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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. Under New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT:

A) protecting and promoting the interests of the licensee's principal when acting as an agent
B) disclosing material defects in a property to a prospective purchaser
C) dealing honestly with all parties
D) accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement

2. A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash.
The broker

A) must forward the offer to the seller's attorney for consideration.
B) may not accept the offer until the seller returns.
C) may accept the offer.
D) may sign a deed of conveyance if the seller does not return on time.

3. Which of the following statements correctly describes a standard feature of a buyer-agency agreement?

A) The source of compensation determines the agency relationship.
B) It establishes a fiduciary relationship with the buyer.
C) A buyer-agency agreement is an option rather than an employment contract.
D) A retainer fee is normally paid at the time the agreement is signed.

4. A subordination agreement is used to:

A) pledge property for a loan without giving up possession.
B) initiate foreclosure proceedings.
C) assign rents to the lender in case of borrower default.
D) change the priority of mortgages.

5. A salesperson working with buyers secures an offer on a property. The offer calls for an initial deposit of
$1,000 to be held in escrow. The salesperson instructs the buyer to issue a personal check in that amount payable to the salesperson. This action is

A) permissible, because the salesperson is acting as agent for the broker.
B) prohibited, because the salesperson accepted a personal check.
C) prohibited, because checks for deposits to be held in escrow may only be payable to the broker's escrow account.
D) permissible if the salesperson immediately writes a check for the deposit amount payable to their broker's escrow account.

Solutions: