New Jersey Real Estate Salesperson Exam — All Questions
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A standard-form contract of sale prepared by a New Jersey licensee for a one-to-four family residential property is subject to:
- a.A 30-day inspection contingency required by statute
- b.Mandatory approval by the Real Estate Commission
- c.A three-business-day attorney-review period during which either party's attorney may disapprove the contract✓
- d.A 10-day rescission right for the seller only
Under New Jersey practice, a real estate contract prepared by a licensee on a standard form must contain an attorney-review clause. Either the buyer or the seller may have an attorney review and disapprove the contract within three business days; if disapproved in time, the contract is void. This protects consumers because licensees, not attorneys, prepare the initial form.
Escrow money a New Jersey salesperson receives from a buyer must be:
- a.Turned over promptly to the broker to be held in the broker's escrow (trust) account✓
- b.Retained by the salesperson until attorney review ends
- c.Deposited in the salesperson's personal account
- d.Paid directly to the seller upon offer
Escrow and other client funds must be handled through the broker's trust account. A salesperson who receives money must deliver it promptly to the broker, who must keep it separate from personal and business funds. Commingling or misusing escrow money is a serious violation of New Jersey real estate license law.