NEW JERSEY REAL ESTATE SALESPERSON
Practice Exam Questions and Answers with
Rationales Latest Versions
Question 1
A New Jersey real estate salesperson is licensed under:
A. The New Jersey Department of Banking and Insurance
B. The New Jersey Real Estate Commission
C. The National Association of REALTORS®
D. The Department of Consumer Affairs
Correct Answer: B. The New Jersey Real Estate Commission
Rationale
The New Jersey Real Estate Commission (NJREC) regulates real estate
licensing, education, investigations, and disciplinary actions within the
state.
Why the others are incorrect:
• A: Banking and Insurance regulates financial institutions and
insurance.
• C: NAR is a private trade association, not a licensing authority.
• D: Although the Commission operates within the Division of
Consumer Affairs, the licensing authority is specifically the
NJREC.
Question 2
,A broker lists a home for $540,000. The seller agrees to pay a 5%
commission. If the property sells for the full asking price, what is the
total commission?
A. $21,600
B. $25,700
C. $27,000
D. $32,400
Correct Answer: C. $27,000
Rationale
Commission = Sale Price × Commission Rate
$540,000 × 5%
= $27,000
This commission is generally paid to the listing brokerage, which may
then share it with the cooperating brokerage according to their
agreement.
Question 3
Which form of ownership provides the right of survivorship?
A. Tenancy in Common
B. Sole Ownership
C. Joint Tenancy
D. Life Estate
,Correct Answer: C. Joint Tenancy
Rationale
Joint tenancy includes four unities:
• Time
• Title
• Interest
• Possession
A defining feature is the right of survivorship, meaning the deceased
owner's interest automatically transfers to the surviving joint tenant(s).
Why not the others?
• Tenancy in Common has no survivorship.
• Sole ownership involves one owner only.
• Life estate ends upon the death of the life tenant.
Question 4
The primary purpose of the Fair Housing Act is to:
A. Establish mortgage interest rates
B. Protect consumers from fraud
C. Prevent discrimination in housing
D. Regulate brokerage commissions
Correct Answer: C. Prevent discrimination in housing
Rationale
The federal Fair Housing Act prohibits discrimination based on:
, • Race
• Color
• Religion
• Sex
• National origin
• Familial status
• Disability
Many states, including New Jersey, provide additional protected classes
under state law.
Question 5
An agent intentionally misrepresents the condition of a property's roof to
induce a buyer to purchase the home. This is an example of:
A. Puffing
B. Fraud
C. Negligence
D. Breach of fiduciary duty only
Correct Answer: B. Fraud
Rationale
Fraud requires:
• A material false statement
• Knowledge the statement is false
• Intent to induce reliance
• Actual reliance
• Damages
Practice Exam Questions and Answers with
Rationales Latest Versions
Question 1
A New Jersey real estate salesperson is licensed under:
A. The New Jersey Department of Banking and Insurance
B. The New Jersey Real Estate Commission
C. The National Association of REALTORS®
D. The Department of Consumer Affairs
Correct Answer: B. The New Jersey Real Estate Commission
Rationale
The New Jersey Real Estate Commission (NJREC) regulates real estate
licensing, education, investigations, and disciplinary actions within the
state.
Why the others are incorrect:
• A: Banking and Insurance regulates financial institutions and
insurance.
• C: NAR is a private trade association, not a licensing authority.
• D: Although the Commission operates within the Division of
Consumer Affairs, the licensing authority is specifically the
NJREC.
Question 2
,A broker lists a home for $540,000. The seller agrees to pay a 5%
commission. If the property sells for the full asking price, what is the
total commission?
A. $21,600
B. $25,700
C. $27,000
D. $32,400
Correct Answer: C. $27,000
Rationale
Commission = Sale Price × Commission Rate
$540,000 × 5%
= $27,000
This commission is generally paid to the listing brokerage, which may
then share it with the cooperating brokerage according to their
agreement.
Question 3
Which form of ownership provides the right of survivorship?
A. Tenancy in Common
B. Sole Ownership
C. Joint Tenancy
D. Life Estate
,Correct Answer: C. Joint Tenancy
Rationale
Joint tenancy includes four unities:
• Time
• Title
• Interest
• Possession
A defining feature is the right of survivorship, meaning the deceased
owner's interest automatically transfers to the surviving joint tenant(s).
Why not the others?
• Tenancy in Common has no survivorship.
• Sole ownership involves one owner only.
• Life estate ends upon the death of the life tenant.
Question 4
The primary purpose of the Fair Housing Act is to:
A. Establish mortgage interest rates
B. Protect consumers from fraud
C. Prevent discrimination in housing
D. Regulate brokerage commissions
Correct Answer: C. Prevent discrimination in housing
Rationale
The federal Fair Housing Act prohibits discrimination based on:
, • Race
• Color
• Religion
• Sex
• National origin
• Familial status
• Disability
Many states, including New Jersey, provide additional protected classes
under state law.
Question 5
An agent intentionally misrepresents the condition of a property's roof to
induce a buyer to purchase the home. This is an example of:
A. Puffing
B. Fraud
C. Negligence
D. Breach of fiduciary duty only
Correct Answer: B. Fraud
Rationale
Fraud requires:
• A material false statement
• Knowledge the statement is false
• Intent to induce reliance
• Actual reliance
• Damages
