New Jersey Real Estate Practice Exam

Whether to retain an attorney is always the customer or client's choice. You can not tell them absolutely yes or no on whether to retain an attorney. You also cannot act as an attorney because you are not licensed to do so. Never say no, or "yes, you must". Explain that while some people are comfortable not using a lawyer, buying a home is a complicated process and, should any problems arise, an attorney could prove to be of significant value. This must be a decision they make themselves, with you answering their questions carefully and honestly.

All of the above are true regarding commissions. Once a broker receives the commission earned, they must disperse the agent's portion of commission as soon as possible and within 10 days of receipt. The procuring cause refers to the person who caused the sale to take place. Just because you showed someone a property does not mean that you automatically earned your commission and they may end up buying it from another agent. But if you can prove that you were integral in convincing the buyer to purchase that particular property and they made the decision while working with you, you may be able to prove procuring cause and collect the commission. And most listing agreements contain a broker protection clause which usually gives 90 days protection after a listing expires. This provision protects the brokers commission if a buyer was shown the property, and expressed an interest, but decided after the listing expired to purchase the property. As long as an interested buyer list was given to the seller before the listing expired, the broker will be protected and be paid the commission. If any of those buyers successfully negotiate and complete a sale on that property, the seller will pay the commission to the former listing broker. This is to stop sellers from taking the buyer aside and knowing the listing will expire, offering them a reduced price if they buy the house directly from the seller after the listing expires. This clause becomes void if the seller lists the property with a new broker.

Although a market analysis contains some of the information found in an appraisal, only a certified appraiser can prepare an appraisal which contains a more detailed approach and a highly calculated valuation. You can never call your presentation an appraisal.

Franchise offices must let the public know that each office is under separate ownership and may differ from other offices under the same franchise name.

Condemnation is the process in which the property can be taken for the greater good of the community. Eminent domain is the government's right to do so.

To alienate title is simply to remove yourself from possession of the title, which is what happens when you no longer hold title to the property and have transferred ownership.

If the mortgagee falls behind in their payments to the mortgagor, the acceleration clause gives the lender the ability to call the entire balance of the loan due and payable. In the event the buyer cannot repay the loan or make payment arrangements acceptable to the lender, the lender may start foreclosure proceedings.