Free New Jersey Real Estate Practice Exam

Q1.Under New Jersey fair housing law, a licensee who steers a prospective buyer toward or away from a neighborhood based on the racial or ethnic composition of that neighborhood is:

• A.Permitted, as long as the buyer ultimately makes their own decision about where to purchase
• B.Guilty of blockbusting, which is only illegal if the licensee profits financially from the steering
• C.In violation of the New Jersey Law Against Discrimination, which prohibits steering based on protected characteristics
• D.Only subject to discipline if the buyer files a written complaint with the broker within 30 days

Q2.A property is being purchased for $350,000 with a loan amount of $280,000. If the state transfer tax is $0.50 per $500 of consideration and the county transfer tax is 0.1% of the purchase price, what is the total transfer tax due?

• A.$350
• B.$700
• C.$280
• D.$1,050

Q3.Under N.J.A.C. 11:5-12.4, a salesperson who is renewing a New Jersey real estate license for the FIRST time after initial licensure is subject to a specialized continuing education requirement. Which of the following correctly describes that requirement?

• A.The salesperson must complete 12 general continuing education credits, the same as all other licensees, with no special first-renewal obligation.
• B.The salesperson must complete a Commission-approved 30-hour post-licensure sales course in addition to the standard continuing education required of all renewing licensees.
• C.The salesperson is exempt from continuing education for the first renewal cycle because the pre-licensure 75-hour course satisfies the CE requirement.
• D.The salesperson must sit for and pass a supplemental examination administered by the New Jersey Real Estate Commission before the first renewal is granted.

Q4.A property sold for $240,000. The listing agent received a 3% commission and the selling agent received a 2.5% commission. What was the total commission paid?

• A.$7,200
• B.$6,000
• C.$13,200
• D.$12,000

Q5.What is the key distinction between an Exclusive Right to Sell listing and an Exclusive Agency listing in Arizona?

• A.Under an Exclusive Agency listing, the broker earns a commission regardless of who sells the property
• B.Under an Exclusive Right to Sell listing, the seller can simultaneously list with multiple brokers
• C.Under an Exclusive Right to Sell listing, the broker earns a commission regardless of who procures the buyer — even if the seller sells directly
• D.Under an Exclusive Agency listing, the broker is guaranteed a full commission in all circumstances

Q6.Under contract law, what is the primary purpose of a contingency clause in a real estate purchase agreement?

• A.To allow the seller to cancel the contract without penalty
• B.To make the contract legally binding on both parties
• C.To provide a condition that must be satisfied for the contract to remain in effect
• D.To establish the closing date for the transaction

Q7.Under N.J.A.C. 11:5-4.2, what is a New Jersey broker's primary supervisory obligation with respect to salespersons affiliated with the broker's firm?

• A.The broker must co-sign every purchase contract negotiated by a salesperson before it becomes binding
• B.The broker must reasonably supervise all licensed activities performed by affiliated salespersons and ensure compliance with the License Act and Commission rules
• C.Supervision responsibility shifts entirely to the salesperson once they have held a license for two or more years
• D.The broker's supervisory duty is limited to financial matters such as commission disbursements and trust account deposits

Q8.Under the New Jersey Real Estate License Act and N.J.A.C. 11:5, which of the following statements about a real estate salesperson earning a commission is CORRECT?

• A.A salesperson may accept a commission or compensation directly from a seller if the seller agrees in writing
• B.A salesperson may only receive compensation through the broker with whom the salesperson is affiliated
• C.A salesperson may accept a referral fee directly from an out-of-state broker without broker involvement
• D.A salesperson may negotiate and collect a commission independently if the listing agreement authorizes it

Q9.A New Jersey broker is audited by the New Jersey Real Estate Commission and investigators find that the broker's trust account reconciliation shows a $1,200 overage—the bank balance exceeds the total of all client ledger balances. Under N.J.A.C. 11:5-2.4, which statement BEST describes the broker's obligation and likely regulatory consequence?

• A.An overage is not a violation because client funds are fully protected; the broker need only document the source of the excess funds in the ledger.
• B.The overage constitutes commingling of funds; the broker must immediately identify and remove the excess funds and is subject to disciplinary action regardless of intent.
• C.The broker may retain the overage for up to 30 days to investigate its source before being required to report it to the Commission.
• D.An overage is permissible if it results from the broker's own earnest funds deposited to cover anticipated bank service charges, provided the amount does not exceed $500.

Q10.A New Jersey licensee is advertising a property on a personal social media page under the team name 'The Sunrise Team.' Which of the following is required by New Jersey advertising rules?

• A.Only the team name needs to appear since team names are registered with the New Jersey Real Estate Commission
• B.The advertisement must also prominently display the name of the employing broker or brokerage firm
• C.The salesperson's personal license number must appear in every social media advertisement
• D.Team advertising on social media is prohibited unless the team has its own broker's license

Q11.Under the post-NAR-settlement buyer-broker agreement, if a buyer's agent earns more from the seller than the amount specified in the agreement, the agent must:

• A.Keep the difference as a bonus
• B.Donate the excess to a charitable organization
• C.Notify ADRE of the overage within 30 days
• D.Refund the excess to the buyer or credit it toward costs

Q12.Under the federal Truth-in-Lending Act (TILA) and Regulation Z, which of the following disclosures is a creditor required to provide to a residential mortgage applicant?

• A.The Annual Percentage Rate (APR), finance charge, amount financed, and total of payments.
• B.The borrower's FICO credit score and a breakdown of all trade lines on the credit report.
• C.The property's appraised value and a copy of the appraisal report within three business days of application.
• D.A Closing Disclosure listing all settlement charges at least three business days before the loan application is taken.

Q13.Under federal fair housing laws, which of the following advertising practices would be considered discriminatory?

• A.Stating 'no pets allowed' in rental advertisement
• B.Advertising 'walk to Catholic church' in property description
• C.Including 'senior discount available' for buyers over 55
• D.Mentioning 'excellent schools nearby' in listing description

Q14.A New Jersey licensed salesperson receives a $5,000 earnest money deposit from a buyer. Under New Jersey law, what must the salesperson do with these funds?

• A.Deposit the funds into a personal account and forward them to the broker within five business days
• B.Hold the funds personally in a secure location until the transaction closes
• C.Promptly deliver the funds to the employing broker, who must deposit them into a separate trust or escrow account
• D.Deposit the funds directly into the listing broker's escrow account without notifying the employing broker

Q15.Under N.J.A.C. 11:5-4.2, what is the primary responsibility of a New Jersey broker with respect to the salespersons and broker-salespersons affiliated with the brokerage?

• A.The broker is responsible only for the actions of full-time salespersons; part-time licensees are independently responsible for their own conduct.
• B.The broker must actively supervise affiliated licensees to ensure their real estate activities comply with the New Jersey Real Estate License Act and Commission regulations.
• C.The broker's supervisory duty is satisfied by requiring affiliated licensees to complete their continuing education requirements on time.
• D.The broker is only responsible for the conduct of salespersons during transactions in which the broker is personally involved.