NEW JERSEY (NJ) Real Estate Practice Exam with Answers 2023, Exams for Real Estate Management

1. The type of deed that warrants only that the grantor has not impaired the title during the term in which he held it is referred to as.

1.      Quitclaim Deed

2.      General Warranty Deed

3.      Bargain and Sale Deed

4.      Bargain and Sale Deed, CAG: 

2. Taxes raised to pay for improvements that benefit real estate are referred to as

1.      Special Assessments

2.      Facilities Taxes

3.      Ad Valorem Taxes

4.      Luxury Rates: 

3. After Borrowers have indicated an intent to proceed, the lender

1.      is prohibited from asking for any additional information

2.      approves their loan application

3.      can ask for additional fees to process the loan application.

4.      can provide a temporary approval letter:

4. In a blanket mortgage, the clause that allows the developer the right to sell an individual lot without having to pay off the entire principal amount is called a

1.    Partial Release Clause

2.    Subordination Clause

3.    Defeasance Clause

4.    Prepayment Clause:

5.    Which of these documents is typically recorded in the public records?

1.    Sales Contract

2.    Deed

3.    Closing statement (CD)

4.    Loan Estimate (LE):

6. Which law prohibits ALL racial discrimination in housing, with no exceptions?

1.    Jones v Mayer Act

2.    Fair Housing Act of 1968

3.    Civil Rights Act of 1965

4.    Civil Rights Act of 1866: 

7. In order to convert an oral agreement into a written listing, the broker must deliver a written memorandum of the agreement to the client within how many days?

1.    5 days

2.    10 days

3.    30 days

4.    1 day:

8. In New Jersey, a conveyance to a married couple creates a

1.    Tenancy by the entirety

2.    Partnership

3.    Tenancy in common

4.    Joint Tenancy:

9. A seller's broker must transmit to her principle

1.    All written offers

2.    All reasonable written offers

3.    All reasonable offers

4.    Copies of all advertisements on the property.:

10. Which of these protects suppliers and laborers?

1.    Encroachment

2.    License

3.    Mechanic's or construction lien

4.    Easement:

11. A man and a woman are not married but own property together. The man dies in an accident and the woman now owns the property in severalty. The man and woman held the title in

1.   Tenancy in Common

2.   Tenancy by the entirety

3.   Joint Tenancy

4.   Life Tenancy:

12. The approach that uses the concept of deprecation is the

1.    Cost Approach

2.    Income Capitalization Approach

3.    Reconciliation Approach

4.    Sales Comparison Approach

13. A property manager's responsibilities generally do NOT include which of the following?

1.    Investing profits

2.    Renting Units

3.    Paying Utilities

4.    Collecting security deposits.:

14. The law of descent applies to what remains of an estate after

1.    All real estate has been sold

2.    The will has been executed

3.    The surviving spouse receives 50 percent.

4.    Payment of all debts.:

15. In a real estate advertisement that includes information on mortgage financing, which of the following is permissible under the truth-in-lending law, without the qualifying words.

1.    Liberal Terms available

2.    Interest Rate is only 8 percent

3.    Two thousand dollars down

4.    Monthly payments only $600:

16. What is the intent of the federal fair housing law?

1.   To allow the neighbors to choose buyers based on race and nationality

2.   To allow people to buy a home in whatever neighborhood they can afford

3.   To ensure that all neighborhoods are integrated

4.   To maintain a status quo in most neighborhoods

17. The Federal Fair Housing law makes it illegal for a

1.    Non-profit club to restrict its housing to its members only

2.    landlord of a two-unit residential dwelling to deny a unit to a member of a protected class if the landlord does not occupy one of the units

3.    seller to deny a mortgage loan to a buyer who is a member of a minority group

4.    Landlord to deny commercial space to a prospective tenant who is a member of a minority group

18. What is required to form a valid purchase contract in New Jersey?

1.    One of the parties must be a minor

2.    Must be accompanied by an earnest money deposit

3.    An adequate description of the property.

4.    Omits an attorney review clause

19. If two similar houses are for sale in a certain location, the one with the lower price is usually bought first. This is the principle of

