COLIBRI SCHOOL EXAM NJ REAL ESTATE
QUESTIONS AND DETAILED CORRECT
ANSWERS AGRADE 2024
RATED
Lisa has a buyer brokerage agreement with Doug. In that contract, Lisa agrees that Doug should earn 3% for finding her a house, whether it's paid by the buyer or seller.She makes an offer on a house where the listing brokerage is paying 3.5% to a buyer's broker. How much will Lisa owe Doug? - ANSWER✔✔Nothing - The contract states that as long as Doug earns 3%, Lisa owes him nothing.A water main bursts in front of Kevin's property. City maintenance workers dig up part of his front yard without Kevin's permission to replace the pipe. This is an example of... - ANSWER✔✔Easement in gross - Easement of gross burdens one parcel of land for the benefit of an individual or an entity such as a utility company or local government.What term does the law use to describe the holdover tenant? - ANSWER✔✔Tenancy at sufferance - When the tenant is no longer entitled to possession of the estate, the landlord must use the eviction process.Not an example of the government's police powers? - ANSWER✔✔Levying property taxes Lala's Yarn Shop is located in a small storefront in Grandview Yard. Owner Lala pays $1,200 in rent every month. At the end of the year, the property owner evaluates Lala's sales records to determine whether or not she owes any overage rent. What type of lease does Lala have? - ANSWER✔✔Percentage lease 1 / 3
Suellen meets with licensee Nick to discuss selling the home where she has lived for 30 years. She wants to purchase a condo in a new community and have enough to buy some new furniture without going into debt. She tells Nick she needs to make $215,000 on the sale. Anything he can get over and above that amount will be his to keep. This is an example of... - ANSWER✔✔Net listing - The seller sets a net amount that she will accept for the property, anything above that is the agents to keep.Lester leases a storefront for his candy business. The rent for first 6 months was $500 and is set to increase 10% every month for the next 18 months as business takes off.Lester has what kind of lease? - ANSWER✔✔Graduated lease - Graduated lease is a step-by-step rent increase, generally paid in installments Baxter lists his property through Murray, a licensee at ABC Reality. Murray's broker charges 6.5% commission, offering a 40% split to a cooperating broker. Murray gets 45% of what ABC earns. The house sells for $462,000. How much does Murray make?
- ANSWER✔✔$8,108 - First determine total commission: $462,000 x .065 = $30,030.
ABC keeps 60% of that: $30,030 x .60 = $18,018. Murray gets 45% of that: $18,018 x
.45 = $8,108.
Tenant Pete installs hair-washing sinks in the salon he rents. These would be considered... - ANSWER✔✔Trade fixtures - Trade fixture is attached to real property by a commercial tenant, who generally removes the trade fixture at the end of the lease.What is NOT considered when determining whether an item is a fixture or personal property? - ANSWER✔✔Value of annexed item Rayna signs a one-year lease on a high-rise apartment. Six months into the lease, she is transferred out of state. Rayna signs over the remaining six months of her lease to co-worker Stan. Stan pays the property manager, relieving Rayna of primary liability.This is an example of.... - ANSWER✔✔Assignment - This is when one lessee transfers interest in leased property to another party for the remainder of the lease term. 2 / 3
NW 1/4 of the NE 1/4 of the S 1/2 of Section 32..... is an example of what system of legal description? - ANSWER✔✔Government survey system Joe lists his home with PDQ Realty, allowing them to put a sign in the yard, list it in the MLS, and advertise it in the newspaper. During the listing period, Joe sells the home to his brother and is not obligated to pay PDQ any commission. What type of listing did Joe have with PDQ? - ANSWER✔✔Exclusive agency - Under this agreement, the seller can still sell the property and not owe commission.Kelsey has signed a listing agreement with Tom Smith Realty. Licensee Ivy is her agent. Which event would NOT terminate the listing agreement? - ANSWER✔✔Ivy transfers her license to a different brokerage A management agreement creates an agency relationship between a real estate broker and... - ANSWER✔✔Owner of investment property What would be the expected impact of a large influx of people into a community? - ANSWER✔✔It would likely result in a seller's market - Which a large number of people moving to an area, available housing will be at a premium, which creates a seller's market.Which information obtained from the client CANNOT be kept confidential? - ANSWER✔ ✔The boundary line of the property subject if the transaction is in dispute.What does the "P" stand for in PITI? - ANSWER✔✔Principal The main purpose of the doctrine of stare decisis is to... - ANSWER✔✔Make court decisions more consistent and predictable Alice sued Betty for breach of contract, claiming $175,000 in damages. Which kind of stat court did Alice file suit in? - ANSWER✔✔Court of Common Pleas - Any case that is more than $15,000
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