Free New Jersey Real Estate Practice Exam Questions (May 2024) 110+

New Jersey Real Estate Exam

1 / 110

What is the outcome when a purchaser signs a purchase agreement and gives the seller's broker a large check?

2 / 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:

3 / 110

Which of the following is NOT a main element of a valid real estate contract?

4 / 110

Tony and Taylor are two unmarried individuals who own property with equal interests and a right to survivorship. Which of the following forms of ownership would Tony and Taylor most likely have?

5 / 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?

6 / 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?

7 / 110

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

8 / 110

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

9 / 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?

10 / 110

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

11 / 110

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

12 / 110

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

13 / 110

Which of the following is a lien?

14 / 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.

15 / 110

What determines who pays for what and how much at closing?

16 / 110

Antitrust laws prohibit competing brokers from all of the following except:

17 / 110

Which of the following would NOT be covered under a builder's new home warranty?

18 / 110

Requires public accommodations to remove barriers in existing buildings such as adding braille markings to elevator buttons, is a requirement of which law?

19 / 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?

20 / 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?

21 / 110

To whom does an agent always owe their fiduciary responsibility?

22 / 110

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

23 / 110

An example of an antitrust violation is

24 / 110

Compliance with zoning ordinances is monitored through the issuance of

25 / 110

This act, allowed greater control for the EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.

26 / 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?

27 / 110

Which of the following is a common example of real estate police power?

28 / 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?

29 / 110

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

30 / 110

Real property can be converted to personal property by

31 / 110

A buyer and seller entered into a contract, they negotiated the sale of the side lot at the same time as the transfer of the home. What is the second document called?

32 / 110

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

33 / 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:

34 / 110

Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans?

35 / 110

Local zoning ordinances often regulate all of the following except

36 / 110

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

37 / 110

Which of the following is a physical characteristic of real estate?

38 / 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?

39 / 110

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

40 / 110

If someone is unlawfully forced to execute a contract it is called what?

41 / 110

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

42 / 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?

43 / 110

What is the total quantity that buyers are willing to buy at a given time at certain prices?

44 / 110

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

45 / 110

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

46 / 110

There are three different main approaches that appraisers use while they make an appraisal. What are they?

47 / 110

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

48 / 110

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

49 / 110

What is the LAST requirement in the process of offer and acceptance that creates an executory contract?

50 / 110

Members of the New Jersey Real Estate Commission are appointed by

51 / 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?

52 / 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.

53 / 110

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

54 / 110

According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a real estate professional have to call an expired listing client to solicit new business (referral)?

55 / 110

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

56 / 110

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

57 / 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?

58 / 110

A contract agreed to and signed under duress is what?

59 / 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:

60 / 110

Which situation is legal under the Federal Fair Housing Act of 1968?

61 / 110

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

62 / 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?

63 / 110

An example of economic obsolescence in real estate is

64 / 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

65 / 110

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

66 / 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?

67 / 110

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

68 / 110

Holding earnest money without depositing it, is what?

69 / 110

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

70 / 110

When you borrow money to buy real estate, you give the lender a _____ against the property.

71 / 110

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

72 / 110

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

73 / 110

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

74 / 110

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

75 / 110

Which business structure traditionally features a board of directors?

76 / 110

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

77 / 110

What type of ownership model is used for vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, for the same property?

78 / 110

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

79 / 110

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

80 / 110

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

81 / 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?

82 / 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:

83 / 110

One individual or married couple in business alone (The most common form of business structure):

84 / 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?

85 / 110

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

86 / 110

A homeowner hired a construction company to build a swimming pool at his home. The homeowner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt. The encumbrance created is called a:

87 / 110

Market value is

88 / 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.

89 / 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.

90 / 110

Aaron can't get to his property from a public road without crossing over his neighbor Ron's property. In this situation, Aaron needs a/an:

91 / 110

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

92 / 110

In real estate, alienation is best described as:

93 / 110

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

94 / 110

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

95 / 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?

96 / 110

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

97 / 110

Who funds the New Jersey Real Estate Guaranty Fund?

98 / 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:

99 / 110

When, if all, can an executed contract be assigned?

100 / 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?

101 / 110

A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called

102 / 110

In real estate, a deed is best defined as:

103 / 110

How many miles does a township contain?

104 / 110

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

105 / 110

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

106 / 110

A mortgage loan that requires monthly payments of $400.00 for 15 years and a final payment of $20,000. Typically a loan structured like is called a

107 / 110

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

108 / 110

Which of the following would not be considered real property?

109 / 110

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

110 / 110

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

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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