NJ REAL ESTATE EXAM 2 FINAL PAPER 2026
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ fiduciary relationship. Answer: one of trust and confidence in
which an agent is responsible for the money and/or property of
others. It requires putting the principal's interest above all others,
including the broker's own interest.
◉ fiduciary. Answer: agent
◉ COALD. Answer: Care, obedience, accounting, loyalty, disclosure
◉ general agent. Answer: empowered to represent the principal in a
broad range of matters (ex: property manager)
◉ universal agent. Answer: has authority to represent the principal
in all matters that can be delegated (ex: power of attorney)
◉ special agent. Answer: authorized to represent that principal in
one specific capacity only (most broker relationships)
,◉ standard of care. Answer: the quality of service a normal person
would expect from a broker or salesperson
◉ disclosure. Answer: agent's duty to pass on to the principal all the
facts and information obtained that could affect the principal's
business or decisions, whether or not the client asks
◉ subagent. Answer: the salesperson's relationship to the principal
as the agent of the broker
◉ independent contractor. Answer: pay own taxes, receive no
insurance, get nothing from brokerage that could be considered an
employee benefit
◉ ready, willing and able buyer. Answer: one who is prepared to buy
on the seller's terms, is financially capable and is ready to take
positive steps towards the consummation of the transaction
◉ procuring cause. Answer: the person who brings about a ready,
willing and able buyer or brings about a meeting of the minds
◉ meeting of the minds. Answer: takes place when the parties are in
agreement on price, down payment and financing method
,◉ consumer information statement. Answer: a form of disclosure to
all sellers, buyers, landlords and tenants on the sale of all 1-4 family
residential properties or vacant one family lots. Describes the types
of business relationships a real estate agent can enter into with a
client
◉ dual agency. Answer: broker represents both parties in a
transaction at the same time
◉ disclosed dual agency. Answer: legal as long as consent to dual
agency agreement is signed
◉ conflict of interest. Answer: conflict between brokers own interest
and that of the seller
◉ latent defect. Answer: hidden defect not discoverable by ordinary
inspection
◉ Megan's Law. Answer: requires communities to be alerted to the
presence of convicted sexual offenders. Buyers can not get
information until the close of the sale
◉ puffing. Answer: extravagant statements of opinion
, ◉ fraudulent misrepresentation. Answer: deliberate lie intended to
mislead someone
◉ innocent misrepresentation. Answer: false statement by someone
who believes it to be true and is not expected to have expertise in
the subject
◉ negligent misrepresentation. Answer: false statements made by
someone who should know better
◉ antitrust laws. Answer: fdederal and state laws in regard to price
fixing and allocation of customers or markets
◉ errors and omissions insurance. Answer: malpractice insurance
for the real estate industry
◉ off site conditions. Answer: not on the property purchased. New
construction has 5 days for you to cancel the contract existing
properties do not have a similar right of rescission
◉ Civil Rights act of 1866. Answer: Prohibits any discrimination
based on race and color, no exceptions
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ fiduciary relationship. Answer: one of trust and confidence in
which an agent is responsible for the money and/or property of
others. It requires putting the principal's interest above all others,
including the broker's own interest.
◉ fiduciary. Answer: agent
◉ COALD. Answer: Care, obedience, accounting, loyalty, disclosure
◉ general agent. Answer: empowered to represent the principal in a
broad range of matters (ex: property manager)
◉ universal agent. Answer: has authority to represent the principal
in all matters that can be delegated (ex: power of attorney)
◉ special agent. Answer: authorized to represent that principal in
one specific capacity only (most broker relationships)
,◉ standard of care. Answer: the quality of service a normal person
would expect from a broker or salesperson
◉ disclosure. Answer: agent's duty to pass on to the principal all the
facts and information obtained that could affect the principal's
business or decisions, whether or not the client asks
◉ subagent. Answer: the salesperson's relationship to the principal
as the agent of the broker
◉ independent contractor. Answer: pay own taxes, receive no
insurance, get nothing from brokerage that could be considered an
employee benefit
◉ ready, willing and able buyer. Answer: one who is prepared to buy
on the seller's terms, is financially capable and is ready to take
positive steps towards the consummation of the transaction
◉ procuring cause. Answer: the person who brings about a ready,
willing and able buyer or brings about a meeting of the minds
◉ meeting of the minds. Answer: takes place when the parties are in
agreement on price, down payment and financing method
,◉ consumer information statement. Answer: a form of disclosure to
all sellers, buyers, landlords and tenants on the sale of all 1-4 family
residential properties or vacant one family lots. Describes the types
of business relationships a real estate agent can enter into with a
client
◉ dual agency. Answer: broker represents both parties in a
transaction at the same time
◉ disclosed dual agency. Answer: legal as long as consent to dual
agency agreement is signed
◉ conflict of interest. Answer: conflict between brokers own interest
and that of the seller
◉ latent defect. Answer: hidden defect not discoverable by ordinary
inspection
◉ Megan's Law. Answer: requires communities to be alerted to the
presence of convicted sexual offenders. Buyers can not get
information until the close of the sale
◉ puffing. Answer: extravagant statements of opinion
, ◉ fraudulent misrepresentation. Answer: deliberate lie intended to
mislead someone
◉ innocent misrepresentation. Answer: false statement by someone
who believes it to be true and is not expected to have expertise in
the subject
◉ negligent misrepresentation. Answer: false statements made by
someone who should know better
◉ antitrust laws. Answer: fdederal and state laws in regard to price
fixing and allocation of customers or markets
◉ errors and omissions insurance. Answer: malpractice insurance
for the real estate industry
◉ off site conditions. Answer: not on the property purchased. New
construction has 5 days for you to cancel the contract existing
properties do not have a similar right of rescission
◉ Civil Rights act of 1866. Answer: Prohibits any discrimination
based on race and color, no exceptions
