Your FREE New Jersey Real Estate Salesperson Practice Test 2026 – 150+ Q&A

Correct answer: Lot and block referencing a recorded plat

The lot and block method is best for a platted subdivision because once the plat is recorded, each lot can be identified simply by its lot and block numbers, making deeds short and precise. Metes and bounds requires lengthy directional calls, a narrative of physical features is imprecise, and surveying each small lot from a principal meridian would be unnecessarily cumbersome for a recorded subdivision.

Correct answer: As a fixture that transfers with the real property

The built-in oven is most likely a fixture that transfers with the real property because it is permanently attached to the cabinetry and adapted to the home with the intent that it remain. Fixture status turns on annexation, adaptation, and intent. It is no longer the seller's personal property once installed, it is not a trade fixture (which applies to commercial tenant equipment), and it is not an emblement, which refers to annual crops.

Correct answer: As trade fixtures the tenant may remove before the lease ends

Items a commercial tenant installs to conduct business are trade fixtures, which the tenant generally may remove before the lease ends, provided any damage from removal is repaired. They are not treated as permanent fixtures belonging to the landlord, they are not emblements (which are annual crops), and they do not become the landlord's real property upon installation, since the trade-fixture exception protects the business tenant's equipment.

Correct answer: A homeowner whose lot borders a lake builds a dock and uses the shore

Littoral rights belong to an owner whose land borders a stationary body of water such as a lake, allowing reasonable use of the shore and water, which the dock-building homeowner illustrates. The scenarios involving a river, creek, or flowing stream concern riparian rights, which attach to moving watercourses, so only the lakefront example demonstrates the littoral right tied to non-flowing water.

Correct answer: A legal nonconforming use

The factory continues as a legal nonconforming use, a use that was lawful before the zoning change but no longer conforms to current zoning, which is typically allowed to remain rather than be immediately shut down. An easement appurtenant is a use right over another parcel, a fee simple determinable is a defeasible ownership estate, and a variance is a forward-looking permission for a new deviation, none of which describes a grandfathered prior use.

Correct answer: The growing trees are real property, while the harvested apples are personal property

Growing trees rooted in the ground are part of the real property because they are attached to the land, but once the apples are harvested and severed, they become movable personal property. The classification changes upon severance, so it is incorrect to call both items personal property, both real property, or to reverse the categories.

Correct answer: Obtain a survey to determine the true location of the boundary line

Obtaining a survey is the appropriate first step because an encroachment is a physical intrusion across a boundary, and only a survey can establish exactly where the true line lies relative to the fence. Recording a deed restriction does not resolve a boundary dispute, eminent domain is a government power unavailable to a private owner, and emblements concern annual crops rather than boundary intrusions.

Correct answer: Metes and bounds relies on directional bearings and monuments; rectangular survey relies on meridians and base lines

Metes and bounds identifies a parcel using directional bearings, distances, and physical monuments, while the rectangular survey system locates land by reference to principal meridians and base lines that frame townships, ranges, and sections. The other pairings scramble these tools, such as wrongly assigning plat numbers to metes and bounds or bearings to lot and block, which actually relies on a recorded subdivision plat.

Correct answer: Eminent domain

Eminent domain is the correct power because it is the government's authority to take private property for a public use while paying the owner just compensation. The road-widening project for public benefit, combined with payment of fair market value, is the classic exercise of this power. Escheat applies when an owner dies without heirs, adverse possession transfers title through long-term occupancy, and a deed restriction is a private control rather than a governmental taking.

Correct answer: Condemnation

Condemnation is the formal legal process by which the government carries out eminent domain, determining the public need and the just compensation owed to the property owner. Foreclosure is a lender's process to recover a defaulted debt, partition divides co-owned property among owners, and subordination changes the priority of liens, none of which is the proceeding that effectuates a public taking.

Correct answer: Metes and bounds

Metes and bounds is the method shown because it describes the parcel using compass directions (bearings), distances, and identifiable monuments such as an iron pin and an oak tree, tracing the boundary and closing back at the point of beginning. Lot and block references a recorded plat by number, while the rectangular survey and township-section grid use meridians, base lines, and standardized sections rather than directional calls.

Correct answer: Begin and end at the same point of beginning

A metes and bounds description must return to and close at its point of beginning, because only by enclosing the tract does it accurately define the parcel's boundaries. Referencing a plat number belongs to the lot and block method, citing a principal meridian belongs to the rectangular survey system, and assessed tax value is not part of any legal description method.

Correct answer: 36 sections, each about 640 acres

A township in the rectangular survey system is divided into 36 sections, and each full section contains approximately 640 acres, since a section is one mile square. The other figures invert or distort these standardized measurements; the 36-section, 640-acre framework is the fixed structure used to locate land within the government survey grid.

Correct answer: They establish reference lines from which townships and ranges are measured

Principal meridians (running north-south) and base lines (running east-west) are the master reference lines from which townships are counted north or south and ranges are counted east or west, allowing any parcel to be located on the survey grid. They are not subdivision plat boundaries, zoning height controls, or valuation tools; their role is purely to anchor the measurement of the rectangular survey system.

Correct answer: An undisclosed recorded mechanic's lien existed against the property at the time of conveyance

An undisclosed recorded lien at the time of conveyance breaches the covenant against encumbrances because that covenant promises the property is free of liens, easements, or other burdens except those disclosed, and a hidden lien is exactly such an undisclosed encumbrance. A suit by a stranger with no valid claim implicates quiet enjoyment or warranty, a refusal to fix a description error implicates the covenant of further assurance, and a grantor who never owned the property breaches the covenant of seisin.

Correct answer: Request an extended-coverage policy or endorsements that remove or insure over certain standard exceptions

The buyer should request extended coverage or endorsements because a standard owner's policy carves out common exceptions, and the insurer can often remove or insure over some of them, frequently after a current survey, in exchange for additional premium, broadening the protection. These exceptions are not necessarily permanent or uninsurable. A quitclaim deed from the seller does not change what the insurer chooses to cover, and a quiet title action addresses ownership disputes, not the terms of an insurance contract.

Correct answer: Subrogation

Subrogation is correct because it is the insurer's right, after paying a covered loss, to succeed to the insured's claims and pursue the third party responsible for the title defect to recover the amount paid. It allows the insurer to shift the loss to the truly responsible party. Reconveyance is the release of a deed of trust when a loan is paid, estoppel prevents a party from asserting a position inconsistent with prior conduct, and reformation is a court's correction of a written instrument to reflect the parties' true intent.

Correct answer: No, because the deed was never delivered with present intent to pass title

Title did not pass because a valid conveyance requires delivery of the deed with the grantor's present intent to transfer title, and merely signing, acknowledging, and storing the deed without delivering it shows no such present intent. The grantor retained control and intended to act only later. Signing and acknowledgment alone do not complete a transfer, naming a grantee is not delivery, and recording is for notice and priority rather than being an absolute requirement for a deed's effectiveness between the parties.

Correct answer: A competent grantor with legal capacity who signs the deed

A valid deed requires a competent grantor with legal capacity who signs the instrument, because the grantor is the one conveying title and must have the legal ability and intent to do so. The grantee generally need not sign the deed, the stated consideration need not be the actual full purchase price and full payment is not an element of a valid deed, and witness requirements vary by state and are not a universal element, unlike the grantor's competent signature.

Correct answer: Probate

Probate is correct because it is the court-supervised process that validates a will, settles the decedent's debts and claims, and authorizes the transfer of the decedent's real and personal property to the heirs or devisees. Until probate is completed, title to devised real estate is generally not clear for conveyance. Partition divides co-owned property, condemnation is the government's exercise of eminent domain, and foreclosure enforces a lien against a defaulting borrower.

Correct answer: Escheat

Escheat is correct because it is the doctrine under which property reverts to the state when there is no lawful owner to claim it, whether that is real estate of a person who dies intestate without heirs or unclaimed personal property whose owner cannot be found. The unifying idea is that property should not remain ownerless. Eminent domain is a compensated taking for public use, adverse possession transfers title through long unauthorized occupation, and dedication is a private gift of land for public use.

Correct answer: It can shorten the statutory period required or strengthen the claim under 'color of title' provisions in many states

Occupying under a defective written instrument, known as color of title, and paying taxes can shorten the required statutory period or otherwise strengthen an adverse possession claim in many states, because the law rewards a claimant who appears to hold under a genuine, if flawed, claim of ownership. It does not eliminate the need for actual possession, it does not convey instant title upon recording the defective deed, and it does not remove the requirement that the possession still be hostile and the other elements be met.

Correct answer: Because government-owned public land is generally immune from adverse possession

The claim fails because land owned by the government and held for public use is generally immune from adverse possession, so no amount of open, hostile occupation can ripen into title against the public's land. This public-land exception is a well-established limit on the doctrine. Open occupation is in fact a required element rather than a bar, recording a self-made deed cannot manufacture ownership, and statutory periods do exist and are finite for private land.

Correct answer: Inquiry notice arising from the occupants' visible possession

The buyer had inquiry notice because visible possession by someone other than the record owner is a fact that should prompt a reasonable buyer to investigate, and the law charges the buyer with whatever a reasonable inquiry would have revealed. The buyer is bound by the occupants' rights despite the lack of recording. Constructive notice comes specifically from the recorded documents, actual notice requires genuine personal knowledge of the lease, and it is wrong to say there was no notice, since the open possession itself triggered the duty to inquire.

Correct answer: The second buyer must take without notice of the prior deed and record before the first buyer does

Under a race-notice statute the second buyer prevails only by both taking the deed without notice of the earlier conveyance and being the first of the two to record, combining the notice requirement and the race-to-record requirement. Recording first alone is not enough if the buyer had notice, having actual notice of the prior deed defeats protection rather than securing it, and paying a higher price is not a condition of priority under recording acts.

Correct answer: Marketable title, free from reasonable doubt and the risk of litigation

These record items prevent delivery of marketable title because marketable title must be reasonably free from doubt and from the threat of litigation, and an undisclosed easement, a pending ownership suit, and an unsatisfied mortgage are clouds that expose a buyer to dispute. A buyer is generally entitled to refuse a title burdened by such defects. The defects do not concern providing a boundary survey, transferring personal property, or furnishing an association estoppel certificate, which are separate matters.

Correct answer: Because a forged deed is generally void and conveys no title, so the entire later chain may be defective

A forged deed is an especially serious cloud because forgery generally renders a deed void from the outset, meaning it conveys no title at all, so every conveyance that depends on that forged link in the chain can be defective no matter how innocent later buyers were. Recording does not cure or validate a forgery, it does not transform a forged deed into a valid quitclaim, and the defect reaches well beyond the forger because it undermines the title every successor claims through that deed.

Correct answer: Curable physical deterioration

Peeling paint, a worn roof, and an aging furnace are curable physical deterioration, the ordinary wear and tear on a property's components that is economically practical to repair. Physical deterioration originates within the property and is often deferred maintenance. Functional obsolescence stems from defective design rather than wear, and external or economic obsolescence is caused by influences outside the property's boundaries, not by repairable component wear.

Correct answer: External obsolescence

The loss from the new highway is external obsolescence, a decline in value caused by negative influences outside the property's own boundaries that the owner cannot fix from within the site. Curable physical deterioration and deferred maintenance involve on-site wear the owner can repair, and functional obsolescence arises from the property's own outdated design, whereas the highway is an off-site nuisance beyond the owner's control.

Correct answer: Buy the $310,000 home because it is the lower-priced equally desirable substitute

Under the principle of substitution, the rational buyer purchases the $310,000 home because it is the lower-priced of two equally desirable substitutes, and an informed buyer will not pay more than necessary for comparable utility. A higher price does not automatically signal greater value when the homes are identical, averaging the prices ignores the cheaper substitute, and the price difference itself gives no reason to walk away from both.

Correct answer: The principle of conformity

This reflects the principle of conformity, which holds that property values are maximized and best protected when properties in an area are reasonably similar in size, style, quality, and use, so that homogeneity supports stable values. Anticipation ties value to future benefits, contribution measures a feature's added value, and substitution caps price at the cost of an alternative, none of which explains why neighborhood uniformity sustains value.

Correct answer: Assemblage and plottage

Combining the lots into one site is assemblage, and the resulting increase in value, here the $90,000 by which the $450,000 combined site exceeds the $360,000 separate total, is plottage. Accretion and reliction describe land changes from water, reconciliation and contribution are appraisal reasoning and feature-value concepts, and severalty and progression refer to sole ownership and a value boost from grander neighbors, not combined-parcel value.

Correct answer: The cost to create an exact duplicate of the existing structure, including any outdated features

Reproduction cost is the cost to create an exact duplicate of the existing structure using the same materials and design, including any outdated or superadequate features. Replacement cost, by contrast, is the cost to build a structure of equivalent utility using current materials and standards. Open-market sale price reflects market value, and the assessor's figure is assessed value, neither of which is a construction-cost estimate.

Correct answer: Reconciliation, because abundant comparable sales make that approach the most reliable for a typical home

The step is reconciliation, the appraiser's reasoned weighing of the three value indications, and sales comparison is emphasized because plentiful comparable sales make it the most reliable approach for a typical owner-occupied home. Capitalization is an income-approach calculation rather than a final weighing step, depreciation is a cost-approach component, and assemblage refers to combining parcels, none of which describes the reconciliation process.

