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

New Jersey Real Estate Exam

1 / 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:

2 / 110

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

3 / 110

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

4 / 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

5 / 110

A senior housing development may refuse to rent to families if what?

6 / 110

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

7 / 110

When contracting parties have signed a contract and both parties have done all they promised to do, it is called this:

8 / 110

Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. Which basic principle of appraising should Leo use?

9 / 110

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

10 / 110

Under agency law in New Jersey disclosed dual agency is

11 / 110

Richard is renting property from Becky. Richard is on a month to month lease agreement. This past month he did not pay his rent. Richard's interest would be classified as:

12 / 110

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

13 / 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?

14 / 110

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

15 / 110

If a court decides a remedy for a seller compelling them to sell the property, it is known as what?

16 / 110

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

17 / 110

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

18 / 110

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

19 / 110

Joint tenants with a right of survivorship means

20 / 110

In an offer to purchase property, the buyer states, "If we cannot obtain a mortgage loan for 4.5 percent or less, we will not purchase the property and expect the earnest money to be refunded in full." This is an example of what?

21 / 110

A contract agreed to and signed under duress is what?

22 / 110

Which of the following two real estate contract clauses protect the lenders in some way, usually by asking for some form of payment(insurance)?

23 / 110

Mrs Thompson hired a broker to find her a 100+ unit apartment complex for sale. Upon finding one she liked, she made an offer for $2.5 million to include all the personal property as well. In order to include all the personal property Mrs Thompson needs a/an:

24 / 110

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

25 / 110

By which of the following can you not lose title to your property involuntarily?

26 / 110

Compliance with zoning ordinances is monitored through the issuance of

27 / 110

If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called?

28 / 110

An example of economic obsolescence in real estate is

29 / 110

When an asset is pledged as collateral to secure a loan what is it called?

30 / 110

How soon after passing the New Jersey real estate exam must you apply for the issuance of your initial license?

31 / 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:

32 / 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?

33 / 110

A broker's listing on a house expired. The next day it was listed with another broker and offered in the MLS. A week later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that:

34 / 110

Which of the following best describes Eminent Domain?

35 / 110

A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller.

36 / 110

What is the final step of the real estate appraisal process in which the appraiser weighs each appraisal approach and determines which one is most relevant and should be used?

37 / 110

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

38 / 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:

39 / 110

What is the procedure used by a public or private entity with the powers granted to take privately owned real estate?

40 / 110

After smoking, this is the second leading cause of lung cancer in the United States. A naturally occurring gas that forms in rocks, soil, and water.

41 / 110

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

42 / 110

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

43 / 110

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

44 / 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:

45 / 110

Why is an oral lease for two years not generally enforceable in law?

46 / 110

Which of the following is an example of Real Property?

47 / 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?

48 / 110

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

49 / 110

The statute of frauds, applies to

50 / 110

Which of the following statements does NOT correctly describe a fiduciary?

51 / 110

Which of the following best describes real property?

52 / 110

Members of the New Jersey Real Estate Commission are appointed by

53 / 110

A seller named Joan gave a buyer named Bob an option for thirty days to purchase her property for a consideration of $750. There is no anti-assignment clause in the contract. Which of the following statements is NOT true?

54 / 110

A parcel of land that is subject to an easement is best described as:

55 / 110

Brokerages and real estate agents across America connect using a

56 / 110

A parcel of real property that has an easement over another piece of property is best described as:

57 / 110

A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities?

58 / 110

What is the illegal action or practice of lending money at unreasonably high rates of interest?

59 / 110

Which of the following contracts would best be described as a contract in which only one party makes a promise to perform an action?

60 / 110

Researching recently sold homes in the area and homes that haven't been sold in the area and comparing their prices. Is an example of

61 / 110

According to license law in New Jersey when must a broker deposit transactional funds into a trust account?

62 / 110

The New Jersey Real Estate Commission administers a Real Estate Guaranty Fund. What is one of the primary purposes of the fund?

63 / 110

Upon payment and delivery of the deed, the seller should also deliver what? Can be quite complex or quite simple—depending on the type of real estate transaction.

64 / 110

A property owner enters into a listing agreement with an agent. The seller obtains a buyer for the house, but the agent receives a commission. The listing agreement between the agent and the property owner was probably

65 / 110

Restrictive covenants, are also known as

66 / 110

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

67 / 110

Which of the following best describes the prepayment penalty clause?

68 / 110

A real estate contract can be rescinded because of what?

69 / 110

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

70 / 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?

71 / 110

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

72 / 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?

73 / 110

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

74 / 110

What is Fannie Mae’s primary responsibility?

75 / 110

The term "Licensee," is commonly used in real estate law. A licensee is just:

76 / 110

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

77 / 110

When calculating the amount of real estate taxes owed, calculations are based on what type of value?

78 / 110

Choose the best answer. Which of the following is an example of a Special Use property?

79 / 110

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

80 / 110

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

81 / 110

It is the _____ duty to explain the purchase agreement and to not mislead any parties.

82 / 110

Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means:

83 / 110

Government power is the constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals, and general welfare. Escheat is

84 / 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?

85 / 110

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

86 / 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.

87 / 110

Which of the following best describes the acceleration clause?

88 / 110

Earnest money should be deposited into a trust account:

89 / 110

Which type of property would an appraisal use a depth table to estimate the property value?

90 / 110

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

91 / 110

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

92 / 110

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

93 / 110

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

94 / 110

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

95 / 110

Johnny is purchasing a house and does not want to purchase all of the furniture that is being left behind. He signs the contract on Tuesday, and on Thursday changes his mind about the furniture. He calls his agent, and they add the furniture to the contract. What is this an example of?

96 / 110

A real estate commission is usually based on the:

97 / 110

During a standard residential transaction, verifying ingress and egress rights is an essential part of the:

98 / 110

Who dictates trust accounts and when to deposit earnest money or other trust funds?

99 / 110

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

100 / 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.

101 / 110

According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a company have to call the consumer if they made an inquiry with the company?

102 / 110

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

103 / 110

What is a legally enforceable obligation that arises from one or more parties due to the parties actions, conduct, or circumstances?

104 / 110

A property's market value is $350,000. The assessment rate for the house is 15% with 27.50 mills. Find the annual property taxes.

105 / 110

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

106 / 110

Using a trust typically has advantages and disadvantages. One of the main advantages of Land Trusts are:

107 / 110

As a listing agent, what obligations do you owe to an unrepresented buyer?

108 / 110

How often is continuing education required for New Jersey real estate licensees?

109 / 110

The best way to determine fair value.

110 / 110

State laws differ on whether a buyer is entitled to know about:

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
  • 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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