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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q49-Q54):

NEW QUESTION # 49
The primary intent of the statute of frauds is to:

A. reduce real estate contracts to writing.
B. enforce oral agreements beyond 1 year.
C. protect the rights of buyers who are disabled.
D. protect licensees from fraudulent activity.

Answer: A

Explanation:
The Statute of Frauds (as adopted in New Jersey) requires that certain contracts be in writing to be enforceable, including:
Contracts for the sale of real estate.
Leases longer than 3 years.
Certain other long-term agreements.
Its purpose is to prevent fraud and misunderstandings by requiring written evidence of important contracts.
Reference: N.J.S.A. 25:1-13; NJ Real Estate Salesperson Study Guide, Chapter on Contracts.

NEW QUESTION # 50
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. licensee must hold a timeshare sales license.
B. timeshare must be approved by the Real Estate Commission.
C. contract of sale must provide notice of a seven calendar day rescission period.
D. licensee must provide the buyer with a copy of the Public Offering Statement.

Answer: A

Explanation:
Under the NJ Real Estate Time Share Act (N.J.S.A. 45:15-16.50 et seq.), timeshares sold in New Jersey must be registered with the NJ Real Estate Commission.
Buyers must be given a Public Offering Statement.
Buyers are entitled to a 7-calendar-day rescission period.
There is no separate "timeshare sales license" - a standard NJ real estate license is sufficient.
Thus, the false statement is A.
Reference: New Jersey Real Estate Time Share Act; NJ Real Estate Salesperson Study Guide, Chapter on Timeshares and Condominiums.

NEW QUESTION # 51
New Jersey Real Estate Commission regulations require a licensee to terminate membership in a real estate board or multiple listing service whenever the organization:

A. charges dues that the licensee feels are excessive
B. suggests uniform commission rates among all member brokers
C. lobbies against legislation that the licensee personally favors
D. advocates rules, practices, and/or standards with which the licensee does not agree

Answer: B

Explanation:
The NJ Real Estate Commission prohibits price-fixing or collusion regarding commission rates. If a real estate board, trade association, or MLS suggests or enforces uniform commission rates among member brokers, participation in such a practice would violate antitrust laws as well as NJREC regulations.
In such cases, licensees must terminate their membership immediately to avoid disciplinary action. Lobbying, dues disputes, or general disagreements with rules are not grounds for mandatory termination.
Reference: NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Antitrust and Commission Rules.

NEW QUESTION # 52
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. nonexclusive right-to-lease
B. exclusive agency representation
C. exclusive right to sell
D. nonexclusive buyer-agency

Answer: D

Explanation:
An exclusive agency representation or exclusive right-to-sell type agreement binds the buyer to one broker and could create liability for multiple commissions if multiple brokers are hired.
A nonexclusive buyer-agency agreement allows the buyer to work with multiple brokers. The broker who actually produces the property that results in a purchase is entitled to the commission, avoiding multiple obligations.
Thus, the best option is C: nonexclusive buyer-agency.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Buyer Representation Agreements.

NEW QUESTION # 53
Broker P is the sole proprietor of XYZ Realty. P employs five salespersons, all of whom have been practicing real estate for at least two years. Under the license law, if P should die, which of the following actions can be taken?

A. All sales contracts can be declared null and void and all salespersons will lose their licenses until establishing employment with another broker.
B. The Real Estate Commission can direct an experienced broker with another firm to conclude all pending business.
C. The most experienced salesperson can act as broker for a maximum of six months until a permanent replacement broker is licensed.
D. A salesperson holding a real estate license for at least three years can apply for a temporary broker's license in order to continue the firm's activity.

Answer: D

Explanation:
Under NJ Real Estate Commission (NJREC) licensing rules, when a broker of record dies or becomes incapacitated, a qualified salesperson with at least three years' experience may apply for a temporary broker's license to continue the firm's operations for a limited period while the firm arranges a permanent broker.
Existing agency contracts and transactions do not become void simply because of the broker's death.
* Therefore, D is correct.
* A is incorrect-contracts are not automatically void, and salespersons don't lose their licenses.
* B is not the prescribed process.
* C misstates both who may act and the time period; NJ uses a temporary broker's license mechanism for a qualified salesperson (experience requirement is three years).
(Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Licensing-Broker of Record Death/Incapacity; NJREC Rules on temporary broker authority.)

NEW QUESTION # 54
......

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