Correct answer: Derive the market capitalization rate to apply to the subject's income

The appraiser uses the comparable sales to derive the market capitalization rate, extracted from similar properties' income-to-price relationships, and then applies that rate to the subject's $66,000 income to indicate value. Reproduction cost and accrued depreciation belong to the cost approach, and although a gross rent multiplier is also market-derived, the task here is to obtain a capitalization rate for the income approach rather than a rent multiplier.

Correct answer: A sale between a willing buyer and willing seller, each acting prudently and without undue pressure, after reasonable market exposure

Market value assumes a sale between a willing buyer and a willing seller, each acting knowledgeably and prudently without undue pressure, after the property has had reasonable exposure on the open market. These typical-conditions assumptions are what separate market value from a distressed or forced figure. A thirty-day forced sale, a single motivated buyer's offer, and the owner's historical cost plus improvements all fail the willing-and-unpressured open-market standard.

Correct answer: Price

The $315,000 the buyer actually paid is the price, the specific sum exchanged in this particular deal, which can sit above the appraiser's opinion of value. Market value here is the appraiser's $300,000 figure reflecting typical market conditions. Replacement cost concerns construction expense, and assessed value is the figure a taxing authority assigns, neither of which describes the amount paid in the sale.

Correct answer: The principle of contribution

This is the principle of contribution, which states that the value of an improvement is measured by how much it adds to the property's overall value, not by what it cost to install. The basement contributes only about $20,000 despite the $55,000 outlay. Anticipation ties value to expected future benefits, conformity addresses neighborhood similarity, and substitution caps value at the cost of a comparable alternative, none of which explains a cost-versus-value gap on a single feature.

Correct answer: Conformity and regression

Conformity and regression best explain the outcome. The principle of conformity holds that maximum value arises when properties are reasonably similar, and regression states that a superior property surrounded by lesser ones is dragged downward in value. Anticipation and contribution address future benefits and feature value, substitution and plottage concern comparable cost and combined parcels, and progression is the opposite effect, where a lesser home gains value from grander neighbors.

Correct answer: Add value to the comparable's sale price for that feature

When a comparable is inferior to the subject, the appraiser adds value to that comparable's sale price, because all adjustments are made to the comparables to make them resemble the subject. An inferior comparable is adjusted upward to reflect what it would have sold for with the subject's stronger feature. Subtracting would apply only to a superior comparable, the subject is never adjusted in this approach, and inferior features are not ignored.

Correct answer: Disregard it or treat it cautiously because it was not an arm's-length transaction

The appraiser should disregard or heavily discount the parent-to-child sale because it was not an arm's-length transaction between unrelated parties acting in their own interests, so its price does not reflect true market value. Reliable comparables come from open-market deals. Treating a family-priced sale as the most reliable comparable, blending it in unadjusted, or favoring it merely because it is the lowest would all distort the value indication.

Correct answer: It may be unenforceable or violate state rules requiring a definite term

Many states require a listing agreement to include a definite termination date, so omitting one can render the listing unenforceable or place the broker in violation of state regulations against open-ended listings. The omission does not automatically convert the listing to an open listing, double the commission, or transfer the listing to the multiple listing service.

Correct answer: It is an unlawful price-fixing arrangement because commissions must be negotiated independently

An agreement among competing brokers to set a uniform commission rate is unlawful price fixing, because commissions must be negotiated independently between each broker and client rather than coordinated among competitors. Such an arrangement is not a legitimate standardization of service, is not saved by being reasonable, and cannot be made lawful merely by disclosing it in a listing agreement.

Correct answer: General agency

General agency grants the agent authority to conduct a continuous series of transactions and act broadly for the principal, such as managing and selling a portfolio and signing documents on the owner's behalf. A special agency authorizes only a single specific task, a gratuitous agency is one created without compensation, and an ostensible agency arises from appearances rather than express broad authority.

Correct answer: The revocation is effective, so there is no offer left for the seller to accept

Absent an option supported by consideration, an offeror may revoke an ordinary offer any time before acceptance, so the buyer's clear revocation before the seller accepts is effective and leaves no offer to accept. The stated open-until time does not make the offer irrevocable without consideration, the buyer owes no damages for revoking an unaccepted offer, and the seller cannot compel performance of a contract that never formed.

Correct answer: Disclosure

In the OLD CAR memory aid for agent fiduciary duties, the O, L, and D stand for obedience, loyalty, and disclosure, which together with confidentiality, accounting, and reasonable care describe the six core obligations to the principal. Diligence, discretion, and documentation are not the duty represented by the D in this standard summary of an agent's fiduciary responsibilities.

Correct answer: Keep it confidential so it cannot be used against the seller in negotiations

Loyalty requires the agent to place the seller's interests first and protect confidential information such as the seller's urgency, so the agent must keep that motivation private to preserve the seller's bargaining position. Sharing the seller's desperation with buyers, posting it on the multiple listing service, or revealing it to a buyer's lender would all undermine the seller's negotiating leverage and breach the duty of loyalty.

Correct answer: The duty of accounting

The duty of accounting requires the agent to report and properly handle all money, documents, and property entrusted to the agent during the transaction, including a full record of trust funds. Loyalty concerns putting the principal first, obedience concerns following lawful instructions, and confidentiality concerns protecting private information, none of which describes the obligation to track and report entrusted funds.

Correct answer: The agent must not obey, because the duty of obedience extends only to lawful instructions

The duty of obedience requires following only the principal's lawful instructions, so an agent must refuse a directive to discriminate based on national origin because carrying it out would violate fair housing law. Obeying an unlawful order is never required, documenting an illegal refusal does not make it permissible, and no fee can authorize illegal discrimination.

Correct answer: Disclosed dual agency

Disclosed dual agency is the arrangement in which one licensee represents both the buyer and seller in the same transaction with the informed written consent of both parties. Subagency involves an agent of the listing broker working through the seller's agent, designated agency assigns different in-house agents to each side, and single agency means representing only one party.

Correct answer: It prevents the broker from giving undivided loyalty and full advocacy to either party

Dual agency inherently limits representation because a broker serving two opposing principals cannot give either one undivided loyalty or full advocacy without harming the other. It does not mandate a double commission, does not permit fully advocating for the higher offer, and does not automatically void the purchase contract, which remains valid when the dual agency is properly disclosed and consented to.

Correct answer: It allows each designated agent to advocate more fully for that agent's own client

Designated agency lets each assigned salesperson act more like a single agent and advocate for that agent's own client, reducing the loss of advocacy that occurs in pure dual agency. It does not eliminate agency disclosure requirements, does not guarantee a higher sale price, and does not free the broker, who still supervises the firm and the transaction.

Correct answer: A net listing

A net listing pays the broker any amount the property sells for above the seller's specified net, an arrangement many states prohibit or discourage because it creates a conflict between the broker's pay and the seller's interest in the highest price. An open listing pays only the procuring broker, an exclusive agency lets the owner sell commission-free, and an exclusive right-to-sell guarantees the broker a commission on any sale during the term.

Correct answer: A buyer touring the home without making an offer

A buyer simply touring the home without making an offer does not terminate the listing, because showings are ordinary marketing activity that the listing contemplates. By contrast, the death of the seller, destruction of the property, and the mutual agreement of broker and seller to cancel are all events that end a listing agreement before its scheduled expiration.

Correct answer: The owner, who may sell it personally commission-free

In an exclusive agency listing, only the listing broker is engaged among brokers, but the owner reserves the right to sell the property personally without paying a commission. A cooperating broker would work through the listing broker rather than independently, the buyer's lender has no selling right, and it is incorrect that no one but the broker may sell, since the owner's personal-sale right is the defining feature of this listing.

Correct answer: Under exclusive right-to-sell the broker earns a commission even if the owner finds the buyer, whereas exclusive agency lets the owner sell commission-free

The defining difference is that an exclusive right-to-sell listing entitles the broker to a commission on any sale during the term, including one the owner arranges, while an exclusive agency lets the owner sell personally without owing the broker. Both are written agreements, neither guarantees a particular commission rate, and exclusive right-to-sell engages a single broker rather than multiple brokers.

Correct answer: The broker represents the buyer as the buyer's agent in locating and negotiating a purchase

A buyer agency agreement creates a relationship in which the broker represents the buyer as the buyer's agent, owing the buyer fiduciary duties while helping locate properties and negotiate a purchase. It is not an arrangement where the broker represents the seller, where the buyer waives representation, or where the listing broker automatically becomes the buyer's subagent.

Correct answer: The buyer pays the broker directly per the buyer agency agreement

Because the buyer agency agreement is a contract between the buyer and broker, the buyer can compensate the broker directly when the seller will not pay a buyer-broker fee, honoring the agreement the buyer signed. The broker is not required to work for free, no listing service automatically pays the fee, and a seller cannot be legally forced to pay a buyer's broker absent an agreement to do so.

Correct answer: A good-faith deposit showing the buyer's serious intent to perform the contract

Earnest money is a good-faith deposit a buyer submits to demonstrate a serious intent to perform the purchase contract, giving the seller assurance the buyer will follow through. It is not a non-refundable broker fee, not a loan origination fee charged by a lender, and not a county tax, all of which serve different purposes than signaling contractual commitment.

Correct answer: The seller may pursue the deposit as damages for the buyer's breach

When a buyer defaults without a valid contingency, the seller generally may pursue the earnest money as damages for the breach, since the deposit exists to compensate the seller if the buyer fails to perform. The buyer does not automatically recover the deposit after defaulting, the funds are not split with the broker by law, and the deposit is not forfeited to the state.

Correct answer: Familial status and disability

Familial status and disability were the protected classes added by the 1988 amendments to the Fair Housing Act, extending coverage to families with children and to persons with disabilities. Sex was added earlier in 1974, not in 1988. Religion, color, and national origin were among the classes already protected in 1968, so they were not part of the 1988 expansion.

Correct answer: Steering

Steering is the violation, because the agent redirected the buyer away from a requested area and toward another based on the buyer's ethnic background, a protected characteristic. Blockbusting induces panic selling among owners, redlining is a lender or insurer practice of denying service by geography, and commingling concerns improper handling of client funds.

Correct answer: It artificially depresses property values and exploits both departing owners and incoming residents through fear

Blockbusting is especially harmful because it uses fear about a protected group entering a neighborhood to drive owners to sell quickly at depressed prices, harming sellers who sell low and incoming buyers who may pay inflated prices. It is unlawful, not curable by disclosure, reaches residential housing, and is not the same as permissible puffing.

Correct answer: Redlining

Redlining is the correct identification, because denying insurance to an entire geographic area based on the protected characteristics of its residents is the classic form of redlining, which applies to insurers as well as lenders. Steering involves directing prospective buyers among neighborhoods, puffing is sales exaggeration, and antitrust price fixing involves collusion among competitors on price.

Correct answer: Antitrust law, as an illegal market allocation

Antitrust law is violated because competitors agreeing to carve up territories is an illegal market or customer allocation, a per se antitrust offense that suppresses competition. Fair housing law addresses discrimination, the Truth in Lending Act addresses credit-cost disclosure, and the Statute of Frauds addresses written-contract requirements, none of which targets territorial collusion among rivals.

Correct answer: Commingling and misuse of trust funds

Paying brokerage operating expenses from the trust account is commingling and misuse of trust funds, because client money in trust must never be used for the firm's own obligations. It is not lawful, and it is unrelated to fair-housing steering or to antitrust group boycotts, which concern discrimination and competitor collusion respectively.

Correct answer: The consumer recently sold a home through that brokerage, creating an established business relationship

An established business relationship, such as having recently transacted with the brokerage within the prior 18 months, is a recognized exception that allows a call to a registered number for a limited time. A mere belief that the consumer might sell does not create an exception. Calling before 8 a.m. is itself prohibited under telemarketing rules (permitted hours are 8 a.m. to 9 p.m. local time). Blocking caller ID does not create an exception and may itself violate the rules.

Correct answer: Advertising rules requiring the supervising broker or brokerage be identified

Advertising rules generally require disclosure of the supervising broker or brokerage so the public understands the licensee acts under a broker, which a sign showing only the agent's name violates. Trust-account rules govern client funds, the lead-based paint rule governs pre-1978 housing disclosures, and antitrust law governs competitor collusion, none of which addresses sign attribution.

Correct answer: It reflects the law allowing reasonable modifications by a disabled tenant, generally at the tenant's expense

This reflects the Fair Housing Act provision permitting a tenant with a disability to make reasonable physical modifications, generally at the tenant's own expense and with restoration where appropriate. Disability is in fact a protected class, the situation is not blockbusting because no panic selling is involved, and it is not commingling because no trust funds are mixed.

Correct answer: Perfect for a young Christian couple, no children please

The phrase signals a preference based on religion and excludes children, expressing bias against the federally protected classes of religion and familial status, in violation of the Fair Housing Act's prohibition on discriminatory advertising. Describing bedrooms, transit access, renovations, or lease flexibility refers to property features and availability, which are permissible because they do not indicate a protected-class preference.

Correct answer: It generally allows calls to a registered number for a limited period despite registry listing

An established business relationship generally permits contacting a consumer on the registry for a limited period — up to 18 months after the last transaction or 3 months after an inquiry — recognizing a legitimate ongoing relationship. It does not grant permanent or unlimited exemption, does not impose re-registration duties on the consumer, and does not become irrelevant because the registry contains broad exceptions including this one.

