NATIONAL REAL ESTATE QUESTIONS V1
1. Quality Supermarkets has taken occupancy of a retail building and has a long term lease.
As part of the their fit-up, they bolt to the floor their meat anddairy coolers, and shelves. When
Quality Supermarket vacates the property atthe end of the lease, will Quality Supermarkets be
legally entitled to remove these fixtures?
A.) no, because they are trade fixtures
B.) yes, because they are appurtenances
C.) no, because they are bolted to the floor
D.) yes, if removed prior to the end of the lease:
2. A salesperson is convicted of a crime which involves a real estate licensee.The commission
obtains a certified copy of judgement of conviction against the salesperson. According to the
New Jersey Real Estate License Law, the commission MUST:
A.) revoke the salesperson license
B.) suspend the salesperson license
C.) determine altercation to take
D.) Notify the salesperson employing broker of the circumstances to the conviction: D.)
Notify the salesperson employing broker of the circumstances tothe conviction
3. The buyer wrote an offer to purchase a property and gave the broker
$10,000 earnest money. The offer required the seller to respond within six days. Three days
later the buyer decided to terminate the offer and has askedfor the earnest money to be refunded.
What will normally happen to the earnestmoney in such a situation?
A.) The broker can withdraw the offer , but the seller and the broker will eachretain five
thousand dollars as liquidated damages
B.) The broker will retain the earnest money deposit in lieu of commission inthe the event of
termination
C.) The buyer cannot terminate the offer until six days are up and will thereforeforfeit the earnest
money deposit
D) Until the seller has accepted the offer the buyer has the right to terminateand receive the
refund of the deposit: A.) The broker can withdraw the offer , butthe seller and the broker will
each retain five thousand dollars as liquidated damages
4. The broker received a birthday check from one of his clients. The broker decided to put it
in the escrow account because it was from a client. This isconsidered:
A.) Conversion
B.) Commingling
C.) Acceptable if the check was written on the client's business account
D.) Acceptable if the client has had a transaction within the last 18 months: B.)Commingling
,5. A property is shown to prospective buyer by a cooperating agent who is along-time friend
of the listing agent. While still in the house the buyers makea full price offer on the property.
As the cooperating agent is locking up the house, the owner return and ask how the showing
went.The cooperating agent
explains that she has an offer on the property and will immediately deliver it to the listing
agent. The owner beg the cooperating agent to present the offerimmediately. The cooperating
agent should?
A.) Present the offer because the owners are directing her to do so.
B.) Deliver the offer to the listing agent before it is presented to the owners.
C.) Present the offer to the owners and demand that they sign immediately.
D.) Deliver the offer to the listing agent, but verbally tell the seller that is a fullprice offer.: B.)
Deliver the offer to the listing agent before it is presented to the owners.
6. Which of the following BEST defines a material fact in the real estatecontext?
A.) property deficiency that must be recorded at the time of sale.
B.) A representation made on a licensee's marketing sheet that has beenverified by the
licensee.
C.) A fact significant enough to influence an individual's decision aboutwhether or not to
purchase.
D.) A latent deficiency of a property that may be disclosed to a prospectivebuyer only if an
offer is made.: C.) A fact significant enough to influence an individual's decision about
whether or not to purchase.
7. With regards to the termination date in listing contracts, which of thefollowing statement
is correct?
A.) Order listing with a definite termination date are enforceable by broker.
B.) Exclusive agency listing must have definite termination date.
C.) Exclusive right to sell listing are not required to state a definite terminationdate.
D.) A listing contract may provide for an automatic extension of the listing term unless
written decision is given.: D.) A listing contract may provide for anautomatic extension of the
listing term unless written decision is given.
8. A contract of sale prepared by a licensee must include an attorney reviewclause if it
pertains to which of the following type of properties?
A.) Six Family dwelling unit, a portion of which is used for non-residentialpurpose.
B.) Commercial building that doesn't exceed 10000 square feet.
