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NJ Real Estate Exam Questions and
Answers Latest Updates 2024
According to New Jersey License Law, A licensee who wants to sell property that the licensee owns MUST? a) list the same property with another licensee in the same office b) disclose the ownership interest in any advertisement of the property c) disclose the ownership interest in any notice submitted on the listing to the MLS d) disclose in the contract of sale that the seller holds a New Jersey Real Estate license - correct answerd. disclose in the contract of sale that the seller holds a New Jersey Real Estate license With respect to the Mount Laurel requirements, Which of the following statements is correct? a) It is unlawful for a landlord to refuse to rent to a couple because they have children under the age of 14 b) under certain circumstances, a tenant has the right to have a repair made and deduct the cost from the repair from the rent c) lower and moderate income people may not be excluded from New Jersey municipalities by zoning ordinances d) minority prospects may not be directed to minority populated communities without being offered opportunities in other areas in that price range - correct answerc. lower and moderate income people may not be excluded from New Jersey municipalities by zoning ordinances In New Jersey, the realty transfer fee appears on the closing statement as: a. debit to the seller b. debit to the buyer c. credit to the seller d. credit to the buyer - correct answera. debit to the seller
A residential developer desires to limit all construction in a subdivision to single family houses of at least 3,000 square feet. Which of the following is the BEST way for the developer to ensure this will take place? a. have an architectural review committee approve building plans b. establish a homeowners association c. Petition for a zoning change d. create deed restrictions - correct answerc. petition for a zoning change Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer's allegation of discriminatory treatment by a licensee in a brokerage office? a. Records of the houses shown and properties suggested to the prospective buyer b. Whether or not the HUD Equal Housing Opportunity post is displayed in the office c. Whether the licensee believed she was acting in the best interests of the prospective buyer d. The reports of undercover testers who visited the office - correct answera. Records of the houses shown and properties suggested to the prospective buyer A licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following must be included in the email? A. opt-out provision B. how the recipient's name was obtained C. complete property address D. listing sale price - correct answerA. Opt out provision A complaint must be filed with HUD within what period of time after fair housing violation has occurred a. 1 month b. 1 year c. 10 years
Real estate taxes that are paid in advanced are prorated on the closing statement as. a. no entry to buyer; a credit to seller. b. no entry to buyer; a debit to seller. c. a credit to buyer; a debit to seller. d. a debit to buyer; a credit to seller. - correct answerd. a debit to buyer; a credit to seller. Which of the following statements about branch offices is INCORRECT? a. The name of the branch office supervisor mist be recorded with the commission b. a licensed broker-salesperson must supervise the office on a full time basis c. two salespersons may be designated to share supervising responsibilities d. the employing broker is ultimately responsible for all licensees employer at the office - correct answerc. two salespersons may be designated to share supervising responsibilities A licensee may use the term REALTOR or REALTOR ASSOCIATE only if the licensee is a. duly licensed by the state real estate commission b. a member of the national association of REALTORS c. an owner and a manager of a real estate company d. a member of a national franchise - correct answerb. a member of the national association of REALTORS According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions? a. b. Files must be kept on a public online database indefinitely b. Files must be kept on a public online database for up to 10 years c. Files must be kept on premises and available to the public at any time. d. kept on file for 6 months - correct answerc. Files must be kept on premises and available to the public at any time.
A contract of sale prepared by a licensee MUST include an attorney review clause if it pertains to which of the following types of properties? a. any commercial real estate b. an apartment building c. a six family dwelling unit d. a single family residential vacant lot - correct answerd. a single family residential vacant lot A seller is interested in providing financing to the buyer of her homes, but she wants to retain title until the loan balance is paid off. Which of the following would be the best loan option? a. asset integrated mortgage b wraparound mortgage c. contract for deed d. subordination of deed - correct answerc. contract for deed A neighborhood grocery store no longer complies with the law because a new zoning ordinance is adopted so that the property is zoned for residential use. Nevertheless, the owner is allowed to continue to operate the grocery store. This is: a. a variance b. nonconforming use c. spot zoning d. a conditional permit - correct answerb. nonconforming use A secretary in a real estate office who does NOT have a real estate license may: a. review the consumer information statement with a prospective buyer b. perform bookkeeping function concerning escrowed funds c. sign escrow checks with the written authorization of the broker d. disclose the current status of a commercial listing - correct answerb. perform bookkeeping function concerning escrowed funds
A multiple listing service decides to deny membership to brokers who charge commission below 4% on residential properties in minority neighborhoods. This restriction violates: A. redline guidelines b. EPA regulations c. blockbusting prohibitions d. antitrust regulations - correct answerd. antitrust regulations A sellers property condition disclosure constitutes: a. a guarantee to the buyer of property condition b. a statement of the sellers actual knowledge c. a waiver of inspections d. an implied warranty - correct answerb. a statement of the sellers actual knowledge An applicant for a real estate salesperson's license must apply for the issuance of the license within a. 30 days after accepting an offer of employment from a licensed real estate broker b. one year from the date of beginning of the prelicensure education course c. one year from the date of completion of the prelicensure education course d. one year from the date of passing the state licensing examination - correct answerc. one year from the date of completion of the prelicensure education course What is required to establish mutual assent? a. meeting of the minds b. rejection of an offer c. offer and counteroffer d. an offer that meets the listing price - correct answera. meeting of the minds According to New Jersey Real Estate Licensing Law, what is the maintenance requirement for all record of Real Estate transactions? a. Files must be able to be reproduced on paper for review by commission b. Files must be kept on paper, and available for review for up to 10 years
c. Files must be submitted electronically to the commission d. Files must be kept on premises & available to public at any time - correct answerd. Files must be kept on premises & available to public at any time prohibitions against commingling are aimed to prevent... - correct answermixing brokers' finds with clients' funds when the brokers license is suspended or revoked, the licenses of the agents in their employ are... - correct answersuspended until they are employed with another broker if a broker has no agency duties or obligations, that broker is.... - correct answera transaction broker a NJ licensed real estate salesperson may prepare a sales contract on what type of family home? - correct answer1-4, no more and no less all ads for real estate must specify the - correct answerproperty municipal location after receiving a commission payment, a broker must pay the salesperson's share within how many days? - correct answer What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate?
- market analysis
- sales contract
- appraisal report
- assessor's determination - correct answer3. appraisal report The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will:
- require the removal of all lead paint prior to the closing.
- provide the buyer with the opportunity to wave the right to a lead paint inspection.
- yes, because they are appurtenances
- no, because they are bolted to the floor
- yes, if removed prior to the end of the lease - correct answer4. yes, if removed prior to the end of the lease A seller has listed a home with a broker for $112,000. The seller is leaving for a 45 day cruise midway through the listing period, and authorizes the broker through a power of attorney to accept any offer of all cash at a price 100,00 or more. Broker receives a cash offer for $110,000, what does the broker do?
- may not accept the offer until the seller returns
- must forward the offer to the seller's attorney for consideration
- may accept the offer
- may sign a deed of conveyance if the seller does not return on time - correct answer3. may accept the offer The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response would be to:
- go the state's website and obtain the information and give it to the buyer.
- ask the seller and then pass the seller's information along to the buyer.
- give the buyer the website address so the buyer can look up that information
- contact the local police department to obtain the information - correct answer3. give the buyer the website address so the buyer can look up that information A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the customers to know exactly what it will cost to list a property. This marketing plan is:
- apostille
- price-fixing
- market allocation
- consumer protection - correct answer2. price-fixing Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser?
- a broker's price opinion
- a competitive market analysis
- a reconciliation report for an FHA loan
- a value analyze for a non-residential property valued below $250,000 - correct answer3. a reconciliation report for an FHA loan Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines?
- "female seeking female roommate"
- "nice home ideal for any family with children
- "apartment available, No pets of children allowed"
- "located within walking distance to a great Catholic school" - correct answer1. "female seeking female roommate" Which of the following is among the typical responsibilities of a residential property manager?
- requesting the tenant's employer withhold the past due rent from wages
- making decisions about structural changes that wilt enhance the property value
- selecting tenants to provide a diverse environment
- negotiating leases between the property owner and potential tenants - correct answer3. selecting tenants to provide a diverse environment An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A lawsuit filed by the buyers would be for:
- specific performance
- lis pendens
- quiet title action
- a deficiency judgement - correct answer1. specific performance
A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets as the development will be signed to give access to each lot, when can he begin to list this property?
- after he records prescriptive easements for lots that have no street frontage
- When local authorities grant him a conditional use permit allowing residential construction
- When he has submitted his plat map to local authorities, received approval, and recorded it
- Immediately, as long as the current zoning ordinance permits the residential use he is planning - correct answer3. When he has submitted his plat map to local authorities, received approval, and recorded it Title insurance has allowed for more accessible loans for buyers. This is because:
- Lender policies can add exemption to the owner's policy.
- It reduces the risk of loss due to buyer default.
- It reduces the risk of loss due to title defects.
- Lender policies are paid for by buyers - correct answer3. It reduces the risk of loss due to title defects Which of the following statements is true regarding an option agreement?
- The buyer must purchase the property at some future time.
- The buyer is given the privilege of occupying the property.
- The seller agrees to sell at a fixed price within a stipulated time.
- Any payments are refunded should the buyer fail to perform on the agreement. - correct answer3. The seller agrees to sell at a fixed price within a stipulated time. Which of the following actions is NOT prohibited by the New Jersey Real Estate Commission rules?
