NJ REAL ESTATE UPDATED EXAMS TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔ACRE - ✔✔A measure of land equal to 160 square rods, 4,840 square yards, or
43,560 square feet.
✔✔ACTUAL AUTHORITY - ✔✔Such authority that a principal intentionally gives his
agent.
✔✔ACTUAL EVICITION - ✔✔A process whereby the landlord may terminate that lease
for good reason and the tennant must appear and show cause why he should not be
evicted.
- Also called dispossess proceeding, summary possession, and unlawful detainer.
✔✔ACTIVITIES REQUIRING A LICENSE - ✔✔- Listing of real estate for sale
- selling, exchanging, purchasing, renting, or auctioning real estate
- collecting rent and managing income producing properties.
✔✔TERMINATE LICENSE - ✔✔To terminate a license, a broker will, through the online
system, inactivate the license of a salesperson or broker-sales person.
This has to be done by the broker within 5 business days of the effective date of the
termination.
The broker is also required to send to the licensee a written notice that his or her license
has been terminated.
✔✔TYPES OF REAL ESTATE LICENSE - ✔✔Broker, Broker-salesperson,
Salesperson, Employing broker, Referral agent
✔✔BRANCH OFFICE LICENSE - ✔✔This license is required for each office, and it
must be under proper supervision of a licensed broker-salesperson.
✔✔BROKER & BROKER SALESPERSON LICENSING QUALIFICATIONS - ✔✔18
years of age, high school education, 3 years full time experience under the supervision
of a broker immediately proceeding date of application for brokers license, successfully
,complete 150 hours of instruction in an approved school, pass the state exam. MUST
BE A LEGAL RESIDENT of the US but not a citizen.
✔✔POCKET CARDS - ✔✔- When a new license or renewal license is issued a card
identifying the holder as a real estate licensee accompanies it.
- The Real Estate Commission requires that the licensee obtain this pocket card from
the broker, sign it and carry it when conducting real estate business.
- The public has been advised by the co mission to seek this ID as evidence of license
and also as a safety precaution prior to allowing one purporting to be a licensee to enter
the premises.
✔✔CHANGE of BUSINESS LOCATION - ✔✔The broker must notify the commission of
any change of business location.
- A minimal transfer fee is required for the new license to the broker and all persons
licensed under the broker, each of which will show the new authorized address.
- Failure to notify the commission of change of address will result in cancellation of the
brokers license.
✔✔ADVERTISING REBATES - ✔✔- All ads advertising rebates must include a
disclosure concerning the purchaser's obligation to pay any applicable taxes for receipt
of the rebate.
- A notice that the purchaser should contact a tax professional regarding the tax
implications of receiving the rebate.
- All required disclosures and notices must be conspicuously displayed and there must
not be any deceptive claims or misrepresentations of the rebate.
✔✔DISCRIMINATION - ✔✔- No one shall deny real estate brokerage services to any
person for reasons of race, religion,sex, marital status, national origin or because a
person is handicapped.
- Handicapped is defined as anyone having a physical or mental impairment that
substantially limits one or more major life activities. This includes people with HIV and
AIDS but not current illegal drug users.
✔✔OFFICE CLOSING PROCEDURES - ✔✔- When a broker of record or employing
broker ceases to be active in the operation of a real estate office, the broker must
immediately return his license to the Commission and the licenses of all salespersons
and broker-salespersons for cancellation, accompanied by a copy of the request
termination letter described above.
- In cases of office closing or transfer, the licensees involved must certify by affidavit to
the Real Estate Commission that all requirements have been met.
✔✔LISTING AGREEMENT - ✔✔- The agreement must contain in large type the
following statement:
"As seller you have the right to individually reach an agreement on any fee, commission
or valuable consideration with your broker. No fee, commission or valuable
,consideration has been fixed by any governmental authority or by any trade association
or the multiple listing service."
✔✔PRICE FIXING - ✔✔- Licensees must not conspire, suggest or recommend to any
other licensees that any rate, commission or fee charged by them be fixed, maintained,
established or otherwise stabilized.
- Such activity is a violation of the SHERMAN ANTITRUST ACT.
✔✔BROKER COOPERATION - ✔✔All brokers weather residential, industrial, or
commercial must fully cooperate with all brokers through normal cooperation
arrangements, which must promote the sellers interest.
- Listing brokers shall not place unreasonable restrictions on listed properties for co-op
brokers.
- An owner who does not wish the listing broker to cooperate must so state so in writing
by signing a WAIVER OF BROKER COOPERATION FORM. This form must be made
available by other brokers upon request.
✔✔WAIVER OF BROKER COOPERATION FORM - ✔✔Form signed by seller and
listing agent stating that the broker does not need to cooperate. see page 286
✔✔DISCRIMINATORY COMMISSION SPLIT - ✔✔Licensees shall not discriminate in
commission splits paid to other brokers and shall maintain a written file showing why
such commission splits varied from company norm.
✔✔COMMISSIONS TO NON-RESIDENT BROKERS - ✔✔A commission or referral fee
may be paid to, and received from a non-resident broker, as long as the nonresident is
a duly licensed broker in another jurisdiction in which he or she maintains an office.
✔✔SALESPERSON COMPENSATION - ✔✔- No salesperson may accept a fee or
valuable consideration from any person for performing real estate activities other then
his or her licensed employing broker.
- All commissions due to the salesperson must be paid within 10 days after they are
received by the broker from the client unless the salesperson and the broker have an
agreement to the contrary.
- In all other cases commission disputes between broker and salesperson must be
resolved between the parties themselves, as the Commission will not act in these
matters.
✔✔ADVERTISING REGULATIONS - ✔✔- The purpose of advertising regulations is to
protect the public against advertising that might serve to be false and misleading.
- The regulations include all types of advertising including publications, radio and
television broadcasts, e-mail and internet, business cards and stationary, sign and
billboards.
, - They must show the brokers regular business name, and contain words that would
indicate that the ad was placed by a person engaged in the real estate business such
as broker, real estate broker, real estate agency,Realtor, Realitist.
✔✔FRANCHISE AND TRADE NAME ADVERTISING - ✔✔- Insignia or trade names
may not imply common management or ownership unless this is actually the case.
- Licences using a franchise trade name must include the legend "Each office
independently owned and operated" in all advertising, except sale signs and small
classified spot ads.
- Advertising referring to membership in a Multiple Listing Service (MLS) must specify
the complete name of the listing service in all advertising, except for sale signs, small
classified spot ads, business cards, and business signs.
✔✔HOME WARRANTY ADVERTISING - ✔✔- Home warranty advertising shall specify
weather the warranty is by inspection or non-inspection, weather the warranty is
mandatory and weather the purchaser is responsible for the payment of the warranty.
- The warranty is 10 years.
✔✔EARNEST MONEY DEPOSITS - ✔✔-If a licensee believes that a seller may not be
able to perform under the terms of the contract or be able to return funds paid on
deposit, he must act to protect the purchases's deposit by:
- placing the funds in a trust account
- having the purchaser sign a statement confirming his awareness of any risk involved in
allowing the seller to hold the deposit directly, recognizing that the licensee made no
representations as to the solvency of the seller or his ability to return the deposit funds.
✔✔OBLIGATION TO LEARN PERTINENT FACTS - ✔✔- Every licensee must make
reasonable effort to ascertain pertinent facts about the property he lists for which he
accepts an agency, including, but not limited to, the general condition of the property
and the financial qualifications of every person for whom he submits an offer to his
client.
- While it is not the function to perform the duties of a licensed inspector, the licensee is
bound to learn everything about the property by having a detailed consultation with the
owner.
✔✔AGENCY LAW - ✔✔Licensees ar subject to the law of agency.
✔✔ABSOLUTE FIDELITY TO PRINCIAPAL - ✔✔- As agent, the licensee is expected to
represent the principal's interest.
- He owes absolute fidelity to the principal and honest dealing to all other parties to the
transaction.
✔✔SUBMIT ALL WRITTEN OFFERS - ✔✔All written offers must be submitted to the
seller within 24 hours of receipt.
QUESTIONS AND ANSWERS SURE A+
✔✔ACRE - ✔✔A measure of land equal to 160 square rods, 4,840 square yards, or
43,560 square feet.
✔✔ACTUAL AUTHORITY - ✔✔Such authority that a principal intentionally gives his
agent.
✔✔ACTUAL EVICITION - ✔✔A process whereby the landlord may terminate that lease
for good reason and the tennant must appear and show cause why he should not be
evicted.
- Also called dispossess proceeding, summary possession, and unlawful detainer.
✔✔ACTIVITIES REQUIRING A LICENSE - ✔✔- Listing of real estate for sale
- selling, exchanging, purchasing, renting, or auctioning real estate
- collecting rent and managing income producing properties.
✔✔TERMINATE LICENSE - ✔✔To terminate a license, a broker will, through the online
system, inactivate the license of a salesperson or broker-sales person.
This has to be done by the broker within 5 business days of the effective date of the
termination.
The broker is also required to send to the licensee a written notice that his or her license
has been terminated.
✔✔TYPES OF REAL ESTATE LICENSE - ✔✔Broker, Broker-salesperson,
Salesperson, Employing broker, Referral agent
✔✔BRANCH OFFICE LICENSE - ✔✔This license is required for each office, and it
must be under proper supervision of a licensed broker-salesperson.
✔✔BROKER & BROKER SALESPERSON LICENSING QUALIFICATIONS - ✔✔18
years of age, high school education, 3 years full time experience under the supervision
of a broker immediately proceeding date of application for brokers license, successfully
,complete 150 hours of instruction in an approved school, pass the state exam. MUST
BE A LEGAL RESIDENT of the US but not a citizen.
✔✔POCKET CARDS - ✔✔- When a new license or renewal license is issued a card
identifying the holder as a real estate licensee accompanies it.
- The Real Estate Commission requires that the licensee obtain this pocket card from
the broker, sign it and carry it when conducting real estate business.
- The public has been advised by the co mission to seek this ID as evidence of license
and also as a safety precaution prior to allowing one purporting to be a licensee to enter
the premises.
✔✔CHANGE of BUSINESS LOCATION - ✔✔The broker must notify the commission of
any change of business location.
- A minimal transfer fee is required for the new license to the broker and all persons
licensed under the broker, each of which will show the new authorized address.
- Failure to notify the commission of change of address will result in cancellation of the
brokers license.
✔✔ADVERTISING REBATES - ✔✔- All ads advertising rebates must include a
disclosure concerning the purchaser's obligation to pay any applicable taxes for receipt
of the rebate.
- A notice that the purchaser should contact a tax professional regarding the tax
implications of receiving the rebate.
- All required disclosures and notices must be conspicuously displayed and there must
not be any deceptive claims or misrepresentations of the rebate.
✔✔DISCRIMINATION - ✔✔- No one shall deny real estate brokerage services to any
person for reasons of race, religion,sex, marital status, national origin or because a
person is handicapped.
- Handicapped is defined as anyone having a physical or mental impairment that
substantially limits one or more major life activities. This includes people with HIV and
AIDS but not current illegal drug users.
✔✔OFFICE CLOSING PROCEDURES - ✔✔- When a broker of record or employing
broker ceases to be active in the operation of a real estate office, the broker must
immediately return his license to the Commission and the licenses of all salespersons
and broker-salespersons for cancellation, accompanied by a copy of the request
termination letter described above.
- In cases of office closing or transfer, the licensees involved must certify by affidavit to
the Real Estate Commission that all requirements have been met.
✔✔LISTING AGREEMENT - ✔✔- The agreement must contain in large type the
following statement:
"As seller you have the right to individually reach an agreement on any fee, commission
or valuable consideration with your broker. No fee, commission or valuable
,consideration has been fixed by any governmental authority or by any trade association
or the multiple listing service."
✔✔PRICE FIXING - ✔✔- Licensees must not conspire, suggest or recommend to any
other licensees that any rate, commission or fee charged by them be fixed, maintained,
established or otherwise stabilized.
