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Free New Jersey Real Estate Salesperson Examination Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the New Jersey Real Estate Salesperson Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A rectangular-survey description identifies the northeast quarter of a regular 640-acre section. What area does it describe?

    1. A. 80 acres
    2. B. 160 acres
    3. C. 320 acres
    4. D. 40 acres

    Answer: B

    Explanation: BLM states, "Each township is broken down into 36 sections; each section is usually 640 acres." A quarter of 640 acres is 160 acres; the other figures reflect different fractions of a section.

    Reference: BLM, Land Legal Descriptions — Land Legal Descriptions, township and section paragraphs

  2. 2An appraiser uses a sold comparable with less finished area than the subject. Reliable local sales evidence shows that the area difference adds value. Which adjustment follows the sales-comparison approach?

    1. A. Adjust the comparable sale price upward by the market-supported difference.
    2. B. Adjust the comparable sale price downward by the market-supported difference.
    3. C. Adjust the subject's agreed sale price upward by the market-supported difference.
    4. D. Adjust the subject's agreed sale price downward by the market-supported difference.

    Answer: A

    Explanation: Fannie Mae requires that "The appraiser’s adjustments must reflect the market’s reaction (that is, market based adjustments) to the difference in the properties." The inferior comparable is adjusted upward to reflect the subject's greater finished area. Reversing direction or adjusting the subject's contract price misapplies the comparison.

    Reference: Fannie Mae Selling Guide, B4-1.3-09 — Analysis of Adjustments, first paragraph

  3. 3A buyer considers a fully amortizing adjustable-rate mortgage with an initial fixed-rate period. Which post-introductory feature is characteristic of this loan?

    1. A. The contract fixes interest and principal-and-interest for the full term.
    2. B. The interest rate resets, but principal-and-interest is always fixed.
    3. C. The interest rate and principal-and-interest payment may change.
    4. D. The rate and payment change only if the borrower refinances.

    Answer: C

    Explanation: CFPB states that after an ARM's initial fixed period the "rate can increase or decrease based on the market." The changing rate can change the principal-and-interest payment. A term-long fixed rate, an always fixed principal-and-interest payment, and a refinancing-only change each contradict the ARM feature.

    Reference: Consumer Financial Protection Bureau, Understand the Different Kinds of Loans — 3. Interest rate type, fixed rate versus adjustable rate table

  4. 4A brokerage firm begins providing services to a residential buyer without affirmatively choosing another permitted relationship. What relationship generally applies?

    1. A. The firm is the buyer's agent
    2. B. The firm is automatically a disclosed dual agent
    3. C. The firm has no duties to the buyer
    4. D. The firm is the seller's subagent

    Answer: A

    Explanation: The statute addresses a firm that "performs real estate brokerage services for a buyer" and makes that firm the buyer's agent unless a listed alternative applies.

    Reference: P.L. 2024, c.032 (S3192 1R) — Section 3(a); N.J.S.A. 45:15-16.88

  5. 5An unrepresented owner is selling a New Jersey home and has a completed property condition disclosure statement. By what point must the owner give that statement to the buyer?

    1. A. At the first scheduled property inspection after contract signing
    2. B. At the closing when the deed and settlement papers are delivered
    3. C. Before the buyer becomes obligated under the purchase contract
    4. D. After attorney review has ended but before mortgage approval

    Answer: C

    Explanation: NJ DOBI states that an unrepresented seller "shall be required to provide the PCDS to the buyer before the buyer becomes obligated under any contract for the purchase of the property." Inspection, closing, and later financing steps occur too late for this duty.

    Reference: New Jersey Department of Banking and Insurance, Bulletin 24-11 — Bulletin 24-11, Property Condition Disclosure Statement, page 6

  6. 6A New Jersey owner offers to convey a parcel by a true quitclaim deed. What title assurance does that deed give the grantee?

    1. A. It conveys the grantor's existing interest without warranting title.
    2. B. It warrants clear title against claims from every prior owner.
    3. C. It warrants title only against claims arising during the grantor's tenure.
    4. D. It promises to convey any title the grantor acquires after closing.

    Answer: A

    Explanation: NJ Taxation explains, "A quitclaim deed conveys only that right, title or interest that the grantor has, or may have, in the property." It adds that the deed does not warrant any particular title. General and limited warranties and after-acquired-title promises are different conveyancing provisions.

    Reference: New Jersey Division of Taxation, Realty Transfer Fee FAQs — Realty Transfer Fees FAQs, Is a Quitclaim Deed exempt?