A.) Holding a deposit for thirty days before depositing it in a trust account. B.) Firing a new salesperson who did not achieve specific sales goals. C.) Routinely destroying agency records every four years. D.) Holding a drawing for a television among persons attending an open house. - correct answerB.) Firing a new salesperson who did not achieve specific sales goals. Bill pays his property tax bill of $980 for the calendar years. He signs a purchase and sale contract on June 28th and closes on July 15 how much is the taxes during the month (365)? - correct answer18 days in between June: 980 3/365 = 8.054July: 980 * 15/360 = 40.273 Taxes cost in total: $48. A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by the seller. The buyer - correct answerMust go through with the purchase because the house is being sold as is. Which of the following statements would most likely be considered "puffing"? - correct answerBest buy you will find all year The IRS allows a married couple who sell their long time home to take a tax-free capital gain of up to? - correct answer500, A salesperson is convicted of a crime which involves a real estate licensee. The commission obtains a certified copy of judgement of conviction against the salesperson. According to the New Jersey Real Estate License Law, the commission MUST: a. revoke the salesperson license b. suspend the salesperson license
The broker received a birthday check from one of his clients. The broker decided to put it in the escrow account because it was from a client. This is considered: a. Conversion b. Commingling c. Acceptable if the check was written on the client's business account d. Acceptable if the client has had a transaction within the last 18 months - correct answerb. Commingling If placed on a brokers website, which of the following advertisements does not meet the standards established by the New Jersey Real Estate License Law? a. Winslow Township-4 bedroom, colonial, $234,900. R Realtors, 555- 700 b. West Orange vicinity- lovely 3 bedroom rancher, in-ground pool, Y RE inc, licensed RE broker c. Atlantic city - 2 bedroom condo. fireplace, large kitchen, $147,500, Q. Realtor, Office 555-7954, Home 555 - 7655 d. Irvington vicinity ( City of Newark)- convenient to shopping and public transportation. 3 bedroom, RE, Realtor, 555- 7624 - correct answerb. West Orange vicinity- lovely 3 bedroom rancher, in-ground pool, Y RE inc, licensed RE broker Which of the following Metes and Bounds description? beginning at the intersection of Bunker hill road and Munson ave, Thence 150 ft south; thence 85 ft west; thence 150 ft north; thence: a. 150 ft south to the point of beginning
b. 150 ft west to the point of the beginning c. 85 ft west to the point of the beginning d. 85 ft east to the point of the beginning - correct answerc. 85 ft west to the point of the beginning A buyer's gross income is $90,000 per year. She pays $300 for a car loan and $200 for her student loan. When she applies for a mortgage the bank requires a maximum debt-to-income ratio of 36% on all debt, and a maximum 28% debt-to-income ratio for housing debt. What is the maximum monthly house payment the bank will approve? a. $1, b. $2, c. $2, d. $2,700 - correct answerb. $2, A property is shown to prospective buyer by a cooperating agent who is a long-time friend of the listing agent. While still in the house the buyers make a full price offer on the property. As the cooperating agent is locking up the house, the owner return and ask how the showing went. The cooperating agent explains that she has an offer on the property and will immediately deliver it to the listing agent. The owner beg the cooperating agent to present the offer immediately. The cooperating agent should? a. Present the offer because the owners are directing her to do so. b. Deliver the offer to the listing agent before it is presented to the owners. c. Present the offer to the owners and demand that they sign immediately. d. Deliver the offer to the listing agent, but verbally tell the seller that is a full price offer. - correct answerb. Deliver the offer to the listing agent before it is presented to the owners. Which of the following BEST defines a material fact in the real estate context?
With regards to the termination date in listing contracts, which of the following statement is CORRECT? a. Order listings with a definite termination date are enforceable by broker. b.Exclusive agency listing must have definite termination date. c.Exclusive right to sell listing are not required to state a definite termination date. d.A listing contract may provide for an automatic extension of the listing term unless written notice is given. - correct answerd. A listing contract may provide for an automatic extension of the listing term unless written notice is given. A deposit check from a buyer paid upon the submission of an offer may be held without being deposited into the brokers escrow account: a.Until negotiations are concluded and the seller has accepted the offer b.Until all inspections are required by the contract have been performed c.For no more than 5 business days after receipt of money d.After the termination of the attornet review period - correct answerc.For no more than 5 business days after receipt of money The heir to a large estate will be of legal age within 30 days. He lists for sale with a broker one of the properties held by the estate. The broker knows of a buyer for the property and sells it within 24 hours of listing, with closing to be in 45 days. Both listing and sale contracts are a. Fulfilled
b. Executed c. Voidable d.Executory - correct answerc.Voidable Which of the following items could never constitute a fixture? a. Tree b. Shrub c. Swimming pool d. Land - correct answerc. Swimming Pool A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12- year-old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statement regarding this situation is true? a. City code always takes priority over deed restrictions. b. This city code takes priority because deed restrictions expire 10 years after a subdivision is developed c. Deed restrictions always take priority over city codes d. This deed restriction is more restrictive and will, therefore, take precedence - correct answerd. This deed restriction is more restrictive and will, therefore, take precedence Which if the following is a function of the municipal planning board?
