NJ REAL ESTATE LATEST COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔GUILTY KNOWLEDGE - ✔✔Awareness of wrongdoing with no attempt to stop it.
✔✔IRREVOCABLE CONSENT - ✔✔Residents of other states may be licensed, but are
required to provide an executed irrevocable consent form agreeing to be open to suit in
our state courts if they violate our license laws or rules and regulations.
✔✔LICENSE LENDING - ✔✔- Lending of license for benefit of another or attempting to
circumvent statute or regulation by such action is forbidden. - Any arrangement under
which a broker fails or oversee and direct the operations of the business of which he or
she is licensed as a broker of record of employing broker.
- Oversight requires the broker to be physically present in the main office location of the
firm at least one day each week.
- Extended communication by telephone or mail may be considered as evidence of
license lending.
✔✔MISDEMEANOR - ✔✔A crime or offense of lesser consequences than a felony and
which is subject to minor jail terms, fines, or both.
✔✔MISREPRESENTION - ✔✔A false statement made with the intent to induce some
action by another party.
✔✔MORAL TURPITUDE - ✔✔An act viewed by society as demonstrating a serious lack
of morals or conscience, such as embezzlement, fraud, shoplifting or sex crimes.
✔✔NET LISTING - ✔✔- Prohibited in New Jersey
- A listing which provides that the agent may retain as all sums received over and above
net price to the owner as compensation for his services.
✔✔BROKER OF RECORD - OFFICE SUPERVISOR - ✔✔The supervising broker of a
partnership or corporation who is responsible for the actions and inactions of all
licensed sales persaons and broker-sales persons of such entities.
,✔✔PROBATION - ✔✔A sanction that can be imposed by the Real Estate Commission
in addition to suspension or revocation of license and fines.
✔✔PROSPECTUS - ✔✔A printed statement distributed to describe and advertise a new
business venture, a real estate project or stock issue in order to attract or inform clients,
members, buyers, or investors.
✔✔REBATES TO BUYERS - ✔✔- The broker must comply with any state or federal
requirements regarding the disclose of rebate payments.
- The broker must advise the purchaser to contact a tax professional.
- The broker must disclose the payment of the rebate to all parties involved in the
transaction, including the mortgage lender.
✔✔RECEIVER - ✔✔A court-appointed custodian/person who holds and is charged with
preserving a property for the court, collecting rents and doing anything necessary to
maintain the property's condition, pending final disposition of the matter before the
court.
✔✔REFERRAL AGENT - ✔✔A natural person whose brokerage-related activities are
limited to referring prospects for the sale, purchase, exchanging, leasing or rental of real
estate to the real estate broker through whom he or she is licensed as a referral agent.
May be employed by one broker at a time.
✔✔REVOKATION - REVOKED - ✔✔The right of the Real Estate Commission to
deactivate a broker or salesperson license for wrongdoing. Revoction is for at least all
the remaining license term.
✔✔RULES AND REGULATIONS - ✔✔The Real Estate Commission is expressly vested
with the power and authority to promulgate and enforce all necessary rules and
regulations for the conduct of real estte licensees.
✔✔TEMPORY BROKERS LICENSE - ✔✔- Issued to a salesperson with 3 years full-
time experience on death or incapacity of a licensed broker or broker-salesperson
immediately preceding the date of application.
- The application must be made within 30 days of the brokers death or incapacity.
- The temporary license is valid for 1 year, with no extensions of time permitted.
✔✔TRUST ACCOUNT - ESCROW ACCOUNT - ✔✔- An account established by the
broker or Attorney, it holds clients earnest money deposits or other funds.
- Accounts may only be in New Jersey
- All accounts and information pertaining to the accounts must be filed with the
Commission by affidavit or certification with application or renewal for broker's license.
,✔✔LICENSING EXAM - ✔✔Applicants for broker and salesperson licenses must pass a
licensing exam, designated by the Commission, which is administered daily by an
INDEPENDENT testing service.
✔✔REAL ESTATE COMMISION - ✔✔- Consists of 8 members, all appointed by the
Governor for a term of 3 years, except the governmental designee.
