New Jersey Real Estate Salesperson
Examination — Full-Length Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A licensed New Jersey real estate salesperson enters into a written
listing agreement with a homeowner to sell a single-family residence.
The agreement grants the broker the exclusive right to sell for six
months. During the listing period, the owner independently finds a
buyer and completes the sale without the broker’s assistance. Under
New Jersey law, which statement best describes the broker’s
entitlement to compensation?
A. The broker is not entitled to any commission because the broker did not
procure the buyer
B. The broker is entitled to a commission only if the broker can prove
marketing efforts
,C. The broker is entitled to the agreed commission regardless of who
procured the buyer
D. The broker is entitled only to reimbursement of advertising expenses
Correct Answer: C
An exclusive right-to-sell listing entitles the broker to a commission if the
property sells during the listing period, regardless of who finds the buyer.
2. A real estate salesperson in New Jersey is accused of commingling
personal funds with escrow funds belonging to clients. Which
regulatory body has primary authority to investigate and discipline the
licensee?
A. The New Jersey Association of REALTORS®
B. The county clerk
C. The New Jersey Real Estate Commission
D. The Department of Consumer Affairs Legal Division
Correct Answer: C
The New Jersey Real Estate Commission regulates licensing, investigates
violations, and imposes discipline for misconduct such as commingling.
3. A buyer purchases a residential property in New Jersey and later
discovers a latent defect that the seller knew about but failed to
disclose. Which legal principle is most directly applicable?
,A. Caveat emptor without exception
B. Puffing
C. Fraudulent misrepresentation by omission
D. Mutual mistake
Correct Answer: C
Failure to disclose a known material latent defect constitutes fraudulent
misrepresentation by omission.
4. A New Jersey broker receives an earnest money deposit from a buyer.
According to state regulations, how must the broker handle these
funds?
A. Deposit into the broker’s operating account immediately
B. Hold the funds in cash until closing
C. Place the funds in a properly designated escrow or trust account
D. Transfer the funds directly to the seller
Correct Answer: C
Earnest money must be deposited into a separate escrow or trust account
to protect client funds.
5. A salesperson represents both buyer and seller in the same
transaction with written informed consent from both parties. This
practice is known as:
, A. Designated agency
B. Subagency
C. Transaction brokerage
D. Dual agency
Correct Answer: D
Dual agency occurs when one licensee or brokerage represents both
parties with informed written consent.
6. Under New Jersey Fair Housing laws, which of the following actions by
a salesperson would be considered illegal steering?
A. Providing school district information upon request
B. Advertising a property as “close to public transportation”
C. Directing buyers toward or away from neighborhoods based on race or
religion
D. Explaining zoning classifications
Correct Answer: C
Steering based on protected classes is prohibited under federal and state
fair housing laws.
7. A property owner conveys title to a buyer using a deed that provides
the greatest protection against title defects, including those arising
before the grantor’s ownership. Which deed is this?
Examination — Full-Length Practice
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A licensed New Jersey real estate salesperson enters into a written
listing agreement with a homeowner to sell a single-family residence.
The agreement grants the broker the exclusive right to sell for six
months. During the listing period, the owner independently finds a
buyer and completes the sale without the broker’s assistance. Under
New Jersey law, which statement best describes the broker’s
entitlement to compensation?
A. The broker is not entitled to any commission because the broker did not
procure the buyer
B. The broker is entitled to a commission only if the broker can prove
marketing efforts
,C. The broker is entitled to the agreed commission regardless of who
procured the buyer
D. The broker is entitled only to reimbursement of advertising expenses
Correct Answer: C
An exclusive right-to-sell listing entitles the broker to a commission if the
property sells during the listing period, regardless of who finds the buyer.
2. A real estate salesperson in New Jersey is accused of commingling
personal funds with escrow funds belonging to clients. Which
regulatory body has primary authority to investigate and discipline the
licensee?
A. The New Jersey Association of REALTORS®
B. The county clerk
C. The New Jersey Real Estate Commission
D. The Department of Consumer Affairs Legal Division
Correct Answer: C
The New Jersey Real Estate Commission regulates licensing, investigates
violations, and imposes discipline for misconduct such as commingling.
3. A buyer purchases a residential property in New Jersey and later
discovers a latent defect that the seller knew about but failed to
disclose. Which legal principle is most directly applicable?
,A. Caveat emptor without exception
B. Puffing
C. Fraudulent misrepresentation by omission
D. Mutual mistake
Correct Answer: C
Failure to disclose a known material latent defect constitutes fraudulent
misrepresentation by omission.
4. A New Jersey broker receives an earnest money deposit from a buyer.
According to state regulations, how must the broker handle these
funds?
A. Deposit into the broker’s operating account immediately
B. Hold the funds in cash until closing
C. Place the funds in a properly designated escrow or trust account
D. Transfer the funds directly to the seller
Correct Answer: C
Earnest money must be deposited into a separate escrow or trust account
to protect client funds.
5. A salesperson represents both buyer and seller in the same
transaction with written informed consent from both parties. This
practice is known as:
, A. Designated agency
B. Subagency
C. Transaction brokerage
D. Dual agency
Correct Answer: D
Dual agency occurs when one licensee or brokerage represents both
parties with informed written consent.
6. Under New Jersey Fair Housing laws, which of the following actions by
a salesperson would be considered illegal steering?
A. Providing school district information upon request
B. Advertising a property as “close to public transportation”
C. Directing buyers toward or away from neighborhoods based on race or
religion
D. Explaining zoning classifications
Correct Answer: C
Steering based on protected classes is prohibited under federal and state
fair housing laws.
7. A property owner conveys title to a buyer using a deed that provides
the greatest protection against title defects, including those arising
before the grantor’s ownership. Which deed is this?
