New Jersey Real Estate Practice Exam Free
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Question 1 of 5.
A buyer informs a listing salesperson that the buyer plans to subdivide the property and then list it with the salesperson as soon as the offer is accepted. The salesperson makes no mention of the buyer's plans to the seller and the buyer's offer is then accepted. The salesperson's conduct is in violation of the New Jersey License Law because the salesperson failed to:
A. advise the buyer that prior subdivision approval is required
B. secure a signed brokerage agreement from the buyer before presenting the offer
C. disclose to the seller a potential conflict of interest
D. request that the salesperson's broker present the offer to the buyer
Explanation: The salesperson has a fiduciary duty to disclose all material facts to their principal (the seller). The buyer's plan to subdivide and then re-list the property with the salesperson creates a potential conflict of interest for the salesperson, as their future commission depends on the subdivision. This material information should have been disclosed to the seller.
Question 2 of 5.
A salesperson has been selling residential properties for five years, and would like to get into listing and selling industrial properties. What would be the salesperson's best course of action?
A. Prospect for some industrial properties to list.
B. Seek to work with a practicing industrial broker either in the salesperson's present company or at another local brokerage.
C. Stay selling residential properties because industrial property brokerage requires a different license and is complex and difficult.
D. Move to a property management company and manage some industrial properties for a while before making this decision.
Explanation: Specializing in a new and complex area like industrial real estate brokerage requires specific knowledge and expertise beyond general residential sales. The most effective way for a salesperson to transition into this field is to gain experience and mentorship by working directly with or for an experienced industrial broker. This allows them to learn the nuances of industrial properties, transactions, and client needs.
Question 3 of 5.
A property owner and a tenant enter into a written agreement whereby the owner will let the tenant live in a home in exchange for monthly rent. Which of the following types of contracts has been created?
A. conditional
B. assigned
C. implied
D. bilateral
Explanation: A written lease agreement where one party (the owner) promises to provide occupancy and the other party (the tenant) promises to pay rent is a classic example of a bilateral contract. Both parties make promises to each other, creating mutual obligations that must be fulfilled.
Question 4 of 5.
The main purpose of antitrust laws is to
A. ensure a minimum price for goods.
B. control the number of competitors.
C. maintain and preserve business competition.
D. ensure that consumers do not pay any more than maximum allowable prices.
Explanation: Antitrust laws (like the Sherman Antitrust Act and Clayton Act) are designed to promote and preserve free and open competition in the marketplace. Their purpose is to prevent monopolies, price-fixing, market allocation, and other anti-competitive practices that would harm consumers by limiting choices or artificially inflating prices.
Question 5 of 5.
Which of the following analyses must be prepared by a certified appraiser?
A. a competitive market analysis for a buyer or seller
B. a price opinion for a lender involved with a short sale transaction
C. an analysis to determine a project's estimated market capture and capitalization rate
D. a property valuation report supporting a federally-related loan application
Explanation: Federally-related real estate transactions, such as those involving loans from federally insured financial institutions, require a formal appraisal performed by a state-certified or licensed appraiser. A competitive market analysis (CMA) or broker price opinion (BPO) can be prepared by a licensed real estate agent/broker but are not considered appraisals and are insufficient for federally-related loans.