Real Estate Licensing New Jersey Real Estate Salesperson Exam Practice Test Instant Access

Question 1

Written offers to purchase real estate in New Jersey must be presented to sellers within:

A24 hours

B48 hours

C3 days

D5 days

Answer : A

According to N.J.A.C. 11:5-6.9, every written offer must be presented to the seller by the licensee immediately, but never later than 24 hours after receipt.

This ensures timely communication and protects the client's interests.

Delays beyond 24 hours would violate the rules.

Question 2

A purchase money note need NOT contain the:

Arate of interest.

Btime and method of payment.

Cloan-to-value ratio.

Dprincipal amount of the loan.

Answer : C

A promissory note (purchase money note) is the borrower's written promise to repay a loan. It must include:

The principal amount of the loan.

The interest rate.

The time and method of repayment.

The loan-to-value ratio (LTV) is a lender's underwriting guideline but is not a required element of the promissory note.

Correct answer = C.

Question 3

Which of the following items would be prorated at closing with the credit going to the seller?

Aaccrued interest on an assumed mortgage

Bprepaid property taxes

Cearnest money

Dunearned rent collected in advance

Answer : B

Prepaid items (like property taxes already paid by seller) are prorated at closing, with the buyer reimbursing the seller for the period after closing. The credit therefore goes to the seller.

Accrued interest is typically credited to the buyer (since the seller owes it).

Earnest money is applied to buyer's costs, not prorated.

Unearned rent collected in advance is credited to the buyer, since the seller must pass future rent benefit to the buyer.

Correct answer = B.

Question 4

A licensee listed a house for $187,500, and a dual agency does not exist. A buyer is willing to offer $184,000. The licensee explains that the seller will take no less than $186,500. The buyer agrees to offer $186,500. Did the licensee act properly?

AYes, to ensure acceptance of an offer, the licensee needed to disclose the lowest price the seller would accept.

BYes, because the licensee persuaded the buyer to raise the price $2,500.

CNo, the licensee should have accepted the first offer and persuaded the seller to accept it.

DNo, the licensee should not have disclosed that the seller would accept less than the listing price.

Answer : D

Under fiduciary duties of a seller's agent in New Jersey:

A licensee must act in the best interest of their client (the seller).

The agent cannot disclose the seller's bottom line or confidential financial information without the seller's explicit consent.

Disclosing ''the seller will take no less than $186,500'' violated confidentiality and the duty of loyalty.

Thus, the licensee acted improperly.

Question 5

When MUST a listing broker provide a copy of a fully executed written listing agreement to the owner?

AUpon execution of the listing agreement by all parties

BWithin three days of execution of the listing agreement by registered mail, return-receipt-requested

CWithin five business days of execution of the listing agreement

DAt the time of presentation of a written offer

Answer : A

According to N.J.A.C. 11:5-6.9, every party signing a real estate listing agreement must receive a duplicate original immediately upon execution.

The copy must be delivered at the time of signing, not later.

This ensures transparency and protects both the seller and the broker.

Therefore, the correct answer is A.

Question 6

A deposit check from a buyer paid upon the submission of an offer may be held without being deposited into the broker's escrow account:

Auntil negotiations are concluded and the seller has accepted the offer

Buntil all inspections required by the contract have been performed

Cfor no more than five business days after receipt of the money

Dfor no more than five business days after the termination of the attorney review period

Answer : D

According to NJREC Rules (N.J.A.C. 11:5-5.1):

Earnest money deposits must be placed in the broker's escrow (trust) account ''promptly''.

However, if the parties agree, a check may be held un-deposited until the end of the three-day attorney review period.

Once attorney review is concluded, the check must be deposited within five business days.

Correct answer = D.

Question 7

The local gas company has a 10-foot easement along the rear of a residential lot. This is best known as an easement:

Ain gross

Bappurtenant

Cby necessity

Dby prescription

Answer : A

An easement in gross benefits a utility company or individual, not a dominant parcel of land.

It attaches to the utility provider, not another property.

Appurtenant easements benefit adjoining landowners.

By necessity arises when a parcel is landlocked.

By prescription arises through long-term adverse use.

This utility easement is an easement in gross = A.