1.    Supply and Demand

2.    Substitution

3.    Conformity

4.    Progression

20. In New Jersey, which of the following is essential for any contract?

1.    In writing

2.    Consideration

3.    Date

4.    Plain-Language requirement

21. An in rem proceeding is directly associated with a

1.    mortgage foreclosure

2.    court-ordered sale 3. tax foreclosure

4. tax appeal:

22. A listing contract in which the listing broker's commission is based upon procuring a buyer before the property is sold by the owner or another broker

is

1.    an exclusive right to sell listing

2.    a multiple listing

3.    an exclusive agency listing

4.    an open listing: 

23. With regard to New Jersey Real estate contracts

1.    In a breach of contract, the buyer can sue for liquidated damages.

2.    A contract being considered in an attorney review period is unenforceable 3. A contract signed by a person under duress is void.

4. Only Attorneys can prepare them.

24. What is the license requirement pertaining to a license issued to a corporation?

1.    One officer must be licensed while the other officers may not be required to obtain licenses

2.    All of the officers must be licensed either as a broker or salesperson

3.    Two officers must be licensed as brokers.

4.    The officers do not need to be licensed.

25. Salesperson A shows a property owned by Seller B and listed with Salesperson C broker. Which of the following statements about this is true??

1.    Salesperson A is the subagent of Broker C

2.    Salesperson A's broker is the principal of Salesperson A.

3.    Salesperson A is the agent of Seller B.

4.    Seller B is the customer of Salesperson A's broker.

26. Regulations Z requires the disclosure of which of the following?

1.    APR

2.    CMA

3.    RESPA

4.    NAR:

27. New Or Altered buildings in New Jersey can only be used or occupied with the issuance of

1.    Certification of Occupancy

2.    A Completed construction permit

3.    Evidence of compliance

4.    Certificate of continuing occupancy.

28. If the owners of a property sell it themselves, even though they have an exclusive agency listing with a broker, they owe the broker

1. a commission that must be settled through arbitration 2. no commission

3.    the full commission

4.    one-half the commission.:

29. A licensed broker in New Jersey must pay a referral fee to a broker in another state if the out-of-state-broker

1. Has a New Jersey Non-Resident License 2. Has a real estate license in his own state

3.    has a new jersey resident license.

4.    is not allowed to collect a referral fee under this circumstance.

30. A broker is told at a closing to deduct her commission from the funds previously deposited in her escrow account. In order to avoid commingling, the amount of commission must be paid out within.

1.    Seven Days

2.    Ten Days

3.    Five Days

4.    Three Days: 

31. A purchaser buys a home for $102,000. She applies for an FHA mortgage loan and learns that the FHA will insure 97 percent of the first $25,000 of the purchased of the balance. If the lender charges the purchaser three points, then how much cash will actually be advanced to the purchaser?

1. $94,478 2. $96,320

3. $89,788 4. $99,100:

32. A bank that insisits on a $20,000 down payment to purchase a $100,000 home requires

1.    an 80% loan to value ratio

2.    a prepayment penalty

3.    a 20% loan to value ratio 4. private mortgage insurance.:

33. At what time must the lender provide the closing disclosure to the buyer/borrowers?

1.    a week before the scheduled closing

2.    day of closing

3.    business day before the scheduled closing

4.    three business days before the scheduled closing.: 

34. The purchaser in a real estate sales contract breaches the contract and does not go through with the purchase. The contract stipulates that the seller may keep. This is known as.