- 5 of the members must be real estate brokers and state residents for 10 years prior to
appointment.
- 2 are public members who may not be real estate licensees, and the final member is
the governmental designee who is an employee of an appropriate state department and
serves at the pleasure of the governor.
✔✔EXEMPTIONS - ✔✔Following are exempt from needing a Realtor license:
owner, lessors (landlords) and NJ attorneys, all persons acting in a legal capacity such
as receivers, trustees, executors, administrators, or persons selling real estate under
the order of any court or the terms of a deed of trust, banks, trust companies and
insurance companies incorporated under the insurance laws of the state, and an
employee engaged by an owner to manage his property, provided: property
management, book keeping, etc...
✔✔SALES PERSON & REFERRAL AGENT LICENSING QUALIFICATIONS - ✔✔18
years of age, high school education, complete 75 hours of instruction in an approved
school, pass a state exam, furnish evidence of good moral character, be sponsored for
a license by a NJ broker. MUST BE A LEGAL RESIDENT of the US but not a citizen.
✔✔EDUCATIONAL WAIVER - ✔✔The educational requirement may be waived at the
discretion of the commission if the applicant holds a brokers license in another state,
was previously licensed as a NJ real estate broker within 5 years, presents evidences of
equivalent real estate courses in college, or is a NJ attorney. The waiver is for the
educational requirement only! there is no test waiver.
✔✔LICENSE FEES and PAYMENT - ✔✔- Applicants for license shall pay application
and license fees and a Guaranty Fund payment to the Commission as a required by
current regulation.
- All real estate licenses must be renewed biennially on July 1, in odd-numbered years.
- License renewed after this date require additional payment of a late fee.
✔✔CONTINUING EDUCATION REQUIREMENTS - ✔✔- All Broker, broker
salespersons, and salespersons are required to complete Real estate commissioned
approved continuing education courses as a condition to the biennial renewal of license.
- 12 hours minimum
- Classes must be completed before April 30th of the year the license expires.
, ✔✔FALURE TO RENEW LICENSE - ✔✔If a broker or salesperson license is not
renewed for two consecutive years from the expiration date of the license last held, the
license would be cancelled.
Such persons will have to re-qualify for licensure as if they had never been licensed.
A license is active only when the license fee is paid and the license is being held by a
broker.
✔✔LICENSING of PARTICULAR VETERANS - ✔✔- Veterans who were wounded or
disabled in the line of Duty may qualify for a brokers license by completing an approved
program in real estate and passing the broker test.
- The experience requirement and all fees are waived.
- Veteran's should contact the Commission prior to embarking on any such program to
determine if they qualify into obtain approval for the coursework they intend to pursue.
✔✔PARTNERSHIPS and COOPERATIONS - ✔✔-Brokers licenses issued to entities
shall require at least one of the partners for corporate officers to qualify as a broker of
record.
- If such person leaves the employ of the firm, a new qualified broker of record must be
named.
- All real estate activities of the corporation or partnership and it's sales persons shall be
under the supervision of the broker of record.
✔✔REFUSAL TO ISSUE LICENSE - ✔✔-The Commission may refuse to issue a
license to anyone convicted of money offenses within 5 years of applicationfor
licensesure.
-Such ofences include forgory, burgarly, any theft and related offences with the
exception of shoplifting, criminal conspiracy to defraud or other like offenses. -
Candidates may also be refuse licensure if they're background include touch offenses
which would not meet the test of good moral character such as crimes of violence.
✔✔DISPLAY OF LICENSE - ✔✔All licenses to be displayed in the main office in public
view of the firm and shall be available for inspection.
✔✔LICENSE TRANSFER - ✔✔To transfer a license, the original broker will first
terminate the license of the salesperson or the broker-salesperson through the online
real estate commission procedures.
Once the license is inactive in the system, the new broker can affiliate the license to his
firm, again through the online system
✔✔LICENSE TERMINATION - ✔✔A licensee could be asked by the insurance
department to surrender and terminate a license in lieu of administrative action by the
department
✔✔PLACE OF BUSINESS - ✔✔- Each resident broker not licensed as a broker
salesperson must maintain an approved place of business in this state.
