Rules for Truth in Lending and RESPA call for disclosure documents to borrowers. How can a managing broker best prepare associated licensees to manage these disclosures?
Answer(s): B
Under TILA-RESPA Integrated Disclosure (TRID) rules, the lender is primarily responsible for preparing and delivering the Loan Estimate and Closing Disclosure.Brokers and licensees do not prepare these forms.However, licensees must be knowledgeable about the disclosures so they can help clients understand the process and provide necessary information for lender compliance.Thus, the best practice is B: brokers should ensure licensees are aware of what the lender requires.
Truth in Lending Act (Regulation Z); RESPA (Regulation X); NJ Real Estate Salesperson Study Guide, Chapter on Federal Lending Laws.
A city has built a new library and has contacted the broker to list and sell the old library building. Which approach should the broker use to estimate the fair market value for the purpose of listing and selling this property?
Answer(s): C
For special-purpose properties such as schools, churches, libraries, or government buildings, there are typically few comparable sales and the properties are not income-producing.In these cases, appraisers use the cost (replacement) approach, which estimates the value by calculating the cost of replacing the structure minus depreciation, plus land value.Correct answer: C. replacement cost.
NJ Real Estate Salesperson Study Guide, Chapter on Appraisal Methods (Cost Approach for Special-Purpose Properties).
If an owner wants to list a property for sale "as is," the listing agent should:
"As is" does not relieve a seller or listing agent from disclosure obligations.The licensee must still make reasonable inquiries about known defects.All material facts must be disclosed, regardless of the "as is" designation."As is" simply means the seller will not make repairs or improvements.Thus, the agent must ask the seller about known defects = C.
NJREC Rules and Regulations on Disclosure; NJ Real Estate Salesperson Study Guide, Chapter on Seller Disclosures and "As Is" Sales.
A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If accepted, which of the following will be true?
A deed in lieu of foreclosure is sometimes called a "friendly foreclosure."The borrower voluntarily conveys title to the lender to avoid foreclosure proceedings.However, the lender accepts the property subject to any junior liens or encumbrances already on the title.It is still an adverse credit event for the borrower.The loan is extinguished and cannot be assumed afterward.Thus, the correct answer is B.
NJ Real Estate Salesperson Study Guide, Chapter on Foreclosure and Alternatives.
Which of the following statements about branch offices is INCORRECT?
According to NJREC Rules and Regulations (N.J.A.C. 11:5-6.4 & 6.5):A branch office must be supervised by a broker or broker-salesperson designated by the employing broker.The supervisor's name must be recorded with the Commission.The supervising broker/broker-salesperson must work full-time at that location.The employing broker remains ultimately responsible for all licensees.It is not permitted to designate two salespersons to share supervisory responsibilities.Thus, the incorrect statement is C.
NJREC Rules and Regulations, N.J.A.C. 11:5-6.4, 11:5-6.5; NJ Real Estate Salesperson Study Guide, Chapter on Licensing Requirements.
Post your Comments and Discuss Real Estate Licensing New-Jersey-Real-Estate-Salesperson exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the New-Jersey-Real-Estate-Salesperson content, but please register or login to continue.