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

Question 1

Two parcels of land priced at $2,100 per acre were purchased. One parcel was 5 acres in size, and the other was 1 square mile in size. How much should these two parcels have cost together?

A$766,000

B$914,760

C$1,060,500

D$1,354,500

Answer : C

Question 2

A licensee must provide disclosure of licensed status when acting as a principal if

Athe agent of the other party asks about this specifically.

Bthe licensee does not have errors and omission insurance.

Cthe licensee has any economic interest in the property.

Dany relative of the licensee has ever lived in the residence.

Answer : C

Under N.J.A.C. 11:5-6.4, any licensed New Jersey real estate broker, salesperson, or broker-salesperson must disclose in writing their licensed status when they have a direct or indirect ownership interest in property being sold, purchased, or leased. This is known as disclosure of economic interest.

The purpose of this regulation is to ensure the public is fully aware that they are dealing with a licensed real estate professional, who may have specialized knowledge or influence in the transaction. Disclosure must appear in the contract of sale, lease, or any offer made.

Therefore, the correct answer is C, since a licensee must disclose whenever they have an economic interest in the property.

Question 3

A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when:

Ait is in the best interest of the client

Bthe licensee does not know any of the other title companies in the area

Cthe client does not ask for other recommendations

Dthe licensee discloses the interest in the company to the client

Answer : D

Under RESPA Section 8 and NJREC rules:

A licensee with a financial interest in a related service company (e.g., inspections, title, mortgage) must provide full disclosure in writing to the client.

Without disclosure, this is considered a conflict of interest and a violation.

Disclosure allows the client to make an informed decision and choose alternatives.

Correct answer = D.

Question 4

The common area of a condominium development is owned by:

Aits duly elected Board of Directors.

Bthose owners who were original owners of the units.

Cany individuals who pay a prorated share of the taxes and maintenance.

Dall owners as tenants in common.

Answer : D

In a condominium, each unit owner owns their unit in fee simple.

All common areas (hallways, grounds, recreational areas) are owned by all unit owners collectively as tenants in common, with each owner's interest proportional to their ownership share.

The Board of Directors manages, but does not own, the common areas.

Correct answer = D.

Question 5

A salesperson is selling a leased commercial property. What will happen to the lease after the sale is consummated?

AThe lease is assigned to the new owner.

BThe lease expires and the tenant must move.

CThe tenant and the new owner must negotiate a new lease.

DThe new owner has the option of canceling the lease or accepting the lease.

Answer : A

In New Jersey, under landlord-tenant law, a lease is considered a contract that runs with the land. When a property is sold while a lease is in effect, the new owner automatically assumes the rights and responsibilities of the landlord under the existing lease.

The tenant does not need to renegotiate and cannot be forced to vacate until the lease term expires, unless both parties agree otherwise. This transfer is known as an assignment of lease to the new owner.

Therefore, the correct answer is A.

Question 6

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 7

A broker maintains a real estate agency and terminated two salespersons. In this situation, the broker is REQUIRED to take all the following actions with regard to these two salespersons EXCEPT:

Aprovide each with a written accounting of all monies due each salesperson.

Bpermit them to remove original sales or listing contracts from the broker's office.

Cpay any undisputed compensation due within ten days of the broker's receipt of such funds.

Dabide by the post-termination compensation clause contained in their employment agreements or provide a written explanation for not doing so.

Answer : B

According to NJREC Rules and Regulations (N.J.A.C. 11:5-4.1) and the Broker-Salesperson employment agreement requirements:

Brokers must provide a full written accounting of monies due.

Any undisputed commission due must be paid within 10 business days of the broker receiving the funds.

The broker must honor the compensation provisions of the terminated salesperson's written employment agreement.

However, salespersons are not permitted to remove original sales or listing contracts, which remain the property of the broker.

Therefore, the action the broker is NOT required to take is B.