QUESTIONS AND ANSWERS SURE A+
✔✔GUILTY KNOWLEDGE - ✔✔Awareness of wrongdoing with no attempt to stop it.
✔✔IRREVOCABLE CONSENT - ✔✔Residents of other states may be licensed, but are
required to provide an executed irrevocable consent form agreeing to be open to suit in
our state courts if they violate our license laws or rules and regulations.
✔✔LICENSE LENDING - ✔✔- Lending of license for benefit of another or attempting to
circumvent statute or regulation by such action is forbidden. - Any arrangement under
which a broker fails or oversee and direct the operations of the business of which he or
she is licensed as a broker of record of employing broker.
- Oversight requires the broker to be physically present in the main office location of the
firm at least one day each week.
- Extended communication by telephone or mail may be considered as evidence of
license lending.
✔✔MISDEMEANOR - ✔✔A crime or offense of lesser consequences than a felony and
which is subject to minor jail terms, fines, or both.
✔✔MISREPRESENTION - ✔✔A false statement made with the intent to induce some
action by another party.
✔✔MORAL TURPITUDE - ✔✔An act viewed by society as demonstrating a serious lack
of morals or conscience, such as embezzlement, fraud, shoplifting or sex crimes.
✔✔NET LISTING - ✔✔- Prohibited in New Jersey
- A listing which provides that the agent may retain as all sums received over and above
net price to the owner as compensation for his services.
✔✔BROKER OF RECORD - OFFICE SUPERVISOR - ✔✔The supervising broker of a
partnership or corporation who is responsible for the actions and inactions of all
licensed sales persaons and broker-sales persons of such entities.
,✔✔PROBATION - ✔✔A sanction that can be imposed by the Real Estate Commission
in addition to suspension or revocation of license and fines.
✔✔PROSPECTUS - ✔✔A printed statement distributed to describe and advertise a new
business venture, a real estate project or stock issue in order to attract or inform clients,
members, buyers, or investors.
✔✔REBATES TO BUYERS - ✔✔- The broker must comply with any state or federal
requirements regarding the disclose of rebate payments.
- The broker must advise the purchaser to contact a tax professional.
- The broker must disclose the payment of the rebate to all parties involved in the
transaction, including the mortgage lender.
✔✔RECEIVER - ✔✔A court-appointed custodian/person who holds and is charged with
preserving a property for the court, collecting rents and doing anything necessary to
maintain the property's condition, pending final disposition of the matter before the
court.
✔✔REFERRAL AGENT - ✔✔A natural person whose brokerage-related activities are
limited to referring prospects for the sale, purchase, exchanging, leasing or rental of real
estate to the real estate broker through whom he or she is licensed as a referral agent.
May be employed by one broker at a time.
✔✔REVOKATION - REVOKED - ✔✔The right of the Real Estate Commission to
deactivate a broker or salesperson license for wrongdoing. Revoction is for at least all
the remaining license term.
✔✔RULES AND REGULATIONS - ✔✔The Real Estate Commission is expressly vested
with the power and authority to promulgate and enforce all necessary rules and
regulations for the conduct of real estte licensees.
✔✔TEMPORY BROKERS LICENSE - ✔✔- Issued to a salesperson with 3 years full-
time experience on death or incapacity of a licensed broker or broker-salesperson
immediately preceding the date of application.
- The application must be made within 30 days of the brokers death or incapacity.
- The temporary license is valid for 1 year, with no extensions of time permitted.
✔✔TRUST ACCOUNT - ESCROW ACCOUNT - ✔✔- An account established by the
broker or Attorney, it holds clients earnest money deposits or other funds.
- Accounts may only be in New Jersey
- All accounts and information pertaining to the accounts must be filed with the
Commission by affidavit or certification with application or renewal for broker's license.
,✔✔LICENSING EXAM - ✔✔Applicants for broker and salesperson licenses must pass a
licensing exam, designated by the Commission, which is administered daily by an
INDEPENDENT testing service.
✔✔REAL ESTATE COMMISION - ✔✔- Consists of 8 members, all appointed by the
Governor for a term of 3 years, except the governmental designee.
- 5 of the members must be real estate brokers and state residents for 10 years prior to
appointment.
- 2 are public members who may not be real estate licensees, and the final member is
the governmental designee who is an employee of an appropriate state department and
serves at the pleasure of the governor.
✔✔EXEMPTIONS - ✔✔Following are exempt from needing a Realtor license:
owner, lessors (landlords) and NJ attorneys, all persons acting in a legal capacity such
as receivers, trustees, executors, administrators, or persons selling real estate under
the order of any court or the terms of a deed of trust, banks, trust companies and
insurance companies incorporated under the insurance laws of the state, and an
employee engaged by an owner to manage his property, provided: property
management, book keeping, etc...
✔✔SALES PERSON & REFERRAL AGENT LICENSING QUALIFICATIONS - ✔✔18
years of age, high school education, complete 75 hours of instruction in an approved
school, pass a state exam, furnish evidence of good moral character, be sponsored for
a license by a NJ broker. MUST BE A LEGAL RESIDENT of the US but not a citizen.
✔✔EDUCATIONAL WAIVER - ✔✔The educational requirement may be waived at the
discretion of the commission if the applicant holds a brokers license in another state,
was previously licensed as a NJ real estate broker within 5 years, presents evidences of
equivalent real estate courses in college, or is a NJ attorney. The waiver is for the
educational requirement only! there is no test waiver.
✔✔LICENSE FEES and PAYMENT - ✔✔- Applicants for license shall pay application
and license fees and a Guaranty Fund payment to the Commission as a required by
current regulation.
- All real estate licenses must be renewed biennially on July 1, in odd-numbered years.
- License renewed after this date require additional payment of a late fee.
✔✔CONTINUING EDUCATION REQUIREMENTS - ✔✔- All Broker, broker
salespersons, and salespersons are required to complete Real estate commissioned
approved continuing education courses as a condition to the biennial renewal of license.
- 12 hours minimum
- Classes must be completed before April 30th of the year the license expires.
, ✔✔FALURE TO RENEW LICENSE - ✔✔If a broker or salesperson license is not
renewed for two consecutive years from the expiration date of the license last held, the
license would be cancelled.
Such persons will have to re-qualify for licensure as if they had never been licensed.
A license is active only when the license fee is paid and the license is being held by a
broker.
✔✔LICENSING of PARTICULAR VETERANS - ✔✔- Veterans who were wounded or
disabled in the line of Duty may qualify for a brokers license by completing an approved
program in real estate and passing the broker test.
- The experience requirement and all fees are waived.
- Veteran's should contact the Commission prior to embarking on any such program to
determine if they qualify into obtain approval for the coursework they intend to pursue.
✔✔PARTNERSHIPS and COOPERATIONS - ✔✔-Brokers licenses issued to entities
shall require at least one of the partners for corporate officers to qualify as a broker of
record.
- If such person leaves the employ of the firm, a new qualified broker of record must be
named.
- All real estate activities of the corporation or partnership and it's sales persons shall be
under the supervision of the broker of record.
✔✔REFUSAL TO ISSUE LICENSE - ✔✔-The Commission may refuse to issue a
license to anyone convicted of money offenses within 5 years of applicationfor
licensesure.
-Such ofences include forgory, burgarly, any theft and related offences with the
exception of shoplifting, criminal conspiracy to defraud or other like offenses. -
Candidates may also be refuse licensure if they're background include touch offenses
which would not meet the test of good moral character such as crimes of violence.
✔✔DISPLAY OF LICENSE - ✔✔All licenses to be displayed in the main office in public
view of the firm and shall be available for inspection.
✔✔LICENSE TRANSFER - ✔✔To transfer a license, the original broker will first
terminate the license of the salesperson or the broker-salesperson through the online
real estate commission procedures.
Once the license is inactive in the system, the new broker can affiliate the license to his
firm, again through the online system
✔✔LICENSE TERMINATION - ✔✔A licensee could be asked by the insurance
department to surrender and terminate a license in lieu of administrative action by the
department
✔✔PLACE OF BUSINESS - ✔✔- Each resident broker not licensed as a broker
salesperson must maintain an approved place of business in this state.