Correct answer: Illegal price fixing under antitrust law

An agreement among competing firms to commit to a uniform commission rate is illegal price fixing under antitrust law, because commission rates must be set independently by each firm. It is not lawful coordination, is unrelated to fair-housing steering, and is not merely an advertising matter, since the harm is the collusive agreement on price among competitors.

Correct answer: Recording each client's deposit and disbursement in a reconciled trust-account ledger separate from operating funds

Maintaining a reconciled trust-account ledger that tracks each client's deposit and disbursement separately from operating funds is the strongest protection, because it keeps client money segregated and fully accountable. Combining deposits with personal funds or routing them to an agent's checking account is itself commingling, and holding cash in an office safe fails to provide the required segregation and traceability.

Correct answer: Because they provide ecological functions such as wildlife habitat and water filtration

The correct answer is because they provide ecological functions such as wildlife habitat and water filtration. Wetlands are protected for their environmental value, including supporting wildlife and naturally filtering and storing water, which is why their development is regulated. Protection is not about zeroing out assessed value, granting tax exemption, or conveying littoral rights, none of which is the basis for wetland regulation.

Correct answer: A psychological stigma attached to the property

The correct answer is a psychological stigma attached to the property. A stigma arises from a non-physical event, such as a notorious crime, that makes some buyers view the property as less desirable even though nothing is physically wrong. Functional obsolescence concerns physical or design shortcomings, a latent defect is a hidden physical problem, and a recorded encumbrance is a title matter, none of which captures reputation-based stigma.

Correct answer: No, because the federal lead-based paint disclosure applies only to target housing built before 1978

The correct answer is that no disclosure is required because the federal lead-based paint rule applies only to target housing built before 1978. A 1981 home falls outside the pre-1978 cutoff, so the disclosure form and EPA pamphlet are not federally mandated. The rule is not triggered by every rental, does not hinge on whether the tenant has young children, and does apply to both sales and leases of qualifying older housing.

Correct answer: The EPA-approved lead hazard information pamphlet given to the buyer

The correct answer is the EPA-approved lead hazard information pamphlet given to the buyer. Federal law requires that buyers of pre-1978 housing receive the EPA pamphlet on protecting families from lead, along with the disclosure form and any known records. A radon soil report, a Closing Disclosure, and a wetlands delineation map address entirely different issues and do not fulfill the lead-based paint information requirement.

Correct answer: It is a knowing failure to disclose that can expose the seller to liability under the lead disclosure law

The correct answer is that it is a knowing failure to disclose that can expose the seller to liability under the lead disclosure law. The federal rule requires sellers to disclose known lead-based paint and hazards anywhere in target housing, and deliberately concealing known leaded paint violates that duty and can lead to penalties and damages. Excluding the garage, shifting responsibility to the buyer's inspection, or having the agent sign does not cure a knowing concealment.

Correct answer: The agent generally must disclose known material defects to the buyer and cannot conceal them at the seller's request

The correct answer is that the agent generally must disclose known material defects to the buyer and cannot conceal them at the seller's request. A licensee's duty of honesty and fair dealing requires disclosure of known material facts affecting the property, and that duty overrides a seller's instruction to hide a defect. The agent cannot hide a known defect, is not relieved simply because the seller signs the form, and the duty does not wait for a buyer's inspector.

Correct answer: Update or amend the disclosure to reflect the newly known defective furnace before closing

The correct answer is to update or amend the disclosure to reflect the newly known defective furnace before closing. The duty to disclose known material defects is ongoing, so a material change in condition that the seller learns about before closing must be communicated to the buyer. Standing on an outdated disclosure, waiting until after closing, or treating the failure as automatic cancellation does not satisfy the continuing disclosure obligation.

Correct answer: A latent defect the seller had a duty to disclose

The correct answer is a latent defect the seller had a duty to disclose. A latent defect is hidden and not discoverable through ordinary inspection, and when the seller knows of it, there is a duty to disclose it to the buyer. It is not a patent defect because it was concealed and not observable, it is not economic obsolescence, which is an appraisal value concept, and it is not a title defect because it concerns a physical condition rather than the record of ownership.

Correct answer: A large, visibly cracked and sagging front porch obvious to anyone approaching the house

The correct answer is a large, visibly cracked and sagging front porch obvious to anyone approaching the house. A patent defect is open, apparent, and readily observable through ordinary inspection, which describes a clearly damaged porch. Plumbing sealed in a wall, a buried leaking tank, and mold in a never-opened crawlspace are all concealed conditions and therefore examples of latent defects, not patent ones.

Correct answer: Direct the buyer to the publicly available state registry where that information can be searched

The correct answer is to direct the buyer to the publicly available state registry where that information can be searched. Megan's Law makes registered sex-offender information publicly accessible, and the accepted practice is to refer interested parties to the official registry rather than research, guarantee, or vouch for the data. Refusing entirely, personally guaranteeing the area, or claiming the seller must compile the list each misstates how the public-registry framework works.

Correct answer: It establishes public notification and registry access regarding sex offenders so the public can obtain that information

The correct answer is that it establishes public notification and registry access regarding sex offenders so the public can obtain that information. Megan's Law statutes require that information about registered sex offenders be made publicly available so buyers and the community can look it up. It does not deal with environmental remediation, does not create a uniform federal property-condition form, and does not set the lead-based paint cutoff date, which is a separate federal rule.

Correct answer: The natural breakdown of uranium in soil and rock beneath the foundation

The correct answer is the natural breakdown of uranium in soil and rock beneath the foundation. Radon is a naturally occurring radioactive gas produced as uranium decays in the ground, and it migrates upward into structures through cracks and openings in the foundation. Carpet off-gassing, lead solder in pipes, and circulating mold spores are distinct indoor concerns that do not produce radon.

Correct answer: Proration

The correct answer is proration. Proration is the allocation of ongoing property expenses and income, such as taxes, interest, insurance, and association dues, between the buyer and seller so that each pays only for the portion of the period during which they own the property. Subordination concerns lien priority, capitalization converts income to value, and recapture is a depreciation tax concept, so none of those describes the fair splitting of closing-date expenses.

Correct answer: It is shown as a credit to the buyer and a debit to the seller

The correct answer is that it is shown as a credit to the buyer and a debit to the seller. When taxes have accrued but are unpaid, the seller owes the portion covering the time the seller owned the property, so that amount is debited to the seller and credited to the buyer, who will pay the full bill later. Ignoring the accrual would unfairly burden the buyer, the amount is not folded into loan principal, and the broker does not absorb prorated taxes, so those alternatives misstate standard proration treatment.

Correct answer: The annual percentage rate

The correct answer is the annual percentage rate. Regulation Z, which implements the Truth in Lending Act, requires lenders to disclose the annual percentage rate so borrowers can compare the true yearly cost of credit, blending the interest rate with certain finance charges into one figure. The principal balance is the amount owed, the escrow cushion is a reserve for taxes and insurance, and the assessed value is used for taxation, none of which expresses the comparable annual cost of borrowing.

Correct answer: The Truth in Lending Act

The correct answer is the Truth in Lending Act. The Truth in Lending Act and its Regulation Z govern consumer-credit advertising, requiring that when a triggering term such as a specific rate or payment is stated, additional credit terms must also be disclosed so the advertisement is not misleading. The Real Estate Settlement Procedures Act addresses settlement services and kickbacks, the Equal Credit Opportunity Act prohibits credit discrimination, and the Fair Credit Reporting Act governs credit reports, none of which sets the triggering-term advertising rules.

Correct answer: The Loan Estimate

The correct answer is the Loan Estimate. Under the integrated disclosure rules tied to the Real Estate Settlement Procedures Act and the Truth in Lending Act, the lender must give the borrower a Loan Estimate within a few business days of application, summarizing projected loan terms and settlement costs so the borrower can shop and compare. The Closing Disclosure comes at the end before consummation, a promissory note is the repayment promise, and a satisfaction of mortgage releases a paid lien, none of which is the early estimate provided after application.

Correct answer: To prevent lenders from holding excessive borrower funds beyond what is needed to pay taxes and insurance

The correct answer is to prevent lenders from holding excessive borrower funds beyond what is needed to pay taxes and insurance. The Real Estate Settlement Procedures Act limits the escrow cushion a lender may require so borrowers are not forced to over-fund their impound accounts. The rule does not guarantee a lower interest rate, does not affect whether title insurance is needed, and does not set the loan-to-value ratio, so those choices misstate the consumer-protection purpose of the escrow limit.

Correct answer: A new three-business-day review period is triggered before consummation

The correct answer is that a new three-business-day review period is triggered before consummation. When certain significant changes occur, such as the annual percentage rate exceeding tolerance, a change in the loan product, or the addition of a prepayment penalty, a corrected Closing Disclosure must be issued and a fresh three-business-day waiting period restarts. The closing cannot simply proceed without that wait, the borrower does not forfeit earnest money because of a lender change, and the appraisal is not required to be redone, so those alternatives are incorrect.

Correct answer: As credits to the buyer

The correct answer is as credits to the buyer. On a settlement statement, amounts that reduce what the buyer must pay, such as the new loan proceeds and the earnest money already deposited, appear as credits to the buyer, while costs the buyer owes appear as debits. They are not debits, which increase the buyer's obligation, they are not seller commissions, and they are not discount points, so those classifications misidentify items that lower the buyer's cash to close.

Correct answer: Private mortgage insurance

The correct answer is private mortgage insurance. Private mortgage insurance is charged on conventional loans with less than a 20 percent down payment to protect the lender, and under federal rules it can generally be canceled once the loan balance is paid down to a set percentage of the property's original value. A loan origination fee is a one-time charge for processing the loan, a documentary transfer tax is a one-time government charge on conveyance, and a homeowners association assessment funds the community, none of which is the cancelable lender-protection premium on a low-down-payment conventional loan.

Correct answer: Private mortgage insurance applies to conventional loans and can generally be removed as equity grows, whereas some government-loan mortgage insurance lasts the life of the loan

The correct answer is that private mortgage insurance applies to conventional loans and can generally be removed as equity grows, whereas some government-loan mortgage insurance lasts the life of the loan. Private mortgage insurance is tied to conventional financing with low down payments and may be canceled once sufficient equity accumulates, unlike certain government-loan insurance premiums that can remain for the loan's term. It is paid by the borrower to protect the lender, it is required on low rather than high down payments, and it does not replace the promissory note, so those statements are inaccurate.

Correct answer: It declines to zero by the end of the term

The correct answer is that it declines to zero by the end of the term. In a fully amortized loan, each level payment covers the interest due and reduces principal, so the balance steadily falls until it is completely paid off at the end of the term. The balance does not grow toward a balloon, which describes a partially amortized loan, it does not stay unchanged, which describes interest-only or term loans, and it does not move with an index, which describes an adjustable-rate loan, so those choices misdescribe amortization.

Correct answer: $435,000

The estimated cost is $435,000. First add the floor areas: $1{,}800 + 1{,}200 = 3{,}000$ square feet, then multiply by the per-square-foot cost: 3,000 $\times$ $145 = $435,000. Total livable area must be summed before applying a unit cost.

Correct answer: $15,600

The cooperating broker receives $15,600. The total commission is $480,000 $\times$ 0.05 = $24,000; the listing broker keeps 35% ($24,000 $\times$ 0.35 = $8,400), leaving the cooperating broker the remaining 65%: $24,000 $\times$ 0.65 = $15,600. The cooperating broker's share is the complement of the listing broker's retained percentage.

Correct answer: $10,200

The total commission was $10,200. The salesperson's $7,140 represents 70% of the total, so divide the part by the rate: $7,140 / 0.70 = $10,200. When the share and its percentage are known but the whole is not, division recovers the total.

Correct answer: $319,149

The property must sell for about $319,149. After a 6% commission the seller keeps 94% of the price, so divide the desired net by 0.94: $300,000 / 0.94 = $319,148.94, which rounds to $319,149. The net must be divided by the retained percentage, not increased by the commission rate.

Correct answer: 88%

The loan-to-value ratio is 88%. The loan equals the price minus the down payment: $375,000 − $45,000 = $330,000, and LTV equals loan divided by value: $330,000 / $375,000 = 0.88, or 88%. The down payment must first be subtracted to find the financed amount.

Correct answer: $335,000

The value used was $335,000. When the loan and the LTV ratio are known, divide the loan by the ratio: $268,000 / 0.80 = $335,000. Dividing the loan amount by the loan-to-value percentage recovers the underlying property value.

Correct answer: $5,760

The annual property tax is $5,760. A mill equals $0.001 per dollar of assessed value, so 18 mills is $0.018 per dollar; multiply the assessed value by that rate: $320,000 $\times$ 0.018 = $5,760. Converting mills into a decimal before multiplying prevents place-value errors.

Correct answer: 15 mills

The required rate is 15 mills. Divide the revenue needed by the total assessed value: $9,000,000 / $600,000,000 = 0.015, which equals 15 mills since one mill is 0.001. Translating the resulting decimal into mills requires multiplying by 1,000.

Correct answer: $704

The transfer tax is $704. Divide the price into $500 increments: $640,000 $\div$ $500 = 1,280 increments, then multiply by the per-increment rate: 1,280 $\times$ $0.55 = $704. The price must be broken into the taxable units before applying the rate.

