RE License Quiz & Challenge Questions: All Other Units

What is an example of an emblement?

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A) Kitchen cabinet

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B) Annual crops

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C) An evergreen tree

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D) A stockpile of wood in the backyard

B

What is the electronic key to an attached garage considered?

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A) Chattel

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B) A fixture

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C) An improvement

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D) A trade fixture

B

What does the term *littoral* reference in New Jersey?

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A) Land bordering water affected by tide currents

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B) Land bordering water that is flowing, like a stream

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C) Land bordering any kind of body of water

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D) Land under a body of water and owned by owners of adjoining land

A

What type of property is radiator in a single-family home?

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A) A chattel

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B) A fixture

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C) A trade fixture

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D) An improvement

B

Where is the phrase *bundle of legal rights* generally found?

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A) In the definition of real property

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B) In a legal description

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C) In real estate transactions of more than $1 million

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D) In leases for less than one year

A

Which of the following is considered to be personal property?

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A) Wood-burning fireplace

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B) Awnings

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C) Bathtubs

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D) Patio furniture

D

A rancher owns a parcel of land on which oil was discovered. If the rancher has not previously conveyed the oil rights, who owns the oil?

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A) The rancher

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B) The tenant whom the property has been leased

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C) The state government

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D) The federal government

A

Which is a test for determining a fixture?

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A) When the item was purchased

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B) Method of attachment of the item

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C) Size of the item

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D) Whether or not the property is owner occupied

B

What are those items on the premises that were installed by the tenant and are related to the tenant’s business?

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A) Fixtures

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B) Emblements

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C) Trade fixtures

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D) Easements

C

What allowed the homeowner to acquire the ownership of land that was deposited by a river running through her property?

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A) Reliction

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B) Succession

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C) Avulsion

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D) Accretion

D

A property owner lost land when hurricane rains caused a swollen river to change course. What is this process called?

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A) Reliction

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B) Avulsion

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C) Accretion

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D) Littoral losses

B

What document transfers personal property?

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A) Bill of sale

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B) A deed

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C) An amendment to the deed

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D) At attachment to the deed

A

What is an example of a trade fixture?

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A) Built-in dishwasher

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B) Chandelier

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C) Chicken coop

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D) Heating system

C

What is an example of an emblement?

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A) Cherry orchard

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B) Field of blueberry plants

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C) Wild mushrooms

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D) A field of wheat

D

Which of the following is NOT a legal test for a fixture?

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A) Intention of party doing attaching

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B) Method of attachment

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C) Adaptation of items to use of property

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D) Cost of replacement of item

D

Quality Supermarkets has taken occupancy of a retail building and has a long-term lease. As part of their fit-up, they bolt to the floor their meat and dairy coolers, shelves, and check-out stands. When Quality Supermarkets vacates the property at the end of the lease, will it be legally entitled to remove these fixtures?

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A) No, because they are trade fixtures

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B) Yes, because they are appurtenances

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C) No, because they are bolted to the floor

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D) Yes, if removed prior to the end of the lease

D

An owner has a free standing cabinet that was custom built to fit into a corner in the living room. The cabinet is a …

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A) Real property

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B) Personal property

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C) A fixture

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D) An appurtenance

B

Which of the following is considered the highest interest recognized by law?

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A) Fee simple estate

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B) A life estate

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C) Estate at will

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D) Easement in gross

A

What term refers to an easement acquired by constant, open, and adverse use?

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A) Easement appurtenance

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B) Easement by prescription

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C) Easement by necessity

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D) Easement by implication

B

What encumbrance affects the title to property and is considered a general lien?

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A) Judgment

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B) Mortgage

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C) Easement

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D) Restrictive covenant

A

A power company has the right to install electric lines across property controlled by different owners. What right is held by the power company?

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A) Easement by necessity

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B) Easement in gross

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C) Easement by prescription

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D) Easement appurtenant

B

What estate is held by a person who has complete control over a parcel of real estate?

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A) A leasehold estate

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B) A fee simple estate

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C) A life estate

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D) A defeasible fee estate

B

A portion of an owner’s building was inadvertently built on a neighbor’s land. What is this portion called?

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A) Accretion

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B) Avulsion

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C) Encroachment

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D) Easement

C

A woman owned the fee simple title to a vacant lot adjacent to a hospital and was persuaded to make a gift of the lot. She had her attorney prepare a deed that conveyed the ownership of the lot to the hospital “so long as it is used for medical purposes.” What does the hospital own after the completion of the gift?

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A) A life estate

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B) A fee determinable

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C) A tenancy for years

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D) A periodic tenancy

B

Neighbors use a driveway to reach their garage on their property. The attorney explains that the ownership of the neighbors’ real estate includes an easement appurtenant giving them the driveway right. What right does the neighbor own?

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A) A leasehold interest

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B) A servient estate

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C) A dominant tenement

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D) A license to use the property

C

A man and a woman are next-door neighbors. The woman tells the man that he can store his bulldozer in her yard for a few weeks. The woman did not charge the man rent for the use of her yard. What right did the woman convey to the man?

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A) An easement appurtenant

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B) An easement by necessity

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C) An estate in land

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D) A license

D

A man conveys the ownership of his house to his mother and stipulates that upon her death he will recapture the ownership. What interest did the man convey?

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A) Remainder estate

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B) Curtesy estate

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C) Reversion estate

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D) Legal life estate

C

A man purchased a house about five years before he married. Now he plans to sell the house. At the present time, who must sign the deed?

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A) Both husband and wife

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B) Only the husband, since he purchased the home in his name

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C) The husband, wife, and listing agent

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D) The husband, wife, and their children over the age of 18

A

Which is an example of an involuntary, specific lien?

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A) A mortgage lien

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B) Property taxes

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C) IRS taxes

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D) Debts of a person who died

B

Liens against the property must be paid prior to transferring property. Which takes precedence?

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A) Lien placed by first lender

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B) Unrecorded property taxes

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C) Lien placed by subcontractor

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D) A second mortgage lien

B

What monetary lien was probably issued by a court?

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A) Mortgage lien

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B) Construction lien

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C) Judgment

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D) Satisfaction of judgment

C

What is the effect of a lis pendens on title?

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A) No effect at all

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B) Confusion

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C) Perfects the title

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D) Creates a cloud on the title

D

Which type of ownership is regarded in the same light as that of the owner of a single family dwelling?

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A) Leasehold estate

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B) Life estate

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C) Cooperative ownership

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D) Condominium ownership

D

What New Jersey act regulates the creation of condominiums?

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A) The Homeowner’s Association Act

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B) The NJ Real Estate Commission

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C) The NJ Horizontal Properties Act

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D) The federal Securities and Exchange Commission

C

What document determines the occupancy rights of the owners in a cooperative building?

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A) The number of shares of stock held

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B) A proprietary lease

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C) The articles of incorporation

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D) The bylaws of the cooperative association

B

Three unmarried men own 25, 35, and 40 percent respectively of a large piece of land. What type of ownership is held by these men?

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A) As joint tenants

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B) In severalty

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C) In tenancy by the entirety

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D) As tenants in common

D

Which of the following is one of the four unities of joint tenancy?

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A) Control

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B) Permanence

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C) Interest

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D) Equity

C

X, Y, and Z own property a joint tenants. After Z dies, Y sells his interest in the property to W. How is the property now owned?

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A) X and W as joint tenants

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B) As joint tenants by X, W, and Z’s widow R, his sole heir

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C) X and W as tenants in common, each with interest

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D) X and W and Y’s wife

C

A man and a woman bought a store building and took title as joint tenants. The woman died testate. Under what type of title does the man now own the store?

