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

Question 1

A small broker committee in the local county has set up a new marketing ide

a. They will give every seller the same commission rate and it will not be negotiable. This will allow the consumers to know exactly what it will cost to list a property. This marketing plan is an example of:

Aapostille

Bprice-fixing

Cmarket allocation

Dconsumer protection

Answer : B

Price-fixing occurs when competitors agree to set commission rates or fees rather than allowing them to be independently negotiated.

This practice is a violation of the Sherman Antitrust Act and NJREC regulations.

Market allocation refers to dividing territories or clients.

''Apostille'' is irrelevant.

Calling it ''consumer protection'' is misleading.

Thus, this is an example of price-fixing.

Question 2

Which of the following best describes the Housing for Older Persons Act?

AIt allows grandparents with grandchildren to be exempt from the provisions of the Act.

BIt requires that at least 80% of occupied units have one person age 55 or older living there.

CIt requires that 55-and-older housing have significant facilities and services designed for seniors.

DIt allows the awarding of monetary damages against those who believed that property designated as housing for older persons was exempt.

Answer : B

The Housing for Older Persons Act (HOPA, 1995 amendment to the Fair Housing Act) provides exemption from familial status discrimination if:

At least 80% of units are occupied by at least one person 55 years of age or older.

The housing adheres to a policy of providing housing for older persons.

The requirement for ''significant facilities and services'' was removed by the 1995 Act.

Correct answer = B.

Question 3

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 4

A ranch house with a double garage is being valued. The house next door, which is similar except that it lacks a garage and has an outside deck, was sold last month for $138,000. Experience in that area shows that a two-car garage is probably worth $10,000 to buyers, while in general, they will pay only $500 extra for a deck. The ranch house is most likely to sell for around:

A$123,500

B$128,500

C$147,500

D$148,500

Answer : C

Therefore, the subject property is most likely to sell for $147,500 (C).

Question 5

A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?

ADo nothing, because the seller must sell the property at the appraised value.

BMake up the difference between the contract price and appraised value in cash.

CHire an appraiser and see if a second appraisal yields a higher appraised value.

DSeek an FHA lender who will automatically make up the difference between the contract price and the appraised value.

Answer : B

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.

Question 6

Which of the following actions is NOT a cause for suspension or revocation of a New Jersey real estate license?

Afailing to provide a client with a copy of the signed exclusive listing contract

Bdelivering a consumer information statement to a seller after having made a listing presentation

Cpayment of a referral fee by a licensed New Jersey broker to a broker licensed in another state

Dcollecting a commission as a broker from both parties to a transaction while representing both parties as their agent

Answer : C

The New Jersey Real Estate Licensing Law (N.J.S.A. 45:15-17) lists specific causes for suspension or revocation, including:

Failing to provide a signed document copy to a client.

Failure to properly deliver a Consumer Information Statement before discussing motivation or making a presentation.

Collecting compensation from both parties without full disclosure and written consent.

However, paying a referral fee to an out-of-state broker is expressly permitted, provided the other broker is properly licensed in their jurisdiction. This is not grounds for discipline.

Question 7

According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey, all of the following are true EXCEPT that the:

Alicensee must hold a timeshare sales license.

Btimeshare must be approved by the Real Estate Commission.

Clicensee must provide the buyer with a copy of the Public Offering Statement.

Dcontract of sale must provide notice of a seven calendar day rescission period.

Answer : A

Under the NJ Real Estate Time Share Act (N.J.S.A. 45:15-16.50 et seq.), timeshares sold in New Jersey must be registered with the NJ Real Estate Commission.

Buyers must be given a Public Offering Statement.

Buyers are entitled to a 7-calendar-day rescission period.

There is no separate ''timeshare sales license'' --- a standard NJ real estate license is sufficient.

Thus, the false statement is A.