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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A broker who charges or collects an advance fee in excess of $25 for services to be rendered MUST:

A) furnish within ninety days of its collection an accounting of how the money was used
B) retain the difference between the amount of money collected and the amount spent
C) give the principal receipts for all expenditures
D) deduct the amount collected from the commission or settlement

2. Standard title insurance would protect a buyer:

A) in a purchase where the buyer had knowledge of a shed violating setback requirements.
B) for the purchase of a property bought sight unseen where the buyer discovers a tenant living at the property.
C) when the seller has forged an ex-partner's signature on the deed.
D) if after closing, the HOA placed a lien on the property for the previous owners' unpaid dues.

3. A lender may add 1/12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property to the monthly loan payment for deposit in:

A) a PMI account
B) an impound, escrow, or reserve account
C) a margin account
D) an adjustment account

4. Rents on a duplex total $600 monthly and are due the first of each month. If the sale of the duplex closes on the 15th of a month, the rental income will be reflected on the closing statement as a

A) credit of $600 to the buyer only.
B) credit to the seller of $300 and a debit to the buyer of $300.
C) credit of $600 to the seller only.
D) debit to the seller of $300 and a credit to the buyer of $300.

5. 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 accept the offer.
C) may sign a deed of conveyance if the seller does not return on time.
D) may not accept the offer until the seller returns.

Solutions: