[2025] Use Valid New-Jersey-Real-Estate-Salesperson Exam - Actual Exam Question & Answer
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NEW QUESTION # 39
A national company desires a parcel of land which must be 4 times the size of its proposed building. If the building design includes 20,000 square feet, then which of the following minimum sized lots should be purchased?
- A. 1 acre
- B. 8 acres
- C. 2 acres
- D. 4 acres
Answer: B
Explanation:
NEW QUESTION # 40
The Freshwater Wetlands Protection Act of 1987 is a New Jersey law that:
- A. empowers the New Jersey Department of Environmental Protection to acquire title to certain real estate for less than its fair market value through condemnation
- B. requires environmental impact statements to be filed with the New Jersey Department of Environmental Protection before title to developed real estate can be transferred
- C. restricts development of real estate in certain designated areas
- D. requires the registration of residential development projects with the New Jersey Department of Community Affairs
Answer: C
Explanation:
The Freshwater Wetlands Protection Act (1987) gives the New Jersey Department of Environmental Protection (NJDEP) the authority to regulate activities in freshwater wetlands and transition areas (buffer zones). Its primary purpose is to restrict development in wetlands and certain protected areas to preserve environmental resources.
It does not require environmental impact statements prior to transfer of title, does not authorize below-market condemnation, and is unrelated to DCA residential project registration.
Reference: New Jersey Real Estate Salesperson Pre-Licensure Course Guide, Chapter on Environmental Issues; Freshwater Wetlands Protection Act, N.J.S.A. 13:9B-1 et seq.
NEW QUESTION # 41
A listing agent presents a signed offer to a seller who then changes the amount of the down payment. Before presenting the counteroffer to the buyer, the New Jersey Real Estate License Law requires the listing agent to
- A. obtain the consent of the listing broker.
- B. prepare a separate addendum that reflects the revision.
- C. secure the seller's initials confirming the revision.
- D. verbally inform any buyer's agent of the proposed revision.
Answer: C
Explanation:
Under NJ Real Estate License Law and Commission regulations (NJAC 11:5-6.2), all material changes to a written offer must be acknowledged in writing by the party making the change before it can be treated as a counteroffer. This is typically done by having the seller initial and date the change on the offer form. Without the seller's written confirmation (initials), the revision is not valid or binding.
A is unnecessary; broker consent is not required for counteroffers.
C is not required unless the parties specifically use an addendum, but initials are the minimum legal requirement.
D is insufficient; oral notice is not valid without written confirmation.
Therefore, the correct answer is B.
(Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Contracts & License Law- Handling Offers and Counteroffers; NJAC 11:5-6.2.)
NEW QUESTION # 42
The feature that most distinguishes a joint tenancy from a tenancy in common is
- A. undivided interests.
- B. unity of possession.
- C. right of survivorship
- D. right of transfer.
Answer: C
Explanation:
Both joint tenancy and tenancy in common involve co-ownership where each co-owner holds an undivided interest and shares the right of possession. The distinguishing feature is the right of survivorship present in a joint tenancy: upon the death of one joint tenant, their interest automatically passes to the surviving joint tenants rather than being inheritable by heirs.
A (undivided interests) and B (unity of possession) exist in both forms of ownership.
D (right of transfer) also applies to both, since owners may sell or transfer their interest.
Only C (right of survivorship) uniquely characterizes joint tenancy.
(Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Ownership Interests in Real Estate-Joint Tenancy vs. Tenancy in Common.)
NEW QUESTION # 43
According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer
- A. provided it does not exceed 50% of the total commission.
- B. if a writing confirming the terms of the rebate is provided to the buyer at closing.
- C. if notated on the contract of sale.
- D. if the licensee is the broker.
Answer: B
Explanation:
New Jersey law (P.L. 2009, c. 273; NJ Real Estate Licensing Law) permits brokers to rebate a portion of their commission to a buyer provided that:
The rebate does not constitute a violation of RESPA or other federal laws.
The terms of the rebate are disclosed in writing to the buyer prior to closing.
The rebate must be documented in the transaction records maintained by the broker.
There is no statutory 50% cap, and it does not have to be written directly into the contract of sale. It is also not limited to the broker personally-salespersons may provide a rebate under the broker's supervision.
Reference: New Jersey Real Estate Commission - Licensing Law, Commission Rebates to Buyers, N.J.S.A.
45:15-17; NJREC Bulletins on Commission Rebates.
NEW QUESTION # 44
A licensee listed a house for $187,500, and a dual agency does not exist. A buyer is willing to offer $184,000.
The licensee explains that the seller will take no less than $186,500. The buyer agrees to offer $186,500. Did the licensee act properly?
- A. No, the licensee should not have disclosed that the seller would accept less than the listing price.
- B. Yes, to ensure acceptance of an offer, the licensee needed to disclose the lowest price the seller would accept.
- C. No, the licensee should have accepted the first offer and persuaded the seller to accept it.
- D. Yes, because the licensee persuaded the buyer to raise the price $2,500.
Answer: A
Explanation:
Under fiduciary duties of a seller's agent in New Jersey:
A licensee must act in the best interest of their client (the seller).
The agent cannot disclose the seller's bottom line or confidential financial information without the seller's explicit consent.
Disclosing "the seller will take no less than $186,500" violated confidentiality and the duty of loyalty.
Thus, the licensee acted improperly.
Reference: NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Agency Duties and Disclosure.
NEW QUESTION # 45
When MUST a listing broker provide a copy of a fully executed written listing agreement to the owner?
- A. Within five business days of execution of the listing agreement
- B. At the time of presentation of a written offer
- C. Upon execution of the listing agreement by all parties
- D. Within three days of execution of the listing agreement by registered mail, return-receipt-requested
Answer: C
Explanation:
According to N.J.A.C. 11:5-6.9, every party signing a real estate listing agreement must receive a duplicate original immediately upon execution.
The copy must be delivered at the time of signing, not later.
This ensures transparency and protects both the seller and the broker.
Therefore, the correct answer is A.
Reference: NJREC Rules and Regulations, N.J.A.C. 11:5-6.9; NJ Real Estate Salesperson Study Guide, Chapter on Listing Agreements.
NEW QUESTION # 46
A seller sold a property for $375,000, with the closing on July 1st, in a jurisdiction where the buyer pays for the day of closing. The seller had a mortgage balance at the time of closing of $301,000, and had recently paid invoices of $400 for the second quarter's water and electricity, $1,200 for new appliances, and roofing repairs of $700. Based only on these items, how much will the seller receive at closing?
- A. $71,700
- B. $73,600
- C. $72,400
- D. $74,000
Answer: D
Explanation:
Sale price = $375,000
Mortgage payoff = $301,000
Seller prepaid invoices (utilities, appliances, roof) are already paid and not reimbursable through closing unless agreed. They do not affect the closing statement.
Buyer pays closing day (July 1), so no adjustment required for that day.
375
,
000
#
301
,
000
=
74
,
000
375,000#301,000=74,000
Thus, the seller's net proceeds = $74,000.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Closings and Settlement Statements.
NEW QUESTION # 47
A city has built a new library and has contacted the broker to list and sell the old library building. Which approach should the broker use to estimate the fair market value for the purpose of listing and selling this property?
- A. gross rent multiplier
- B. income approach
- C. sales comparison
- D. replacement cost
Answer: D
Explanation:
For special-purpose properties such as schools, churches, libraries, or government buildings, there are typically few comparable sales and the properties are not income-producing.
In these cases, appraisers use the cost (replacement) approach, which estimates the value by calculating the cost of replacing the structure minus depreciation, plus land value.
Correct answer: C. replacement cost.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Appraisal Methods (Cost Approach for Special-Purpose Properties).
NEW QUESTION # 48
The primary intent of the statute of frauds is to:
- A. protect licensees from fraudulent activity.
- B. reduce real estate contracts to writing.
- C. enforce oral agreements beyond 1 year.
- D. protect the rights of buyers who are disabled.
Answer: B
Explanation:
The Statute of Frauds (as adopted in New Jersey) requires that certain contracts be in writing to be enforceable, including:
Contracts for the sale of real estate.
Leases longer than 3 years.
Certain other long-term agreements.
Its purpose is to prevent fraud and misunderstandings by requiring written evidence of important contracts.
Reference: N.J.S.A. 25:1-13; NJ Real Estate Salesperson Study Guide, Chapter on Contracts.
NEW QUESTION # 49
A lender may add 1/12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property to the monthly loan payment for deposit in:
- A. a margin account
- B. an adjustment account
- C. a PMI account
- D. an impound, escrow, or reserve account
Answer: D
Explanation:
Lenders often require borrowers to pay 1/12th of annual taxes and insurance each month into an escrow (impound or reserve) account.
The lender then pays property taxes and insurance premiums when due.
PMI accounts relate to mortgage insurance, not taxes/insurance.
Margin and adjustment accounts relate to investment or adjustable-rate loans.
Correct answer = C.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Financing and Escrow Accounts.
NEW QUESTION # 50
A public utility company is installing power lines across several counties. Will the utility company be more likely to be granted an easement appurtenant or an easement in gross?
