Real Estate Exam Questions with Answers: A Comprehensive Guide for Exam Preparation, Exercises of Real Estate Management

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1 / Real estate exam questions WITH ANSWERS 1.Which of the following is a permitted free offering? - - A. A complimentary home warranty with every listing B. A coupon for a discounted commission on listing services C. A free dinner for attendees at a home buyers' evening seminar D. Free use of a local moving van for all listings: C. A Free dinner for attendees at a home buyers' evening seminar 2.Depreciation usually applies to: A. the building only. B. the land only. C. both the land and the building. D. income obtained from the building.: A. the building only. 3.Under New Jersey Real Estate Commission rules, a licensee's obligations to the public include all of the following responsibilities EXCEPT: A. accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement B. dealing honestly with all parties C. disclosing material defects in a property to a prospective purchaser D. protecting and promoting the interests of the licensee's principal when acting as an agent: A. accepting any reasonable commission offered by a seller in the course of negotiating a listing agreement

2 / 4.The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He also noticed a Russian grocery store right by the neighborhood that was attractive. He decides to stop the advertising the property and started adverting the property on two different Russian internet sites. This is:

1. Acceptable because it is not print media
2. Unacceptable due to its discriminatory nature
3. Acceptable if the advertisement includes no preferential language
4. The only appropriate way to market property in this neighborhood: 3. Ac- ceptable if the advertisement includes no preferential language 5.Which of the following are most likely to be addressed by building code? A.deed restrictions B.construction standards C.permissible uses of structures D.restrictive covenant: B.construction standards 6.A seller places his property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller 2rejects that offer, but states that he will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is A. rescinded. B. null and void. C. irrevocable.

3 / D. binding.: B. null and void. 7.A property was listed with a broker, but the owners advertising the property found a buyer and negotiated the sale themselves. After the closing, the owners paid a full commission %- to the broker. The broker MUST have had A. an open listing. B. an exclusive agency listing. C. anet listing. D. an exclusive right to sell.: D. an exclusive right to sell. 8.A neighborhood grocery store no longer complies with the law because a new zoning ordinance is adopted so that the property is zoned for residential use. Nevertheless, the owner "- is allowed to continue to operate the grocery store. This is an example of A. variance. B. nonconforming use. C. spot zoning. D. a conditional-use permit.: B. nonconforming use. 9.A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE? A. Because it is voluntary, it will not be an adverse item on the buyer's credit. B. The lender will take the title subject to any junior liens. C. The lender will usually retain his rights under mortgage insurance or VA guarantee. D.The loan will still be assumable.: B.) The lender will take the title subject to any junior liens

4 / 10.Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? o- A. a broker's price opinion B. a comparative market analysis C. reconciliation report for an FHA loan D. value analysis for a non-residential property valued below $250,000: C. reconciliation report for an FHA loan The answer is C sometimes they trick you and say a government-funded loan 11.An individual Is hired by the homeowners' association of KLM Condomini- ums. The individual is not required to be a real estate licensee in New Jersey UNLESS the individual o engages in which of the following activities? A. Collecting the monthly association membership fees B. Negotiating a contract with a security service C. Retaining a landscaping service D. Soliciting tenants for vacant rental units: D. Soliciting tenants for vacant rental units 12.Minors are held liable for real estate contract obligations if they 2 A. are at least 16 years of age. B. have the contract notarized. C. graduated from high school. D. have their guardian co-sign.: D. have their guardian co-sign. 13.A broker who charges or collects an advance fee in excess of $ for services to be rendered MUST:

5 / A. deduct the amount collected from the commission or settlement B. give the principal receipts for all expenditures C. furnish within ninety days of its collection an accounting of how the money was used D. retain the difference between the amount of money collected and the amount spent: C. furnish within ninety days of its collection an accounting of how the money was used 14.A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should: A. refuse to write the offer. B. insist on a prompt closing. C. ask for a high earnest money payment. D. relay any reservations to the seller.: D. relay any reservations to the seller. 15.New Jersey Real Estate Commission regulations require a licensee to ter- minate membership in a real estate board or multiple listing service whenever the organization: A. suggests uniform commission rates among all member brokers B. lobbies against legislation that the licensee personally favors C. charges dues that the licensee feels are excessive

6 / D. advocates rules, practices, and/or standards with which the licensee does not agree: D. advocates rules, practices, and/or standards with which the licensee does not agree 16.Which of the following statements about branch offices is INCORRECT? A. The name of the branch office supervisor must be recorded with the com- mission. B. A licensed broker-salesperson must supervise the office on a full- time basis. C.Two salespersons may be designated to share supervising responsibilities. D. The employing broker is ultimately responsible for all licensees employed at the branch office.: C. Two salespersons may be designated to share supervising responsibilities. 17.In a jurisdiction where a seller's property condition disclosure is required, the licensee is responsible for: A. completing the property condition disclosure. B. ensuring that the seller complete the property condition disclosure before closing. C. ensuring that the buyer receives the property disclosure before the contract Is finalized. D. checking the disclosure for accuracy and ensuring that the buyer receives it before closing.: D. checking the disclosure for accuracy and ensuring that the buyer receives it before closing. 18.insurance value differs from market value in that: A. the value is only attributable to the replacement value of the structure. B. includes the land and structure values.

7 / C. fair market value is not insurable. D. it includes only the land value.: A. the value is only attributable to the replace- ment value of the structure. 19.A tax assessor determined that a commercial building by with a 3.5% mortgage has a market value of $400,000. If the assessed value is 60% of market value and the tax rate is 631/8 9 mills, what is the annual tax? A. $5,305. B. $8,837. C. $15,150. D. $25,250.00: 20.In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate? A. cost

8 / B. income C. market data D. gross rent multiplier: D. gross rent multiplier 21.A secretary in a real estate office who does NOT have a real estate license may: A. review the Consumer information Statement with a prospective buyer B. perform bookkeeping functions concerning escrowed funds C. sign escrow checks with the written authorization of the broker D. disclose the current status of a commercial listing: b. perform bookkeeping functions concerning escrowed funds 22.Written offers to purchase real estate in New Jersey must be presented to sellers within: A. 24hours B. 48 hours C. 3days D. 5 days: A. 24 Hours 23.A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current interest rate is 12%. A buyer can pay $60, down and wants to carry a mortgage that includes the seller's $20, existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of 10%. What kind of mortgage loan is this? A. Blanket. B. Equity. C. Wraparound.

9 / D. Buy-down.: C. wraparound mortgage 24.The IRS allows a married couple who sell their long-time home to take a tax-free capital gain of up to 2. A. $125,000. B. $250,000. C. $500,000. D. any amount.: C. $500,000. 25.Once an offer to purchase is presented to a seller, the: A. buyer is bound to the terms contained therein until the delivery of its acceptance. B. property is unavailable to any other prospects. C. offer may be withdrawn at any time prior to the delivery of its acceptance. D. seller may not consider any other outstanding offers.: A) buyer is bound to the terms contained therein until the delivery of its acceptance

10 / 26.A Seller's Property Disclosure form states that there are no known material defects with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the basement. The licensee should: A. disclose the existence of asbestos to all potential buyers. B. ask the seller's permission to disclose and abide by the seller's wishes. C. suggest the buyers have a home inspection and leave discovery up to the inspector. D. suggest to the seller that he wrap the pipes to contain potential airborne contamination.: A. disclose the existence of asbestos to all potential buyers. 27.Which of the following is NOT an example of a fixture? A. Antique chandelier. B. Hot water heater. C. Heirloom rosebush. D. Cast iron garden bench.: B. Hot water heater 28.A real estate broker has a fiduciary responsibility to her client and her responsibilities include investigating financial references, ordering and exam- ining credit reports, and familiarity with the ADA Title ill. This broker is most likely working for the client as A. an affiliate. B. an escrow officer. C. a property manager. D. a designated broker.: C. A property manager 29.A candidate passes the per-licensure course examination on November

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8. The candidate must apply for the license within: A. six months from completing the pre-licensure course B. one year from passing the state licensing examination C. one year from completing the per-licensure course D. two years from passing the state licensing examination: C. one year from completing the per-licensure course 30.The listing broker may be due a commission, even when no sale occurred, if the A. potential buyer was unable to obtain financing. B. seller decided he no longer wished to sell. C. seller refused a buyer's reasonable offer. D. broker located a buyer who made an offer that met all of the seller's terms.: D. broker located a buyer who made an offer that met all of the seller's terms. 31.In New Jersey, the Private Well Testing Act (PWTA) requires: A. the buyer to order the test B. the selling broker to recommend sources of remediation

12 / C. the buyer and seller to certify receipt of test results before title transfer D. the seller to remediate if the well fails the test: C. the buyer and seller to certify receipt of test results before title transfer 32.According to the New Jersey Real Estate License Law, employment agree- ments between salespersons and brokers MUST include which of the follow- ing provisions? A. A clause outlining the compensation to salespersons in the event that their employment is terminated B. A clause requiring the salesperson to purchase errors and omissions insurance coverage C. A clause confirming the salesperson's status as an independent contractor D. An attorney review clause stating that it is the broker's option to hire an attorney in order to protect the broker's rights: A clause outlining the compen- sation to salespersons in the event that their employment is terminated 33.New Jersey Real Estate Commission regulations require a licensee to ter- minate membership in a real estate board or multiple listing service whenever the organization: A. suggests uniform commission rates among all member brokers B. lobbies against legislation that the licensee personally favors C. charges dues that the licensee feels are excessive D. advocates rules, practices, and/or standards with which the licensee does not agree: D. advocates rules, practices, and/or standards with

13 / which the licensee does not agree 34.Which disclosure is the most commonly required in a residential real estate sale? A. radon B. lead-based paint C. neighborhood composition D. sellers property disclosure: D. sellers property disclosure or B. lead based paint? 35.According to the CAN SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT A. cleary indicate the nature of the content of the email. B. inform the recipient of the name and location of the brokerage firm. C. allow a method for the recipient to opt out and not receive future emails. D. advise the recipient that it will take 180 days to remove the recipient's name from this email list.: D. advise the recipient that it will take 180 days to remove the recipient's name from this email list.

14 / 36.Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? A. a broker's price opinion B. a comparative market analysis C. are conciliation report for an FHA loan D. a value analysis for a non-residential property valued below $250,000: C. are conciliation report for an FHA loan 37.The purchase price for a new home was $230,000. The buyer put down 20%, and the balance was a mortgage for 80% of the purchase price. The appraised value at the time of closing was $250,000, and the assessed value was $220,000. What will the buyer pay for one year's property taxes, if her tax rate is 0.2% A. $ B. $ C. $3, D. $4,600: A.) $ 38.A tax assessor determined that a commercial building with a 3.5% mort- gage has a market value of $400,000. If the assessed value is 60% of market value and the tax rate is 63 1/8 mills, what is the annual tax? A.) $5,305. B.) $8,837. C.) $15,150. D.) $25,250.00: C.) $15,150.