  7. 7How may the written agreement characterize a New Jersey salesperson's affiliation with the broker?

    1. A. Only as an employment relationship
    2. B. Only as independent-contractor service
    3. C. As a designated-agency relationship
    4. D. As employment or independent-contractor service

    Answer: D

    Explanation: The statute permits the affiliation to be "that of an employment relationship or the provision of services by an independent contractor."

    Reference: P.L. 2018, c.071 ( S430 1R) — Section 3; N.J.S.A. 45:15-3.2(b)

  8. 8During a Commission investigation, which records must a New Jersey licensee make available for inspection?

    1. A. Only license applications and continuing-education certificates
    2. B. Transaction records, account books, instruments, documents, and forms pertinent to the investigation
    3. C. Only pending and closed residential-sale transaction files
    4. D. Only trust-account ledgers and related bank statements

    Answer: B

    Explanation: The controlling rule says a licensee "shall make available for inspection by the Commission" the pertinent transaction and business records. That requirement controls during the investigation.

    Reference: Njac 11 5 Adoption (2026) — N.J.A.C. 11:5-5.5(a)

  9. 9Under New Jersey's licensing statute, which statement applies to an unlicensed person who advertises being authorized to act as a real estate salesperson?

    1. A. The advertising is permitted while a license application is pending
    2. B. The advertising is permitted when no compensation is accepted
    3. C. The advertising itself is prohibited without the required license
    4. D. The advertising is permitted when a licensed broker is identified

    Answer: C

    Explanation: The statute provides that "no person shall advertise or represent himself as being authorized to act as a real estate broker, broker-salesperson, or salesperson" without licensure. Advertising the claimed authority is itself covered.

    Reference: P.L. 2018, c.071 ( S430 1R) — Section 1; N.J.S.A. 45:15-1

  10. 10Which offerings are generally regulated by New Jersey's Real Estate Sales Full Disclosure Act when offered in or into New Jersey?

    1. A. Only individual resale listings within New Jersey
    2. B. Out-of-state residential subdivisions, condominiums, and common-interest properties offered through a common promotional plan
    3. C. Only commercial office leases
    4. D. Only New Jersey farmland leases

    Answer: B

    Explanation: The official FAQ identifies out-of-state residential and common-interest offerings sold through a "common promotional plan" in or into New Jersey, subject to its exemptions.

    Reference: NJDOBI | NJ REC - FAQs about NJ Subdivided Land Sales — N.J.S.A. 45:15-16.28, subdivision and offering definitions

Topics in this practice bank

These topics describe the available practice for New Jersey Real Estate Salesperson Examination. Review the examination outline and its sources for scope and allocation details.

