New Jersey Real Estate Exam Prep Questions With Correct Answers

Mark, a licensed broker, procures a ready, willing, and able buyer for his seller-principal. The seller accepts the buyer's offer in writing. Just before the schedule closing, the seller has a change of heart and refuses to sell. Mark - Answer is entitle to collect a full commission A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? - Answer Yes, if the buyer and seller both give written consent to dual agency A seller's listing agreement has expired, and the seller lists with a different brokerage firm. Jim, the original listing agent, now has a buyer interested in the seller's property. Based on this information, Jim - Answer cannot disclose to the buyer information about the physical condition of the property A real estate sales person has been working with buyers. After helping them negotiate for their dream home, the buyers asks the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring purchasers to it. Should the salesperson refer the buyers to this lender? - Answer No, because license law prohibits it. A buyer contacts a real estate office and indicates an interest in purchasing a home in the area. Without entering into a buyer agency relationship with the buyer, a salesperson from the real estate office can do all of the following EXCEPT - Answer Advise the buyer to try making a low offer on the property A buyer prospect is interested in seeing a house listed with the real estate company, but does not wish to enter into a buyer agency agreement. A salesperson from the real estate company can show the buyer an in-house-listing if the - Answer Salesperson provides the buyer with a Consumer Information Statement. An exclusive-right-to-buy contract - Answer Must be indicated as such in the buyer agency agreement Buyer-brokerage contracts in New Jersey - Answer Must be in writing to be enforceable. All of the following provisions are included in the New Jersey Real Estate Commission's rules regarding listing agreements EXCEPT that - Answer A listing agreement must be accompanied by a qualified expert's report of the property;s condition. What are the three types of agency recognized in New Jersey? - Answer Seller's, buyer's, disclosed dual In a dual agency situation, a broker may collect a commission from both the seller and the buyer - Answer Under no circumstances The attorney general's memorandum is intended to alert consumers about their rights - Answer Under the New Jersey Law Against Discrimination In New Jersey, when a broker is listing a home and asks the seller to complete a property condition disclosure, which of the following statements is true? - Answer An agent should not give the seller any advice regarding which property conditions to disclose and which to ignore A salesperson represents a seller in a transaction. When prospective buyers ask to look at the property, the salesperson must - Answer Inform them that the salesperson represents the seller's interests Five years ago, Unit 5B in a condominium community was the site of brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the woman's estate, what are your disclosure responsibilities to prospective purchases of Unit 5B? - Answer In New Jersey, you are not required by law to disclose either event. A broker took a listing for a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must - Answer Inform the owner in writing that the salesperson is a license before making an offer. A seller tells her broker that the roof leaks. They agree that they won't lie about it, but won't mention the problem unless the buyers ask. The buyers do not ask about the condition of the roof. Six months after the house is sold, the new owner finds the roof leaking during a rainstorm. In this situation the - Answer Broker is liable for non-disclosure under license law. A real estate licensee must give the Consumer Information Statement to prospective purchasers/tenants - Answer At the first face-to-face meeting, before they are shown any properties. A real estate licensee has signed a brokerage agreement with a tenant who is looking for an apartment to rent. The licensee does not charge a fee to prospective tenants; rather, the licensee receives a commission from landlords. The licensee tells a landlord that a somewhat higher rent than the landlord is asking, Which of the following statements is true? - Answer The licensee owes the statutory agency duties to the landlords who pay the commission Maria, a licensed salesperson, obtains a listing. Several days later, the salesperson meets prospective buyers prospective buyers at the property and tells them, "I am the listing agents for this property, and so I'm very familiar with it." Under these circumstances. Maria: - Answer Should also have furnished the Consumer Information Statement A real estate broker representing a seller knows that property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must volunteer: - Answer The cracked foundation, but disclosing the suicide could constitute a breach of duty to the client. A broker has entered into a listing agreement with a seller. Another broker, who has been working with the buyer, learns of the property through the MLS. Typically the second, cooperating broker would represent: - Answer The buyer as an agent A broker represents a seller of real estate, an agency disclosure must be given to the: - Answer Purchaser, at the first personal meeting with the purchaser. The Realty Company has entered into agency agreements with both a seller and a buyer. The seller and the buyer have signed the dual agency consent agreement. The salesperson with the Realty Company has been working with the buyer. Legally, the salesperson may: - Answer Provide comparable market data to the seller after the buyer request and receive such data from the salesperson.