NJ Real Estate Exam 3 2025
300+ ACTUAL Exam Questions & Verified Answers /Latest 2025
1. Branch Office: broker's additional place of business
2. commingling: mixing broker's money with that of others
3. duplicate original: copy of a real estate contract with original signatures
4. probation: least severe discipline by the real estate commission
5. A licensed salesperson is allowed to: leave one broker and affiliate with another
6. Under some circumstances, a real estate office may be in the home of: a broker
7. Broker Waldo Rodriguez wants to open a branch office in a new shopping mall in the next
town. The office can be supervised by: a broker-salesperson
8. Salesperson Stan Clemenzio accepts an earnest money deposit and turns it over to his
broker, Roberta Lee. Roberta must: deposit it within 5 days in a trust account
9. An escrow account may be opened: In any financial institution in NJ
10. A broker must keep copies of contracts for ____ years: 6
11. Every person who signs a contract is entitled to receive a duplicate original. When?:
Immediately
12. Every sales contract prepared by a broker must contain a notice that: the buyer and seller may
seek attorney review within three business days
13. Even when the broker is the seller's agent the buyer are entitled to
a. preferential treatment
b. first loyalty
c. fair dealing
d. negotiated fees
c. fair dealing
14. For a first offense, the Real Estate Commission could fine a licensee as much as: $5,000
15. The commission will rule that someone could never again get a license after how many
violations? Three
16. Salesperson Joe Kenty is indicated for possession of a controlled substance with intent to
sell and is out on bail until the trial. The Real Estate Commission may: Suspend his license
17. The Real Estate Commission must give a licensee how much notice before a hearing is
held on a possible violation? 10 days
18. Sun City Realty holds a door-prize drawing at a weekend open house it runs. This
practice...: violates the commission's rules
19. Donna White, a broker, is offering her mother's house for sale and will charge no
commission. Should she reveal that she is a licensed agent? Yes, as soon as she meets a
prospective buyer
20. The "reasonable effort" licensees are required to make to determine all material
information about a property's physical condition could normally include all of the
following EXCEPT
a. asking the seller about the property's condition
, b. performing a visual inspection
c. asking the seller's agent about the property's condition
d. contracting with a professional to perform an in-depth inspection of the property prior
to entering into any agency agreement with the seller
d. contracting with a professional to perform an in-depth inspection of the property prior to entering
into any agency agreement with the seller
21. Any agreement between competing offices to establish standard commission rates i referred
to as
a. the preliminary marketing contract
b. price gouging
c. illegal price fixing
d. legal industry practice under NJ laws:
c. illegal price fixing
21. A salesperson working for Broker Betty was disciplined for pursuing a flagrant and
continued course of misrepresentations, making false promises, and failing to pay over
money belonging to others. In this case Betty's license...
a. will automatically be suspended because Betty is responsible for all sales-persons in her
office
b. will not be suspended because the salesperson, not betty, was disciplined for wrongdoing.
c. will be suspended or revoked only if Betty knew about the salesperson's activities and did
nothing about it
d. will be suspended, but the licenses of any other salespersons in her brokerage will not be
affected:
c. will be suspended or revoked only if Betty knew about the salesperson's activities and did nothing
about it
23. Rebate of part of a commission may be paid to a
a. seller only
b. buyer only
c. home inspector
d. seller or buyer:
b. buyer only
24. Antitrust laws: regulations preventing price fixing
25. Attorney in fact: person authorized to act under a power of attorney
26. broker: one authorized to act for another in real estate transactions
27. Consumer Information Statement (CIS): written explanation of a business relationship must be
given before any discussion of finances or any property is shown
28. Latent Defect: problem not discoverable by normal inspection
29. Law of agency: Rules governing conduct of agents
30. Meeting of the Minds: agreement between a buyer and seller on major points
31. errors and omissions insurance: Real estate equivalent of malpractice insurance
32. The legal relationship between a buyer and seller: Special Agency
33. A listing may be terminated when either broker or principal
a. gets married
b. goes bankrupt
c. overfinances other property
d. turns 21 years of age:
, b. goes bankrupt
34. When retained by the seller, the broker owes a prospective buyer:
a. obedience to lawful instructions
b. confidentiality about the buyer's financial situation
c. honest treatment
d. first loyalty
c. honest treatment
35. An example of a latent defect is:
a. a large crack in the ceiling
b. a roof with warped shingles
c. used-car lot next door
d. malfunctioning septic system
d. malfunctioning septic system
36. An independent contractor may be paid
a. a regular draw against earnings.