Correct answer: $575,000

The sale price was $575,000. Each $1,000 of price carries $2.00 of tax, so the number of $1,000 units equals $1,150 $\div$ $2.00 = 575 units, and 575 $\times$ $1,000 = $575,000. Working the per-thousand formula backward converts the tax paid into the sale price.

Correct answer: $1,440

The seller is debited and the buyer credited $1,440. The daily tax is $4,380 $\div$ 365 = $12 per day, and the seller owned the property for 120 days of the unpaid taxes: 120 $\times$ $12 = $1,440. Because the taxes are unpaid (in arrears), the seller's share becomes a credit to the buyer who will pay the full bill.

Correct answer: The New Jersey Real Estate Commission (NJREC), within the Department of Banking and Insurance

Under N.J.S.A. 45:15-5 et seq., the New Jersey Real Estate Commission (NJREC) administers the Real Estate License Act. The Commission is housed within the Department of Banking and Insurance (DOBI), not Consumer Affairs or the Division of Revenue.

Correct answer: 75 hours

New Jersey requires a salesperson applicant to complete 75 hours of pre-licensing education at a Commission-licensed school before sitting for the licensing examination, per NJREC licensing requirements under N.J.S.A. 45:15 and N.J.A.C. 11:5.

Correct answer: One year from the date of course completion

Under NJREC rules, the salesperson examination must be passed and a completed license application submitted within one year of completing the 75-hour pre-licensing course; otherwise the education must be retaken.

Correct answer: At least 18 years of age with the equivalent of a high school education

N.J.S.A. 45:15-9 and NJREC rules require a salesperson applicant to be at least 18 years old and to have the equivalent of a high school education.

Correct answer: No; a salesperson must be employed by or contracted with a licensed New Jersey broker, and the broker must certify the application

Under N.J.S.A. 45:15 and NJREC rules, a salesperson license is issued only through a sponsoring broker. The employing broker must certify the application, and a salesperson cannot operate independently of a broker.

Correct answer: Three years of full-time experience as a salesperson immediately preceding the application

N.J.S.A. 45:15-9 requires a broker applicant to have held a New Jersey salesperson license and been actively engaged full time in the brokerage business for the three years immediately preceding the application (with limited reciprocity waivers).

Correct answer: 12 CE credits

NJREC requires all actively licensed salespersons, broker-salespersons, and brokers to complete 12 CE credits during each two-year licensing term.

Correct answer: 2 credits in ethics

NJREC requires that of the 12 CE credits, at least 6 be in core topics, and those core credits must include at least 2 credits in ethics, 1 credit in agency, and 1 credit in fair housing and the NJ Law Against Discrimination.

Correct answer: July 1 of odd-numbered years

NJREC sets a two-year licensing term that begins July 1 of odd-numbered years (e.g., 2025) and ends June 30 of the next odd-numbered year (e.g., 2027). CE must be completed before the cycle deadline to avoid a late fee.

Correct answer: At first contact, and the consumer must be informed of the possible relationships before any confidential information is disclosed

Under N.J.A.C. 11:5-6.9, the licensee must inform the consumer of the available business relationships and provide the CIS at the first contact, before discussing the consumer's motivation, financial ability, or price, and before any confidential information is exchanged.

Correct answer: Five: seller's agent, buyer's agent, disclosed dual agent, designated agent, and transaction broker

The NJ CIS, approved by the NJREC, describes five possible business relationships: seller's agent, buyer's agent, disclosed dual agent, designated agent, and transaction broker.

Correct answer: The firm must obtain the informed written consent of both the buyer and the seller

Under N.J.A.C. 11:5-6.9, the CIS alone is not enough for dual agency; a firm must obtain the informed, written consent of both the buyer and the seller before acting as a disclosed dual agent.

Correct answer: It works with a buyer and/or seller without representing either party and does not promote one party's interests over the other's

Per the NJ CIS, a transaction broker assists a buyer and/or seller without representing anyone. The licensee must treat all parties honestly and competently but is not required to keep their information confidential or to advance one party's interests over the other's.

Correct answer: The broker of record designates one licensee to represent the seller and another to represent the buyer, each owing full loyalty to their assigned client

Under the NJ CIS framework, designated agency lets the broker of record appoint separate designated agents within the same firm to represent the buyer and the seller individually, each owing undivided loyalty to their respective client.

Correct answer: Six years

Under N.J.A.C. 11:5-5.4, brokers must maintain business and transaction records, and acknowledged CIS forms, for six years.

Correct answer: Three business days, excluding Saturdays, Sundays, and legal holidays

Under N.J.A.C. 11:5-6.2 (and the Real Estate Commission/State Bar settlement), the standard attorney-review clause gives either party three business days (excluding Saturdays, Sundays, and legal holidays) after delivery of the signed contract to have an attorney review and cancel it.

Correct answer: After a fully signed copy of the contract has been delivered to both the buyer and the seller

Under N.J.A.C. 11:5-6.2, the three-business-day clock starts only after a fully executed copy of the contract has been delivered to each party (counting begins the next business day after delivery).

Correct answer: For any reason; the attorney may disapprove and cancel the contract at his or her discretion

Under the standard NJ attorney-review clause (N.J.A.C. 11:5-6.2), either party's attorney may disapprove the contract for any reason during the three-business-day period, propose modifications, or let it become binding by not objecting.

Correct answer: By fax, e-mail, personal delivery, or overnight mail (a recognized method with proof of delivery)

Under the NJ attorney-review clause (N.J.A.C. 11:5-6.2), notice of disapproval must be sent to the broker and the other party by a method that provides proof of transmission, such as fax, e-mail, personal delivery, or overnight mail.

Correct answer: Contracts for the sale of one-to-four-family residential property and vacant one-family lots

Under N.J.A.C. 11:5-6.2, the attorney-review clause must be included in licensee-prepared contracts for one-to-four-family residential dwellings and for vacant one-family lots.

Correct answer: Promptly deposit it in a special trust or escrow account in an authorized New Jersey financial institution, separate from the broker's own funds

Under N.J.A.C. 11:5-5.1, every resident broker must maintain a separate special trust/escrow account in an authorized New Jersey financial institution for funds of others, segregated from the broker's business or personal accounts.

Correct answer: Not more than five business days following receipt of the money

N.J.A.C. 11:5-5.1 defines 'promptly' as not more than five business days following the broker's receipt of the money or property of another.

Correct answer: Commingling, which is prohibited

N.J.A.C. 11:5-5.1 prohibits commingling, the mingling of a principal's money with the broker's own funds. Brokers must promptly segregate funds held for others into the trust account.

Correct answer: Keep the funds in the trust account and not release them until the parties agree or a court orders disbursement

Under NJREC escrow rules (N.J.A.C. 11:5-5), a broker holding disputed deposit funds must retain them in the trust account and may not disburse them until the parties resolve the dispute in writing or a court directs disbursement.