  • I. Property Ownership (Sales 10%)
    • A. Real and personal property; conveyances
    • B. Land characteristics and legal descriptions
    • B.1. Metes and bounds method of legal property description
    • B.2. Lot and block (recorded plat) method of legal property description
    • B.3. Government survey (rectangular survey) method of legal property description
    • B.4. Measuring structures (linear and square footage)
    • B.5. Land measurement
    • C. Encumbrances and effects on property ownership
    • C.1. Types of liens and their effect on the title and value of real property
    • C.2. Easements, rights of way and licenses, including their effect on the title, value and use of real property
    • C.3. Encroachments and their effect on the title, value and use of real property
    • C.4. Potential encumbrances on title, such as probate, leases, or adverse possession
    • C.5. Property rights that may be conveyed separately from use of the land surface, such as mineral and other subsurface rights, air rights, or water rights
    • D. Types of ownership
    • D.1. Ownership in severalty/sole ownership
    • D.2. Implications of ownership as tenants in common
    • D.3. Implications of ownership in joint tenancy
    • D.4. Forms of common-interest ownership, such as Timeshares, Condominiums and Co-ops
    • D.5. Property ownership held in a trust or by an estate
    • D.6. Ownership by business entities
    • D.7. Life Estate ownership
  • II. Land use Controls (Sales 5%)
    • A. Government rights in land
    • A.1. Government rights to impose property taxes and special assessments
    • A.2. Government rights to acquire land through eminent domain, condemnation and escheat
    • B. Government controls on land use
    • C. Private controls
    • C.1. Deed conditions or restrictions on property use
    • C.2. Subdivision covenants, conditions and restrictions (CC&Rs) on property use
    • C.3. Condominium and owners’ associations regulations or bylaws on property use
  • III. Valuation (Sales 8%)
    • A. Appraisals
    • A.1. Appraisals for valuation of real property
    • A.2. Situations which require appraisal by a licensed or certified appraiser and brokerage-related actions that constitute unauthorized appraisal practice
    • A.3. General steps in appraisal process
    • B. Estimating Value
    • B.1. Economic principles and property characteristics that affect value of real property
    • B.2. Sales or market comparison approach to property valuation and appropriate uses
    • B.3. Cost approach to property valuation and appropriate uses
    • B.4. Income analysis approach to property valuation and appropriate uses
    • C. Comparative Market Analysis (CMA)
    • C.1. Competitive/Comparative Market Analysis (CMA), BPO or equivalent
    • C.2. Automated Valuation Method (AVM), appraisal valuation and Comparative Market Analysis (CMA)
  • IV. Financing (Sales 10%)
    • A. Basic Concepts and Terminology
    • A.1. Loan financing (for example, points, LTV, PMI, interest, PITI)
    • A.2. General underwriting process (e.g., debt ratios, credit scoring and history)
    • A.3. Standard mortgage/deed of trust clauses and conditions
    • A.4. Essential elements of a promissory note
    • B. Types of Loans
    • B.1. Conventional loans
    • B.2. Amortized loans, partially amortized (balloon) loans, interest-only loans
    • B.3. Adjustable-rate mortgage (ARM) loans
    • B.4. Government Loans
    • B.4.a. FHA insured loans
    • B.4.b. VA guaranteed loans
    • B.4.c. USDA/Rural Development loan programs
    • B.5. Owner financing (for example, installment or land contract/contract for deed)
    • B.6. Reverse-mortgage loans
    • B.7. Home equity loans and lines of credit
    • B.8. Construction loans
    • B.9. Rehab loans
    • B.10. Bridge loans
    • C. Financing and Lending
    • C.1. Real Estate Settlement Procedures Act (RESPA), including kickbacks
    • C.2. Truth-in-Lending Act (Regulation Z), including advertising
    • C.3. Requirements and time frames of TRID (TILA-RESPA Integrated Disclosures)
    • C.4. Equal Credit Opportunity Act
    • C.5. Lending Process (application through loan closing)
    • C.6. Risky loan features, such as prepayment penalties and balloon payments
  • V. Contracts (Sales 19%)
    • A. General Contract Law
    • A.1. General principles of contract law
    • A.2. Elements necessary for a contract to be valid
    • A.3. Effect of the Statute of Frauds
    • A.4. Offer and a contract
    • A.5. Enforceability of contracts
    • A.6. Void, voidable and unenforceable contracts
    • A.7. Bilateral and unilateral contracts
    • A.8. Nature and use of option agreements
    • A.9. Notice, delivery, acceptance and execution of contracts
    • A.10. Appropriate use, risks, and advantages of electronic signatures and paperless transactions
    • A.11. Rights and obligations of the parties to a contract
    • A.12. Possible remedies for breach or non-performance of contract
    • A.13. Termination, rescission and cancellation of contracts
    • B. Purchase and Lease Contracts
    • B.1. Addenda and amendments to contracts
    • B.2. Purchase agreements
    • B.3. Contract contingencies and methods for satisfying them
    • B.4. Leases and rental agreements
    • B.5. Lease-purchase agreements
    • B.6. Types of leases
    • C. Proper handling of multiple offers and counteroffers
  • VI. Agency (Sales 13%)
    • A. Agency and non-agency relationships