b. reimbursed car expenses
c. commissions on sales
d. two week vacations each ear
c. commissions on sales
37. Commissions are usually earned when
a. the buyer makes a purchase offer
b. the seller accepts the buyers offer without any conditions
c. a new mortgage has been promised by the lender
d. title of the property transfers
b. the seller accepts the buyer's offer without any conditions
38. A salesperson's commission on a real estate transaction is
a. paid within ten days after the broker paid for the transaction
b. paid at the rate set by the NJ Real Estate Commission
c. always paid in cash
d. generally determined, by custom, by the broker with no input from the salesperson:
a. paid within ten days after the broker paid for the transaction
39. Henry lists his house with broker Larry. Henry offers a bonus commission of $500 to the agent
who brings a good buyer before Thanksgiving. Sam, who is associated with the cooperating
firm of Olive Olsen, effects the sale on Nov 1. Sam may collect a bonus from
a. Henry
b. Larry
c. Olive Olsen
d. no one:
c. Olive Olsen
40. Commission rates are set by agreement between: seller and broker
41. The transaction broker represents
a. the seller
b. the buyer
300+ ACTUAL Exam Questions & Verified Answers /Latest 2025
1. Branch Office: broker's additional place of business
2. commingling: mixing broker's money with that of others
3. duplicate original: copy of a real estate contract with original signatures
4. probation: least severe discipline by the real estate commission
5. A licensed salesperson is allowed to: leave one broker and affiliate with another
6. Under some circumstances, a real estate office may be in the home of: a broker
7. Broker Waldo Rodriguez wants to open a branch office in a new shopping mall in the next
town. The office can be supervised by: a broker-salesperson
8. Salesperson Stan Clemenzio accepts an earnest money deposit and turns it over to his
broker, Roberta Lee. Roberta must: deposit it within 5 days in a trust account
9. An escrow account may be opened: In any financial institution in NJ
10. A broker must keep copies of contracts for ____ years: 6
11. Every person who signs a contract is entitled to receive a duplicate original. When?:
Immediately
12. Every sales contract prepared by a broker must contain a notice that: the buyer and seller may
seek attorney review within three business days
13. Even when the broker is the seller's agent the buyer are entitled to
a. preferential treatment
b. first loyalty
c. fair dealing
d. negotiated fees
c. fair dealing
14. For a first offense, the Real Estate Commission could fine a licensee as much as: $5,000
15. The commission will rule that someone could never again get a license after how many
violations? Three
16. Salesperson Joe Kenty is indicated for possession of a controlled substance with intent to
sell and is out on bail until the trial. The Real Estate Commission may: Suspend his license
17. The Real Estate Commission must give a licensee how much notice before a hearing is
held on a possible violation? 10 days
18. Sun City Realty holds a door-prize drawing at a weekend open house it runs. This
practice...: violates the commission's rules
19. Donna White, a broker, is offering her mother's house for sale and will charge no
commission. Should she reveal that she is a licensed agent? Yes, as soon as she meets a
prospective buyer
20. The "reasonable effort" licensees are required to make to determine all material
information about a property's physical condition could normally include all of the
following EXCEPT
a. asking the seller about the property's condition
, b. performing a visual inspection
c. asking the seller's agent about the property's condition
d. contracting with a professional to perform an in-depth inspection of the property prior
to entering into any agency agreement with the seller
d. contracting with a professional to perform an in-depth inspection of the property prior to entering
into any agency agreement with the seller
21. Any agreement between competing offices to establish standard commission rates i referred
to as
a. the preliminary marketing contract
b. price gouging
c. illegal price fixing
d. legal industry practice under NJ laws:
c. illegal price fixing
21. A salesperson working for Broker Betty was disciplined for pursuing a flagrant and
continued course of misrepresentations, making false promises, and failing to pay over
money belonging to others. In this case Betty's license...
a. will automatically be suspended because Betty is responsible for all sales-persons in her
office
b. will not be suspended because the salesperson, not betty, was disciplined for wrongdoing.
c. will be suspended or revoked only if Betty knew about the salesperson's activities and did
nothing about it
d. will be suspended, but the licenses of any other salespersons in her brokerage will not be
affected:
c. will be suspended or revoked only if Betty knew about the salesperson's activities and did nothing
about it
23. Rebate of part of a commission may be paid to a
a. seller only
b. buyer only
c. home inspector
d. seller or buyer:
b. buyer only
24. Antitrust laws: regulations preventing price fixing
25. Attorney in fact: person authorized to act under a power of attorney
26. broker: one authorized to act for another in real estate transactions
27. Consumer Information Statement (CIS): written explanation of a business relationship must be
given before any discussion of finances or any property is shown
28. Latent Defect: problem not discoverable by normal inspection
29. Law of agency: Rules governing conduct of agents
30. Meeting of the Minds: agreement between a buyer and seller on major points
31. errors and omissions insurance: Real estate equivalent of malpractice insurance
32. The legal relationship between a buyer and seller: Special Agency
33. A listing may be terminated when either broker or principal
a. gets married
b. goes bankrupt
c. overfinances other property
d. turns 21 years of age:
, b. goes bankrupt
34. When retained by the seller, the broker owes a prospective buyer:
a. obedience to lawful instructions
b. confidentiality about the buyer's financial situation
c. honest treatment
d. first loyalty
c. honest treatment
35. An example of a latent defect is:
a. a large crack in the ceiling
b. a roof with warped shingles
c. used-car lot next door
d. malfunctioning septic system
d. malfunctioning septic system
36. An independent contractor may be paid
a. a regular draw against earnings.
b. reimbursed car expenses
c. commissions on sales
d. two week vacations each ear
c. commissions on sales
37. Commissions are usually earned when
a. the buyer makes a purchase offer
b. the seller accepts the buyers offer without any conditions
c. a new mortgage has been promised by the lender
d. title of the property transfers
b. the seller accepts the buyer's offer without any conditions
38. A salesperson's commission on a real estate transaction is
a. paid within ten days after the broker paid for the transaction
b. paid at the rate set by the NJ Real Estate Commission
c. always paid in cash
d. generally determined, by custom, by the broker with no input from the salesperson:
a. paid within ten days after the broker paid for the transaction
39. Henry lists his house with broker Larry. Henry offers a bonus commission of $500 to the agent
who brings a good buyer before Thanksgiving. Sam, who is associated with the cooperating
firm of Olive Olsen, effects the sale on Nov 1. Sam may collect a bonus from
a. Henry
b. Larry
c. Olive Olsen
d. no one:
c. Olive Olsen
40. Commission rates are set by agreement between: seller and broker
41. The transaction broker represents
a. the seller
b. the buyer
