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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q63-Q68):
NEW QUESTION # 63
Which of the following items would be prorated at closing with the credit going to the seller?
- A. accrued interest on an assumed mortgage
- B. earnest money
- C. prepaid property taxes
- D. unearned rent collected in advance
Answer: C
Explanation:
Prepaid items (like property taxes already paid by seller) are prorated at closing, with the buyer reimbursing the seller for the period after closing. The credit therefore goes to the seller.
Accrued interest is typically credited to the buyer (since the seller owes it).
Earnest money is applied to buyer's costs, not prorated.
Unearned rent collected in advance is credited to the buyer, since the seller must pass future rent benefit to the buyer.
Correct answer = B.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Closings and Prorations.
NEW QUESTION # 64
A buyer and broker enter into a 3-month exclusive buyer agency agreement. With regard to the broker's right to be compensated and to work with other clients, this means that during the term of this agreement, the broker
- A. must be compensated by the seller.
- B. is entitled to compensation even if the buyer purchases a property that they locate.
- C. may not show a property to other buyers until the buyer decides if they want to make an offer.
- D. is only due compensation if the buyer purchases one of the broker's listings.
Answer: B
Explanation:
Under an Exclusive Buyer Agency Agreement, the buyer agrees that the broker is their exclusive representative during the term. This creates a contractual right for the broker to be compensated regardless of who finds the property. If the buyer purchases any property during the agreement period (even one they personally locate or one listed by another brokerage), the broker is still entitled to commission as agreed.
The broker is not restricted from showing properties to other buyers at the same time, as fiduciary obligations run individually to each client.
Reference: New Jersey Real Estate Salesperson Pre-Licensure Course Study Guide, Chapter on Agency Relationships; NJREC Buyer Representation Agreements.
NEW QUESTION # 65
To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?
- A. owner willing to finance
- B. buy for less than $650 per month
- C. FHA and VA financing available
- D. assumable loan
Answer: B
Explanation:
Under the Truth in Lending Act (Regulation Z), advertising is regulated to prevent misleading credit offers.
If an ad uses "triggering terms" (such as monthly payment amount, interest rate, down payment, or loan term), then full disclosure of all financing terms must be provided.
"Buy for less than $650 per month" is a triggering term because it specifies a monthly payment.
General terms like "assumable loan," "owner financing," or "FHA/VA available" are permissible without full disclosure.
Correct answer = D.
Reference: Truth in Lending Act (TILA), Regulation Z; NJ Real Estate Salesperson Study Guide, Chapter on Financing and Advertising Rules.
NEW QUESTION # 66
In advertisements of individual salespersons, which of the following is permitted?
- A. Linking a personal real estate webpage to the salesperson's broker's website.
- B. Having the broker's name appear in smaller print than the salesperson's name in a newspaper ad.
- C. Placing the real estate office sign on a personal residence.
- D. Including reference to a home office.
Answer: A
Explanation:
The New Jersey Real Estate Commission advertising rules (N.J.A.C. 11:5-6.4) state that:
All ads must clearly indicate the name of the employing broker.
A salesperson's name may appear, but not more prominently than the broker's name.
Ads cannot suggest that a salesperson is operating independently.
Linking a salesperson's personal webpage to their broker's official website is permissible, provided the broker's name is prominently displayed and supervision is maintained.
Therefore, the only correct permitted action is D.
Reference: NJREC Rules and Regulations, N.J.A.C. 11:5-6.4 (Advertising Rules).
NEW QUESTION # 67
A licensee must provide a Consumer Information Statement in all of the following transactions EXCEPT the:
- A. lease of a three-bedroom apartment for one year
- B. sublease of a studio apartment for two months
- C. sale of a three-family house in a mixed-use zone
- D. sale of a vacant one-family lot
Answer: B
Explanation:
The Consumer Information Statement (CIS) must be used in all sales of 1-4 family residential properties and all residential lease transactions of 1-4 units that are for terms longer than 125 days.
A short-term rental or sublease (two months) does not require a CIS.
Correct answer = C.
Reference: N.J.A.C. 11:5-6.9; NJ Real Estate Salesperson Study Guide, Chapter on Consumer Information Statement.
NEW QUESTION # 68
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