NJ Real Estate flashcards
NJ Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- NJ Real Estate Commission
- The state agency within the Division of Consumer Affairs that licenses real estate brokers and salespersons, investigates complaints, and imposes discipline for violations of New Jersey license law.
- Salesperson sponsorship rule
- A New Jersey salesperson must be affiliated with and supervised by a licensed broker; the salesperson cannot operate independently or accept compensation directly from a client.
- Broker prelicensing requirement
- New Jersey broker applicants must complete 150 hours of approved prelicensing education and satisfy the Commission's experience requirement, which includes prior licensed salesperson work.
- Salesperson prelicensing requirement
- New Jersey salesperson applicants must complete 75 hours of approved prelicensing education before taking the licensing examination and must then affiliate with a licensed broker.
- Unlicensed commission prohibition
- A licensee may not pay a commission or referral fee to an unlicensed person for brokerage activity; commissions are paid to licensed brokers and split under brokerage agreements.
- Biennial license renewal
- New Jersey real estate licenses renew every two years, and renewal requires completion of the continuing education hours prescribed by the Real Estate Commission.
- Consumer Information Statement
- A written New Jersey disclosure explaining agency relationships that a licensee must provide at the first substantive contact in a residential transaction, before confidential information is exchanged.
- Disclosed dual agent
- A broker representing both buyer and seller after written disclosure and consent; the broker must treat both fairly, cannot advocate for either side, and must keep each party's confidences.
- Fiduciary duty of loyalty
- The agent must act solely in the client's best interest, avoid conflicts of interest, and not acquire secret profits or act for an adverse party without informed consent.
- Confidentiality fiduciary duty
- An agent may not disclose a client's confidential information without authorization, including the client's motivation, financial position, or willingness to accept a lower price.
- Designated agency
- A New Jersey brokerage arrangement in which different licensees within one brokerage represent buyer and seller separately, with written consent and safeguards for each client's confidential information.
- Seller agent duty to present offers
- A seller's agent must promptly present all offers to the seller unless the seller has instructed otherwise in writing, and must disclose material facts affecting the property.
- Attorney review clause
- A New Jersey contract provision allowing either party's attorney to disapprove the signed agreement within three business days after delivery, which voids the contract if exercised.
- Statute of Frauds
- A legal rule requiring real estate sale contracts to be in writing and signed by the party to be charged, identifying the parties, property, price, and essential terms.
- Earnest money escrow
- A deposit held by an escrow agent, such as a broker or attorney, until closing; the contract specifies who receives the funds if the transaction closes or defaults.
- Closing Disclosure timing
- For most residential mortgage loans, the lender must deliver the Closing Disclosure at least three business days before closing so the borrower can compare final costs with the Loan Estimate.
- NJ Realty Transfer Fee
- A New Jersey fee based on the sale price and paid at recording, customarily by the seller, with additional surcharges for higher-priced residential sales.
- Mortgage contingency clause
- A contract term making the buyer's obligation conditional on obtaining financing by a stated deadline; if financing fails, the buyer may cancel and recover earnest money.
- Proration at closing
- The allocation of property taxes, rent, or other expenses between buyer and seller as of the closing date, so each party pays for the period it owns or uses the property.
- Race-notice recording
- A New Jersey recording rule protecting a later purchaser who takes without notice of a prior interest and records first; the first to record among competing interests prevails.
- Bargain and sale deed
- A common New Jersey deed that transfers whatever interest the grantor owns without covenants of title, often used with a covenant against grantor's acts.
- Quitclaim deed
- A deed that transfers the grantor's interest, if any, without warranty or representation; it gives the grantee no guarantee that title is clear.
- Tenancy by the entirety
- A form of co-ownership available to married couples in New Jersey that includes a right of survivorship and generally cannot be severed by one spouse alone.
- Adverse possession
- A doctrine allowing a person who openly, actually, exclusively, continuously, and hostilely possesses another's land for the statutory period, generally twenty years in New Jersey, to acquire title.
- Easement appurtenant
- An easement that benefits a dominant parcel and burdens a servient parcel; it runs with the land and transfers automatically when either property is conveyed.
- Zoning board of adjustment
- A municipal board that hears requests for use variances, bulk variances, and special reasons; it may also interpret zoning ordinances and hear appeals from zoning officer decisions.
- Loan-to-value ratio
- The loan amount divided by the property's appraised value or purchase price, whichever is lower; lenders use LTV to assess risk and set mortgage insurance requirements.
- Discount point
- A fee equal to one percent of the loan amount paid at closing to reduce the mortgage interest rate; points are prepaid interest and may be tax-deductible.
- PITI payment
- A monthly housing payment consisting of principal, interest, property taxes, and hazard insurance; lenders use PITI to calculate front-end housing expense ratios.
- Amortization payment formula
- The monthly payment equals principal times r times (1+r)^n divided by ((1+r)^n minus 1), where r is the monthly rate and n the number of payments.
- Property tax formula
- Annual property tax equals the assessed value multiplied by the tax rate; in New Jersey, equalization ratios may be applied to derive true value for some purposes.
- Private mortgage insurance
- Insurance usually required on conventional loans with a down payment below twenty percent; it protects the lender and cancels when the loan balance reaches a specified level.