C.) Subdivision of fifteen or more lots.
D.) Single family residential vacant lot.: A.) Six Family dwelling unit, a portion ofwhich is
used for non-residential purpose.
, 9. A deposit check from a buyer paid upon the submission of an offer maybe held without
being deposited into the brokers escrow account:
A.) Until negotiations are concluded and the seller has accepted the offer
B.) Until all inspections are required by the contract have been performed
C.) For no more than 5 business days after receipt of money
D.) After the termination of the attornet review period: C.) For no more than 5business days
after receipt of money
10. The heir to a large estate will be of legal age within 30 days. He lists for salewith a broker
one of the properties held by the estate. The broker knows of abuyer for the property and sells
it within 24 hours of listing, with closing to bein 45 days. Both listing and sale contracts are
A.) Fulfilled
B.) Executed
C.) Voidable
D.) Executory: C.) Voidable
11. Which of the following items could never constitute a fixture?
A.) Tree
B.) Shrub
C.) Swimming pool
D.) Land: C.) Swimming Pool
12. A buyer who is purchasing a property intends to build a chain link fence inthe backyard.
There is a 12-year-old deed restriction that prohibits chain link fences. The licensee finds out
that there are no city codes prohibiting chain link fences. Which of the following statement
regarding this situation is true?
A.) City code always takes priority over deed restrictions.
B.) This city code takes priority because deed restrictions expire 10 years aftera subdivision is
developed
C.) Deed restrictions always take priority over city codes
D.) This deed restriction is more restrictive and will, therefore, take precedence: D.) This deed
restriction is more restrictive and will, therefore, take precedence
13. Which if the following is a function of the municipal planning board?
A.) Approving a variance for an addition to a garage or a residential property
B.) Creating a master plan for all the land in a particular county
C.) Unilaterally approving subdivisions in a jurisdiction
D.) Prescribing and controlling the development and use of all land in a municipality: B.)
Creating a master plan for all the land in a particular county
1. Quality Supermarkets has taken occupancy of a retail building and has a long term lease.
As part of the their fit-up, they bolt to the floor their meat anddairy coolers, and shelves. When
Quality Supermarket vacates the property atthe end of the lease, will Quality Supermarkets be
legally entitled to remove these fixtures?
A.) no, because they are trade fixtures
B.) yes, because they are appurtenances
C.) no, because they are bolted to the floor
D.) yes, if removed prior to the end of the lease:
2. A salesperson is convicted of a crime which involves a real estate licensee.The commission
obtains a certified copy of judgement of conviction against the salesperson. According to the
New Jersey Real Estate License Law, the commission MUST:
A.) revoke the salesperson license
B.) suspend the salesperson license
C.) determine altercation to take
D.) Notify the salesperson employing broker of the circumstances to the conviction: D.)
Notify the salesperson employing broker of the circumstances tothe conviction
3. The buyer wrote an offer to purchase a property and gave the broker
$10,000 earnest money. The offer required the seller to respond within six days. Three days
later the buyer decided to terminate the offer and has askedfor the earnest money to be refunded.
What will normally happen to the earnestmoney in such a situation?
A.) The broker can withdraw the offer , but the seller and the broker will eachretain five
thousand dollars as liquidated damages
B.) The broker will retain the earnest money deposit in lieu of commission inthe the event of
termination
C.) The buyer cannot terminate the offer until six days are up and will thereforeforfeit the earnest
money deposit
D) Until the seller has accepted the offer the buyer has the right to terminateand receive the
refund of the deposit: A.) The broker can withdraw the offer , butthe seller and the broker will
each retain five thousand dollars as liquidated damages
4. The broker received a birthday check from one of his clients. The broker decided to put it
in the escrow account because it was from a client. This isconsidered:
A.) Conversion
B.) Commingling
C.) Acceptable if the check was written on the client's business account
D.) Acceptable if the client has had a transaction within the last 18 months: B.)Commingling
,5. A property is shown to prospective buyer by a cooperating agent who is along-time friend
of the listing agent. While still in the house the buyers makea full price offer on the property.
As the cooperating agent is locking up the house, the owner return and ask how the showing
went.The cooperating agent
explains that she has an offer on the property and will immediately deliver it to the listing
agent. The owner beg the cooperating agent to present the offerimmediately. The cooperating
agent should?
A.) Present the offer because the owners are directing her to do so.
B.) Deliver the offer to the listing agent before it is presented to the owners.
C.) Present the offer to the owners and demand that they sign immediately.
D.) Deliver the offer to the listing agent, but verbally tell the seller that is a fullprice offer.: B.)
Deliver the offer to the listing agent before it is presented to the owners.
6. Which of the following BEST defines a material fact in the real estatecontext?
A.) property deficiency that must be recorded at the time of sale.
B.) A representation made on a licensee's marketing sheet that has beenverified by the
licensee.
C.) A fact significant enough to influence an individual's decision aboutwhether or not to
purchase.
D.) A latent deficiency of a property that may be disclosed to a prospectivebuyer only if an
offer is made.: C.) A fact significant enough to influence an individual's decision about
whether or not to purchase.
7. With regards to the termination date in listing contracts, which of thefollowing statement
is correct?
A.) Order listing with a definite termination date are enforceable by broker.
B.) Exclusive agency listing must have definite termination date.
C.) Exclusive right to sell listing are not required to state a definite terminationdate.
D.) A listing contract may provide for an automatic extension of the listing term unless
written decision is given.: D.) A listing contract may provide for anautomatic extension of the
listing term unless written decision is given.
8. A contract of sale prepared by a licensee must include an attorney reviewclause if it
pertains to which of the following type of properties?
A.) Six Family dwelling unit, a portion of which is used for non-residentialpurpose.
B.) Commercial building that doesn't exceed 10000 square feet.
C.) Subdivision of fifteen or more lots.
D.) Single family residential vacant lot.: A.) Six Family dwelling unit, a portion ofwhich is
used for non-residential purpose.
, 9. A deposit check from a buyer paid upon the submission of an offer maybe held without
being deposited into the brokers escrow account:
A.) Until negotiations are concluded and the seller has accepted the offer
B.) Until all inspections are required by the contract have been performed
C.) For no more than 5 business days after receipt of money
D.) After the termination of the attornet review period: C.) For no more than 5business days
after receipt of money
10. The heir to a large estate will be of legal age within 30 days. He lists for salewith a broker
one of the properties held by the estate. The broker knows of abuyer for the property and sells
it within 24 hours of listing, with closing to bein 45 days. Both listing and sale contracts are
A.) Fulfilled
B.) Executed
C.) Voidable
D.) Executory: C.) Voidable
11. Which of the following items could never constitute a fixture?
A.) Tree
B.) Shrub
C.) Swimming pool
D.) Land: C.) Swimming Pool
12. A buyer who is purchasing a property intends to build a chain link fence inthe backyard.
There is a 12-year-old deed restriction that prohibits chain link fences. The licensee finds out
that there are no city codes prohibiting chain link fences. Which of the following statement
regarding this situation is true?
A.) City code always takes priority over deed restrictions.
B.) This city code takes priority because deed restrictions expire 10 years aftera subdivision is
developed
C.) Deed restrictions always take priority over city codes
D.) This deed restriction is more restrictive and will, therefore, take precedence: D.) This deed
restriction is more restrictive and will, therefore, take precedence
13. Which if the following is a function of the municipal planning board?
A.) Approving a variance for an addition to a garage or a residential property
B.) Creating a master plan for all the land in a particular county
C.) Unilaterally approving subdivisions in a jurisdiction
D.) Prescribing and controlling the development and use of all land in a municipality: B.)
Creating a master plan for all the land in a particular county
