NEW JERSEY (NJ) Real Estate Final Exam with Answers 2023
10. The purchase and sales agreement provides for release of earnest money to the seller
after the buyers property inspection. The seller requests the earnest money prior to
inspection. The broker should: Refuse to release the earnest money
11. Which of the following differentiates a bilateral contract from a unilateral contract?:
Performance obligations of the parties
12. A deposit check from a buyer paid upon the submission of an offer may be held without
being deposited into the brokers escrow account:: For no more than five business days
after receipt of the money
13. A salesperson has the opportunity to list a 6-plex that is 100 percent rented. The
salesperson does NOT need to account for any expenses. The numerical tool he should
use at which the building will sell is known as: Gross rent multiplier (GRM)
14. A CORRECT statement about transaction brokers is that they:: Represent neither the
buyer nor the seller
15. What should buyers insert into their purchase offer to make sure they would NOT have
to go through the purchase if they CANNOT obtain the necessary financing?:
Contingency
16. Which of the following entries satisfies the requirement that an advertisement show that
the broker is in the real estate brokerage business?: J. Jones,
Real Estate Agency
17. A city has a transfer fee of $1.00 for each $1,000 of the sales price and the state charges
$1.50 per $500 of the sales price for real estate transactions. If the buyer pays ... what
would the sellers transfer tax be on the sale of a $400,000 home?a) $2,000 b)$4,000
C)$6,000 d)$8,000:
18. Which of the following is among the typical responsibilities of a residential property
manager?: Selecting tenants to provide a diverse environment
19. What does the mortgage lender MOST often rely on when deciding how much is safe to
lend on a parcel of real estate?: Appraisal report
20. The clause designed to ensure that a broker will receive a commission if negotiations with
a ready, willing, and able buyer are completed after the listing has expired is called: An
extension or "tail" clause
21. According to the New Jersey Law Against Discrimination, which of the following classes
is NOT protected?: Convicted felons
22. Under what condition may a salesperson accept a bonus offered by a seller for services
rendered?: The seller pays the bonus to the broker, who passes it on to the salesperson
23. Minors are held liable for real estate contract obligations if they: Have their guardian co-
sign
24. Which of the following statements about branch offices is INCORRECT?-
: Two salespersons may be designated to share supervising responsibilities
25. A salesperson's client is the lessee. Who does the salesperson represent?: Tenant
26. Whenever a salesperson receives cash to be held in trust, the salesperson MUST:: Give
a written receipt signed by the salesperson to the prospective purchaser and immediately
deliver the funds to the salespersons broker
27. For the borrower, the major ADVANTAGE of Private Mortgage Insurance
(PMI) for a home mortgage loan is that: A smaller down payment is required
28. A complaint must be filed with HUD within what period of time after a fair housing
violation has occurred?: 1 year
29. A seller is interested in providing financing to the buyer of her home, but she wants
to retain title until the loan balance is paid off. Which of the following would be the BEST
loan option?: Contract for deed
30. A licensee must provide a Consumer Information Statement in all of the following
transactions EXCEPT the:: Sublease of a studio apartment for two months
31. Which of the following are MOST likely to be addressed by building codes?:
Construction standards
32. A major difference between freehold and nonfreehold estates is that all
nonfreehold estate: Are estates for a fixed term
33. Limiting the neighborhoods in which a licensee shows houses because of a buyer's
race is: Steering
34. When a land owner uses his land as a security for a loan, the encumbrance created
is called: A mortgage or deed of trust lien
35. A lender requested that the entire loan balance be paid immediately because the
property on which the loan was made had been sold. What clause in the mortgage loan
allows this?: Alienation clause
36. Which of the following statements is the BEST example of puffing?: This is the best
buy you'll find all year
37. Latino families were beginning to move into a neighborhood that had previously
been all white. A local broker out flyers to homeowners that said, "sell now before it's too
late! We have beautiful new homes with attractive financing and good schools." these
flyers would likely be viewed by the courts as: Blockbusting
38. In New Jersey, the Private Well Testing Act (PWTA) requires:: The buyer and seller
to certify receipts of test results before title transfer
39. Which of the following types of deeds provides the purchaser of real estate the
GREATEST protection?: General warranty deed
40. The broker has noticed that a great number of people who are buying in the
neighborhood where his listing is located speak Russian. He also noted that an attractive
feature of the neighborhood seems to be the large Russian grocery store. He decides to
stop advertising the property in the city newspaper and instead advertise the property on
two different Russian internet sites this is: Acceptable if the advertisement includes no
preferential language
41. A real estate licensee representing a buyer may do all of the following
EXCEPT: Disclose the highest price the buyer is willing to pay
42. A Sellers Property Disclosure form states that there are no known material defects
with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the
basement. The licensee should: Disclose the existence of asbestos to all potential buyers
43. After receiving a written offer, a seller revises the offered purchase price and initials
the change. The salesperson who prepared the offer then takes the only copy of the
revised document to the buyers. The licensee has violated the New Jersey Real Estate
License Law by failing to:: Request that the seller sign an addendum reflecting the revision
44. In a mortgage/trust deed form of loan, the terms of payment and interest rate would
be found on the: Promissory note
45. A house that was listed for $164,000 sold for $124,000. The state where the sale
occurred charges a transfer fee which is computed at the rate of $3 per