110+ Free New Jersey Real Estate Practice Exam Questions (January 2023)

New Jersey Real Estate Exam

1 / 110

Who maintains the New Jersey Real Estate Guaranty Fund?

2 / 110

If a legal description is too long to include in the body of a sales contract, a real estate professional should do what?

3 / 110

What is the law governing real estate practice in New Jersey?

4 / 110

The amount borrowed is called the:

5 / 110

What is the maximum paid out (per judgment) from the New Jersey Real Estate Guaranty Fund?

6 / 110

Mrs. Jackson signs an open listing on her home with three different brokers. In this case:

7 / 110

What specific formula would be used to estimate the value of a property using the income approach?

8 / 110

Which of the following are the main participants in real estate markets?

9 / 110

How many members does the New Jersey Real Estate Commission have?

10 / 110

What is the maximum fine the New Jersey Commission can impose against a licensee who is found to be guilty of ONE violation of the New Jersey Real Estate License Act?

11 / 110

Which of the following would NOT apply to the income approach in the valuation process?

12 / 110

Market value is

13 / 110

A buyer was negotiating the purchase of a lot to build a new family house, the seller indicated that the land was firm enough to support the construction of a building when, in fact, the seller knew it was not. The contract is

14 / 110

What is a one-of-a-kind contract that is solely between the seller and the buyer. In this arrangement, the seller gives the buyer the option to purchase property at a given price for a set period?

15 / 110

Under the terms in a mortgage, the lender must be paid in full if the property is sold to another person. This is known as the

16 / 110

The Bundle of Rights include:

17 / 110

A real estate agent advertised a home for $250,000. When a Chinese couple asked the agent for the price of the house. The agent told them the seller wanted $260,000 instead. Under the federal Fair Housing Act of 1968, such a statement is

18 / 110

A married couple intends to purchase property, but only if they can qualify for a mortgage loan at a reasonable rate. The qualification is

19 / 110

Which of the following fits the description? "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage."

20 / 110

Which of the following is an economic characteristic of real estate?

21 / 110

The type of easement that is a right-of-way for a utility company's power lines is what?

22 / 110

A claim that has the appearance of having valid title, but in reality, the person either does not hold actual title, or there is a significant defect in the written documents supporting title, that makes it invalid. This an example of which legal concept:

23 / 110

A lender agrees to release the first borrower from all financial obligations and let a second buyer be responsible for the repayment of the debt. What is this an example of?

24 / 110

The “time is of the essence” contract clause in real estate contracts generally has to do with what?

25 / 110

What of the following is required by the Americans with Disabilities Act(ADA)?

26 / 110

Is replacement cost and reproduction cost the same thing and if it is different, what is the difference?

27 / 110

What is the agency responsible for the enforcement of the Fair Housing Act?

28 / 110

The owner of a condominium has the use of many facilities there, including a pool. Under the typical condominium arrangement, the facilities are owned by

29 / 110

Can New Jersey licensees use a contest or drawing to promote the sale property?

30 / 110

Your client signs a contract to buy a house and the seller refuses to sell the house at the very last minute. Your client still wants the house. What should your client do?

31 / 110

Choose the best answer. A lawsuit for inverse condemnation may be brought by:

32 / 110

Which would be a violation of New Jersey license law?

33 / 110

Which of these meets the Department of Housing and Urban Development’s (HUD) definition of family as a protected class?

34 / 110

Steve (a real estate agent of five years) was at his local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. What should Steve do?

35 / 110

Which of the following best describes the acceleration clause?

36 / 110

Which of the following would MOST likely be considered a fixture?

37 / 110

Most real estate sales contracts include contingency clauses, making them what?

38 / 110

The deed that offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land.

39 / 110

What is the biggest difference between private and public land use controls?

40 / 110

There are three main forms of depreciation, what are they?

41 / 110

In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring title to property. Within deeds, covenants are:

42 / 110

What is it called when parties have fully performed the terms of a contract?

43 / 110

How many hours of continuing education are required for New Jersey real estate licensees?

44 / 110

Liquidated damage is most likely to be found in which of the following documents?

45 / 110

A salesperson working for Trinity Real Estate LLC has moved to Lotus Realty. What happens to the listings the salesperson took at Trinity Real Estate LLC?

46 / 110

When a home is purchased using an adjustable rate mortgage or ARM, the monthly loan payment on the mortgage will:

47 / 110

Earnest money should be deposited into a trust account:

48 / 110

Which of the following best describes the term "encroachment?"

49 / 110

What is the difference between void and voidable contracts? Choose the best answer.

50 / 110

What is Ginnie Mae’s primary responsibility?

51 / 110

What is the general technique of determining three-dimensional positions of points and the distances and angles between them?

52 / 110

The fact that land has a number of important uses is the basis for what essential element of value?

