A real estate broker's maintained place of business MUST conspicuously display on the exterior the broker's name and the word(s):
Answer(s): C
According to N.J.A.C. 11:5-6.1, every broker's main office must have a sign on the exterior that is visible to the public. The sign must display the broker's name and the exact words "Licensed Real Estate Broker." This is a mandatory requirement to ensure public identification of licensed brokerage offices.Using terms like "Realtor" is optional and only permitted if the broker is a member of the National Association of REALTORS®, but the law specifically requires the words Licensed Real Estate Broker.
NJ Real Estate Commission Rules and Regulations, N.J.A.C. 11:5-6.1 (Office Requirements and Signage).
A home sold for $400,000. It was appraised for $402,000, and the assessed value was $320,000. Assume in this situation, the real estate transfer tax of 1% is paid by the grantee. How much will the seller owe at closing for transfer fees?
Answer(s): A
In New Jersey, the Realty Transfer Fee (RTF) is typically paid by the seller, but the question specifies that the tax is paid by the grantee (buyer). When the buyer pays the transfer tax, the seller does not owe any amount at closing for transfer fees.Additionally, the RTF is calculated based on the consideration amount (sale price), not the appraised or assessed value. But since liability is shifted to the buyer here, the seller's responsibility = $0.
New Jersey Realty Transfer Fee Statute, N.J.S.A. 46:15-7; New Jersey Real Estate Salesperson Study Guide, Chapter on Closing and Transfer Taxes.
According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer
Answer(s): D
New Jersey law (P.L. 2009, c. 273; NJ Real Estate Licensing Law) permits brokers to rebate a portion of their commission to a buyer provided that:The rebate does not constitute a violation of RESPA or other federal laws.The terms of the rebate are disclosed in writing to the buyer prior to closing.The rebate must be documented in the transaction records maintained by the broker.There is no statutory 50% cap, and it does not have to be written directly into the contract of sale. It is also not limited to the broker personally--salespersons may provide a rebate under the broker's supervision.
New Jersey Real Estate Commission Licensing Law, Commission Rebates to Buyers, N.J.S.A. 45:15-17; NJREC Bulletins on Commission Rebates.
The Freshwater Wetlands Protection Act of 1987 is a New Jersey law that:
Answer(s): B
The Freshwater Wetlands Protection Act (1987) gives the New Jersey Department of Environmental Protection (NJDEP) the authority to regulate activities in freshwater wetlands and transition areas (buffer zones). Its primary purpose is to restrict development in wetlands and certain protected areas to preserve environmental resources.It does not require environmental impact statements prior to transfer of title, does not authorize below-market condemnation, and is unrelated to DCA residential project registration.
New Jersey Real Estate Salesperson Pre-Licensure Course Guide, Chapter on Environmental Issues; Freshwater Wetlands Protection Act, N.J.S.A. 13:9B-1 et seq.
Last year, an apartment building had a net operating income of $174,000. If a potential buyer is looking for a capitalization rate of 8%, how much should the buyer be willing to pay for the building?
The Income Capitalization Approach formula is:
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