NJ REAL ESTATE EXAM 2026 REAL ESTATE
PRINCIPLES ASSESSMENT STUDY GUIDE
COMPLETE QUESTIONS AND ANSWERS
◉ latent defect. Answer: hidden defect not discoverable by ordinary
inspection
◉ Megan's Law. Answer: requires communities to be alerted to the
presence of convicted sexual offenders. Buyers can not get
information until the close of the sale
◉ puffing. Answer: extravagant statements of opinion
◉ fraudulent misrepresentation. Answer: deliberate lie intended to
mislead someone
◉ innocent misrepresentation. Answer: false statement by someone
who believes it to be true and is not expected to have expertise in
the subject
◉ negligent misrepresentation. Answer: false statements made by
someone who should know better
,◉ antitrust laws. Answer: fdederal and state laws in regard to price
fixing and allocation of customers or markets
◉ errors and omissions insurance. Answer: malpractice insurance
for the real estate industry
◉ off site conditions. Answer: not on the property purchased. New
construction has 5 days for you to cancel the contract existing
properties do not have a similar right of rescission
◉ Civil Rights act of 1866. Answer: Prohibits any discrimination
based on race and color, no exceptions
◉ Federal Fair Housing Act of 1968. Answer: Unlawful to
discriminate on the basis of race, color, religion or national origin
when selling or leasing residential properties. Certain exemptions
apply
◉ Title VIII. Answer: The portion of the Civil Rights Act of 1968 in
which the Federal Fair Housing act is contained
◉ Redlining. Answer: Refusing to make mortgage loans or issue
insurance policies in specific geographic areas without regard to the
economic qualifications of the applicant
,◉ Steering. Answer: channeling homeseekers either to or away from
a particular area on the basis of race, religion, country of origin or
other protected class
◉ Department of Housing and Urban Development (HUD). Answer:
Federal agency in which you would file a charge of discrimination
◉ NJ Law Against Discrimination. Answer: Passed by the legislature
in 1945 and broadened over the years, applies to all real property.
◉ Protected classes. Answer: race, creed, color, religion, national
origin, ancestry, gender, marital or familial status, lawful source of
income, affectional or sexual orientation and mental or physical
disibility
◉ Blockbusting. Answer: inducing homeowners to sell by making
representations regarding the entry or prospective entry of
minorities into the neighborhood
◉ Attorney General's Memorandum. Answer: notice of anti-
discrimination that must be given to the homeowner when the
property is listed
◉ Mount Laurel I and II. Answer: suit filed by the NAACP against a NJ
town for illegal discrimination against low income and moderate
, income persons through the act of exclusionary zoning. As a result
all municipalities must provide a range of housing
◉ reverse discrimination. Answer: the result of well meaning quotas
intended to preserve racial balance in given areas
◉ testers. Answer: undercover volunteers who visit real estate
offices to make sure all customers and clients are being treated the
same and are being given the same free choice of housing within a
given price range
◉ bundle of rights. Answer: what you are actually purchasing when
you purchase a parcel of real estate: possession, use, enjoyment,
exclusion, disposition
◉ devise. Answer: leave by wil
◉ land. Answer: the surface of the earth, including water and
anything attached to it by nature. The minerals and substances
below the earth's surface to the center of the earth, and upward to
infinity.
◉ parcel. Answer: specific tract of land
PRINCIPLES ASSESSMENT STUDY GUIDE
COMPLETE QUESTIONS AND ANSWERS
◉ latent defect. Answer: hidden defect not discoverable by ordinary
inspection
◉ Megan's Law. Answer: requires communities to be alerted to the
presence of convicted sexual offenders. Buyers can not get
information until the close of the sale
◉ puffing. Answer: extravagant statements of opinion
◉ fraudulent misrepresentation. Answer: deliberate lie intended to
mislead someone
◉ innocent misrepresentation. Answer: false statement by someone
who believes it to be true and is not expected to have expertise in
the subject
◉ negligent misrepresentation. Answer: false statements made by
someone who should know better
,◉ antitrust laws. Answer: fdederal and state laws in regard to price
fixing and allocation of customers or markets
◉ errors and omissions insurance. Answer: malpractice insurance
for the real estate industry
◉ off site conditions. Answer: not on the property purchased. New
construction has 5 days for you to cancel the contract existing
properties do not have a similar right of rescission
◉ Civil Rights act of 1866. Answer: Prohibits any discrimination
based on race and color, no exceptions
◉ Federal Fair Housing Act of 1968. Answer: Unlawful to
discriminate on the basis of race, color, religion or national origin
when selling or leasing residential properties. Certain exemptions
apply
◉ Title VIII. Answer: The portion of the Civil Rights Act of 1968 in
which the Federal Fair Housing act is contained
◉ Redlining. Answer: Refusing to make mortgage loans or issue
insurance policies in specific geographic areas without regard to the
economic qualifications of the applicant
,◉ Steering. Answer: channeling homeseekers either to or away from
a particular area on the basis of race, religion, country of origin or
other protected class
◉ Department of Housing and Urban Development (HUD). Answer:
Federal agency in which you would file a charge of discrimination
◉ NJ Law Against Discrimination. Answer: Passed by the legislature
in 1945 and broadened over the years, applies to all real property.
◉ Protected classes. Answer: race, creed, color, religion, national
origin, ancestry, gender, marital or familial status, lawful source of
income, affectional or sexual orientation and mental or physical
disibility
◉ Blockbusting. Answer: inducing homeowners to sell by making
representations regarding the entry or prospective entry of
minorities into the neighborhood
◉ Attorney General's Memorandum. Answer: notice of anti-
discrimination that must be given to the homeowner when the
property is listed
◉ Mount Laurel I and II. Answer: suit filed by the NAACP against a NJ
town for illegal discrimination against low income and moderate
, income persons through the act of exclusionary zoning. As a result
all municipalities must provide a range of housing
◉ reverse discrimination. Answer: the result of well meaning quotas
intended to preserve racial balance in given areas
◉ testers. Answer: undercover volunteers who visit real estate
offices to make sure all customers and clients are being treated the
same and are being given the same free choice of housing within a
given price range
◉ bundle of rights. Answer: what you are actually purchasing when
you purchase a parcel of real estate: possession, use, enjoyment,
exclusion, disposition
◉ devise. Answer: leave by wil
◉ land. Answer: the surface of the earth, including water and
anything attached to it by nature. The minerals and substances
below the earth's surface to the center of the earth, and upward to
infinity.
◉ parcel. Answer: specific tract of land
