New Jersey Real Estate Practice Exam Free
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Question 1 of 5.
Under New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT:
A. accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement
B. dealing honestly with all parties
C. disclosing material defects in a property to a prospective purchaser
D. protecting and promoting the interests of the licensee's principal when acting as an agent
Explanation: Licensees have a fiduciary duty to protect and promote the interests of their principal, deal honestly with all parties, and disclose material defects. However, accepting 'any reasonable commission offered' is not an obligation to the public; commission rates are negotiable between broker and seller, and the licensee's primary obligation is to their principal regarding the service, not to the public regarding commission rates.
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.