NEW JERSEY (NJ) Real Estate Practice Exam with Answers 2024

NEW JERSEY (NJ) Real Estate Practice Exam with Answers 2024

1. Which of the following entries satisfies the requirement that an advertisement show that the broker is in the real estate brokerage business? A. J. Jones Realty B. J. Jones, Real Properties C. J. Jones, Real Estate Agency D. J. Jones, Real estate Ventures Answer: C All ads must indicate the name of the brokerage company followed by a term such as REALTOR, Realtist, real estate broker, or real estate agency. 2. A manager rents a unit to a tenant who later has a car accident and is confined to a wheelchair. The tenant now wants the manager to lower all the light switches and install grab bars. Does the manager have to make these modifications? A. No, the tenant can modify the unit and deduct the cost from rent. B. No, the tenant can modify the unit at his expense and will be responsible for restoring the unit. C. Yes, because the landlord is responsible for keeping the units in a habitable condition D. Yes, but only if the term of the lease is for more than one year. Answer B 3. According to the New Jersey Real Estate Licensing Law, what is the maintenance requirement for all records of real estate transactions? A. Files must be able to be reproduced on paper for review by the Commission. B. Files must be kept on paper, and available for review for up to 10 years. C. Files must be submitted electronically to the Commission. D. Files must be kept on premises and available to the public at any time. Answer D All records and files must be available for inspection at any time by the commission, and they always remain the property of the broker. 4. May a New Jersey real estate licensee decline to cooperate with other New Jersey licensees? A. Yes, if the client directs the licensee according to New Jersey regulations. B. Yes, if the client gives verbal direction not to cooperate. C. Yes, the brother directs the salesperson not to cooperate D. No, licensees are required to cooperate under all circumstances. Answer A The agent is obligated to obey the principle’s lawful instructions. 5. When MUST a listing broker provide a copy of a fully executed written listing agreement to the owner? A. Upon execution of the listing agreement by all parties. B. Within three days of execution of the listing agreement by registered mail, return-receiptrequested. C. Within five business days of execution of the listing agreement. D. At the time of presentation of a written offer. Answer A Real estate agents are required to furnish a CIS(Consumer Information Statement) before any discussion of a seller’s/landlord’s or buyer’s/tenant’s motivation or financial situation is initiated 6. Which of the following actions is NOT a cause for suspension or revocation of a New Jersey real estate license? A. Failing to provide a client with a copy of the signed exclusive listing contract. B. Delivering a consumer information statement to a seller after having made a listing presentation C. Payment of a referral fee by a licensed NJ broker to a broker licensed in another state. D. Collecting a commission as a broker from both parties to a transaction while representing both parties as their agent. Answer C Brokers are allowed to pay and accept referral fees from an out of state broker. 7. Under what conditions may a salesperson accept a bonus offered by a seller for services rendered? A. The salesperson receives payment directly from the seller. B. The salesperson has broker’s approval. C. The seller pays the bonus to the broker, who passes it on the salesperson. D. Under no circumstances. Answer C Salesperson can only accept any compensation from their employing broker. 8. Under the New Jersey Real Estate Licensing Law, which of the following is an unlicensed assistant or secretary NOT permitted to do? A. Type contracts for approval. B. Make telephone calls to request rent payments. C. Follow up on Loan applications with lenders. D. Place Signs on properties. Answer B Non licensed person can not solicit for rent payments. 9. At a listing appointment, the seller asks the broker not to disclose the prior termite treatment and repairs since they are now corrected. The broker should A. Go back to the office without pursuing the listing. B. Insist that the seller disclose these facts to any potential purchaser. C. Agree not to disclose these issues, as they no longer affect the property. D. Confirm that repairs were made, and the extent of those repairs before agreeing. Answer C 10. Which of the following statements concerning an agreement of sale prepared by a licensee in accordance with New Jersey License Law is correct? A. The agreement must contain a mortgage contingency clause. B. The agreement must include an Attorney Review Clause. C. The buyer must be given three-day right of rescission. D. The contract must include the attorney general’s memorandum on discrimination. Answer B 11. In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate? A. Cost approach B. Income approach C. Market data D. Gross rent multiplier Answer B 12. A secretary in a real estate office who does NOT have a real estate license may, A. Review the consumer information statement with a prospective buyer. B. Perform bookkeeping functions concerning escrowed funds. C. Sign escrow checks with the written authorization of the broker. D. Disclose the current status of a commercial listing. Answer B 13. Written offers to purchase real estate in New Jersey must be presented to seller within A. 24 hours B. 48 hours C. 3 days D. 7 days Answer A 14. A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller’s $20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this? A. Blanket. B. Equity C. Wraparound D. Buy-down Answer C 15. The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to A. $125,000 B. $250,000 C. $500,000 D. Any amount Answer C 16. Once an offer to purchase is presented to a seller the A. Buyer is bound to the terms contained there in until the delivery of its acceptance. B. Property is unavailable to any other prospects. C. Offer may be withdrawn at any time prior to deliver of its acceptance D. Seller may not consider any other outstanding offers. Answer C 17. 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 noticed that an attractive feature of the neighbored 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 A. Acceptable because it is not print media. B. Unacceptable due to its discriminatory nature. C. Acceptable if the advertisement includes no preferential language. D. The only appropriate way to market property in the neighborhood. Answer B