53 / 110

Find the annual GRM. A 9-unit building in Cleveland Ohio, with an asking price of $500,000 and gross annual rents of $75,000.

54 / 110

A contract agreed to and signed under duress is what?

55 / 110

The owner of a secluded area adjacent to the ocean noticed that people from the local town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for half a century. The owner went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be:

56 / 110

An example of economic obsolescence in real estate is

57 / 110

What is the difference between a lease option contract and lease purchase contract?

58 / 110

A bilateral contract is one in which

59 / 110

A housing development advertising its units being only available to people over 55 is what?

60 / 110

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is a 25-year-old strip mall. To which approach to value should the appraiser give the greatest weight when making this appraisal?

61 / 110

Unlike apartments, which are leased by their tenants, condominium units are owned outright. A condominium is often shortened to

62 / 110

Buyer Dan is considering buying a lot to build a single family residence. Dan hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?

63 / 110

The New Jersey Real Estate License Act specifically mentions the following offenses that are subject to disciplinary action:

64 / 110

After paying off a loan, the lender files what to release the lien?

65 / 110

Utilizing the 28/36 rule, if Rebbecas gross income is $4,500 a month, she would need to spend less than ______ in housing costs a month to qualify for most loans.

66 / 110

The Civil Rights Act of 1866 prohibits discrimination in real estate based on:

67 / 110

The ability to buy and sell is also known as what essential element of value?

68 / 110

What form of legal land description consists of principal meridian lines that cover most states in the US, running north to south and baselines running east to west?

69 / 110

A double net lease is a rental agreement where:

70 / 110

What best describes an agent hired to perform a specific duty?

71 / 110

In a single agency relationship a real estate broker represents who?

72 / 110

Which of the following is an example of Economic Obsolescence?

73 / 110

Which of the following best describes a blind offer?

74 / 110

In most cases, a tenant in an apartment holds:

75 / 110

Appraiser Larry has a set of special-purpose and public service buildings like schools, churches, and post offices, which he needs to appraise. Which approach to value would Larry, the appraiser choose to complete the task?

76 / 110

Who is most likely to win a suit for specific performance?

77 / 110

Fee packing, equity stripping, and balloon payment abuses are all examples of what?

78 / 110

Which of the following BEST describes a contract that is voidable?

79 / 110

What best describes the type of agency typical in property management - in which an agent has limited power?

80 / 110

If a seller rejects a written offer made by a buyer, changes the terms of the offer, and has the new offer delivered to the buyer, it is considered what?

81 / 110

Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement?

82 / 110

An agent took a listing and later discovered that her client had previously been declared incompetent by the court. The listing is now

83 / 110

The fact there is a limited amount of land on earth represents what essential element of value?

84 / 110

Acceleration is a term associated with which type of document?

85 / 110

Local zoning ordinances often regulate all of the following except

86 / 110

A buyer of a home was not informed that his house was on a septic tank system. The buyer has the right to:

87 / 110

At the very minimum advertising property or services by real estate professionals, should include what?

88 / 110

A seller made a counteroffer and gave three days for acceptance. The very next day, the seller receives a better offer, which they want to accept. What is the first step the seller should make?

89 / 110

A contract may include a clause that limits the amount of money to which the seller is entitled in case the buyer breaches the contract. What is this called?

90 / 110

A man named Troy lives in California, but owns property across the U.S. He owns property in cities like Pittsburgh, Philadelphia, and D.C. Troy decides he wants to sell his property in D.C. Instead of traveling all the way to D.C. to complete all the paperwork, he calls up his buddy Tony. Troy authorizes Tony, who lives in D.C., to sell his property for him. Troy gives Tony a/an:

91 / 110

As a general rule of thumb ALL written offers must be:

92 / 110

Generally speaking, what happens when the supply of available houses in an area increases significantly?

93 / 110

An interest in real property which is held for the duration of the life of a designated person is called a

94 / 110

Is commingling legal in New Jersey?

95 / 110

A New Jersey real estate broker must keep all copies of contracts of sale and listing agreements for how long?

96 / 110

In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in

97 / 110

Under these rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties.

98 / 110

The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for:

99 / 110

An individual seeking to be excused from the requirements of a zoning ordinance needs a

100 / 110

What is the difference between the market value of your home, and the amount you owe the lender who holds the mortgage?

101 / 110

A lease agreement where the tenant has the right to buy the property within a specified period of time is called what?

102 / 110

Which of the following legal concepts requires real estate listings to be in writing?

103 / 110

Which of the following can be achieved by dividing the price of the property by the rent that is produced?

104 / 110

Which of the following consumers would most likely qualify and be able to derive the most benefit from refinancing their mortgage?

105 / 110

Under what situation, if any, may a lender consider age when making a lending decision?

106 / 110

Which answer includes 3 actual types of business structures? Choose the best answer.

107 / 110

During your time as agent you will run into many different types of people from areas across the world. Closing is called many names depending on which region of the U.S you are from. Which of the following is NOT a legal name for closing?

108 / 110

The cost of public services is distributed among real estate owners through what?

109 / 110

What is radioactive gas dispersed from natural decay of mineral in earth (odorless, colorless, tasteless)?

110 / 110

The increase of value with the passage of time is best described as:

Your score is

Hello, welcome to our New Jersey Real Estate Practice Exam.

In New Jersey, there are 110 questions on the exam. Many states have a national portion and a state portion, but New Jersey has one section combining both for a total of 110 questions. 

The two most effective study tools for the state exam are practice exams and learning the state-specific license laws. 

Our state-specific practice exam is a fantastic tool to help you grasp your state's real estate topics. It works just like the national practice exam and is updated annually. Usually, using the state practice exam is enough for students to grasp the concepts. However, if you want more, the single most important resource out there is the laws they base the questions on. 

If you haven't looked at your state's Real Estate Statutes or Regulations, it's strongly recommended.

The test makers take snippets of laws applicable to your state and use them for the questions. We use the actual state laws to create our questions, which is why some of the questions may look familiar to you. Some websites and prep providers do not, and that's the secret. You need to know your state's laws. 

Furthermore, It would be best if you read through your laws at least once, and that's the greatest advice we can give you. Trust us, we know it can be very time-consuming, but reading through each one of these will provide you with precisely the information you need to pass. 

Best of luck, reach out if you need anything,

Real Estate License Wizard Team

New Jersey Real Estate Statutes and Regulations

Here is our list of recommended Real Estate Statutes and Regulations you need to know:

  • New Jersey Real Estate License Act https://www.generalreferral.com/njrec-rules-and-regulations-45-15
  • New Jersey Administrative Code, Title 11 Insurance, Chapter 5 Real Estate Commission
    • § 11:5-3.1 Terms of real estate licenses
    • § 11:5-3.2 Payment of fees as prescribed by statute
    • § 11:5-3.3 Criminal history record check
    • § 11:5-3.4 Examination rules
    • § 11:5-3.5 Requests for disclosure of social security numbers and electronic mailing addresses
    • § 11:5-3.6 Salesperson’s and referral agent’s licenses; age requirement
    • § 11:5-3.7 Employment of salesperson or referral agent sponsored by broker
    • § 11:5-3.8 Qualifications for licensing; broker and broker-salesperson
    • § 11:5-3.9 Return of license when broker ceases to be active; office closing; change of broker of record
    • § 11:5-3.10 Sponsoring of license applications or transfers of license
    • § 11:5-3.11 License transfer and termination procedures
    • § 11:5-3.12 License applications processed by the Real Estate Section of the Department of Banking and Insurance Licensing Services Bureau
    • § 11:5-3.13 Licensing Services Bureau, Real Estate Section forms, instructions, processing times, deadlines
    • § 11:5-3.14 Licensing fees
    • § 11:5-3.15 Change of status from referral agent to salesperson or broker-salesperson

NOTE: State websites update semi-frequently and sometimes their website URLs change. If any of the links posted below do not work, please reach out and we will update the links promptly. Thank you.

New Jersey Real Estate Exam FAQ’s

Have a question about the real estate exam? Find the answers to all your real estate license questions here:

What are New Jersey’s Real Estate License Requirements?

Real estate license requirements vary from state to state. Here are New Jersey’s requirements:

  • Must be 18 years or older.
  • Must obtain and submit a copy of your own fingerprints.
  • Must complete required state approved pre-licensing courses (75 credit hours).
  • Estimated cost of total fees and license: $205

How Hard is the New Jersey Real Estate Exam?

The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. To pass the exam in New Jersey, you’ll need to get a score of at least 70%. With a total of 110 questions, that means the score to pass is 77.

How Many Questions Can You Miss on the New Jersey Real Estate Exam?

In New Jersey, you can miss 33 questions and still pass the real estate exam.

How Many Times Can You Take the New Jersey Real Estate Exam?

There are no limits to the number of times you can take your real estate exam, but it must be passed within one year after passing through the 75-hour pre-licensing course.

What Is on the New Jersey Real Estate Exam?

The 110 multiple-choice questions on the salesperson examination cover a variety of topics that are relevant to New Jersey real estate license law. Here are what topics you are expected to know:

New Jersey General Exam Topics:

  1. Property Ownership
  2. Land Use Controls and Regulations
  3. Valuation and Market Analysis
  4. Financing
  5. General Principles of Agency
  6. Property Disclosures
  7. Contracts
  8. Leasing and Property Management
  9. Transfer of Title
  10. Practice of Real Estate

New Jersey State Exam Topics:

  1. New Jersey State License Law
  2. New Jersey Real Estate Commission
  3. New Jersey Real Estate Prohibited Practices
  4. Statutes and Rules Governing Licensee Activities

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