1.    Compensatory Damages

2.    Specific Performance

3.    Liquidated Damages

4.    Punitive Damages: 

35. The clause in a mortgage that provides for the entire balance of the mortgage loan to be immediately due and payable because of the borrower's default is called an

1.    An acceleration clause

2.    A habendum clause

3.    An alienation clause

4.    A Defeasance clause:

36. Which accurately describes the attorney review clause?

1.   All parties to the sales contract are required to consult their attorneys during the review period

2.   Time Frame is counted three days from the execution of the sales agreement.

3.   The clause includes all residential leases prepared by the licensees for a term of one year or more.

4.   The clause must be included in any commercial lease.:

37. A woman sold her property for $150,000. She realized a 20 percent return on her investment. How much did she originally pay for the property?

1.    $130,434

2.    $125,000

3.    $115,384

4.    $120,000: 

38. Individuals found guilty of a first offense violation of the New Jersey Law against discrimination can be fined up to

1.    $10,000

2.    $500

3.    $25,000

4.    $5,000:

39. The federal government will require disclosure in a property of the known presence of

1.    Termites

2.    Asbestos

3.    Lead 4. Radon:

40. A woman was legally occupying and using a single family structure. However, she lost her job and stopped paying the rent. Her current occupancy is called.

1.    a fee simple estate

2.    an estate at sufferance 3. a leasehold estate 4. a life estate:

41. What is the primary purpose of the license law?

1.    protect the public

2.    limit the number of licensees

3.    protect licensees.

4.    encourage competition:

42. A woman died and left a 10-acre piece of land to her brother. This is a

1.    Devisee

2.    Legacy

3.    Bequest

4.    Demise:

43. Which of these is a temporary right?

1.    Prescriptive Period

2.    Party Wall

3.    License

4.    Ingress and Egress:  

44. Which of the following is a record a broker must keep for six years?

1.    copies of statements to buyers and sellers showing the disbursement of funds.

2.    copies of all unaccepted offers to purchase

3.    copies of newspaper advertisements

4.    expired listing agreements: 

45. Liquidation of a loan in equal installments that include principal and interest is called

1.    compounding

2.    amortization

3.    redemption

4.    straight reduction:

46. A condemnation suit is used in

1.    escheat

2.    tax foreclosure

3.    eminent domain

4.    police power: 

47. If a broker receives three offers to purchase a property at different times on the same day and is finally able to reach the seller later in that day, then the broker must tell them

1.    only the best offer to the seller

2.    only the highest offer to the seller

3.    all three offers in no specific order

4.    all three offers in the order they were received.: 

48. A limited partnership is

1.    one in which each partner can be held personally liable for business losses and obligations.

2.    treated as a corporation for federal tax purposes.

3.    created under the laws of the state from which it receives its charter

4.    run by a general partner or partners:  

49. In a sale-leaseback agreement, the

1.    Grantor becomes the lea-see

2.    Grantor becomes the landlord

3.    Grantor becomes the assignee

4.    Grantor becomes the tenant.:

50. When an owner in severalty dies testate, the property will be

1.    automatically subject to the law of escheat

2.    automatically vested in the other tenant

3.    probated and passed on to the owner's devisees.

4.    probated and passed on to the owner's heirs according to the law of descent.:

51. In unities of time, title, interest, and possession are directly connected with

1.    communal property

2.    joint tenancy

3.    remainder interest 4. tenancy in common:

52. Compliance with the lead based paint hazard reduction act is important to real estate agents because it's regulations specifically require real estate agents to

1.    ensure compliance

2.    assess risk levels of listed properties 3. refuse listings of contaminated properties

4. conduct inspections:

53. A woman gives a parcel of land to a man with an express condition in the deed that if the man builds an office building on the land, the parcel will revert to the value of example of

1.    leasehold estate

2.    deed restriction

3.    fee simple determinable

4.    life estate with a reversion in the remainder:

54. The cost approach would most likely be used for appraising

1.    Public Building

2.    Single Family House 3. Apartment Building

4. Office Building:

55. The approach that allows for up and down adjustments to different properties to arrive at a value for a subject property is called the

1.    income capitilization approach

2.    cost approach

3.    sales comparison approach

4.    gross net mulitplier approach:  

56. The income capitalized to determine value is

1.    annual net income

2.    annual gross income

3.    monthly net income

4.    monthly gross income: 