- A. easement appurtenant because it cannot be extinguished by merger of the dominant and servient tenements
- B. easement in gross because it allows the holder of the easement to eventually gain title to the encumbered property
- C. easement in gross because it does not require ownership of real property adjacent to the property that is subject to the easement
- D. easement appurtenant because it cannot run with the land
Answer: C
Explanation:
An easement in gross benefits a person or entity, rather than another parcel of land. Unlike an easement appurtenant, which requires a dominant and servient estate (two adjoining parcels), an easement in gross does not require ownership of adjacent property.
Utility companies (electric, gas, water, sewer, cable) typically hold easements in gross, allowing them to install and maintain lines across multiple properties. The easement is granted to the utility company, not to a neighboring landowner.
Therefore, the correct answer is C.
Reference: NJ Real Estate Salesperson Pre-Licensure Course Guide, Chapter on Interests in Real Estate (Easements); NJ Property Law principles on easements.
NEW QUESTION # 51
Standard title insurance would protect a buyer:
- A. when the seller has forged an ex-partner's signature on the deed.
- B. for the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property.
- C. if after closing, the HOA placed a lien on the property for the previous owners' unpaid dues.
- D. in a purchase where the buyer had knowledge of a shed violating setback requirements.
Answer: A
Explanation:
Standard title insurance protects against defects in title that existed before closing, such as forged documents, undisclosed heirs, or improperly executed deeds.
It does not cover issues arising after closing (like new HOA liens).
It does not protect against defects the buyer already knew about.
It also does not insure physical possession or condition of property.
Thus, the correct answer is A.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Title and Title Insurance.
NEW QUESTION # 52
Which of the following statements correctly describes a standard feature of a buyer-agency agreement?
- A. The source of compensation determines the agency relationship.
- B. It establishes a fiduciary relationship with the buyer.
- C. A buyer-agency agreement is an option rather than an employment contract.
- D. A retainer fee is normally paid at the time the agreement is signed.
Answer: B
Explanation:
Under the New Jersey Real Estate Commission rules on agency disclosure and the Salesperson Study Guide (Chapter on Buyer Agency):
A buyer-agency agreement is a form of employment contract creating a fiduciary relationship between the buyer and the broker.
A is incorrect because it is not just an option; it's a binding agreement.
B may or may not be true - a retainer fee is not required in NJ.
C is false because the source of compensation does not determine agency; agency is determined by the agreement and consent of the parties.
D is correct: a buyer-agency agreement creates fiduciary duties such as loyalty, disclosure, confidentiality, and obedience to the buyer.
Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Agency & Fiduciary Duties section; NJREC Agency Disclosure Rules.
NEW QUESTION # 53
A broker maintains a real estate agency and terminated two salespersons. In this situation, the broker is REQUIRED to take all the following actions with regard to these two salespersons EXCEPT:
- A. abide by the post-termination compensation clause contained in their employment agreements or provide a written explanation for not doing so.
- B. permit them to remove original sales or listing contracts from the broker's office.
- C. provide each with a written accounting of all monies due each salesperson.
- D. pay any undisputed compensation due within ten days of the broker's receipt of such funds.
Answer: B
Explanation:
According to NJREC Rules and Regulations (N.J.A.C. 11:5-4.1) and the Broker-Salesperson employment agreement requirements:
Brokers must provide a full written accounting of monies due.
Any undisputed commission due must be paid within 10 business days of the broker receiving the funds.
The broker must honor the compensation provisions of the terminated salesperson's written employment agreement.
However, salespersons are not permitted to remove original sales or listing contracts, which remain the property of the broker.
Therefore, the action the broker is NOT required to take is B.
Reference: NJREC Rules and Regulations, N.J.A.C. 11:5-4.1 (Employment Agreements and Compensation).
NEW QUESTION # 54
A licensee must provide disclosure of licensed status when acting as a principal if
- A. the agent of the other party asks about this specifically.
- B. the licensee does not have errors and omission insurance.
- C. the licensee has any economic interest in the property.
- D. any relative of the licensee has ever lived in the residence.
Answer: C
Explanation:
Under N.J.A.C. 11:5-6.4, any licensed New Jersey real estate broker, salesperson, or broker-salesperson must disclose in writing their licensed status when they have a direct or indirect ownership interest in property being sold, purchased, or leased. This is known as disclosure of economic interest.
The purpose of this regulation is to ensure the public is fully aware that they are dealing with a licensed real estate professional, who may have specialized knowledge or influence in the transaction. Disclosure must appear in the contract of sale, lease, or any offer made.
Therefore, the correct answer is C, since a licensee must disclose whenever they have an economic interest in the property.
