New Jersey Real Estate Salesperson Exam — All Questions

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 10-day rescission right for the seller only
• d.A three-business-day attorney-review period during which either party's attorney may disapprove the contract✓

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.Deposited in the salesperson's personal account
• b.Turned over promptly to the broker to be held in the broker's escrow (trust) account✓
• c.Paid directly to the seller upon offer
• d.Retained by the salesperson until attorney review ends

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.

A New Jersey salesperson accepts a buyer's deposit check on a Monday. By when must those monies reach the broker's special account?

• a.Within three business days of receipt
• b.Within ten business days of receipt
• c.Within five business days of receipt✓
• d.Within one business day of receipt

The rule requires monies of others to be deposited promptly, and defines promptly as not more than five business days next following receipt. The Commission has warned licensees that failing to deposit checks in that window is sanctionable. Cite: N.J.A.C. 11:5-5.1(e); NJ Real Estate Commission notice on deposit checks

A New Jersey broker leaves a small sum of personal money in the trust account so the bank will not close it. Is that commingling?

• a.Yes, any personal funds in the account are commingling
• b.Yes, unless the broker discloses it to every client
• c.No, provided the broker withdraws it every quarter
• d.No, nominal amounts for continuity are allowed✓

Maintaining clearly nominal amounts of the licensee's own funds in a trust account solely to provide continuity of the account is expressly not construed as commingling, as is a fixed amount compelled by law or regulation. Commingling is mingling principals' money with the broker's own, or failing to deposit or segregate it promptly. Cite: N.J.A.C. 11:5-5.1(c), (f) and (g)

From whom may a New Jersey salesperson accept compensation for brokerage services?

• a.From the seller directly, if the broker consents
• b.Only from the broker through whom they are licensed✓
• c.From any licensed broker involved in the transaction
• d.From the buyer, when acting as a buyer's agent

A salesperson or referral agent may be compensated only by the broker through whom they are licensed, under a written agreement signed by both that states the rate of compensation. Taking payment directly from a party, or from a cooperating broker, is outside that channel. Cite: N.J.A.C. 11:5-4.1

The written agreement between a New Jersey broker and a salesperson must promise payment of commissions within what period after the broker receives them?

• a.Within 10 business days✓
• b.Within 30 calendar days
• c.Within 15 business days
• d.Within 45 calendar days

The required written agreement must provide for payment of commissions to the salesperson or referral agent within 10 business days of their receipt by the broker. Cite: N.J.A.C. 11:5-4.1

After a New Jersey licensee's affiliation with a broker ends, when must the broker furnish a complete written accounting of monies due?

• a.Within 10 business days of termination
• b.Within 60 calendar days of termination
• c.Within 30 days of the termination date✓
• d.Only upon the licensee's written demand

Within 30 days of the termination of the affiliation, the broker must provide a complete written accounting of all monies due the salesperson or referral agent. Records of employment agreements and termination accountings must be kept for six years. Cite: N.J.A.C. 11:5-4.1

What office must a resident New Jersey broker maintain?

• a.A branch office in each county where they list
• b.Any office space shared with other licensees
• c.An office at the broker's own residence address
• d.A main office in New Jersey open to the public✓

Every resident broker must maintain a main office for the transaction of business in New Jersey, open to the public during usual business hours. There is no rule requiring a branch office per county. Cite: N.J.A.C. 11:5-4.4

A New Jersey broker wants to run the brokerage from part of their own house. What does the Commission's rule require?

• a.Written approval from the municipal zoning board
• b.A separate exterior entrance visible from the street✓
• c.A sign no smaller than four square feet at the curb
• d.A second telephone line dedicated to the business

An office located in a residence must be independent of the living quarters and have a separate exterior entrance plainly visible from the street, except for offices in existence before December 1, 1963. Cite: N.J.A.C. 11:5-4.4

How often must the New Jersey broker or broker-salesperson supervising an office be physically present there?

• a.At least five days per calendar week✓
• b.At least three days per calendar week
• c.At least four days per calendar week
• d.Every business day of the year

The office and its licensees must be under the direct supervision of a broker or broker-salesperson on a full-time basis, who must be physically present at that office during usual business hours at least five days per calendar week, excluding vacations and emergencies. Cite: N.J.A.C. 11:5-4.4

When a New Jersey salesperson advertises a listing, how must the employing broker's business name appear?

• a.In the same size print used for the salesperson's name
• b.Anywhere in the ad, in any size print at all
• c.Only in ads that are published in a newspaper
• d.In larger or more prominent print than the licensee's✓

When a salesperson, broker-salesperson or referral agent advertises, the regular business name of the broker through whom that person is licensed must appear in print larger than, or more prominent than, the licensee's own name. Cite: N.J.A.C. 11:5-6.1

A New Jersey salesperson's advertisement carries their personal cell number and email address. What else must the advertisement contain?

• a.The licensee's real estate license number
• b.The street address of the licensee's home
• c.The brokerage office telephone number✓
• d.A statement that the licensee is an employee

Any advertisement containing a licensee's personal telephone number, cell number or email address must also include the telephone number of the licensed brokerage office, and may include its street address. New Jersey does not require a license number in ads. Cite: N.J.A.C. 11:5-6.1

May a New Jersey broker pay a salesperson a bonus simply for sending buyers to an affiliated mortgage lender?

• a.Yes, if the borrower signs a written consent form
• b.No, payment requires services beyond mere referral✓
• c.Yes, so long as the amount is under $500 per loan
• d.No, unless the lender is licensed in New Jersey

Licensees may not accept any fee, kickback or thing of value merely for referring a customer to a lender, mortgage broker or other provider of related services, and brokers may not award bonuses or prizes based on the number of referrals. Compensation is allowed only for services actually performed beyond mere referral. Cite: N.J.A.C. 11:5-7.2

When must a New Jersey licensee deliver copies of a fully executed contract of sale to the parties?

• a.Within three business days of full execution
• b.At the attorney review period's conclusion
• c.Immediately upon the instrument being executed✓
• d.Before the deposit is placed into escrow

Licensees must immediately deliver to all parties a clear copy with original signatures of any fully executed instrument, and must deliver a clear copy of an executed offer or counter-offer immediately upon its being signed. A fully executed listing contract goes to the client at the time of execution. Cite: N.J.A.C. 11:5-6.2

What must a New Jersey licensee furnish to an owner when taking a listing on residential property?

• a.A summary of the NJ Law Against Discrimination✓
• b.A copy of the broker's own fair housing policy
• c.A copy of the federal Fair Housing Act poster
• d.A statement of the property's prior sale prices

On taking a residential listing the licensee must furnish the owner a copy of a summary of the New Jersey Law Against Discrimination, prepared by the Attorney General, explaining which properties are covered and which are exempt. Cite: N.J.A.C. 11:5-6.4(j); N.J.S.A. 10:5-1 et seq.

Which housing characteristic is protected by the New Jersey Law Against Discrimination but not by the federal Fair Housing Act?

• a.Familial status of the prospective tenant
• b.The religious creed of a prospective buyer
• c.National origin of the prospective tenant
• d.Source of lawful income used to pay rent✓

The New Jersey list reaches beyond the federal classes to include source of lawful income used for rental or mortgage payments, along with marital, civil union and domestic partnership status, gender identity or expression, affectional or sexual orientation, and nationality. Refusing a housing voucher is therefore unlawful in New Jersey. Cite: N.J.A.C. 11:5-6.4(k); N.J.S.A. 10:5-12