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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A buyer is looking in several different cities for land to purchase for a shopping center. The buyer has decided to hire several real estate licensees, each representing the buyer in that licensee's city. Which type of agreement would protect the buyer from owing multiple commissions?

A) exclusive agency representation
B) exclusive right to sell
C) nonexclusive buyer-agency
D) nonexclusive right-to-lease

2. A Seller's Property Disclosure form states that there are no known material defects with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the basement. The licensee should:

A) disclose the existence of asbestos to all potential buyers.
B) suggest to the seller wrap the pipes to contain potential airborne contamination.
C) suggest the buyers have a home inspection and leave discovery up to the inspector.
D) ask the seller's permission to disclose and abide by the seller's wishes.

3. Which of the following can hold escrow accounts?

A) lenders, brokers, and real estate commissions
B) salespersons, brokers, and lenders
C) banks, brokers, and attorneys
D) banks, salespersons, and title companies

4. A city has built a new library and has contacted the broker to list and sell the old library building. Which approach should the broker use to estimate the fair market value for the purpose of listing and selling this property?

A) sales comparison
B) replacement cost
C) income approach
D) gross rent multiplier

5. A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?

A) Hire an appraiser and see if a second appraisal yields a higher appraised value.
B) Make up the difference between the contract price and appraised value in cash.
C) Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.
D) Do nothing, because the seller must sell the property at the appraised value.

Solutions: