Free New Jersey State Law Practice Test — LicenseIQ

Question 1

When a NJ advertisement refers to commission rates, it must clearly include the statement:

Accepted Answer

Any ad referencing commission rates or compensation must state clearly and conspicuously that in New Jersey commissions are negotiable.

Question 2

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 3

A NJ licensee buys a property for his own account without telling the seller that he holds a real estate license. This is:

Accepted Answer

Purchasing property without disclosing real estate license status, or selling without disclosing a personal interest, are grounds for discipline.

Question 4

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 5

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 6

NJ rules require every advertisement for the sale or rental of a specific property (other than certain classified ads under municipality headings) to state:

Accepted Answer

Property ads must identify the municipality in which the property is located, except in publications that list ads under municipality headings.

Question 7

Land is granted to a town 'so long as it is used as a public park.' If the town stops using it as a park, ownership automatically reverts to the grantor. The town held a:

Accepted Answer

Words of duration ('so long as') create a fee simple determinable that ends automatically. A fee simple subject to condition requires the grantor to act to reclaim the property.

Question 8

A final decision of the NJ Real Estate Commission may be appealed to the:

Accepted Answer

Final Commission decisions are reviewable by the Appellate Division of the NJ Superior Court.

Question 9

Which of the following is a ground for disciplinary action against a NJ licensee?

Accepted Answer

Using lotteries, contests, games, prizes or drawings to promote real estate is prohibited. Broker rebates to buyers and free services without a contract requirement are allowed.

Question 10

Before suspending or revoking a license after an investigation, the NJ Real Estate Commission must give the licensee written notice of the hearing at least:

Accepted Answer

The Commission must provide at least 10 days' written notice (in person or by certified mail) and notify the employing broker of a salesperson or broker-salesperson. The 24-hour notice applies to temporary suspensions.

Question 11

The NJ fingerprinting process used for real estate license applicants is called:

Accepted Answer

NJ uses Live Scan, a State Police-coordinated electronic fingerprinting process. Applicants are fingerprinted each time they apply for a new type of license.

Question 12

A NJ broker who receives a buyer's deposit must:

Accepted Answer

Deposits must be held in a designated trust or escrow account in a NJ depository, separate from the broker's own funds.

Question 13

A NJ broker must reconcile the trust account checkbook balance, bank statement and client ledger balances at least:

Accepted Answer

Brokers must compare the checkbook, bank statement and client ledger balances at least on a quarterly basis.

Question 14

How does New Jersey tax a seller's capital gain on real estate?

Accepted Answer

NJ has no separate capital gains tax; gains are ordinary income. The primary residence exclusion requires use as the principal residence for 2 of the last 5 years.

Question 15

A NJ salesperson licensed as 'Robert James Miller' goes by 'Bobby.' In advertising he may use 'Bobby' if he also includes:

Accepted Answer

Licensees are licensed under their full legal names. A nickname may be added, but the ad must also include 'licensed' followed by the full legal name.

Question 16

Under NJ rules, a licensee must present all written offers to the client within:

Accepted Answer

Written offers must be presented within 24 hours unless the seller has instructed otherwise in writing. Three business days is the attorney review period, not the offer-presentation rule.

Question 17

Which statement about rent control in New Jersey is correct?

Accepted Answer

NJ has no state rent control law; local municipalities may regulate increases. Rent cannot change mid-lease without an escalation clause, and increases must not be unconscionable.

Question 18

The five broker members of the NJ Real Estate Commission must have been licensed as New Jersey brokers for at least:

Accepted Answer

Five members must be licensed NJ brokers for at least ten years. Three years is the salesperson experience needed to apply for a broker license, not the Commission requirement.

Question 19

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 20

A complaint against a NJ licensee filed with the Real Estate Commission must be:

Accepted Answer

Complaints must be written, clear and concise, signed, and include the complainant's contact information. No filing fee is required and complaints cannot be anonymous.

Question 21

Which statement about the NJ Consumer Information Statement is correct?

Accepted Answer

The CIS is an informational disclosure, not a contract; its text may not be altered (only branding). Signing it does not establish agency and is not informed consent to dual agency.

Question 22

In New Jersey, when a deed conveys property to a married couple and does not state otherwise, the couple takes title as:

Accepted Answer

NJ presumes a tenancy by the entirety for spouses: equal ownership, right of survivorship, and neither spouse can convey his or her interest without the other. A conveyance to unmarried co-owners is presumed a tenancy in common.

Question 23

A NJ licensee must deliver the Consumer Information Statement to a prospective buyer:

Accepted Answer

New Jersey uses a two-step rule (N.J.A.C. 11:5-6.9). Before the first discussion of a buyer's motivation or financial ability, the licensee must verbally describe the business relationships; the written CIS is given before that discussion if it happens at a business meeting, or at the next meeting if it happened by phone or socially. For buyers, the written CIS must be delivered no later than the first showing (or before an offer is prepared if there is no showing).

Question 24

The NJ Pinelands Commission has how many members?

Accepted Answer

The Pinelands Commission has 15 members: seven appointed by the Governor, one by the U.S. Secretary of the Interior, and one from each of the seven Pinelands counties.

Question 25

Once an out-of-state project is approved under the Full Disclosure Act, the Broker of Record receives a document that must be prominently displayed in the sales office. It is the:

Accepted Answer

After approval the broker is issued a Broker's Release, and only then may the property be offered in NJ; it must be displayed prominently in the sales office.

New Jersey real estate state law practice test

1. When a NJ advertisement refers to commission rates, it must clearly include the statement:

2. A home sells for $400,000 with a 5% total commission. What is the total commission?

3. A NJ licensee buys a property for his own account without telling the seller that he holds a real estate license. This is:

4. Under an open listing, the seller owes a commission to:

5. A broker received a 4.2% commission totaling $12,600. What was the sale price?

6. NJ rules require every advertisement for the sale or rental of a specific property (other than certain classified ads under municipality headings) to state:

7. Land is granted to a town 'so long as it is used as a public park.' If the town stops using it as a park, ownership automatically reverts to the grantor. The town held a:

8. A final decision of the NJ Real Estate Commission may be appealed to the:

9. Which of the following is a ground for disciplinary action against a NJ licensee?

10. Before suspending or revoking a license after an investigation, the NJ Real Estate Commission must give the licensee written notice of the hearing at least:

11. The NJ fingerprinting process used for real estate license applicants is called:

12. A NJ broker who receives a buyer's deposit must:

13. A NJ broker must reconcile the trust account checkbook balance, bank statement and client ledger balances at least:

14. How does New Jersey tax a seller's capital gain on real estate?

15. A NJ salesperson licensed as 'Robert James Miller' goes by 'Bobby.' In advertising he may use 'Bobby' if he also includes:

16. Under NJ rules, a licensee must present all written offers to the client within:

17. Which statement about rent control in New Jersey is correct?

18. The five broker members of the NJ Real Estate Commission must have been licensed as New Jersey brokers for at least:

19. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

20. A complaint against a NJ licensee filed with the Real Estate Commission must be:

21. Which statement about the NJ Consumer Information Statement is correct?

22. In New Jersey, when a deed conveys property to a married couple and does not state otherwise, the couple takes title as:

23. A NJ licensee must deliver the Consumer Information Statement to a prospective buyer:

24. The NJ Pinelands Commission has how many members?

25. Once an out-of-state project is approved under the Full Disclosure Act, the Broker of Record receives a document that must be prominently displayed in the sales office. It is the:

Sources