Real Estate Practice Exam NEW JERSEY (NJ) with Answers 2026

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NEW JERSEY (NJ) Real Estate Practice Exam

This document contains a comprehensive practice exam for New Jersey real estate licensing, covering key topics such as advertising requirements, tenant modifications, record maintenance, licensing laws, agency relationships, contracts, disclosures, financing, fair housing, and tax issues. It includes 81 multiple-choice questions with detailed answers, serving as an excellent study resource for exam preparation or review of New Jersey real estate law and practices.

Sample Exam Questions

60. Which of the following is true of a quitclaim deed?

A. It cannot be used to transfer a title held in fee simple

B. It has warranties similar to a special warranty deed

C. It can be used to remove a cloud on a title

D. It cannot be recorded

Answer C

61. What does the mortgage lender most often rely on when deciding how much is safe to land on a parcel of real estate?

A. Market analysis

B. Sales contract

C. Appraisal report

D. Assessor’s determination

Answer C

62. Which of the following items would be prorated at closing with the credit going to the seller?

A. Accrued interest on an assumed mortgage

B. Prepaid property taxes

C. Earnest money

D. Unearned rent collected in advance

Answer B

63. A residential developer desires to limit all construction in a subdivision to single-family houses of at least 3,000 square feet. Which of the following is the BEST way for the e- developer to ensure this will take place?

A. Have an architectural review committee approve building pians.

B. Establish a homeowner's association. C. Petition for a zoning change.

D. Create deed restrictions.

Answer D

64. A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE?

A. Because it is voluntary, it will not be an adverse item on the buyer's credit. B. The lender will take the title subject to any junior liens.

C. The lender will usually retain his rights under mortgage insurance or VA guarantee.

D. The loan will still be assumable.

Answer B

65. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if

A. It satisfies or exceeds all terms included in the counteroffer. B. The owner withdraws the counteroffer before it is accepted.

C. The owner gives the first buyer notice that another offer was received and an opportunity to revise the bid.

D. The first buyer is informed, in writing, of the owner's intent to accept another offer.

Answer C

66. Commercial property listing agents ensure owners comply with: A. Their fiduciary duties to the tenants

B. State and Federal Fair Housing

C. American Disability Act

D. Market Lease Rates

Answer D

67. A residential developer desires to limit all construction in a subdivision to single-family houses of at least 3,000 square feet. Which of the following is the BEST way for the e- developer to ensure this will take place?

A. Have an architectural review committee approve building pians. B. Establish a homeowner's association.

C. Petition for a zoning change. D. Create deed restrictions.

Answer D

68. A Seller has required that the buyer must use his title insurance company. The seller has been told that if the buyer uses the title company, they will pay part of his real estate commissions, increasing his net proceeds from the sale. Is this a legally permissible arrangement?

A. This is illegal according to RESPA

B. This is illegal according to Regulation Z

C. This is permissible if the buyer was receiving a VA Loan

D. This is permissible if no fee is paid directly to the seller

69. Which of the following differentiates a bilateral contract from a unilateral contract?

A. Number of parties involved

B. Performance obligations of the parties

C. Relative value of the object of the contract

D. Type of property specified in the contract

Answer B

70. Which is TRUE regarding an option agreement?

A. The buyer must purchase the property at some future time

B. The seller agrees to sell at a fixed price within a stipulated time

C. The buyer is give the privilege of occupying the property

D. Any payments are refunded should the buyer fail to perform on the agreement

Answer B

71. A broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract:

A. Earns a commission at that point

B. Earns a commission even if the contingencies in the contract have not been met. C. Does not earn commission unless the sale closes

D. Does not earn commission

Answer A

72. If the buyer and seller agree to rescind the contract if a deed created in tenancy in common does not state the fractional interest of each co owner it:

A. Presumed each owner has an equal interest

B. Becomes a joint tenancy

C. Must be determined by a majority vote of the tenants

D. Is Void

Answer A

73. 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?

A. Yes, when race is involved, there are no exception of the federal fair housing act. B. Yes, Since the club has minority member, they were not exempt from the fair housing act.

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