57. Supervisors of real estate offices must be physically present at that office during business hours for how many days per calendar week

1.    Five Days

2.    Three Days 3. Four Days

4. Six Days:

58. A contract between an adult and a minor is

1.    Unenforceable

2.    Unilateral

3.    Voidable

4.    Void:  

59. A court decree which declares that an individual is indebted to another and fixes the amount of the debt is called a

1.    lien

2.    judgment

3.    bond

4.    foreclosure:

60. A real estate broker is permitted to advertise

1.    free appraisals

2.    a contest held for the promotion of one of his listings

3.    that a brand new Cadillac sedan is included in the sale price.

4.    another broker's listing, provided both brokers are in the same MLS.:  

61. Which of the following will result in automative revocation of a real estate license?

1.    payment out of the guaranty fund

2.    fraud

3.    embezzlement

4.    undisclosed dual agency:  

62. Whenever a resident of another state is licensed in New Jersey, she must

1.    complete an additional 15- hour course for non-residents

2.    furnish evidence of good moral character to the real estate commission

3.    pay a higher licensing fee than resident licenses.

4.    file a consent to be sued in NJ:

63. By definition, an "estate for years"

1.    must be for at least two years

2.    requires a written lease

3.    is for a fixed term; six weeks, ten months, etc.

4.    must last for a year or more:  

64. In New Jersey, options and "first refusals"

1.    cannot be enforced by the offeree

2.    can be oral agreements according to the statute of frauds 3. place an obligation only on the offeror

4. are bilateral contracts:  

65. Who, of the following, would have the best opportunity to have her apprenticeship requirements waived for a broker's license?

1.    A wounded war veteran with a salesperson's license.

2.    A broker in another state with one year's experience and the Desiree

3.

4. a:  

66. In New Jersey, which of the following would not be required to be licensed as either a real estate broker or salesperson?

1.    an individual managing properties for various owners

2.    An attorney handling distressed property sales for his client trying to avoid possible foreclosure proceedings. 3. An individual operating a rental agency

4. A person hired by a developer to list and sell new homes in the development.: 

67. Large old home with six bedrooms and one bathroom would be an example

of

1.    functional obsolescence

2.    depreciation

3.    external obsolescence.

4.    economic obsolescence.: 

68. The lease that requires no advance notification to terminate it at the end of it's term is called

1.    anestate for years

2.    a year to year

3.    a month to month 4. a periodic tenancy:

69. If a licensee is indicted for aggravated sexual assault, his license is

1.    suspended

2.    placed on probation

3.    revoked

4.    cancelled 

70. Generally, in New Jersey, in order to appraise property for federally related loans, a person must

1.    be a member of the appraisal institute

2.    hold a bachelors degrees in real estate appraising

3.    be a state-licensed or state-certified appraiser

4.    hold a real estate license with a specialty in appraising.:

71. A property at the end of three years was valued at 82,500 it had depreciated

2.5 percent during each of the three years. What was the original value?

1. $89,189 2. $89,010

3. $81,265 4. $73,540:

72. In new jersey residents who purchase newly subdivided out of state properties are protected by the real estate sales full disclosure act, which allows the buyers contracts within

1.    ten days

2.    14 days

3.    three days

4.    seven days:

73. Which of the following is not an involuntary alienation of property?

1.    Eminent Domain

2.    Escheat

3.    Devise

4.    Tax Foreclosure:

74. A loan used for temporary financing is a

1.    FHA 203b loan

2.    VA loan

3.    land contract

4.    construction loan:

75. Which of the following is not an approach to value?

1.    Income Capitalization Approach

2.    Original Cost to Owner

3.    Appraisal by Summation 4. Sales Comparison approach.:

76. A married couple, Nj residents, would like to use some of the money they recently inherited to pay off the mortgage on their home. will they be permitted?