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A) As a joint tenant with rights of survivorship

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B) In severalty

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C) As a tenant in common with the woman’s heirs

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D) In trust

A

A man and a woman owned a combination apartment building with a small bar and grill on the premises. They shared their profits and losses on their venture equally, but they did not own the business under any written partnership agreement. One day, the woman died of a heart attack. Under what kind of ownership title had they held it, after the woman’s death, the man continued to own the same undivided interest in the real estate as he did before the woman’s death and no more?

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A) They had been joint tenants

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B) They had been tenants in common

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C) They had been stockholders in their own corporation

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D) The woman died intestate

B

What type of ownership interest is based on annual occupancy intervals?

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A) A leasehold

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B) A time-share

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C) Condominium ownership

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D) Cooperative ownership

B

What are required unities to create a joint tenancy relationship in the ownership of real estate?

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A) Grantees, ownership, claim of right, and possession

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B) Title, interest, encumbrance, and survivorship

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C) Possession, time, interest, and title

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D) Ownership, possession, heirs, and title

C

Who must consent to selling a tenancy in common interest?

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A) All owners named on the deed

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B) All owners and their spouses, if any

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C) Any owners who want to exercise the right of first refusal

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D) Only the owner who is selling the interest

D

Three property owners are no cooperating with each other. One is interested in pulling out her financial investment. What is the best way that she can do this if the other owners are not interested in cooperating with her?

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A) File a suit to partition

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B) File for bankruptcy

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C) File a severance suit

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D) File a golden parachute suit

A

What is one major distinguishing factor about tenancy by the entirety in New Jersey?

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A) The owners must specifically request this type of ownership

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B) It is automatically created when a married couple buys their home

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C) The type of ownership is prohibited in New Jersey

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D) This ownership holds, even if the couple gets a divorce

B

What type of ownership is never permitted for a corporation?

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A) Ownership in severalty

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B) Tenancy in common

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C) Joint tenancy

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D) Joint venture

C

What is one reason why condominium ownership has greatly increased in the past 20 years?

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A) Provides more affordable housing

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B) Owners can more easily choose their neighbors

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C) Very few rentals

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D) Better use of scarce building land

D

According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of NJ, all of the following are true EXCEPT that the …

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A) Licensee must hold a timeshare sales license

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B) Timeshare must be approved by the Real Estate Commission

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C) Licensee must provide the buyer with a copy of the Public Offering Statement

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D) Contract of sale must provide notice of a seven-calendar day rescission period

A

Mary knew that her marriage was on shaky ground when she bought a house in her own name. She was hoping to save the relationship, so she wrote a quitclaim deed conveying the property from herself to herself and her husband as joint tenants, NOT as tenants in common with full rights to survivorship. She told her husband she had done this, but this deed was NOT recorded. When Mary and her husband finally divorced, the deed disappeared. In a state, which is NOT a community property or curtesy state, does the ex have a claim to the property?

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A) No, however, had the deed been recorded, it would have served constructive notice and as such would be defensible

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B) Yes, she told him it existed, and the courts always accept oral argument when it relates to real property

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C) As they were legally marries at the time of the conveyance, he automatically owns a one-half interest

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D) As he did not sign the original conveyance as grantee, it was not a legal deed

C

The major advantage of ownership in severalty is …

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A) Flexibility in making decisions

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B) Sharing the risk with others

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C) Join decision making

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D) The risks are high

A

Two unmarried people purchased a property together with unequal interests in the property. Which statement is true?

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A) Either owner must inform the other owner before selling her interest

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B) Either owner may sell her interest without permission of the other owner

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C) Either owner must offer to sell her interest to the other owner before selling it to another

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D) Only the owner with the larger interest may sell her interest without permission of the other owner

B

What characterizes both the ad valorem tax and a special assessment tax?

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A) Both are calculated using the same method

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B) Both allow a deduction for senior citizens and veterans

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C) Both are levied for the general support or operation of the local government

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D) Both are levied against specific parcels of real estate

D

What kind of taxes are levied on a property owner to pay to install sidewalks or sewers?

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A) Ad valorem taxes

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B) General property taxes

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C) Special excise taxes

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D) Special assessments

D

What does the purchaser of a property at a tax sale receive?

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A) Legal title

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B) A conditional title

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C) A tax sale certificate

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D) An unconfirmed title

C

What is the annual deduction from real estate taxes that New Jersey makes available to a qualified veteran?

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A) $250

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B) $500

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C) $1,000

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D) $2,500

A

What is the goal for assessed tax values in the state of New Jersey?

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A) 25 percent of value

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B) 50 percent of value

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C) 75 percent of value

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D) Full value

D

What types of real estate properties are totally exempt from real property taxes?

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A) Those purchased for speculative purposes

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B) Those used for religious, charitable, and not for profit purposes

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C) Those used exclusively for farmland in the previous five years

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D) Those used as rental residential purposes

B

How do taxing authorities determine a tax rate?

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A) By dividing budgetary needs by the assessment roll

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B) By multiplying the assessment roll by the equalization factor

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C) By multiplying the budgetary needs by .001

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D) By subtracting the budget needs from the assessment roll

A

An unmarried homeowner has a $300,000 profit from the sale of her home where she has lived for the past 18 years. What, if any, is the taxable portion of the gain?

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A) $0

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B) $50,000

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C) $150,000

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D) $300,000

B

A married couple recently retired after living in their home for 30 years. They realized a profit of $350,000 when they sold their home. On what amount will they pay capital gains?

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A) $0

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B) $250,000

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C) $350,000

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D) $500,000

A

What is the minimum requirement when determining genuine agricultural property?

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A) The parcel is at least two acres in size

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B) The parcel has been actively used as farmland for previous five years

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C) The parcel has generated more than $500 income per year for two years

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D) The parcel is open acreage without trees

C

At what time are property taxes recorded against the property?

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A) October 1 for the next year

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B) December 31 prior to the taxable year

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C) January 1 of the taxable year

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D) Property taxes are not recorded

D

What is the first step when determining the real estate tax rate?

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A) Adopt a budget

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B) Appropriation to authorize expenditure of funds

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C) Vote taken to impose the tax levy

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D) Compute individual taxes based on assessed value

A

What is the minimum time frame before the taxing body can begin the tax foreclosure process?

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A) Six months

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B) 1 year

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C) 2 years

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D) There is no specific time frame

A

The owner of a home with no liens obtained a home equity loan of $75,000, secured by his home. Several months later, he borrowed $15,000 and then $13,000 with each loan secured by a lien against his home. He then lost his job and failed to pay his past due property taxes of $7,500. His loan went into default and his home was foreclosed. Assuming that the liens for all three loans were recorded in a timely manner, what is the order of payoff to the lien holders?

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A) $7,500; $75,000; $15,000; $13,000

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B) $7,500; $13,000; $15,000; $75,000

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C) $75,000; $7,500; $15,000; $13,000

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D) $75,000; $15,000; $13,000; $7,500

A

The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to …

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A) $125,000

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B) $250,000

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C) $500,000

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D) Any amount

C

How is a deed restriction created?

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A) By municipal statute

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B) By deed

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C) By an oral agreement

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D) By continued, general use in a subdivision

B

For the past 30 years, a couple has operated a neighborhood grocery store. Last week, the city council passed a zoning ordinance that prohibits packaged food sales in the area where the couple’s grocery store is located. By what right can the couple be allowed to continue to operate their store as they have for 30 years?

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A) They cannot, because it is now an illegal enterprise

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B) They usually can, as a noncomforming use

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C) They cannot; continuing the grocery is a violation. of the zoning laws

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D) They can, only if the council offers them a variance of the zoning laws

B

Which of the following best describes the purpose of a building permit?

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A) It is the method for overriding or substantiating deed restrictions

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B) It allows municipal control over the volume of construction

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C) It shows evidence of compliance with municipal regulations

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D) It is the method of regulating the area and size of the buildings

C

A development company owned property that the city wanted so that it could extend the runways at the municipal airport. If the company refuses to negotiate with the city, how can the city acquire the property?

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A) By escheat

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B) By accretion

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C) By confiscation

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D) By eminent domain

D

What mineral that was once used as insulation is now considered a health hazard?

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A) Radon

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B) Lead

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C) Asbestos

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D) Urea-formaldehyde foam

C

In a widely publicized dispute, a man refused to sell his land to the local school district. He believed that the price the school district offered him for the land was no sufficient consideration. If the school district were to pursue the matter in court, what legal proceeding would it institute to force the man to sell his land to them?

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A) Escheat

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B) Foreclosure

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C) Probate

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D) Condemnation

D

Under an existing ordinance, signs that are placed on a building may extend no more than three feet above the highest point of the roof. An owner wants to erect a nine-foot high revolving sign on the roof of his store. How can the owner legally do this?

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A) Produce a deed that discusses the air rights

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B) Petition for a variance

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C) Ask for a noncomforming use permit

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D) Pursue a court order

B

At what level of radon is remediation recommended?

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A) 4 picocuries (pci) or more

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B) At least 10 picocuries (pci)

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C) 5 micrograms per deciliter (pci)

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D) At least 10 micrograms per deciliter (pci)

A

When, if ever, are carbon monoxide detectors required in New Jersey?

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A) Only in single family dwellings

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B) Any building with three or more dwelling units

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C) Both residential and commercial properties

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D) There are no requirements for carbon monoxide detectors

B

Federal regulations, if any, apply to underground storage tanks that once stored petroleum products, The rules apply when at least what percent of the liquid was stored underground?

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A) Any part was underground

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B) At least 10% was underground

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C) At least 50% was underground

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D) There are no federal rules

B

In what type of property deeds are deed restrictions likely to be discovered?

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A) Inner city, older neighborhoods

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B) Rural agricultural lands

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C) Entire subdivisions

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D) Entire villages of no more than 1500 people

C

Who is likely to bring an inverse condemnation suit?

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A) Developer planning 400 lots

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B) Owner of commercial property near a highway intersection

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C) The child of the deceased owner

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D) Owner of property impacted by new municipality changes

D

Who must test for the presence of lead-based paint?

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A) Any homeowner with one or more children under the age of 6

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B) Owners of apartment buildings built before 1978

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C) Only owners who rent to tenants whose rents are subsidized

\
D) No one

D

What device is required in any NJ dwelling unit with three or more units?

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A) Carbon monoxide detector

\
B) Radon detector

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C) Mold detector

\
D) New Jersey is a caveat emptor state, i.e., does not require any devices

A

As the buyers walked through the property, they noticed a musty smell and new carpeting in the basement. What might the presence of these two things suggest?

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A) Presence of radon

\
B) Possible water and mold issues

\
C) Possible carbon monoxide build up

\
D) Presence of asbestos

B

The PRIMARY purpose of percolation tests and test borings is to determine whether …

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A) The absorption capacity of the soil is sufficient for intended use

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B) A reinforced footing or foundation should be used

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C) A particular type of well is drilled to a sufficient depth

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D) The building inspector should issue a building permit

A

Which of the following are MOST likely to be addressed by building codes?

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A) Deed restrictions

\
B) Construction standards

\
C) Permissible uses of structures

\
D) Restrictive covenants

B

A neighborhood grocery store no longer complies with the law because a new zoning ordinance is adopted so that the property is zoned for residential use. Nevertheless, the owner is allowed to continue to operate the grocery store. This is an example of …

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A) A variance

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B) Noncomforming use

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C) Spot zoning

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D) A conditional-use permit

B

Which of the following actions is a function of a municipal planning board?

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A) Approving a variance for an addition to a garage or a residential property

\
B) Creating a master plan for all the land in a particular county

\
C) Unilaterally approving subdivisions in a jurisdiction

\
D) Prescribing and controlling the development and use of all land in a municipality

D

A residential developer desires to limit all construction in a subdivision to single family houses of at least 3,000 square feet. Which of the following is the BEST way for the developer to ensure this will take place?

