

Tenancy by the Entirety

Ownership specifically for a husband and wife featuring rights of survivorship and no right to partition.

Four Unities of Joint Tenancy (Brad Pitt)

Possession (undivided interest), Interest (equal interest), Time (acquired at the same time), and Title (same deed).

Eminent Domain

The government's power to take private property for the public good with just compensation; can result in Inverse Condemnation.

Escheat

The reversion of property to the state when an owner dies intestate with no heirs.

Universal Agent

An agent with power of attorney acting as an attorney-in-fact for all duties.

General Agent

An agent, such as a property manager, operating under a Property Management Agreement.

Special Agent

An agent, like a real estate agent, operating under a Listing Agreement or Buyers Agency Agreement.

Fiduciary Duties (OLDCAR or COALD)

Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care.

NJ Protected Classes

Includes Race ($1866$), Color, Religion ($1968$), Sex ($1974$), National Origin ($1968$), Handicap ($1988$), Familial Status ($1988$), Nationality, Marital Status, Source of Income, Ancestry, and Sexual/Affectional orientation.

Voidable Contract

A contract that is legally binding but provides one party (usually a minor or someone under duress) the option to rescind.

NJ Statute of Frauds

Law requiring real estate contracts to be in writing and signed to be enforceable; leases for $3$ or more years must be in writing.

Exclusive Right to Sell

A listing agreement where one broker is the agent and receives a commission regardless of who sells the property.

Net Listing

An illegal listing in NJ where the broker retains all money over a specified sales amount.

Alienation Clause

A mortgage clause stating the loan is due if the owner sells; benefits the mortgagee.

Acceleration Clause

A clause stating that if the borrower defaults, the loan is due immediately; the first step to foreclosure.

Defeasance Clause

A clause stating that once the loan is paid, the mortgage is defeated and there is no further hold on the property.

Points

Financial charges equivalent to $1\%$ of the loan amount, used to buydown rates.

Purchase Money Mortgage

A new mortgage on a property where the seller provides financing.

Blanket Mortgage

A mortgage covering more than one parcel, typically used by developers, which includes a partial release clause.

Regulation Z

The Truth in Lending Act which requires disclosure of loan costs and regulates Triggering Terms in advertising.

DUST

The four characteristics of value: Demand, Utility, Scarcity, and Transferability.

Functional Obsolescence

A loss in value due to outdated physical or design features; can be curable or incurable.

External Obsolescence

A loss in value due to factors outside the property (economic or locational) which are incurable.

Estate for Years

A leasehold estate for a fixed term with a specific termination date, requiring no notice to terminate.

Tenancy at Sufferance

The least estate in land where a tenant refuses to leave and must be evicted through court.

Triple Net Lease

A lease agreement where the tenant pays rent, taxes, and insurance.

Seisin

A covenant in a warranty deed where the grantor guarantees they own the property.

NJ Real Estate Full Disclosure Act

Regulated by the Bureau of Subdivided Land, it controls out-of-state properties marketed in NJ and offers a $7\text{-day}$ right to cancel.

Radon

A radioactive gas that causes lung cancer, considered hazardous at a level of $4\text{ picocuries}$.

Pinelands Protection Act of 1979

Act protecting the Pinelands National Reserve, regulating development across $22\%$ of the state's land.

CAFRA

Coastal Areas Facilities Review Act, which regulates development of coastal areas representing $20\%$ of the state's land.

ISRA

Industrial Site Recovery Act, which mandates cleanup of industrial and commercial sites when they are closed, sold, or transferred.

Mount Laurel Requirements

Legal mandates ensuring municipalities provide realistic opportunities for affordable housing for low and moderate-income people.