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

New Jersey Real Estate Exam

1 / 110

Members of the New Jersey Real Estate Commission are appointed by

2 / 110

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

3 / 110

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

4 / 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?

5 / 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?

6 / 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?

7 / 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

8 / 110

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

9 / 110

While the economy is experiencing inflation, interest rates typically:

10 / 110

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

11 / 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?

12 / 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

13 / 110

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

14 / 110

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

15 / 110

The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?

16 / 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?

17 / 110

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

18 / 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?

19 / 110

A property owner enters into a listing agreement with an agent. Another agent obtains a buyer for the house, and the first agent does not receive a commission. The listing agreement between the first agent and the property owner was probably

20 / 110

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

21 / 110

Puffing is a term referring to

22 / 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?

23 / 110

An example of functional obsolescence in real estate is

24 / 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?

25 / 110

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

26 / 110

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

27 / 110

A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered what?

28 / 110

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

29 / 110

What is Ginnie Mae’s primary responsibility?

30 / 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?

31 / 110

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

32 / 110

A seller tells the listing agent that her home was treated for termites five years ago, and that there are no termites now. Before listing the property, the agent should

33 / 110

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

34 / 110

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

35 / 110

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

36 / 110

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

37 / 110

Holding earnest money without depositing it, is what?

38 / 110

Compliance with zoning ordinances is monitored through the issuance of

39 / 110

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

40 / 110

The person who hires or appoints an agent is called the:

41 / 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:

42 / 110

Brokerages and real estate agents across America connect using a

43 / 110

The Bundle of Rights include:

44 / 110

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

45 / 110

Which of the following is a lien?

46 / 110

Traditionally real estate agents are paid through a fee paid for performing a transaction, called a

47 / 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?

48 / 110

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

49 / 110

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

50 / 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.

51 / 110

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

52 / 110

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

53 / 110

Which of the following best describes real property?

54 / 110

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

55 / 110

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

56 / 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?

57 / 110

Typically a warranty deed contains how many covenants?

58 / 110

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

59 / 110

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

60 / 110

Mortgage points, also known as discount points, are

61 / 110

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

62 / 110

Which of the following would generally constitute an antitrust violation?

63 / 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?

64 / 110

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

65 / 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)?

66 / 110

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

67 / 110

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

68 / 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

69 / 110

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

70 / 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?

71 / 110

Which of the following would not be considered appurtenant?

72 / 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?

73 / 110

What is Fannie Mae’s primary responsibility?

74 / 110

Which of the following would be classified as “consideration” in a real estate contract?

75 / 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:

76 / 110

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

77 / 110

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

78 / 110

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

79 / 110

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

80 / 110

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

81 / 110

A property's market value is $400,000. The assessment rate for the house is 25% with 22.75 mills and a $25,000 property tax deduction. Find the annual property taxes.

82 / 110

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

83 / 110

A contract agreed to and signed under duress is what?

84 / 110

In a typical real estate market, if the demand for commercial office space declines and the supply of office space also declines at the same ratio, market rent per square foot should:

85 / 110

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

86 / 110

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

87 / 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?

88 / 110

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

89 / 110

Assuming there are no extra fees, and the broker is representing the buyer and the seller, what was the final sales price of a property if the commission rate was 5.5% and the broker received $11,000.

90 / 110

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

91 / 110

A real estate contract can be rescinded because of what?

92 / 110

If a minor signs a contract to buy real estate, the resulting contract is legally what?

93 / 110

The best way to determine fair value.

94 / 110

Title III of the Americans with Disabilities Act (ADA) impacts which type of property?

95 / 110

To whom does an agent always owe their fiduciary responsibility?

96 / 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.

97 / 110

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

98 / 110

Who maintains the New Jersey Real Estate Guaranty Fund?

99 / 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:

100 / 110

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

101 / 110

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

102 / 110

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

103 / 110

What is the key difference between a Less than Freehold Estate and a Freehold estate is

104 / 110

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

105 / 110

Who funds the New Jersey Real Estate Guaranty Fund?

106 / 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

107 / 110

Acceleration is a term associated with which type of document?

108 / 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?

109 / 110

What is an item on a property that is installed by the tenant, and is related to the tenant's business classified as?

110 / 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?

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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