Real Estate Licensing New Jersey Real Estate Salesperson Exam Questions Instant Access

Question 1

A city has built a new library and has contacted the broker to list and sell the old library building. Which approach should the broker use to estimate the fair market value for the purpose of listing and selling this property?

Aincome approach

Bsales comparison

Creplacement cost

Dgross rent multiplier

Answer : C

For special-purpose properties such as schools, churches, libraries, or government buildings, there are typically few comparable sales and the properties are not income-producing.

In these cases, appraisers use the cost (replacement) approach, which estimates the value by calculating the cost of replacing the structure minus depreciation, plus land value.

Correct answer: C. replacement cost.

Question 2

If a salesperson or broker-salesperson maintains a webpage that is not linked to the webpage of their broker, the licensee's webpage must display the name of the broker as well as the

Abroker's email address.

Bbroker's telephone number.

Caddress of the broker's main office.

Daddress of the branch office from which the licensee operates.

Answer : C

Under NJREC advertising rules (N.J.A.C. 11:5-6.1), any licensee maintaining an independent website (not directly linked to the broker's official site) must clearly and prominently display:

The name of their employing broker, and

The main office address of the broker.

This ensures the public understands the licensee works under a supervising broker, and prevents misleading advertising. It is not sufficient to only list a branch office or email.

Therefore, the correct answer is C.

Question 3

A couple who sell their principal residence may take up to $500,000 in federal capital gains tax-free only if:

Aat least one of them has reached the age of 65.

Bthey buy a replacement home of equal or greater value than the one being sold within a year.

Cneither has ever used the Homesellers Exclusion in the past.

Dthey have owned and occupied the house for at least 2 of the previous 5 years.

Answer : D

Under IRS Section 121 Exclusion (Home Sale Exclusion Rule):

Married couples filing jointly can exclude up to $500,000 of capital gains.

They must have owned and occupied the property as their primary residence for 2 of the past 5 years.

Age 65 requirement is obsolete (repealed).

They don't need to reinvest in another home.

The exclusion can be used once every 2 years.

Correct answer = D.

Question 4

A broker may legally refuse to accept a listing:

Aat any time, for any legitimate reason.

Bonly if the owner's instructions are illegal.

Conly if the seller cannot give clear title to the property.

Dunder no circumstances; all owners are entitled to professional representation in the sale of their property.

Answer : A

A broker is not obligated to accept every listing.

A broker may refuse listings for legitimate reasons (e.g., property is overpriced, owner is uncooperative, outside area of expertise).

The only prohibition is that brokers cannot refuse a listing for discriminatory reasons in violation of fair housing laws.

Correct answer = A.

Question 5

Standard title insurance would protect a buyer:

Awhen the seller has forged an ex-partner's signature on the deed.

Bif after closing, the HOA placed a lien on the property for the previous owners' unpaid dues.

Cin a purchase where the buyer had knowledge of a shed violating setback requirements.

Dfor the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property.

Answer : A

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.

Question 6

A national company desires a parcel of land which must be 4 times the size of its proposed building. If the building design includes 20,000 square feet, then which of the following minimum sized lots should be purchased?

A1 acre

B2 acres

C4 acres

D8 acres

Answer : D

Question 7

Under the New Jersey Real Estate Sales Full Disclosure Act, the Act does NOT apply to a development project:

Aconsisting of 10 units.

Bextending over a 5 year period only.

Calready approved by the Department of Commerce.

Dwhere the purchaser's total financial obligation is less than $5,000.

Answer : D

The NJ Real Estate Sales Full Disclosure Act (RESFDA) regulates sales or leases of subdivided land and certain developments to protect consumers.

Exemptions exist for small-scale projects or when the total financial obligation to the purchaser is less than $5,000.

Developments with 100+ lots typically require registration and a Public Offering Statement.

Thus, the Act does not apply where the financial obligation is under $5,000.