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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year- old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statements regarding this situation is true?

A) City code always takes priority over deed restrictions.
B) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed.
C) Deed restrictions always take priority over city codes.
D) This deed restriction is more restrictive and will, therefore, take precedence.

2. According to the New Jersey Real Estate Time Share Act, if a licensee is selling a timeshare located within the state of New Jersey, all of the following are true EXCEPT that the:

A) timeshare must be approved by the Real Estate Commission.
B) contract of sale must provide notice of a seven calendar day rescission period.
C) licensee must hold a timeshare sales license.
D) licensee must provide the buyer with a copy of the Public Offering Statement.

3. A subordination agreement is used to:

A) initiate foreclosure proceedings.
B) change the priority of mortgages.
C) assign rents to the lender in case of borrower default.
D) pledge property for a loan without giving up possession.

4. A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash.
The broker

A) must forward the offer to the seller's attorney for consideration.
B) may accept the offer.
C) may not accept the offer until the seller returns.
D) may sign a deed of conveyance if the seller does not return on time.

5. A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is the club in violation of the federal Fair Housing Act, and if so, how?

A) Yes, because the club had minority members, and therefore was not eligible for exemptions from the federal Fair Housing Act.
B) No, because as an integrated club, they could discriminate on the basis of race in renting facilities.
C) Yes, because when race is involved, no exceptions to the federal Fair Housing Act exist.
D) No, because a private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially.

Solutions: