110+ Free New Jersey Real Estate Practice Exam Questions (August 2022)

New Jersey Real Estate Exam

1 / 110

An elderly man in a nursing home, has no family and is suffering from Alzheimer’s. Because of his Alzheimers, he doesn’t remember much. Eventually, he passes away in his sleep. There is no will for the man, and again he has no family. So what happens to the money left in his savings account and his old farm that has been left untouched since he entered the nursing home?

2 / 110

An example of economic obsolescence in real estate is

3 / 110

Which of the following laws prohibits discrimination in the buying, selling, renting or financing of housing. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more.

4 / 110

Which of the following might suggest that rent is too low in an apartment unit?

5 / 110

Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?

6 / 110

Philip has a contract with his neighbor Jessica for lawn service. Philip can no longer mow the lawn due to an ankle injury. Paul, Jessica's other neighbor, agrees to carry out the terms of Philips contract. In order to do this, Jessica must substitute Philip's name with Pauls on the contract. What is this an example of?

7 / 110

What is the best definition listed for the term: “conventional loan?”

8 / 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?

9 / 110

Which of the following would not be considered real property?

10 / 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:

11 / 110

What is the minimum age requirement to become a real estate broker-salesperson in New Jersey?

12 / 110

Usually, the appraiser is hired by the:

13 / 110

What does the Federal Housing Administration do?

14 / 110

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

15 / 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?

16 / 110

The legal principle under which a person who does not have legal title to a property acquires legal ownership based on the continuous occupation of the property.

17 / 110

Which of the following fiduciary duties continues after a listing agreement expires?

18 / 110

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

19 / 110

Altering a written document by improperly signing someone else's name to an instrument is what?

20 / 110

If any amount is paid out of the New Jersey Real Estate Guaranty Fund what happens to the licensee?

21 / 110

Typically a trust is a _____ -party relationship.

22 / 110

Which type of lien is a claim imposed against a property without the consent of its owner?

23 / 110

Who funds the New Jersey Real Estate Guaranty Fund?

24 / 110

How many New Jersey Real Estate Commission members must be licensed as New Jersey real estate brokers before becoming members?

25 / 110

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

26 / 110

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

27 / 110

Which of the following statements is TRUE about trusts and trustees?

28 / 110

Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. This type of lease is called a:

29 / 110

If a contract has prepayment penalties, they can be found in which real estate contract clause?

30 / 110

Which of the following statements about water rights is true? Choose the best answer.

31 / 110

What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death?

32 / 110

A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true?

33 / 110

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

34 / 110

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

35 / 110

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

36 / 110

Holding earnest money without depositing it, is what?

37 / 110

Who or what determines the amount of an earnest money deposit?

38 / 110

Which would be a violation of New Jersey license law?

39 / 110

Who maintains the New Jersey Real Estate Guaranty Fund?

40 / 110

What is the proper procedure for changing a contract that already has become binding?

41 / 110

To whom does an agent always owe their fiduciary responsibility?

42 / 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

43 / 110

A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers.

44 / 110

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset:

45 / 110

Which of the following would not be considered appurtenant?

46 / 110

Often required for mortgages, property insurance for a home is commonly called:

47 / 110

When you buy real property, you gain several different kinds of rights. One of which are rights called "surface rights." What are surface rights?

48 / 110

Which action is legal as a real estate agent? (Antitrust Laws)

49 / 110

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

50 / 110

An offer to purchase real estate becomes a contract when it is signed by the

51 / 110

Which of the following enforces all federal environmental rules and regulations?

52 / 110

The real estate contract clause that almost always begins with the words "to have and to hold."

53 / 110

The period over which a property may be profitably utilized is called its:

54 / 110

Josh agrees to represent Susan in the sale of her home. The listing contract states that Josh will receive a fee of $15,000 from Susan at closing, regardless of the sales price. Is this a legal and a valid form of compensation?

55 / 110

The lender in a traditional mortgage loan transaction is known as what?

56 / 110

A non licensed buyer negotiated the purchase of a house. During a conversation with the seller, the seller agreed to include both the washer and the dryer, in the sale, and this was included in the sales contract. In this situation, if the seller takes the appliances, what recourse (if any) does the buyer have?

57 / 110

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

58 / 110

In real estate, alienation is best described as:

59 / 110

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

60 / 110

Which of the following may receive compensation from the New Jersey Real Estate Guaranty Fund?

61 / 110

Which of the following best describes a balloon payment?

62 / 110

Complete the statement and make it factually accurate. “In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. In lien theory states:

63 / 110

Amendments and addendum are essentially the same thing, correct? Choose the best answer.

64 / 110

A lender's refusal to lend money to potential homeowners attempting to purchase property located in predominantly minority neighborhoods is

65 / 110

Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?

66 / 110

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

67 / 110

Typically a warranty deed contains how many covenants?

68 / 110

Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. Which of the following forms of ownership would Tina and Tom most likely have?

69 / 110

New Jersey has real estate license reciprocity agreements with which states?

70 / 110

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

71 / 110

The execution date or date executed is the day a contract is signed. The effective date is what? Choose the best answer.

72 / 110

What is the test done to locate where to place a septic system?

73 / 110

Joint tenants with a right of survivorship means

74 / 110

Which of the following is a private land-use control?

75 / 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."

76 / 110

Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?

77 / 110

What best describes an agency relationship where an agent has legal authority to act on behalf of the principal?

78 / 110

A mortgagor is also known as the:

79 / 110

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

80 / 110

A New Jersey resident does not need a license to

81 / 110

Puffing is a term referring to

82 / 110

A real estate commission is usually based on the:

83 / 110

Earnest money should be deposited into a trust account:

84 / 110

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

85 / 110

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

86 / 110

This approach determines what the property generates in profit for it’s owner or potential owner.

87 / 110

When a furnishing company creates materials for the construction of a house and is subsequently not paid, it may file a(n):

88 / 110

Under agency law in New Jersey disclosed dual agency is

89 / 110

The majority of homes before _______ used lead paint.

90 / 110

What is the government issued plan to guide the long-term physical development of a particular area?

91 / 110

How many miles does a township contain?

92 / 110

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

93 / 110

Restrictive covenants, are also known as

94 / 110

A New Jersey real estate broker must keep copies of all unaccepted offers to purchase for how long?

95 / 110

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

96 / 110

What is the document that defines the relationship between the broker and the seller?

97 / 110

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

98 / 110

If a buyer refuses to go ahead with a purchase of property which he has signed a contract, what usually happens to the earnest money?

99 / 110

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

100 / 110

All records and files must be available for inspection by the New Jersey Real Estate Commission; by when?

101 / 110

In preparing for variable expenses in a property management budget, the property manager should set up a what?

102 / 110

Which of the following real estate contracts is a service contract?

103 / 110

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

104 / 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?

105 / 110

An individual owned three acres of land. When she sold one acre to her friend, she reserved for herself and family an appurtenant easement over the friend's land for ingress and egress. The friend's land is what?

106 / 110

When talking about business and professional ethics, as a licensed real estate agent, it is important to make sure:

107 / 110

An appurtenant easement has several ways of legal termination. Which of the following is NOT a valid way to terminate an easement?

108 / 110

Which valuation method or appraisal approach involves comparing a property to other recently sold properties in the same area of similar size and condition?

109 / 110

During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?

110 / 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.

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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