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

Question 1

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 2

A home sold for $400,000. It was appraised for $402,000, and the assessed value was $320,000. Assume in this situation, the real estate transfer tax of 1% is paid by the grantee. How much will the seller owe at closing for transfer fees?

A$0

B$3,200

C$4,000

D$4,020

Answer : A

In New Jersey, the Realty Transfer Fee (RTF) is typically paid by the seller, but the question specifies that the tax is paid by the grantee (buyer). When the buyer pays the transfer tax, the seller does not owe any amount at closing for transfer fees.

Additionally, the RTF is calculated based on the consideration amount (sale price), not the appraised or assessed value. But since liability is shifted to the buyer here, the seller's responsibility = $0.

Question 3

A CORRECT statement about transaction brokers is that they:

Arepresent both the buyer and the seller

Brepresent neither the buyer nor the seller

Care required to disclose confidential information

Dmay conduct transactions without an active real estate license

Answer : B

A transaction broker facilitates a real estate transaction without representing either party as an agent.

They owe both parties honesty and fairness but do not owe fiduciary duties such as loyalty or confidentiality.

They do not require client-level agency agreements.

They must still be licensed.

Correct answer = B.

Question 4

A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is the club in violation of the federal Fair Housing Act, and if so, how?

AYes, because when race is involved, no exceptions to the federal Fair Housing Act exist.

BYes, because the club had minority members, and therefore was not eligible for exemptions from the federal Fair Housing Act.

CNo, because as an integrated club, they could discriminate on the basis of race in renting facilities.

DNo, because a private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially.

Answer : D

Under the Federal Fair Housing Act of 1968 (as amended), there are limited exemptions. One is the private club exemption: a bona fide private club that is not operated commercially may restrict the rental or occupancy of lodgings that it owns to members only.

However, even though exemptions exist, race-based discrimination is never permitted in the sale or rental of housing to the public. Here, since the club restricts rentals to members only and does not rent to the general public, it is not in violation of the Act.

Question 5

A married couple is planning to purchase a house that costs $86,000. If they obtain a 60% loan and the lender charges a 2.5% loan origination fee and 0.5 discount points, what is the cost of these expenses?

A$1,290

B$1,548

C$2,150

D$2,580

Answer : B

Question 6

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.

Question 7

Evergreen bushes and apple trees on a property that were planted by the current owner are examples of:

Areal estate

Bpersonal property

Cchattels

Dtrade fixtures

Answer : A

Natural attachments (trees, bushes, perennial plants) are part of the land and thus real estate.

Annual crops (emblements) are considered personal property.

Chattels = movable personal property.

Trade fixtures = items installed by a tenant for business use.

Correct answer = A.