NJ RE EXAM QUESTIONS AND
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT !!!
Q: What is a secretary in a real estate office without a license legally allowed
to do?
✔✔ Perform bookkeeping tasks related to escrowed funds
Q: When a property owner uses their land as collateral for a loan, what type
of lien is created?
✔✔ A mortgage or deed of trust lien
Q: Under New Jersey law, which task is NOT allowed for an unlicensed real
estate assistant or secretary?
✔✔ Collecting rent from tenants
Q: What must a broker do to earn a commission under an open listing
agreement?
✔✔ Be the procuring cause of the sale
Q: What does the required lead-based paint addendum provide in a home sale
contract for older homes?
✔✔ Gives the buyer the right to waive a lead paint inspection
Q: If a seller backs out of a signed sales contract for an apartment building,
what legal action can the buyer pursue?
✔✔ Specific performance
,If an owner wants to list a property for sale "as is," the listing agent should -
ANSWER✔✔Question the seller to any known defects
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 -ANSWER✔✔licensee must hold a timeshare license
Under the New Jersey State Licensing Law which of the following is an unlicensed
assistant or secretary NOT permitted to do? -ANSWER✔✔make telephone calls to
request rent payments
Under what conditions may a salesperson accept a bonus offered by seller for
service rendered? -ANSWER✔✔the seller pays the broker who passes it on to the
salesperson
Jones and Halstead live across the street from each other in a subdivision in which
homeowners are prohibited by deed restriction from keeping large animals on their
property. Jones discovers that Halstead is keeping a Shetland pony in the backyard.
Can Jones take action to enforce the deed restriction? -ANSWER✔✔Yes, because
Jones is legally bound to report the subdivider any violations of the deed
restrictions.
A seller is offering his property as-is condition. A buyer enters into a contract with
the seller and has the home inspected. The inspection reveals a latent defect known
to but not disclosed by, the seller. The buyer -ANSWER✔✔can void the contract
due to the sellers failure to disclose the latent defect
A house that was listed for $164,000 sold for $158,000. The new loan amount was
$124,000. The state where the sale occurred charges a transfer fee which is which
, is computed at the rate of $3 per $1000. What is the transfer fee for this
transaction. -ANSWER✔✔$474
The seller has required that the buyer must use his title insurance company. The
seller has been told that if the buyer uses the title company, they will pay part of
his real estate commissions, increasing his net proceeds from the sale. Is this a
legally permissible arrangement? -ANSWER✔✔This is illegal according to
RESPA
Whenever a salesperson receives cash to be held in trust, the salesperson MUST: -
ANSWER✔✔give a written receipt signed by the salesperson to the prospective
purchaser and immediately deliver the funds to the salesperson's broker
After receiving a written offer, a seller term-revises the offered purchase price and
initials the change. The salesperson who prepared the offer then takes the only
copy of the revised document back to the buyers. The licensee has violated the
New Jersey Real Estate Law by failing to: -ANSWER✔✔Request that the seller
sign an addendum reflection the revision.
A complaint must be filed with HUD within what period of time after a fair
housing violation has occurred? -ANSWER✔✔1 year
A licensee affiliates with a principal broker as an independent contractor.
Which of the following must the principal broker provide to this licensee? -
ANSWER✔✔independent contractor agreement with compensation based on
production
In the advertisements, a New Jersey real estate company may NOT: -
ANSWER✔✔Abbreviate the regular business name
ANSWERS WITH COMPLETE
SOLUTIONS 100% CORRECT !!!
Q: What is a secretary in a real estate office without a license legally allowed
to do?
✔✔ Perform bookkeeping tasks related to escrowed funds
Q: When a property owner uses their land as collateral for a loan, what type
of lien is created?
✔✔ A mortgage or deed of trust lien
Q: Under New Jersey law, which task is NOT allowed for an unlicensed real
estate assistant or secretary?
✔✔ Collecting rent from tenants
Q: What must a broker do to earn a commission under an open listing
agreement?
✔✔ Be the procuring cause of the sale
Q: What does the required lead-based paint addendum provide in a home sale
contract for older homes?
✔✔ Gives the buyer the right to waive a lead paint inspection
Q: If a seller backs out of a signed sales contract for an apartment building,
what legal action can the buyer pursue?
✔✔ Specific performance
,If an owner wants to list a property for sale "as is," the listing agent should -
ANSWER✔✔Question the seller to any known defects
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 -ANSWER✔✔licensee must hold a timeshare license
Under the New Jersey State Licensing Law which of the following is an unlicensed
assistant or secretary NOT permitted to do? -ANSWER✔✔make telephone calls to
request rent payments
Under what conditions may a salesperson accept a bonus offered by seller for
service rendered? -ANSWER✔✔the seller pays the broker who passes it on to the
salesperson
Jones and Halstead live across the street from each other in a subdivision in which
homeowners are prohibited by deed restriction from keeping large animals on their
property. Jones discovers that Halstead is keeping a Shetland pony in the backyard.
Can Jones take action to enforce the deed restriction? -ANSWER✔✔Yes, because
Jones is legally bound to report the subdivider any violations of the deed
restrictions.
A seller is offering his property as-is condition. A buyer enters into a contract with
the seller and has the home inspected. The inspection reveals a latent defect known
to but not disclosed by, the seller. The buyer -ANSWER✔✔can void the contract
due to the sellers failure to disclose the latent defect
A house that was listed for $164,000 sold for $158,000. The new loan amount was
$124,000. The state where the sale occurred charges a transfer fee which is which
, is computed at the rate of $3 per $1000. What is the transfer fee for this
transaction. -ANSWER✔✔$474
The seller has required that the buyer must use his title insurance company. The
seller has been told that if the buyer uses the title company, they will pay part of
his real estate commissions, increasing his net proceeds from the sale. Is this a
legally permissible arrangement? -ANSWER✔✔This is illegal according to
RESPA
Whenever a salesperson receives cash to be held in trust, the salesperson MUST: -
ANSWER✔✔give a written receipt signed by the salesperson to the prospective
purchaser and immediately deliver the funds to the salesperson's broker
After receiving a written offer, a seller term-revises the offered purchase price and
initials the change. The salesperson who prepared the offer then takes the only
copy of the revised document back to the buyers. The licensee has violated the
New Jersey Real Estate Law by failing to: -ANSWER✔✔Request that the seller
sign an addendum reflection the revision.
A complaint must be filed with HUD within what period of time after a fair
housing violation has occurred? -ANSWER✔✔1 year
A licensee affiliates with a principal broker as an independent contractor.
Which of the following must the principal broker provide to this licensee? -
ANSWER✔✔independent contractor agreement with compensation based on
production
In the advertisements, a New Jersey real estate company may NOT: -
ANSWER✔✔Abbreviate the regular business name
