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NEW JERSEY TITLE PRODUCER EXAM | NJ TITLE
FINAL EXAM | TITLE INSURANCE TEST BANK NJ |
ALL QUESTIONS AND CORRECT ANSWERS |
VERIFIED ANSWERS | LATEST VERSION 2025 |
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Which of the following clauses will put the priority of an existing mortgage or deed of trust below, that of a mortgage recorded later? A) An exculpatory clause B) A repayment clause C) A subordination clause D) An assumption clause ---------CORRECT ANSWER-----------------C) A subordination clause When a contract states that "Time is of the Essence," the contract must be executed: A) Within twenty-four hours B) Within a specified time frame C) Within two business days D) As soon as possible ---------CORRECT ANSWER-----------------B) Within a specified time frame A package mortgage is secured by: A) More than one property B) Only personal property· C) Real and personal property D) Only personal warranty ---------CORRECT ANSWER-----------------C) Real and personal property Upon assumption or taking subject to the existing mortgage, the purchaser should receive from the
original mortgagor a statement of the balance of the mortgage and its terms and conditions. This is known as: A) A certificate of no defense B) A closing statement C) The uniform settlement statement D) A certificate of eligibility ---------CORRECT ANSWER-----------------A) A certificate of no defense A person pursuing a remedy to force another to complete the terms of a contract would be suing for? A) Liquidated damage~ B) Money damages C) Specific performance D) Constructive eviction ---------CORRECT ANSWER-----------------C) Specific performance The donation of private land for public use is called: A) Accretion B) Dedication C) Assignment D) Condemnation ---------CORRECT ANSWER-----------------B) Dedication Which of the following deeds should a grantor use to transfer an uncertain interest in real property? A) Warranty B) Special warranty C) Grant D) Quitclaim ---------CORRECT ANSWER-----------------D) Quitclaim When a buyer purchases a property subject to seller's existing mortgage, which of the following statements is CORRECT?
B) The interest is less since the entire amount is not borrowed for the construction period C) The note is not fully secured D) There can be no foreclosure ---------CORRECT ANSWER-----------------B) The interest is less since the entire amount is not borrowed for the construction period Riparian rights refer to an owner's rights: A) To an adjoining navigable waterway B) When a body of water permanently recedes C) To an adjoining non-navigable waterway D) To oceanfront property ---------CORRECT ANSWER-----------------C) To an adjoining non-navigable waterway The right of a mortgagor in default, to pay the balance of the loan and retain possession of the property, is called: A) The equity of redemption B) Hypothecation C) Subrogation D) Right of re-possession ---------CORRECT ANSWER-----------------A) The equity of redemption A title insurance policy will protect a buyer from financial losses that are caused by: A) A change in zoning regulations B) A recorded easement to which the policy has not taken an exception C) An unrecorded easement D) An encumbrance to which the policy has not taken an exception --------- CORRECT ANSWER-----------------D) An encumbrance to which the policy has not taken an exception
The process under which the government may take real property for the greater public good: A) Condemnation B) The allodial system C) Police power D) Escheat ---------CORRECT ANSWER-----------------A) Condemnation A deed in which the grantor warrants that title was unencumbered for as long as the grantor held it: A) Bargain and sale deed B) Bargain and sale deed. CVG C) Warranty deed D) Sheriff's deed ---------CORRECT ANSWER-----------------B) Bargain and sale deed. CVG "A" and "B" bought a house as tenants in common. If "A" dies which of the following statements about ownership of the house is correct? A) It automatically becomes tenancy in severalty. B) It is divided, with B retaining their original interest and the balance going to A's estate. C) B holds fee simple ownership to A's share of the property D) B holds a life estate ownership to A's share of the property --------- CORRECT ANSWER-----------------B) It is divided, with B retaining their original interest and the balance going to A's estate. The difference between the value of a property and the total amount of liens against it is known as: A) A down payment B) Equity C) Actual cash value D)Collateral ---------CORRECT ANSWER-----------------B) Equity
