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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. The following statement was found in a real estate sales contract: "In the event of a default by the purchaser, the forfeiture of the earnest money to the seller will be the only compensation to which the seller will be entitled." This statement most likely describes a:

A) indemnification clause
B) broker protection clause
C) default delivery clause
D) liquidated damages clause

2. A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:

A) retain the difference between the amount of money collected and the amount spent
B) furnish within ninety days of its collection an accounting of how the money was used
C) deduct the amount collected from the commission or settlement
D) give the principal receipts for all expenditures

3. Which action would be allowed according to the Federal Fair Housing law?

A) A broker informs a potential seller that there is an influx of immigrants snatching up rentals in the neighborhood, so this would be a good time to sell.
B) A lender receives notice that a loan application submitted on behalf of a client has been denied. The lender knew the borrower was well qualified, but is told that area is off limits for new loans because of its crime rate.
C) A landlord receives a rental application from a prospective tenant, who came from Russia a few years ago to attend the local university. The lender denies the rental application after asking for the prospective tenant's visa and determines that it expires in 3 months.
D) Broker A meets a new Hispanic buyer client. Broker B just sold a handful of condos to other Hispanic buyers in the Kentwood neighborhood, so broker A suggests the new buyer might be comfortable in that neighborhood.

4. A purchase money note need NOT contain the:

A) time and method of payment.
B) loan-to-value ratio.
C) principal amount of the loan.
D) rate of interest.

5. If an owner wants to list a property for sale "as is," the listing agent should:

A) question the seller as to any known defects.
B) assume that the owner will accept a relatively low price for the property.
C) assume that the house is a "fixer-upper."
D) conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.

Solutions: