Free New Jersey Real Estate Practice Exam

Q1.A broker discovers that a property listed for sale contains asbestos. Under federal environmental law, the broker should:

• A.Remove the asbestos before marketing
• B.Disclose the presence of asbestos to potential buyers
• C.List the property only to commercial investors
• D.Refuse to list the property

Q2.A tenant in New Jersey wants to terminate a lease early due to domestic violence. Under state law, what must the tenant provide to the landlord?

• A.30 days written notice only
• B.Police report and medical records
• C.Certified copy of restraining order or other qualifying documentation
• D.Sworn affidavit from a witness

Q3.A New Jersey broker's license expires on June 30th, but they continue operating without renewal until August 15th. During this period, they complete two transactions. What are the potential consequences under New Jersey law?

• A.The broker must only pay a late renewal fee
• B.The transactions are valid, but the broker faces disciplinary action and potential fines
• C.The transactions are void and the broker faces license revocation
• D.No consequences exist if renewal occurs within 90 days

Q4.A New Jersey broker discovers that one of their salespersons has been commingling client funds with personal funds. What is the broker's primary legal obligation?

• A.Report the violation to the local police department within 24 hours
• B.Terminate the salesperson immediately and notify the Real Estate Commission
• C.Require the salesperson to complete additional education before handling funds
• D.Transfer all of the salesperson's current listings to other agents

Q5.Under New Jersey real estate law, what is the maximum amount of earnest money a salesperson can hold in their personal account before it must be deposited into a trust account?

• A.$0 - all earnest money must go directly to the broker's trust account
• B.$1,000
• C.$5,000
• D.$10,000

Q6.Under New Jersey law, when must a broker notify the Real Estate Commission of a change in business address?

• A.Within 10 days
• B.Within 15 days
• C.Within 30 days
• D.At license renewal

Q7.A New Jersey broker receives a complaint from a client alleging that the broker's salesperson made misrepresentations about a property's condition. What is the broker's best course of action to minimize liability?

• A.Immediately settle the claim to avoid further complications
• B.Investigate the complaint thoroughly and document all findings
• C.Refer the client directly to the Real Estate Commission
• D.Deny all allegations and refuse to discuss the matter

Q8.Under the Fair Housing Act, which of the following would be considered a prohibited discriminatory practice in property use restrictions?

• A.Requiring a minimum income qualification of three times the monthly rent
• B.Prohibiting pets except for service animals
• C.Restricting occupancy to families without children under 18
• D.Requiring a security deposit equal to one month's rent

Q9.What education requirement must be satisfied before taking the New Jersey broker examination?

• A.75 hours of approved real estate education
• B.90 hours of approved real estate education
• C.150 hours of approved real estate education
• D.No specific education requirement exists

Q10.In New Jersey, what is the standard attorney review period for residential purchase contracts?

• A.3 business days
• B.5 business days
• C.7 calendar days
• D.10 calendar days

Q11.Under federal fair housing law, which of the following is NOT a protected class?

• A.Race
• B.Religion
• C.Marital status
• D.National origin

Q12.When using the sales comparison approach, an appraiser finds that comparable properties with swimming pools sold for $15,000 more than those without pools. If the subject property has a pool but the comparable sale being analyzed does not, what adjustment should be made?

• A.Add $15,000 to the comparable sale price
• B.Subtract $15,000 from the comparable sale price
• C.Add $15,000 to the subject property value
• D.No adjustment is necessary

Q13.Under the Truth in Lending Act (TILA), what is the Annual Percentage Rate (APR)?

• A.The interest rate charged on the loan principal only
• B.The cost of credit expressed as a yearly rate including interest and certain other charges
• C.The monthly payment amount divided by 12
• D.The discount points expressed as a percentage

Q14.What is the primary difference between tenancy in common and joint tenancy?

• A.Tenancy in common requires equal ownership shares
• B.Joint tenancy includes the right of survivorship
• C.Tenancy in common can only exist between married couples
• D.Joint tenancy requires a written agreement

Q15.A New Jersey tenant's security deposit must be held in which type of account?

• A.Landlord's personal checking account
• B.Interest-bearing escrow account
• C.Trust account with attorney
• D.Any federally insured account