NJ Real Estate Final Exam Flashcards

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Questions and Answers

What is the cost of the New Jersey salesperson's license examination?

$47

After completing a real estate licensing course in New Jersey, how long does an individual have to pass the state exam and apply for a permanent license?

1 year

Of the following, who needs a real estate license? (Select one)

A lawyer selling a house for a client who lives in a nursing home

A son selling a house for his parents in exchange for a new car (correct)

An investor selling his eight rental properties

An executor selling a house for a fee under the terms of a will

Who must possess a real estate license in New Jersey?

Anyone who receives consideration for taking part in a real estate transaction Signup and view all the answers

How often must a rental referral agency check the availability of an apartment?

Every day Signup and view all the answers

What must a rental referral agency do with an advance fee charged to prospective tenants?

Deposited in an escrow account Signup and view all the answers

What term describes a licensee who is qualified to be a broker but wishes to work for another broker?

Broker-salesperson Signup and view all the answers

How long does a failure to renew a license void it?

Two years Signup and view all the answers

Who is a referral agent allowed to refer prospects for brokerage services to?

The supervising broker or the broker's designate Signup and view all the answers

What happens to the licenses of agents if a broker's license is revoked?

Suspended Signup and view all the answers

What can the New Jersey Real Estate Commission do for a violation of the License Act?

Suspend a license Signup and view all the answers

In New Jersey, where must real estate brokers maintain their trust accounts?

An authorized institution in New Jersey Signup and view all the answers

Which crime allows the New Jersey Real Estate Commission to revoke the license of an agent awaiting trial?

Kidnapping Signup and view all the answers

Who may provide a purchaser of real estate with a portion of the broker's commission in the form of a rebate?

Broker Signup and view all the answers

When did a broker violate real estate law?

Maintained his office in the home of a salesperson employed by that broker Signup and view all the answers

What is legal for a real estate salesperson to do?

Prepare a sales contract for a four-family home Signup and view all the answers

Within how many business days must brokers deposit funds of others into their trust account after acceptance?

5 business days Signup and view all the answers

What does the violation referred to as 'commingling' mean?

The mixing of broker funds with trust funds Signup and view all the answers

If a broker has no agency duties, how are they acting?

Transaction broker Signup and view all the answers

What describes the fiduciary relationship between an agent and the agent's principal?

Trust and confidence Signup and view all the answers

How can a seller terminate the agency relationship with a broker?

Revoking the listing agreement Signup and view all the answers

What is one essential element of a fiduciary relationship?

Putting the principal's interests above all others Signup and view all the answers

What is the duty of a real estate broker to keep the principal informed of?

Disclosure Signup and view all the answers

What is an example of dual agency?

A broker represents both the buyer and the seller in the same transaction Signup and view all the answers

Under what condition is a broker permitted to represent both the seller and the buyer in the same transaction?

Both parties have been informed and agree to the dual representation Signup and view all the answers

When will the broker usually receive the sales commission from the seller?

The transaction is closed Signup and view all the answers

What kind of commissions does a real estate salesperson who is an independent contractor receive?

Negotiated commissions on transactions Signup and view all the answers

Why was the salesperson guilty of puffing?

The salesperson stated that the house was 'the best house in the area' Signup and view all the answers

Study Notes

New Jersey Real Estate License Exam Information

The cost of the New Jersey salesperson's license examination is $47.
After completing the real estate licensing course, individuals have 1 year to pass the state exam and apply for a permanent license.

License Requirements

Only individuals receiving consideration for participating in real estate transactions require a real estate license in New Jersey.
A son selling a house for his parents in exchange for a car does not need a real estate license, while others in specific roles, such as executors or paid agents, do.

Rental Referral Agencies

Rental referral agencies must check apartment availability daily.
If charging prospective tenants an advance fee of $50, this fee must be held in an escrow account.

Broker and Licensee Dynamics

A qualified licensee working for another broker, rather than independently, is referred to as a broker-salesperson.
Failure to renew a license results in it being void after two years.

Referral Agents and Brokers

Referral agents can only refer prospects to their supervising broker or designated broker.
If a broker's license is revoked, all agents employed under that broker's license face suspension.

License Violations and Trust Accounts

The New Jersey Real Estate Commission can suspend a license for violations of the License Act.
Brokers must maintain trust accounts in authorized New Jersey institutions.
The Commission has the authority to revoke agents' licenses promptly for serious crimes, including kidnapping.

Broker Commissions and Agency Representation

Only brokers can provide rebates to purchasers from a broker's commission.
A broker who operates from a salesperson's home violates real estate law.
Legal for a salesperson to prepare a sales contract for a four-family home.
Brokers are required to deposit funds received for transactions into their trust accounts within 5 business days.

Commingling and Agency Relationships

"Commingling" refers to the improper mixing of broker funds with trust funds.
Brokers acting without agency duties are considered transaction brokers.
The fiduciary relationship between an agent and principal is built on trust and confidence.

Termination of Agency and Fiduciary Duties

A seller can terminate the agency relationship by revoking the listing agreement if unsatisfied with the broker's performance.
One key element of a fiduciary relationship is prioritizing the principal's interests above all else.
Brokers have a duty of disclosure, which involves keeping the principal informed about all relevant facts affecting a transaction.

Dual Agency Considerations

Dual agency occurs when a broker represents both the buyer and the seller in a transaction.
Brokers are permitted to represent both parties in a dual representation scenario only if they inform both and obtain their consent.

Commission Structure

Unless otherwise agreed in writing, brokers typically receive the sales commission from the seller once the transaction closes.
Independent contractor salespeople earn negotiated commissions on transactions.
Salespeople may be guilty of puffing if they make exaggerated claims about a property.

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Description

Test your knowledge with these flashcards designed for the New Jersey Real Estate Final Exam. Covering essential information such as licensing fees and requirements, this quiz will help you prepare for the state examination. Perfect for anyone looking to pass the real estate licensing process in New Jersey.