When private property is abandoned the state may acquire title to that property under the right of : A) Escheat B) Eminent domain C) Police power D) Taxation ---------CORRECT ANSWER-----------------A) Escheat The term hypothecation most closely means: A) Conditional security for debt B) Conditional ownership of property C) A right of first refusal D) Conditional mortgage commitment ---------CORRECT ANSWER----------- ------A) Conditional security for debt A CORRECT statement about condominium and cooperative apartment owners is that they both: A) Receive an annual real estate tax bill B) Must pas assessments C) Own shares of stock D) Own real property ---------CORRECT ANSWER-----------------B) Must pas assessments Which of the following is not necessary to a valid contract: A) Consideration B) Contractual ability C) Legal purpose D) The signature of both parties ---------CORRECT ANSWER----------------- D) The signature of both parties Which is NOT true of a tax lien sale? A) Title passes with the sale B) The lien holder is the lowest interest bidder
C) The municipality may hold the lien D) The property owner has two years to pay the lien ---------CORRECT ANSWER-----------------A) Title passes with the sale Which would be a credit to the purchaser at settlement? A) The balance of an existing mortgage to be assumed B) Taxes overpaid by the seller C) Fuel oil remaining in the tank D) Unpaid new mortgage ---------CORRECT ANSWER-----------------A) The balance of an existing mortgage to be assumed In a condominium apartment project, the BEST term to describe a swimming pool and laundry room for the use of unite owners is? A) Common elements B) Limited common elements C) Fee simple elements D) Leasehold elements ---------CORRECT ANSWER-----------------A) Common elements When homeowners itemize deductions in computing their annual taxable income they may deduct: A) Payments of principal on the home mortgage B) Interest paid on the home mortgage C) Depreciation of the home D) Cost of repair ---------CORRECT ANSWER-----------------B) Interest paid on the home mortgage Dual Agency is best described as: A) Two companies working together B) Owing special duties to another person C) Brokers taking both parties as principals
A clause in the deed or mortgage which would indicate the interest transferred or mortgaged: A) Covenant of seisin B) Habendum C) Granting clause D) Acceleration clause ---------CORRECT ANSWER-----------------B) Habendum Which credit terms may be included in an advertisement for real estate without further disclosure? A) 10% annual percentage rate B) 5 years to repay C) $5,00 down payment D) $300 monthly payment ---------CORRECT ANSWER-----------------A) 10% annual percentage rate Failure of homeowners to pay for labor to repair their homes may result in a : A) Mechanic's lien/construction lien B) General lien C) Bankers lien D) None of the above ---------CORRECT ANSWER-----------------A) Mechanic's lien/construction lien The recording of a deed or other instrument in the public records: A) Constructive notice B) Acknowledgment C) Actual notice D) Hypothecation ---------CORRECT ANSWER-----------------A) Constructive notice
In a property transfer, the signature of the grantor's spouse would waive: A) The spouse's right to any proceeds B) Dower or courtesy right C) The grantee's right to a fee estate D) The grantee's right to any warranty ---------CORRECT ANSWER----------- ------B) Dower or courtesy right The right of ingress and egress over the land of another is classified as an: A) Servant tenement B) Easement C) Encroachment D) Equitable lien ---------CORRECT ANSWER-----------------B) Easement A deed which entitles the owner to possession of a property for a specific time period within each year, and which constitutes a Tenancy in Common with other such owners involves? A) Cooperative ownership B) Condominium ownership C) Interval ownership D) Joint possession ---------CORRECT ANSWER-----------------C) Interval ownership The rights to growing crops to be harvested after the lease term: A) Chattel rights B) Emblement rights C) Reliction rights D) Remainder rights ---------CORRECT ANSWER-----------------B) Emblement rights Which of the following clauses in a conventional
At a sale in foreclosure, which lien would haw the least priority of payment? A) First Mortgage B) Property taxes C) Mechanic's lien D) Tax lien certificate ---------CORRECT ANSWER-----------------A) First Mortgage Charging an interest rate higher than the legal limit is called: A) Graft B) Compounding C) Usury D) Discounting ---------CORRECT ANSWER-----------------C) Usury Which statement about an oral sales contract that involves the sale of real estate is correct? A) It may not be enforceable if a breach takes place B) It is not subject to the Statute of Frauds C) It is a common method of consummating a sale D) It is assignable to a third party ---------CORRECT ANSWER----------------- A) It may not be enforceable if a breach takes place If a buyers purchased a home for $142500 and secures a loan for 100 percent of the purchase price which of the following types of loans did they (MOST) likely obtain? A) VA-guaranteed B) FHA insured C) Conventional D) Wraparound ---------CORRECT ANSWER-----------------A) VA-guaranteed
