When can the developer begin to list lots for sale with a broker?

New Jersey Real Estate Practice Exam

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Question 1 of 5.

Extract:A developer intends to subdivide a large parcel of land and is in the process of land planning. The developer has determined the geographic boundaries of the individual lots and how the streets in the development will be designed to give access to each lot.

A. after the developer records prescriptive easements for lots that have no street frontage

B. when local authorities grant the developer a conditional use permit allowing residential construction

C. when the developer has submitted his plat map to local authorities, received approval, and recorded it

D. immediately, as long as the current zoning ordinance permits the residential use he is planning

Explanation: Before lots in a new subdivision can be legally sold or listed for sale, the developer must typically complete the subdivision approval process. This includes submitting a detailed plat map to the local planning authorities, obtaining their final approval, and officially recording the plat map.

Question 2 of 5.

In advertisements of individual salespersons, which of the following is permitted?

A. Having the broker's name appear in smaller print than the salesperson's name in a newspaper ad.

B. Including reference to a home office.

C. Placing the real estate office sign on a personal residence.

D. Linking a personal real estate webpage to the salesperson's broker's website.

Explanation: Real estate advertising regulations typically require that a salesperson's advertisements clearly indicate their affiliation with their sponsoring broker. Linking a personal webpage to the broker's official website is a common and permitted way to ensure this transparency, as it clearly identifies the brokerage. Other options are often restricted or prohibited to avoid misleading the public.

Question 3 of 5.

A buyer-broker locates a property that is listed with another broker. The buyer makes an offer through the buyer-broker and an agreement of sale results. In this situation, the buyer-broker is acting as a:

A. subagent of the listing broker

B. referring broker with the listing broker

C. representative of the buyer and owes no fiduciary obligations to the seller

D. representative of the seller and owes no fiduciary obligations to the buyer

Explanation: A buyer-broker represents the buyer and owes fiduciary duties solely to them. While they cooperate with the listing broker, they do not act as a subagent of the seller or owe fiduciary obligations to the seller; their loyalty remains with their buyer-client.

Question 4 of 5.

Employment agreements between salespersons and their employing brokers must include the

A. amount of notice of termination that the broker is required to give the salespersons.

B. rate of commissions to be paid to the salespersons upon termination of employment.

C. amount of notice of termination that the salespersons are required to give the broker.

D. period of time after termination during which the salespersons are prohibited from opening their own offices.

Explanation: Real estate licensing laws often require that employment agreements between brokers and their salespersons clearly specify the compensation structure, including the rate of commissions or other remuneration to be paid upon the termination of employment.

Question 5 of 5.

A licensee has an exclusive buyer agency agreement in place. The buyer signs a contract to purchase through a different licensee at an open house. Because of the buyer's agency agreement, which of the following is true?

A. The seller/listing broker owe the buyer's agent a commission.

B. The seller/listing broker owe the listing agent and the buyer's agent a shared commission.

C. The original buyer's agent is owed a commission according to the agreement.

D. The original buyer's agent is entitled to no commission.

Explanation: In an exclusive buyer agency agreement, the buyer generally commits to working exclusively with that agent and typically owes the agent a commission if they purchase a property during the agreement term, regardless of who found the property or through whom the transaction was completed.