- Such activity is a violation of the SHERMAN ANTITRUST ACT.
✔✔BROKER COOPERATION - ✔✔All brokers weather residential, industrial, or
commercial must fully cooperate with all brokers through normal cooperation
arrangements, which must promote the sellers interest.
- Listing brokers shall not place unreasonable restrictions on listed properties for co-op
brokers.
- An owner who does not wish the listing broker to cooperate must so state so in writing
by signing a WAIVER OF BROKER COOPERATION FORM. This form must be made
available by other brokers upon request.
✔✔WAIVER OF BROKER COOPERATION FORM - ✔✔Form signed by seller and
listing agent stating that the broker does not need to cooperate. see page 286
✔✔DISCRIMINATORY COMMISSION SPLIT - ✔✔Licensees shall not discriminate in
commission splits paid to other brokers and shall maintain a written file showing why
such commission splits varied from company norm.
✔✔COMMISSIONS TO NON-RESIDENT BROKERS - ✔✔A commission or referral fee
may be paid to, and received from a non-resident broker, as long as the nonresident is
a duly licensed broker in another jurisdiction in which he or she maintains an office.
✔✔SALESPERSON COMPENSATION - ✔✔- No salesperson may accept a fee or
valuable consideration from any person for performing real estate activities other then
his or her licensed employing broker.
- All commissions due to the salesperson must be paid within 10 days after they are
received by the broker from the client unless the salesperson and the broker have an
agreement to the contrary.
- In all other cases commission disputes between broker and salesperson must be
resolved between the parties themselves, as the Commission will not act in these
matters.
✔✔ADVERTISING REGULATIONS - ✔✔- The purpose of advertising regulations is to
protect the public against advertising that might serve to be false and misleading.
- The regulations include all types of advertising including publications, radio and
television broadcasts, e-mail and internet, business cards and stationary, sign and
billboards.
, - They must show the brokers regular business name, and contain words that would
indicate that the ad was placed by a person engaged in the real estate business such
as broker, real estate broker, real estate agency,Realtor, Realitist.
✔✔FRANCHISE AND TRADE NAME ADVERTISING - ✔✔- Insignia or trade names
may not imply common management or ownership unless this is actually the case.
- Licences using a franchise trade name must include the legend "Each office
independently owned and operated" in all advertising, except sale signs and small
classified spot ads.
- Advertising referring to membership in a Multiple Listing Service (MLS) must specify
the complete name of the listing service in all advertising, except for sale signs, small
classified spot ads, business cards, and business signs.
✔✔HOME WARRANTY ADVERTISING - ✔✔- Home warranty advertising shall specify
weather the warranty is by inspection or non-inspection, weather the warranty is
mandatory and weather the purchaser is responsible for the payment of the warranty.
- The warranty is 10 years.
✔✔EARNEST MONEY DEPOSITS - ✔✔-If a licensee believes that a seller may not be
able to perform under the terms of the contract or be able to return funds paid on
deposit, he must act to protect the purchases's deposit by:
- placing the funds in a trust account
- having the purchaser sign a statement confirming his awareness of any risk involved in
allowing the seller to hold the deposit directly, recognizing that the licensee made no
representations as to the solvency of the seller or his ability to return the deposit funds.
✔✔OBLIGATION TO LEARN PERTINENT FACTS - ✔✔- Every licensee must make
reasonable effort to ascertain pertinent facts about the property he lists for which he
accepts an agency, including, but not limited to, the general condition of the property
and the financial qualifications of every person for whom he submits an offer to his
client.
- While it is not the function to perform the duties of a licensed inspector, the licensee is
bound to learn everything about the property by having a detailed consultation with the
owner.
✔✔AGENCY LAW - ✔✔Licensees ar subject to the law of agency.
✔✔ABSOLUTE FIDELITY TO PRINCIAPAL - ✔✔- As agent, the licensee is expected to
represent the principal's interest.
- He owes absolute fidelity to the principal and honest dealing to all other parties to the
transaction.
✔✔SUBMIT ALL WRITTEN OFFERS - ✔✔All written offers must be submitted to the
seller within 24 hours of receipt.