    • A.1. Agency relationships and how they are established
    • A.2. Types of listing contracts
    • A.3. Buyer brokerage/tenant representation contracts
    • A.4. Other brokerage relationships, including transaction brokers and facilitators
    • A.5. Powers of attorney and other assignments of authority
    • A.6. Conditions for termination of agency or brokerage service agreements
    • B. Agent Duties
    • B.1. Fiduciary duties of agents
    • B.2. Agent's duties to customers/non-clients, including honesty and good faith
    • C. Agency Disclosures
    • C.1. Disclosure of agency/representation
    • C.2. Disclosure of possible conflict of interest or self-interest
  • VII. Property Disclosures (Sales 7%)
    • A. Property Condition
    • A.1. Seller's property condition disclosure requirements
    • A.2. Property conditions that may warrant inspections or a survey
    • A.3. Red flags that warrant investigation of public or private land use controls
    • B. Environmental and Government Disclosures
    • B.1. Environmental issues requiring disclosure
    • B.2. Federal, state, or local disclosure requirements regarding the property
    • C. Disclosure of material facts and material defects
  • VIII. Property Management (Sales 3%)
    • A. Duties and Responsibilities
    • A.1. Procurement and qualification of prospective tenants
    • A.2. Fair housing and ADA compliance specific to property management
    • A.3. How to complete a market analysis to identify factors in setting rents or lease rates
    • B. Landlord and tenant rights and obligations
  • IX. Transfer of Title (Sales 6%)
    • A. Types of deeds
    • B. Title Insurance and Searches
    • B.1. Title insurance policies and title searches
    • B.2. Potential title problems and resolutions
    • B.3. Marketable and insurable title
    • C. Closing Process
    • C.1. When transfer of ownership becomes effective
    • C.2. Process and importance of recordation
    • C.3. Settlement procedures (closing) and parties involved
    • C.4. Home and new construction warranties
    • D. Special Processes
    • D.1. Special issues in transferring foreclosed properties
    • D.2. Special issues in short sale transactions
    • D.3. Special issues in probate transactions
  • X. Practice of Real Estate (Sales 12%)
    • A. Antidiscrimination
    • A.1. Federal Fair Housing Act general principles and exemptions
    • A.2. Protected classes under Federal Fair Housing Act
    • A.3. Protections against discrimination based on gender identity and sexual orientation
    • A.4. Prohibited conduct under Federal Fair Housing Act (Redlining, Blockbusting, Steering, Disparate Treatment)
    • A.5. Fair housing advertising rules
    • A.6. Americans with Disabilities Act (ADA) obligations pertaining to accessibility and reasonable accommodations
    • B. Legislation and Regulations
    • B.1. Licensees’ status as employees or independent contractors
    • B.2. Antitrust laws and types of violations, fines and penalties
    • B.3. Do-Not-Call List rule compliance
    • B.4. Proper use of Social Media and Internet communication and advertising
    • C. Duties and Responsibilities
    • C.1. Protection of confidential personal information (written, verbal or electronic)
    • C.2. Duties when handling funds of others in transactions
    • C.3. Licensee responsibility for due diligence in real estate transactions
  • XI. Real Estate Calculations (Sales 7%)
    • A. Calculations for Transactions
    • A.1. Seller’s net proceeds
    • A.2. Buyer funds needed at closing
    • A.3. Real property tax and other prorations
    • A.4. Real property transfer fees
    • A.5. PITI (Principal, Interest, Taxes and Insurance) payments estimate given loan rate and term
    • B. General Concepts
    • B.1. Equity
    • B.2. Rate of return/Capitalization rate
    • B.3. Loan-to-Value ratio
    • B.4. Discount points and loan origination fees
  • Duties and Powers of the Real Estate Commission (Salesperson 2 items)
    • 1. Maintenance of Records
    • 2. Sanctions
    • 2.a. Fines
    • 2.b. License Suspension and Revocation
  • Licensing Requirements (Salesperson 3 items)
    • 1. Activities Requiring a License
    • 2. Types of Licenses
  • Statutes and Rules Governing Licensee Activities (Salesperson 22 items)
    • 1. Advertising
    • 2. Broker/Salesperson Relationships
    • 3. Commissions and Required Accounting
    • 4. Agency/Conflicts of Interest/Disclosure Requirements
    • 5. Contracts and Other Documents
    • 6. Trust Fund Requirements
    • 7. Listings and Content of Listing Agreements
    • 8. Place of Business
    • 9. Records, including Escrow Account Bookkeeping Requirements
    • 10. Inducements
    • 11. Offering Buyer Rebates
    • 12. Responsibility to Public and Other Licensees
    • 13. Other Laws and Regulations
    • 13.a. Farmland Reassessment Act
    • 13.b. Pinelands Protection Act of 1979
    • 13.c. Realty Transfer Fee
    • 13.d. Mount Laurel Requirements
    • 13.e. Zoning and building codes
    • 13.f. Municipal Land Use Law
    • 13.g. Real estate transfer tax
    • 13.h. Truth in Renting Act
    • 13.i. Freshwater Wetlands Protection Act of 1987
  • Additional Requirements (Salesperson 3 items)
    • 1. New Jersey Real Estate Sales Full Disclosure Act
    • 2. New Jersey Law Against Discrimination
    • 3. Real Estate Guaranty Fund
    • 4. New Jersey Real Estate Time Share Act

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