New Jersey Real Estate Salesperson Exam Version 7
Practice exam for Salesperson and Broker License Exam under Real Estate Exams (Licensing Exams). 5 sample questions.
Sample Questions
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Question 1
Elderly homeowners paid off their loan 5 years ago. Due to a limited fixed income, they would like to borrow on the equity of the home. Which type of loan would be most desirable?
Correct Answer: B
Rationale: Reverse mortgages are designed for seniors (typically 62+) to borrow against home equity without monthly payments, suitable for fixed income. Open-end loans are lines of credit for additional borrowing, blanket loans cover multiple properties, and growing-equity loans accelerate principal paydown, which is unsuitable for limited income.
Rationale: Reverse mortgages are designed for seniors (typically 62+) to borrow against home equity without monthly payments, suitable for fixed income. Open-end loans are lines of credit for additional borrowing, blanket loans cover multiple properties, and growing-equity loans accelerate principal paydown, which is unsuitable for limited income.
Question 2
A Comparative Market Analysis performed by a real estate agent for a seller is a comparison of
Correct Answer: D
Rationale: CMA compares recently sold comparable properties (comps) to estimate value for pricing. Appraisals are formal valuations, feasibility studies assess development viability, and median values are broad market indicators, not specific comps.
Rationale: CMA compares recently sold comparable properties (comps) to estimate value for pricing. Appraisals are formal valuations, feasibility studies assess development viability, and median values are broad market indicators, not specific comps.
Question 3
The following statement was found in a real estate sales contract: 'In the event of a default by the purchaser, the forfeiture of the earnest money to the seller will be the only compensation to which the seller will be entitled.' This statement most likely describes a
Correct Answer: B
Rationale: Liquidated damages limit seller's recovery to earnest money upon buyer default, avoiding further claims. Broker protection protects against unauthorized brokers, default delivery relates to title transfer, and indemnification protects against losses from third parties.
Rationale: Liquidated damages limit seller's recovery to earnest money upon buyer default, avoiding further claims. Broker protection protects against unauthorized brokers, default delivery relates to title transfer, and indemnification protects against losses from third parties.
Question 4
When lending standards are tightened, lenders typically require
Correct Answer: B
Rationale: Tightened standards mean lenders require more equity (lower LTV ratio) to reduce risk. Higher LTV increases risk, balloon payments are specific terms, and ECOA waiver is illegal as it's a federal law prohibiting discrimination.
Rationale: Tightened standards mean lenders require more equity (lower LTV ratio) to reduce risk. Higher LTV increases risk, balloon payments are specific terms, and ECOA waiver is illegal as it's a federal law prohibiting discrimination.
Question 5
The Multiple Listing Service (MLS) board members decided that the population of each area of the city would be best served by the brokerages who have offices actually located within those areas. The board established boundaries dividing the city into six districts and voted to limit listings for each district to only those brokerages with offices within the district. Brokerages who tried to advertise beyond their own district would be prohibited from listing properties in the MLS. This action violates what Real Estate Law?
Correct Answer: C
Rationale: Sherman Antitrust Act prohibits restraints of trade like territorial restrictions on MLS participation, which limit competition. Civil Rights Act addresses discrimination, Diversity Jurisdiction is federal court rule, and Housing Act focuses on development.
Rationale: Sherman Antitrust Act prohibits restraints of trade like territorial restrictions on MLS participation, which limit competition. Civil Rights Act addresses discrimination, Diversity Jurisdiction is federal court rule, and Housing Act focuses on development.