Free New Jersey Real Estate Practice Test (2026) — LicenseIQ

Question 1

Under an exclusive buyer agency agreement, the broker is owed compensation:

Accepted Answer

In an exclusive buyer agreement the agency is compensated however the property is acquired during the term; under a non-exclusive agreement, only if the agency directly assists.

Question 2

An easement that benefits an adjoining parcel of land is called:

Accepted Answer

An easement appurtenant runs with the land and benefits a dominant tenement (the adjoining parcel). An easement in gross benefits a person or company, not land.

Question 3

Under the NJ Rent Security Deposit Act, a landlord must notify the tenant of the name and address of the bank, type of account, amount and interest rate within ___ of receiving the deposit, and return the deposit with interest within ___ after the tenancy ends.

Accepted Answer

Notice of the deposit account is due within 30 days of receipt, and the deposit plus interest (less itemized deductions) must be returned within 30 days after the tenant leaves. Interest belongs to the tenant.

Question 4

A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

Accepted Answer

When no bid meets the lender's minimum, the lender takes title and the property becomes REO inventory.

Question 5

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 6

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 7

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 8

Under a standard NJ residential contract, if a buyer defaults the seller's remedy is generally limited to:

Accepted Answer

The course notes that on buyer default the seller's remedies are limited to liquidated damages equal to the earnest money; on seller default the buyer may seek return of the deposit, specific performance or damages.

Question 9

The most likely reason the NJ Real Estate Commission will deny a license is a conviction for a 'money offense' (such as theft or forgery) within the past:

Accepted Answer

Convictions for theft, forgery, burglary and similar offenses within the past five years must be disclosed and are the most common basis for denial. Older records of dishonesty can still show lack of good character.

Question 10

The NJ Wetlands Act of 1970 applies to coastal (tidal) wetlands, while inland wetlands and their transition (buffer) areas are protected by the:

Accepted Answer

The 1970 Act covers tidal wetlands; the Freshwater Wetlands Protection Act of 1987 expanded protection to freshwater wetlands and transition areas, administered by the DEP.

Question 11

The physical characteristics of land are:

Accepted Answer

The three physical characteristics are immobility, indestructibility and uniqueness. Scarcity and area preference are economic characteristics.

Question 12

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 13

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 14

A FEMA Special Flood Hazard Area (SFHA) is an area with an annual flood chance of:

Accepted Answer

SFHAs are high-risk areas with a 1% annual chance of flooding (the '100-year flood'). Moderate-risk areas have a 0.2% annual chance.

Question 15

A violation of the NJ Real Estate Sales Full Disclosure Act can result in a fine of:

Accepted Answer

Fines range from $250 to $50,000 per violation, and licensees may also be disciplined under the license law.

Question 16

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 17

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 18

When a tenant fails to pay rent, the landlord's lawful remedy to remove the tenant is:

Accepted Answer

Actual eviction requires a court proceeding and judgment. Self-help lockouts or utility shutoffs are illegal.

Question 19

An honorably discharged NJ veteran who has completed at least 75 hours of real estate study at an accredited college may:

Accepted Answer

Qualifying veterans are exempt from the prelicensing course and receive license fee waivers, but must still pass the exam and be sponsored by a broker.

Question 20

A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:

Accepted Answer

HUD complaints must be filed within one year; a federal civil suit may be filed within two years.

Question 21

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 22

A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

Accepted Answer

$365,000 / 100 = 3,650 units; 3,650 x $2.85 = $10,402.50.

Question 23

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 24

To qualify for a NJ salesperson license, an applicant must be at least 18, have a high school diploma or equivalent, and be:

Accepted Answer

The applicant must be a legal U.S. resident but need not be a citizen. Non-residents of NJ can be licensed, and the minimum age is 18, not 21.

Question 25

Under N.J.S.A. 45:15-17, the Commission may impose a penalty of up to:

Accepted Answer

Penalties are up to $5,000 for a first violation and up to $10,000 for any subsequent violation, so two counts could total $15,000.

New Jersey real estate practice test

1. Under an exclusive buyer agency agreement, the broker is owed compensation:

2. An easement that benefits an adjoining parcel of land is called:

3. Under the NJ Rent Security Deposit Act, a landlord must notify the tenant of the name and address of the bank, type of account, amount and interest rate within _ of receiving the deposit, and return the deposit with interest within _ after the tenancy ends.

4. A property that fails to sell at the foreclosure auction and becomes owned by the lender is called:

5. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

6. In a life estate, the person who receives the property when the life tenant dies is the:

7. In general, a 'stigmatized' property refers to one:

8. Under a standard NJ residential contract, if a buyer defaults the seller's remedy is generally limited to:

9. The most likely reason the NJ Real Estate Commission will deny a license is a conviction for a 'money offense' (such as theft or forgery) within the past:

10. The NJ Wetlands Act of 1970 applies to coastal (tidal) wetlands, while inland wetlands and their transition (buffer) areas are protected by the:

11. The physical characteristics of land are:

12. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

13. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

14. A FEMA Special Flood Hazard Area (SFHA) is an area with an annual flood chance of:

15. A violation of the NJ Real Estate Sales Full Disclosure Act can result in a fine of:

16. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

17. A licensee may manage property for an owner for a fee only if there is:

18. When a tenant fails to pay rent, the landlord's lawful remedy to remove the tenant is:

19. An honorably discharged NJ veteran who has completed at least 75 hours of real estate study at an accredited college may:

20. A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:

21. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

22. A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

23. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

24. To qualify for a NJ salesperson license, an applicant must be at least 18, have a high school diploma or equivalent, and be:

25. Under N.J.S.A. 45:15-17, the Commission may impose a penalty of up to:

Sources