NJ Real Estate Exam Questions With Verified Answers

Broker - Answer One who buys and sells for another for a fee. Broker-Salesperson - Answer A qualified broker who practices real estate in the position of salesperson in another broker's office bureau of subsidized land sales control - Answer regulations covering out of state properties sold in NJ continuing education - Answer 12 hours required every two years, two of which must be on ethics NJ Real Estate Commission - Answer Department of Banking and Insurance. 8 members. 5 brokers for at least 10 years, two from general public and one representing the state government Real estate license act - Answer Title 45 chapter 15 Title 11, chapter 5 - Answer NJ real estate license act administrative code Real estate sales full disclosure act - Answer covers the sales of out of state property in NJ referral agent - Answer only allowed to refer prospects to a brokers office referral fee - Answer part of a commission or fee paid to a broker who sends a client salesperson - Answer works under a sponsoring licensed broker doing business in the name of the broker branch office - Answer must be under the direct supervisor of a broker or broker salesperson and must have a duplicate license commingling - Answer brokers are prohibited from mixing their own funds with money in the trust account duplicate original - Answer multiple original copies for the parties signatures. required for all listing contracts, sales contracts and leases escrow account - Answer also known as trust account. must be in an authorized financial institution in NJ to be used for depositing all money belonging to other persons guilty knowledge - Answer knew what was going on and did not attempt to stop it probation - Answer first step after a complaint against a licensee. fine of up to $5000 suspension - Answer suspend a license fine up to $10,000 revocation - Answer permanently revoke licence. Fine up to $10,000 waiver of broker cooperation - Answer what a seller must sign if they direct the broker not to cooperate with any other brokers principal - Answer client agency - Answer a fiduciary relationship that falls within in the requirements of the law of agency 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 Federal Fair Housing Act of 1968 - Answer Unlawful to discriminate on the basis of race, color, religion or national origin when selling or leasing residential properties. Certain exemptions apply Title VIII - Answer The portion of the Civil Rights Act of 1968 in which the Federal Fair Housing act is contained Redlining - Answer Refusing to make mortgage loans or issue insurance policies in specific geographic areas without regard to the economic qualifications of the applicant Steering - Answer channeling homeseekers either to or away from a particular area on the basis of race, religion, country of origin or other protected class