Correct answer: The payor, date and amount of each deposit, the persons for whom funds are held, and the dates, amounts, and payees of all disbursements

Under N.J.A.C. 11:5-5.1 and 11:5-5.4, the trust-account records and ledger must show, for each transaction, the payor and date and amount of each deposit, the property involved, the persons for whom funds are held, and the dates, amounts, and payees of all disbursements.

Correct answer: To reimburse persons who obtain a final court judgment against a licensee for embezzlement, conversion, or unlawful obtaining of money but cannot collect from the licensee

Under N.J.S.A. 45:15-34 et seq., the Real Estate Guaranty Fund reimburses aggrieved persons who hold an unsatisfied final judgment arising from a licensee's embezzlement, conversion, or unlawful taking of money in a brokerage transaction.

Correct answer: $20,000 per transaction

Under N.J.S.A. 45:15-37, the maximum recovery from the Guaranty Fund is $20,000 per transaction for causes of action accruing after the effective date of P.L. 1993, c.51 (the prior limit was $10,000).

Correct answer: Obtain a final court judgment against the licensee, pursue available remedies, and be unable to satisfy the judgment from the licensee's assets

Under N.J.S.A. 45:15-37, a claimant must first reduce the claim to a final judgment, exhaust available remedies against the licensee, and show inability to collect before a court may order payment from the Fund.

Correct answer: The Real Estate License Act, N.J.S.A. 45:15, enforced by the NJREC

Under N.J.S.A. 45:15-16 and related provisions, a licensee may not pay a commission or valuable consideration for brokerage services to anyone who is not a licensed New Jersey broker or salesperson; doing so is grounds for NJREC discipline.

Correct answer: Making a substantial misrepresentation or engaging in fraud, dishonest dealing, or commingling of funds

Under N.J.S.A. 45:15-17, the Commission may suspend or revoke a license, or impose penalties, for conduct such as substantial misrepresentation, fraud, dishonest dealing, conversion, and commingling of trust funds.

Correct answer: A notice of the availability of lists of off-site conditions maintained at the municipal clerk's office

Under N.J.S.A. 46:3C-1 et seq., a seller of newly constructed residential real estate must give the buyer, at contract signing, notice that lists of off-site conditions (within the municipality and within one-half mile in adjoining municipalities) are available for inspection at the municipal clerk's office.

Correct answer: Within the municipality and within one-half mile in any adjoining municipality

N.J.S.A. 46:3C-8 requires the notice to cover off-site conditions within the municipality where the property is located and within any other municipality located within one-half mile of the property.

Correct answer: Licensees are not entitled to and cannot obtain sex-offender registry information; the buyer may consult the State's online registry maintained by the State Police

The standard NJ Megan's Law statement advises that real estate licensees are not entitled to notification from the county prosecutor and cannot obtain such information for buyers; buyers are directed to the New Jersey State Police internet sex-offender registry.

Correct answer: The untreated well water must be tested for specified parameters and the results provided to and reviewed by the buyer before closing

Under the PWTA (N.J.S.A. 58:12A-26 et seq.) and NJDEP rules, sales of property with a private potable well require testing of the untreated groundwater for the required parameters, with results provided to and reviewed by the buyer prior to closing.

Correct answer: A right-to-know disclosure law that requires testing and disclosure but does not require the seller to remediate exceedances

The PWTA is a consumer right-to-know law: it requires testing and disclosure of results before closing, but it does not, by itself, require the seller to treat or remediate a parameter that exceeds a standard.

Correct answer: The grantor (seller), who pays the fee to the county recording officer when the deed is recorded

Under N.J.S.A. 46:15-7, the Realty Transfer Fee is paid by the grantor (seller) to the county recording officer at the time the deed is offered for recording, based on the consideration recited in the deed.

Correct answer: The consideration (sale price) recited in the deed, at a graduated rate per $500 of consideration

Under N.J.S.A. 46:15-7, the Realty Transfer Fee is computed on the consideration recited in the deed, using graduated rates stated per $500 of consideration, with an additional fee on consideration over $150,000.

Correct answer: Sexual orientation and gender identity or expression

The federal Fair Housing Act protects race, color, religion, national origin, sex, familial status, and disability. The NJ LAD (N.J.S.A. 10:5-1 et seq.) adds classes including sexual orientation and gender identity or expression, marital/civil-union status, ancestry, and others.

Correct answer: Source of lawful income used for rent or mortgage, including Section 8 housing vouchers

The NJ LAD prohibits housing discrimination based on the source of lawful income used to pay rent or a mortgage, including Section 8 and other lawful rental-assistance vouchers, a protection not provided by the federal Fair Housing Act.

Correct answer: The Division on Civil Rights, within the Department of Law and Public Safety (Attorney General)

The NJ Division on Civil Rights (DCR), within the Department of Law and Public Safety, enforces the NJ Law Against Discrimination, including housing-discrimination complaints. (Federal claims may go to HUD, but state LAD enforcement is the DCR.)

Correct answer: A violation of the NJ Law Against Discrimination and grounds for NJREC discipline

Steering violates the NJ LAD (N.J.S.A. 10:5) and federal fair-housing law. Under N.J.S.A. 45:15-17 and NJREC rules, discriminatory conduct is also grounds for license suspension or revocation.

Correct answer: When income-producing or business real estate is sold, the buyer may need to notify the Division of Taxation so the State can claim any tax owed by the seller

New Jersey's Bulk Sales law (N.J.S.A. 54:50-38) generally requires the purchaser of business assets, including income-producing real estate, to notify the Division of Taxation before closing so the State can protect against the seller's unpaid taxes; owner-occupied one-to-four-family homes are generally exempt.

Correct answer: A lead-based paint disclosure and the EPA pamphlet must be provided, with a 10-day opportunity for the buyer to conduct an inspection

Under the federal Residential Lead-Based Paint Hazard Reduction Act (applied in NJ), sellers of pre-1978 housing must disclose known lead-based paint and hazards, provide the EPA lead pamphlet, and give the buyer a 10-day period to inspect for lead.

Correct answer: Disclose known latent material defects that are not readily observable; a licensee may not actively conceal or misrepresent them

New Jersey case law (e.g., Weintraub v. Krobatsch) and NJREC rules require disclosure of known latent material defects not reasonably discoverable by the buyer. Licensees may not misrepresent or conceal such conditions, even though a formal seller's disclosure form is customary rather than universally mandated.

Correct answer: Advertising must disclose that the property is listed with a broker (no blind ads), and must be truthful and not misleading

Under N.J.A.C. 11:5-6.1, real estate advertising must include the brokerage firm's name (no blind ads) and must be honest and not misleading. A salesperson advertises only in the name of and with the authority of the sponsoring broker.