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Real Estate Final Exam Bank 200 Questions &
Detailed Answers Graded A+
Broker
- ANSWER>>>
is authorized to operate a real
estate business, hire
salespersons, and to charge the public for services.
Broker-
salesperson - ANSWER>>>
Has fulfilled all the
requirements of a
broker yet
chooses to work in a sales capacity for and in the name of another broker.
Continuing Education - ANSWER>>> All Broker, broker-salespersons, and
salespersons licensees must complete 12 hours of approved continuing education
courses before each two-year license renewal.
Guaranty Fund - ANSWER>>> Was established to reimburse members of the public
who suffer a monetary loss due to wrongdoing in a real estate transaction by a licensed
broker or salesperson or an unlicensed employee of a broker.
NJ Real Estate Commission - ANSWER>>> Administrator of real estate licenses
Real Estate
License Act - ANSWER>>>
Law governing the
practice of real
estate
in New
Jersey
Real Estate Referral Company - ANSWER>>> A real estate firm that only engages in
listing rental units to find prospective tenants.
REALTOR (^) - ANSWER>>> member of a private real estate trade association and
have no connection with licensing
REALTOR-
ASSOCIATE - ANSWER>>>
a member of
the National
Association of
Realtors a private trade association
Referral Fee (^) - ANSWER>>> Money paid another broker for sending a client or
customer
SLWRERC - ANSWER>>> A Salesperson Licensed with a Real Estate Referral
Company is a licensee whose activities are restricted to only making referrals. An
SLWRERC must be licensed with a real estate referral company not a real estate firm.
Title 11, Chapter 5 - ANSWER>>> Rules and regulations set up by the commission.
June 30th of odd-numbered years. - ANSWER>>> All initial, renewed, and
reinstated licenses are issued on a biennial tern that expires when?
When the work is being performed for another person and in anticipation of a fee or
commissio
n, a
broker's
license is
required
to?
- ANSWER>>>
sell
lots
or
othe
r
parcels for
a
developer
A real estate license is not required for? - ANSWER>>> Owners handling their own
property as unrepresented sellers (referred to as for sale by owner or FSBO)
A selling broker can rebate part of the commission to the buyer in the form of? -
ANSWER>>>>>>>Credit or Check
Salesperson (^) - ANSWER>>> Works under a sponsoring licensed broker, doing
business in the name of the broker and receiving compensation only from that broker.
Applicants for a real estate license must be submitted to the commission within? -
ANSWER>>> One year of the date when the candidate successfully completed the pre
license course
Someone who does not live in the state may obtain a NJ real estate license after?
ANSWER>>>>>>>Qualifying in the usual way and also filing irrevocable consent
to
service of process. (consent to be sued in this state).
Broker of Record - ANSWER>>> An individual who is the authorized broker for the
entire company
Broker of Record is responsible for what in a corporation? - ANSWER>>> For all
transactions for which a real estate license is required.
If a broker dies or becomes mentally or physically incapacitated and the office has no
other broker to carry on transactions already in progress who can take over? -
ANSWER>>> A temporary broker's license may be issued to a salesperson with at least
3 years of experience immediately preceding the date of application
The application requesting a temporary license must be made within when? -
ANSWER>>>>>>>30 days of the date of the broker's death and is effective for one
year from the date of issuance
License Renewal is when? - ANSWER>>> July 1st in odd-numbered years.
The required courses should be completed on or before April 30 of the renewal year.
What does the 12 hour course must contain? - ANSWER>>> - 6 hours core topics - 2
hours of ethics
- 1 hour on fair housing & discrimination
- 3 hours of other core topics totaling 6 hours within the core topics
If a broker's or salesperson's license is not renewed for two consecutive years or more
after the expiration of the last license it becomes what? - ANSWER>>> Void
A broker who goes out of business must do what steps? - ANSWER>>> - Close out the
escrow account - Remove Signs
- Provide the commission with a name and address where past records will be available
for 6 years
To obtain a salesperson's or SLWRERC's license in NJ, The candidate must follow what
3 steps? - ANSWER>>> - Complete the required 75hr pre-license examination
- Submit the score report (signed by the sponsoring broker) to the real estate
commission. A completed form is submitted at the same time allowing the commission
to request a criminal history check, as well as a certified check, cashier's check, or
money order for $160, payable to the state treasurer of NJ.
- Complete a fingerprinting process and consent to a criminal history record check.
Suggest to do fingerprinting asap after passing the state test.
What is a passing grade on the examination? - ANSWER>>> A 70%
When are examinations scored? - ANSWER>>> Immediately
How
much
does
everyon
e
contribu
te to the
Guarant
y Fund?
- ANSWER>>>
Eac
h
salesperson $10 and each Broker or Broker-salesperson
contributes $
Maximu
m
paymen
t for a
single
claim is
how
much?
- ANSWER>>>
0 per
offens
e
If a principal broker dies, associated salespersons should promptly -
ANSWER>>>>>>>have one of their members apply for a temporary broker's license
Continui
ng
educatio
n
courses
must be
taken
when?
- ANSWER>>>
In
ever
y
two-
year
period
Who is never allowed to sell real estate without a license? -
ANSWER>>>>>>>Insurance Brokers
The Guaranty Fund is funded by what? - ANSWER>>> fees paid at first-license
application
Rental Referral companies must - ANSWER>>> furnish prospective tenants with a
written contract
An unlicensed assistant is asked over the phone "How many bedrooms are there in that
house at
78 Oak
St?" The
assistan
t is
allowed
to
- ANSWER>>>
declin
e to
answe
r
The real estate commission has how many members - ANSWER>>>
Real estate brokers may need special registration when selling some -
ANSWER>>>>>>>out of state properties
any
question
s about
the
property.
An apartment is listed with a rental referral company, but it is not actively advertised to
the public. How frequently must the company check the apartment's availability? -
ANSWER>>>>>>>Every three days
Certification that legal restrictions have been reviewed with the certifying broker is
required
for which
license?
- ANSWER>>>
SLWRERC
Continuing education requirements mandate at least two hours -
ANSWER>>>>>>>Ethics
In order to avoid an additional processing fee, licensees should complete their required
continuing education courses during the renewal year on or before -
ANSWER>>>>>>>April 30 of the renewal year
A broker who goes out of business must provide a name and address where past
records will
be available
for
- ANSWER>>>
six
years
A
salesperso
n may not
do what 3
things?
- ANSWER>>>
Accep
t any
form
of
compensation except form his or
her supervisor
- Maintain an escrow account or hold funds belonging to others
ANSWER>>>>>>>The Internal Revenue Service
Every broker must keep records of trust account activity for how ling? -
ANSWER>>>>>>>6 years
Duplicate
Original - ANSWER>>>
copy of a real
estate contract
with original
signatures
Commissions are negotiable between client and broker. No contract can contain
anything indicating a prescribed fee schedule - ANSWER>>
Letter of Intent - ANSWER>>> A non-binding document that references what the
parties plan to do, note that some provisions could be binding.
The sale of rental of commercial or industrial properties or businesses is accomplished
on
what? - ANSWER>>>
A letter of
intent
The commission requires that all sales contacts prepared by licensees contain an... -
ANSWER>>>>>>>Attorney Review Clause
All
written
offers
must be
forward
ed to
Sellers
within...
and at the time of the listing, owners
of property must be furnished with a
copy of the
- ANSWER>>>
hour
s,
Attorney General's Memorandum regarding the NJ's Law Against Discrimination.
In NJ do buyers and sellers of the residential real estate need a lawyer? -
ANSWER>>>>>>>No. They choose whether or not to incur the cost of hiring a lawyer.
The broker must keep copies of all unaccepted offers to purchase for... -
ANSWER>>>>>>>6 months from the date of the initial offer.
All copies of contracts of sale and listing agreements must be kept for how long? -
ANSWER>>>>>>>6 years
Brokers obligation to put the principal's interest first, however, still requires... -
Before a salesperson can begin working for a sponsoring broker, a written
brokersalesperson independent contractor agreement must be drawn up that includes
broker's commission in the form of a rebate. it. can be in the form of credit or check.
Before suspending or revoking a license, the commission must provide the licensees at
least how
many days
in
advance?
- ANSWER>>>
10 days
advance
notice of
hearing
Guilty
Knowledge - ANSWER>>>
Knew what was going
on and did not attempt
to
stop it
When a salesperson is disciplined, the broker's license may or may not be affected
dependin
g on
whether
the
broker
had
what?
- ANSWER>>>
Guilty
knowledg
e
A licensed
salesperso
n is allowed
to...
- ANSWER>>>
Leave
one
broke
r and
affiliate
with
another
A broker wants to open a branch office in a new shopping mall in the next town. The
office can be supervised by... - ANSWER>>> A broker-salesperson or broker
| Page
A salesperson accepts an earnest money deposit and turns it over to his broker. he
broker must... - ANSWER>>> Deposit it within 5 days in a trust account
Under some circumstances, real estate office may be in the home of -
ANSWER>>>>>>>A broker
An
escrow
account
may be
opened
in ...
- ANSWER>>>
Any
authorize
d NJ
financial
institutio
n
A broker must keep copies of - ANSWER>>> Contracts for 6 years
Every person who signs a contract is entitled to receive a duplicate original. when are
they entitled to receive it? - ANSWER>>> Immediately
Every sales contract prepared by a broker must contain a notice that... -
ANSWER>>>>>>>The buyer and seller may seek attorney review within 3 business
days.
Even when the broker is the seller's agent, buyers are entitled to -
ANSWER>>>>>>>Fair dealing
For a license law violation, the Real Estate Commission could fine a licensee as much
as... - ANSWER>>> 25,
The commission will rule that someone could never again get a license after how many
violations?
- ANSWER>>>
3 violations
Rebate of part of a commission may be paid to a - ANSWER>>> buyer only!!
The Real Estate Commission must give a licensee how much notice before a hearing is
held on a possible violation? - ANSWER>>> 10 days
A real estate firm holds a door-prize drawing at a weekend open house it runs. This
practice...
- ANSWER>>>
Violates the
commissions rules
What is a reasonable effort for a seller's agent to determine material information about a
property's physical condition? - ANSWER>>> Encourage the seller to complete a
property disclosure statement.
A NJ licensee is permitted to represent both parties to a transaction if he or she obtains
the... - ANSWER>>> informed, written consent of the seller, buyer, and any other agent
involved.
Any agreement between competing offices to establish standard commission rates is
referred
to - ANSWER>>>
Illegal price-
fixing
A salesperson working for a broker was disciplined for pursuing a flagrant and
continued course of misrepresentations, making false promises, and failing to pay over
money
belonging to others. In this case, the broker's license will... -
ANSWER>>>>>>>Will be suspended or revoked only if the broker knew about the
salespersons's activities and did nothing about it..
A broker is defined as (^) - ANSWER>>> a person who is licensed to assist others in
real estate transactions and receive compensation for those services.
The Principal is also known as what? - ANSWER>>> The client
It is possible for a licensee to function as a transaction broker, working with buyer,
seller, or both, without representing either one but... - ANSWER>>> Functioning as the
manager of the transaction. in this case no agency relationship is created.
Fiduciary Relationship - ANSWER>>> is one of trust and confidence in which an agent
is responsible for the money and/or property of others. it. requires putting the
principal's
interest above all others, including the brokers own interest.
Who is the Fiduciary? - ANSWER>>> The agent
Universal Agent - ANSWER>>> Has authority to represent the principal in all matters
that can be delegated. He or she can enter into any contract on behalf of the principal
without prior permission.
General Agent - ANSWER>>> Is empowered to represent the principal in a broad
range of matters. The general agent may bind the principal to any contacts within the
scope of their authority.
Special
Agent - ANSWER>>>
Is authorized to
represent the principal in
one
specific capacity only.
Who is usually a special agent? - ANSWER>>> A real estate broker is traditionally
a special agent hired by a buyer or seller to locate a willing seller of a suitable property
or a willing buyer.
As a
special
agent the
broker is
not
authorize
d to...
- ANSWER>>>
bu
y
or
sel
l
the
property
or to bind
the
principal
to any
contract.
Power of
Attorney - ANSWER>>>
Is a legal written
authorization that
stipulates the
specific areas of authority in which the agent may act.
The confidential relationship carries with it. certain duties that the agent must perform
COLAD which is... - ANSWER>>> - Care
Disclosure
(notice) (^) - ANSWER>>>
The agent must
volunteer pertinent
information
whether or not the client asks.
Breach of Duty of Disclosure or Notice - ANSWER>>> The law considers that any
notice given the agent has been given to the principal. The agent therefore has a duty
to pass on any material information: all written offers must be presented immediately.
Broker-salesperson relationship - ANSWER>>> The salesperson is responsible to the
to the broker under whom he or she is licensed
The broker is fully responsible for the actions of all salespeople licensed... -
ANSWER>>>>>>>under him or her
The employer-employee relationship allows a broker to exercise certain controls over...
- ANSWER>>>
salespeople who are
employees
Brokers
cannot
require
independe
nt
contractor
s to...
- ANSWER>>>
work
certai
n
hours or attend office meetings, nor can they
pay them salary
ready,
willing, and
able buyer
- ANSWER>>>
One who is
prepared to
buy property he seller's terms and is ready to take positive steps to consummate the transaction.
A broker generally is due a commission if... (^) - ANSWER>>> a sale is not finalized
because of the principal's default
Consumer Information Statement (CIS) - ANSWER>>> describes the types of business
relationships a real estate agent can enter into with a client and the duties associated
with each relationship.
Agents are required to furnish a CIS before any discussion if the first discussion takes
place by telephone or social setting the seller or buyer must... - ANSWER>>> still be
verbally informed about the possible agency relationships and altered to their
implications.
Every listing, offer, contract, and lease prepared by a licensee must set forth the... -
ANSWER>>>>>>>broker's relationship with the parties involved.
The agency relationship may be terminated by what? - ANSWER>>> - Death or
incompetency of either party
- Destruction or condemnation of the property
- Expiration of the term of the agency
- Mutual agreement to terminate the agency
- Renunciation by the agent
- Revocation by the principal
- Bankruptcy of either party
- Completion or fulfillment of the purpose for which the agency was created.
If a broker represents both parties in the same real estate transaction, the. broker can
collect from
who? (^) - ANSWER>>>
Only one of
them
- ANSWER>>>
Disclosed dual agency is legal in New Jersey if the broker... - ANSWER>>> - Explains
fully the legal duties that will not be available from him or her
Dual Agency Occurs when the broker represents both parties in the
same transaction. While dual agency in itself is not illegal, undisclosed dual agency is.
