Pass the Real Estate New Jersey Real Estate New-Jersey-Real-Estate-Salesperson Questions and answers with ValidTests

All listings are taken in the name of the broker, not the salesperson.

When a salesperson leaves a brokerage, the listing remains the property of the broker.

The client may choose to cancel the listing and re-list with the new broker, but the listing file cannot be taken by the departing salesperson.

Correct answer = B.

Material facts affecting a property’s value (such as a planned highway) must always be disclosed to buyers.

If a seller instructs the licensee not to disclose such facts, the licensee must refuse the listing to avoid violating state disclosure laws and fiduciary duties.

Continuing with the listing and concealing the fact would expose the licensee to disciplinary action.

Correct answer = C.

FHA, VA, and other federally-insured loan programs require an appraisal by a certified appraiser before loan approval.

Property transfers, inheritances, or divorces may involve appraisals, but they are not mandated by law in the same way FHA loans require.

Correct answer = C.

According to the New Jersey Real Estate Commission (NJREC) Rules and Regulations, a salesperson is not permitted to accept funds in their own name under any circumstances. All earnest money deposits, whether in cash or check form, must be made payable directly to the broker or the broker’s trust (escrow) account, never to the salesperson.

The law is very clear that a salesperson works on behalf of and under the supervision of their broker. This means that the salesperson cannot hold or control escrow funds personally. The proper handling of escrow deposits is a strict trust account requirement under N.J.A.C. 11:5-5.1.

Key points from the New Jersey Salesperson study guide:

Salespersons cannot maintain escrow accounts.

All deposit checks must be made payable to the broker’s escrow or trust account.

Accepting a check payable to the salesperson, even with the intent to transfer it, is a violation of NJREC trust account rules.

Therefore, the correct answer is C, because any deposit intended for escrow may only be payable to the broker’s escrow account.

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.

According to N.J.A.C. 11:5-6.1(j), any broker who collects an advance fee greater than $25 for services to be rendered must provide the client with a written accounting within 90 days of the collection date. This accounting must detail how the money was used and what services were performed.

This rule prevents abuse of advance fees and ensures transparency between brokers and clients. Brokers cannot simply keep advance fees without providing an itemized report.

Therefore, the correct answer is C.