One of the required of a valid real estate sales contract is that it MUST: A) Be signed by the seller B) Provide for possession of the property by the buyer C) Provide for installment payments D) Contain a metes and bounds description of the property --------- CORRECT ANSWER-----------------A) Be signed by the seller An IN REM proceeding would indicate: A) A general lien B) Constructive eviction C) A specific Lien D) A deficiency judgment ---------CORRECT ANSWER-----------------C) A specific Lien An easement in gross is typically a: A) Right of way B) Public utility easement C) Land acquisition D) Dominant estate ---------CORRECT ANSWER-----------------B) Public utility easement An attachment is likely result of: A) A home improvement B) An addendum to contract C) A sale and leaseback D) Pending litigation ---------CORRECT ANSWER-----------------D) Pending litigation A lender is required under the Truth-in-Lending Act (Regulation Z) to furnish an applicant for a real estate
In reviewing the Deed to a listed property, a licensee noted a number of limitations regarding use. These limitations are commonly known as: A) Codicils B) Constraints C) Building codes D) Restrictive covenants ---------CORRECT ANSWER-----------------D) Restrictive covenants A real estate broker is typically considered to be which of the following types of agents? A) A special agent B) A general agent C) A universal agent D) An individual agent ---------CORRECT ANSWER-----------------A) A special agent Pledging a freestanding stove and refrigerator as security for loan in addition to real property is an example of which of the following mortgages? A ) Wraparound B) Open C) Package D) Blanket ---------CORRECT ANSWER-----------------C) Package A developer who leases real property from the owner with the intent of constructing an office building has which of the following interests in the property? A) Leased fee B) Leasehold C) Sale and leaseback D) Lease option ---------CORRECT ANSWER-----------------B) Leasehold
Responsibilities of the seller at closing usually include paying the: A) Title examination B) Lender's title insurance C) Broker's commission D) Loan origination fee ---------CORRECT ANSWER-----------------C) Broker's commission A straight mortgage would be? A) Amortized B) Graduated C) Interest only D) Open end ---------CORRECT ANSWER-----------------C) Interest only All of the following requirements are necessary to the establishment of an agency relationship EXCEPT: A) An agreement between the parties B) Competent parties C) A lawful objective D) Earnest money ---------CORRECT ANSWER-----------------D) Earnest money A system of title registration used in some states, whereby titles registered through a court of law A) Fee title B) Torrens title C) Certificate of title D) Equitable title ---------CORRECT ANSWER-----------------B) Torrens title Zoning, building codes, nuisance abatement and subdivision regulations arc examples of governmental land-use control under the concept known as:
B) Graduated payment loan C) Reverse annuity loan D) Adjustable rate mortgage ---------CORRECT ANSWER-----------------D) Adjustable rate mortgage Which of the following terms describes personal property that because of its attachment to real property is regarded as real estate? A) Emblements B) Personality C) Fixtures D) Trade fixtures ---------CORRECT ANSWER-----------------C) Fixtures Exclusionary zoning would likely be? A) Used against industry B) Used against a religious group C) Expensive building requirements D) Spot Zoning ---------CORRECT ANSWER-----------------C) Expensive building requirements What did the formation of AL TA accomplish? A) Agreement on rates B) Uniformity of Procedures C) A and B D) Neither A nor B ---------CORRECT ANSWER-----------------B) Uniformity of Procedures The Title Company will make its finding based on: A) An affidavit of title B) A certificate of title C) An abstract of title D) A policy of fee ---------CORRECT ANSWER-----------------C) An abstract of title
Which title commitment schedule will set forth payment of premiums and require seller affidavits. A) Schedule B-II B) Schedule B-I C) Schedule A D) None of the above ---------CORRECT ANSWER-----------------B) Schedule B-I The title policy will NOT refer to: A) The amount of coverage B) The names of the insured C) A legal description of the property D) The mortgage acceleration clause ---------CORRECT ANSWER------------ -----D) The mortgage acceleration clause Title records must be kept: A) 10 years B) 5 years C) 6 years D) 15 years ---------CORRECT ANSWER-----------------D) 15 years Title Companies are NOT required to file with the Commissioner: A) Re-insurance contracts B) Binders C) Preliminary title reports D) Terms and conditions of insurance ---------CORRECT ANSWER----------- ------A) Re-insurance contracts
