REAL ESTATE LICENSING LAWS
COMPREHENSIVE TEST PAPER QUESTIONS
WITH VERIFIED SOLUTIONS RESOURCE
●● What does 'engaging in business' mean according to N.J.S.A. 45:15-
2?
Answer: Any single act, transaction, or sale constitutes engaging in
business.
●● Who is defined as a real estate broker under N.J.S.A. 45:15-3?
Answer: A person, firm, or corporation who lists, sells, exchanges, buys,
or rents real estate for a fee.
●● What activities can a real estate broker perform?
Answer: They can negotiate sales, collect rents, and conduct competitive
sales of lands.
●● What is the definition of a real estate salesperson?
Answer: A natural person employed by a licensed broker to sell or
negotiate real estate transactions.
●● What is a real estate broker-salesperson?
,Answer: A person qualified to be a broker but operates under the
supervision of a licensed broker.
●● What defines a real estate salesperson licensed with a referral
company?
Answer: They refer prospects for real estate transactions and can only
accept compensation from their supervising broker.
●● Can a salesperson licensed with a referral company be licensed with
more than one broker at a time?
Answer: No, they cannot be licensed with more than one broker or
referral company simultaneously.
●● What is a real estate referral company?
Answer: A business entity supervised by a licensed broker that employs
salespersons to refer prospects for real estate transactions.
●● What must a person prove to collect compensation for real estate
activities in New Jersey?
Answer: They must prove they were a duly licensed real estate broker or
salesperson at the time of the action.
●● What is the consequence of not being licensed when claiming
compensation in real estate?
,Answer: No action can be maintained without alleging and proving
licensure.
●● What does N.J.S.A. 45:15-3.1 allow regarding referral fees?
Answer: A licensed broker can pay a referral fee to a broker from
another jurisdiction where they maintain a bona fide office.
●● What is the penalty for engaging in real estate activities without a
license?
Answer: Engaging in such activities is prohibited and can lead to legal
consequences.
●● What activities are real estate salespersons prohibited from doing?
Answer: They cannot engage in business beyond what is authorized by
their status as a licensed salesperson.
●● What is the role of a supervising real estate broker?
Answer: They oversee the activities of real estate salespersons and
broker-salespersons.
●● What is the significance of the term 'valuable consideration' in real
estate definitions?
Answer: It refers to any fee, commission, or expectation of payment for
real estate services.
, ●● What is the legal basis for real estate licensing in New Jersey?
Answer: N.J.S.A. 45:15-1 et seq. outlines the requirements and
definitions for real estate licensing.
●● What must be proven to maintain an action for compensation as a
salesperson?
Answer: Proof of being a duly licensed real estate salesperson at the
time of the cause of action.
●● What does 'collecting rents' refer to in the context of real estate
activities?
Answer: It refers to the act of gathering payment for the use of real
estate.
●● What does 'listing for sale' mean in real estate terms?
Answer: It means to officially offer a property for sale, often through a
broker.
●● What are the implications of a real estate transaction being
'contemplated'?
Answer: It indicates that negotiations or actions are being considered but
not yet finalized.
COMPREHENSIVE TEST PAPER QUESTIONS
WITH VERIFIED SOLUTIONS RESOURCE
●● What does 'engaging in business' mean according to N.J.S.A. 45:15-
2?
Answer: Any single act, transaction, or sale constitutes engaging in
business.
●● Who is defined as a real estate broker under N.J.S.A. 45:15-3?
Answer: A person, firm, or corporation who lists, sells, exchanges, buys,
or rents real estate for a fee.
●● What activities can a real estate broker perform?
Answer: They can negotiate sales, collect rents, and conduct competitive
sales of lands.
●● What is the definition of a real estate salesperson?
Answer: A natural person employed by a licensed broker to sell or
negotiate real estate transactions.
●● What is a real estate broker-salesperson?
,Answer: A person qualified to be a broker but operates under the
supervision of a licensed broker.
●● What defines a real estate salesperson licensed with a referral
company?
Answer: They refer prospects for real estate transactions and can only
accept compensation from their supervising broker.
●● Can a salesperson licensed with a referral company be licensed with
more than one broker at a time?
Answer: No, they cannot be licensed with more than one broker or
referral company simultaneously.
●● What is a real estate referral company?
Answer: A business entity supervised by a licensed broker that employs
salespersons to refer prospects for real estate transactions.
●● What must a person prove to collect compensation for real estate
activities in New Jersey?
Answer: They must prove they were a duly licensed real estate broker or
salesperson at the time of the action.
●● What is the consequence of not being licensed when claiming
compensation in real estate?
,Answer: No action can be maintained without alleging and proving
licensure.
●● What does N.J.S.A. 45:15-3.1 allow regarding referral fees?
Answer: A licensed broker can pay a referral fee to a broker from
another jurisdiction where they maintain a bona fide office.
●● What is the penalty for engaging in real estate activities without a
license?
Answer: Engaging in such activities is prohibited and can lead to legal
consequences.
●● What activities are real estate salespersons prohibited from doing?
Answer: They cannot engage in business beyond what is authorized by
their status as a licensed salesperson.
●● What is the role of a supervising real estate broker?
Answer: They oversee the activities of real estate salespersons and
broker-salespersons.
●● What is the significance of the term 'valuable consideration' in real
estate definitions?
Answer: It refers to any fee, commission, or expectation of payment for
real estate services.
, ●● What is the legal basis for real estate licensing in New Jersey?
Answer: N.J.S.A. 45:15-1 et seq. outlines the requirements and
definitions for real estate licensing.
●● What must be proven to maintain an action for compensation as a
salesperson?
Answer: Proof of being a duly licensed real estate salesperson at the
time of the cause of action.
●● What does 'collecting rents' refer to in the context of real estate
activities?
Answer: It refers to the act of gathering payment for the use of real
estate.
●● What does 'listing for sale' mean in real estate terms?
Answer: It means to officially offer a property for sale, often through a
broker.
●● What are the implications of a real estate transaction being
'contemplated'?
Answer: It indicates that negotiations or actions are being considered but
not yet finalized.