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A) Have an architectural review committee approve building plans

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B) Establish a homeowner’s association

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C) Petition for a zoning change

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D) Create deed restrictions

D

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?

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A) City code always takes priority over deed restrictions

\
B) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed

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C) Deed restrictions always take priority over city codes

\
D) This deed restriction is more restrictive at will, therefore, takes precedence

D

The lead paint addendum that MUST be presented with the purchase and sale contract for certain older homes will …

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A) Require the removal of all lead paint prior to closing

\
B) Provide the buyer with the opportunity to waive the right to a lead paint inspection

\
C) Mandate that sellers remove any lead paint only on interior walls

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D) Make the sellers liable for any of the buyer’s lead-related medical problems

B

Prospective buyers for a house want to operate a recycling center in their backyard. Local zoning laws do not allow that. What do they need to do first?

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A) Obtain a building permit

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B) Obtain a modification to the local master plan

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C) Obtain a variance or special exception

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D) File an appeal with the local court

C

What possible consequences would the knowledge of a Megan’s Law registrant in the neighborhood cause?

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A) This should have no effect on the values as that would be deemed to be discrimination of a protected class

\
B) Commercial properties may decline in value due to the presence of contamination in the soil and ground water

\
C) Real property values will increase due to the additional police patrols this may generate in the neighborhood

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D) Values in a single family, owner occupied neighborhood may decline due to the presence of a convicted sex offender

D

A city has rules requiring 4-unit apartment buildings be at least 15,000 sq. ft. and have 2 off-street parking spaces. This is an example of …

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A) Police power

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B) Eminent domain

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C) Taxes

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D) Escheat

A

Which would be an example of a disclosure required by the government?

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A) Buyer is entitled to C,C, and R’s from the HOA

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B) The seller needs to buy a home before she can close on the contract

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C) Neighborhood demographic data is available on a local website

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D) The buyer should inspect the property for lead paint

D

The NJ Private Well Testing Act requires the buyer to …

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A) Have the seller remediate if the well test fails

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B) Buyer and seller to certify the receipt of test results before title transfer

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C) The selling broker recommend sources of remediation

B

A deed restriction prohibits keeping large animals on the property. A neighbor notices another neighbor has a shetland pony. What can be done?

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A) Any neighbor can fore other property owners to comply with the deed restrictions

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B) Neighbors are legally bound to report violations

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C) Only a property owner whose land adjoins the neighbor with the pony can take action

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D) No one can take action; ownership rights supersede deed restrictions

A

A broker has an exclusive-agency listing. What is a possible consequence for the broker?

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A) May have to split the commission with the owner/seller

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B) May have to split the commission with a selling broker

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C) May end up with no commission if another broker sells the property

\
D) May end up with the full commission if the owner/seller sells the property

B

What is the effect of an oral listing?

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A) Enforaceable

\
B) Unenforceable

\
C) Void

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D) Exclusive

B

Who or what may terminate a listing agreement?

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A) The death of the salesperson

\
B) An agreement of the parties

\
C) An agreement between the owner(s) and the listing salesperson

\
D) Any construction on the premises

B

The seller found an acceptable buyer for her property. However, she found that she still owed the commission to the listing broker. What type of listing agreement did she have with the listing broker?

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A) An exclusive-right-to-sell listing

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B) An open listing

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C) An exclusive-agency listing

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D) An option listing

A

Under which of the following listing agreements can the owner of listed property sell the property on her own without having to pay the listing broker a commission?

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A) Exclusive-right-to-sell listing only

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B) Exclusive-agency listing only

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C) Open and exclusive-agency listings

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D) Open listing only

C

How are commissions established?

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A) Negotiation between the seller and the broker

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B) Determined by the local multiple listing service (MLS)

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C) By agreement between the brokers

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D) List provided by the NJ Real Estate Commission

A