Reference: NJREC Rules and Regulations, N.J.A.C. 11:5-6.4; New Jersey Real Estate Salesperson Pre- Licensure Course Guide, Chapter on Ethical and Legal Responsibilities.
NEW QUESTION # 55
A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?
- A. Hire an appraiser and see if a second appraisal yields a higher appraised value.
- B. Make up the difference between the contract price and appraised value in cash.
- C. Do nothing, because the seller must sell the property at the appraised value.
- D. Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.
Answer: B
Explanation:
VA loans include an escape clause: buyers cannot be forced to purchase a home for more than its appraised value. However, if the buyer still wants the property, they can:
Pay the contract price, but must cover any amount above the VA appraised value in cash, since the VA will only guarantee the appraised portion.
Sellers are not forced to lower their price to the appraisal amount.
An FHA loan will not automatically cover the shortfall.
Thus, the best option is B.
Reference: U.S. Department of Veterans Affairs Loan Guaranty Program; NJ Real Estate Salesperson Study Guide, Chapter on VA and FHA Financing.
NEW QUESTION # 56
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. $1,548
- B. $2,580
- C. $1,290
- D. $2,150
Answer: A
Explanation:
Reference: New Jersey Real Estate Salesperson Pre-Licensure Course Guide, Chapter on Financing and Loan Calculations.
NEW QUESTION # 57
New Jersey Real Estate Commission regulations require a licensee to terminate membership in a real estate board or multiple listing service whenever the organization:
- A. advocates rules, practices, and/or standards with which the licensee does not agree
- B. charges dues that the licensee feels are excessive
- C. suggests uniform commission rates among all member brokers
- D. lobbies against legislation that the licensee personally favors
Answer: C
Explanation:
The NJ Real Estate Commission prohibits price-fixing or collusion regarding commission rates. If a real estate board, trade association, or MLS suggests or enforces uniform commission rates among member brokers, participation in such a practice would violate antitrust laws as well as NJREC regulations.
In such cases, licensees must terminate their membership immediately to avoid disciplinary action. Lobbying, dues disputes, or general disagreements with rules are not grounds for mandatory termination.
Reference: NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Antitrust and Commission Rules.
NEW QUESTION # 58
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:
- A. licensee must provide the buyer with a copy of the Public Offering Statement.
- B. licensee must hold a timeshare sales license.
- C. timeshare must be approved by the Real Estate Commission.
- D. contract of sale must provide notice of a seven calendar day rescission period.
Answer: B
Explanation:
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.
Reference: New Jersey Real Estate Time Share Act; NJ Real Estate Salesperson Study Guide, Chapter on Timeshares and Condominiums.
NEW QUESTION # 59
As required by the New Jersey Real Estate Sales Full Disclosure Act, before signing any contract for the purchase or lease of a property registered with the New Jersey Real Estate Commission, the purchaser or lessee MUST be provided with a copy of the:
- A. New Jersey Public Offering Statement approved by the Commission
- B. Statement of Record filed by the developer with the Commission
- C. filed plat map identifying the location of the property being bought or leased
- D. deed or other instrument establishing title in the name of the developer
Answer: A
Explanation:
The New Jersey Real Estate Sales Full Disclosure Act (RESFDA) requires developers of certain subdivided land, condominiums, and other registered developments to provide purchasers or lessees with a Public Offering Statement approved by the New Jersey Real Estate Commission.
This Public Offering Statement contains essential information about the development, financial and legal obligations, and rights of buyers.
The Statement of Record is filed with the Commission but is not delivered to the purchaser.
Deeds or plat maps are not substitutes for the disclosure document required by law.
Thus, the correct answer is B.
Reference: N.J.S.A. 45:15-16.27 et seq., New Jersey Real Estate Sales Full Disclosure Act; NJ Real Estate Salesperson Study Guide, Chapter on Land Sales.
NEW QUESTION # 60
A married couple is purchasing a home. They ask the salesperson to advise them regarding the best way to take title. The salesperson should
- A. decline to advise them and suggest that they consult an attorney.
- B. advise them to take title as tenants by the entirety.
- C. explain the possible types of joint ownership so they understand the options.
- D. ask a broker to make a recommendation.
Answer: A
Explanation:
According to the NJ Real Estate Commission regulations on licensee conduct and the Salesperson Study Guide (Agency & Professional Practice section), licensees may explain types of ownership but must not give legal advice or recommend a specific method of taking title. Advising how to take title (e.g., tenants by the entirety, joint tenancy, tenancy in common) constitutes the practice of law. The proper action is to refer the buyers to an attorney.
Therefore, the correct answer is C.
(Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Professional Responsibilities & Avoiding Unauthorized Practice of Law.)
NEW QUESTION # 61
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