New Jersey Real Estate Practice Exam
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Question 1 of 5.
Which of the following is true of a VA loan?
A. Unlike FHA insured loans, there is no mortgage insurance premium or funding fee for a VA loan.
B. A qualified veteran may get a new VA loan to purchase a single family rental investment property.
C. The Department of Veterans Affairs provides loans to eligible veterans at below-market interest rates.
D. The Department of Veterans Affairs guarantees to lenders that they will not suffer a loss if the veteran defaults on the loan.
Explanation: VA loans are guaranteed by the Department of Veterans Affairs, which means the VA will reimburse the lender for losses up to a certain amount if the veteran defaults on the loan. This guarantee encourages lenders to offer more favorable terms to veterans.
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.