1.    Yes they will be able to pay off the loan without a prepayment penalty.

2.    They will only be able to prepay if it is an FHA mortgage loan.

3.    Yes but their lender may charge them a prepayment penalty.

4.    No, New Jersey Law prohibits the prepayment of mortgages.:

77. The truth in renting act does not apply to

1.    owner occupied properties with 5 rental units or less

2.    properties with fewer then 3 rental units

3.    apartment buildings with more then 25 units

4.    apartment buildings with less then 10 units.:

78. Why did a broker enter a new listing into the MLS?

1.    Only by doing so allows the listing broker to represent the property in question

2.    It invites other brokers to produce a buyer

3.    As a common courtesy to the seller.

4.    The listing broker is giving notice that only this broker may bring a buyer:  

79. When two parties agree to the assignment of contracts, they essentially

1.    release the assignor of all liability

2.    permit the assignee to avoid any responsibility for repayment

3.    avoid the expenses of a sale and leaseback

4.    replace the existing contract with a new one:  

80. Which of these is an unethical type of listing whose consideration benefits the buyer, not the seller?

1.    an exclusive right to sell listing

2.    a net listing

3.    an exclusive agency listing

4.    an open listing:  

81. TRID considers a loan application complete when the borrowers.

1.    receive a loan estimate

2.    submit the ALIENS information to the lender

3.    pay and application fee

4.    provide evidence that they have interviewed three lenders.:

82. A lease that requires the lessee to be responsible for all expenses is called

1.    a percentage lease

2.    a net lease

3.    an index lease 4. a gross leaser:

83. The New Jersey Law Against Discrimination does NOT cover which of the following classifications?

1.    Handicap

2.    National Origin

3.    Creed

4.    Age:  

84. A broker has a house listed for $100,000. His daughter sees it and decides she wants to purchase it. The broker convinces the seller to accept an offer of $80,000 and doesn't reveal to the seller his relationship with the purchaser. If the seller discovers this relationship.

1.   The contract is void

2.   The broker is entitled to a commission

3.   The daughter is obligated to pay $100,000 for the house

4.   The contract for the sale of the house is voidable.: 

85. What is the maximum penalty for the first violation of the federal fair housing act?

1. $19,500 2. $20,467

3. $21,039 4. $14,351:

86. The procedure by which a party to a contract is fully discharged of all responsibility and another party takes his or her place with agreement by both parties is known as

1.    Revocation

2.    Novation3. Annulifilication

4. Rescission:

87. Who is responsible for explaining to buyers the topics in the booklet "Your home loan toolkit: A step by step guide"

1.    no one

2.    closing agent

3.    lender

4.    buyers agent  

88. When properly filed, a lien

1.    Run with the land

2.    Includes state inheritance taxes

3.    Attaches to the property owner, not the property

4.    Is physical claim against the property:

89. A condensed history of all instruments affecting a particular parcel of land is the

1.    chain of title

2.    evidence of title 3. abstract of title

4. title report:

90. A broker agreed to pay a bonus to all associates who sold four homes in a calendar month. A salesperson sold four homes last month and received the bonus.

1.    right of first refusal

2.    a bilateral contract

3.    a unilateral contract

4.    a voidable contract:  

91. A copy of a complete accounting in writing of all monies due to a terminated salesperson must be kept by the broker for how long?

1.    One Year

2.    Six Years

3.    Six Months 4. Three Years:

92. A contract that has been fully performed by the parties is called

1.    A consolidated contract

2.    An executed contract

3.    An executory contract

4.    A voidable contract: 

93. A monument is used in

1.    A plat map

2.    Describing a township

3.    A government land survey

4.    A metes and bounds description:  

94. The bulk transfer act refers to

1.    Chattels and Fixtures

2.    Both real and personal property

3.    Personal Property Only

4.    Real property only:  

95. Two men own a parcel of land as joint tenants. One of them dies, and his will stipulates that his interest will pass to his wife and, upon her death, to his children do the children have?

1.    estate in remainder

2.    estate in reversion

3.    no estate

4.    life estate: