Standard title insurance protects against defects in title that existed before closing, such as forged documents, undisclosed heirs, or improperly executed deeds.

It does not cover issues arising after closing (like new HOA liens).

It does not protect against defects the buyer already knew about.

It also does not insure physical possession or condition of property.

Thus, the correct answer is A.

Under the Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended):

A = Blockbusting (illegal).

B = Steering based on ethnicity (illegal).

C = Redlining (illegal lending discrimination).

D = Immigration/visa status is not a protected class under Fair Housing law. A landlord may consider visa status as part of ability to fulfill lease obligations.

Thus, the only action permitted under Fair Housing is D.

Under federal Fair Housing Law (1988 Amendments) and NJ Law Against Discrimination:

Licensees are prohibited from disclosing that a property was occupied by someone with HIV/AIDS. Such disclosure is considered discrimination against persons with disabilities.

Material defects (e.g., roof leaks) must be disclosed.

Stigmatized property issues (e.g., crime scenes) do not legally require disclosure in NJ, but agents may discuss if asked.

Disclosing the seller’s willingness to accept less is allowed only with the seller’s consent.

Correct prohibited disclosure = B.

A property formerly used as an automobile junkyard may have soil or groundwater contamination.

The recommended due diligence is an Environmental Site Assessment (ESA), usually a Phase I ESA, to evaluate potential contamination and liability under environmental laws (such as CERCLA).

Radon, EMF, or air quality reports may be relevant in other contexts, but here the correct and standard recommendation is an ESA.

Correct answer = B.

Under an Exclusive Buyer Agency Agreement, the buyer agrees that the broker is their exclusive representative during the term. This creates a contractual right for the broker to be compensated regardless of who finds the property. If the buyer purchases any property during the agreement period (even one they personally locate or one listed by another brokerage), the broker is still entitled to commission as agreed.

The broker is not restricted from showing properties to other buyers at the same time, as fiduciary obligations run individually to each client.

The sales comparison approach relies on comparing recently sold similar properties, adjusting for differences (e.g., lot size, square footage, date of sale).

The capitalization rate is used in the income approach, not the sales comparison approach.

Correct answer = B.

Under the Federal Fair Housing Act of 1968 (as amended), there are limited exemptions. One is the private club exemption: a bona fide private club that is not operated commercially may restrict the rental or occupancy of lodgings that it owns to members only.

However, even though exemptions exist, race-based discrimination is never permitted in the sale or rental of housing to the public. Here, since the club restricts rentals to members only and does not rent to the general public, it is not in violation of the Act.

VA loans include an escape clause: buyers cannot be forced to purchase a home for more than its appraised value. However, if the buyer still wants the property, they can:

Pay the contract price, but must cover any amount above the VA appraised value in cash, since the VA will only guarantee the appraised portion.

Sellers are not forced to lower their price to the appraisal amount.

An FHA loan will not automatically cover the shortfall.

Thus, the best option is B.

Restricting brokers to certain areas and dividing territories constitutes market allocation, which is a violation of the Sherman Antitrust Act.

Antitrust laws prohibit price-fixing, group boycotts, and territorial/market allocation among competitors.

Correct answer = C.