NJRE - New Jersey Real Estate Salesperson License Examination

Question 1: An instructor in Newark reviews the foundational elements that must come together for a real estate contract to be legally valid and enforceable. The list includes a lawful object, mutual assent, consideration, and parties with legal capacity. Which of the following is also a required element of a valid contract?

A title insurance policy

Offer and acceptance

A recorded mortgage

A real estate commission

Question 2: A buyer in Cherry Hill and a seller agree orally to convey a residential lot for a fixed price, and the buyer hands over a cashier's check the same day. Without a signed writing the agreement is generally unenforceable in court. Which statute primarily produces that result?

The NJ Consumer Fraud Act

The NJ Plain Language Act

The Realty Transfer Fee Act

The NJ Statute of Frauds

Question 3: Two parties in Trenton sign a residential contract calling for performance of an illegal act, namely the sale of property to evade a court-ordered judgment lien. The contract is challenged in court. Which classification BEST describes the contract under general contract law?

Void

Voidable

Unenforceable

Executory

Question 4: A seventeen-year-old in Princeton signs a contract to buy a home, then attempts to disaffirm the contract after turning eighteen but before performance. Under common law, the contract was enforceable against the adult counterparty but could be set aside by the minor. Which classification BEST applies?

Void

Unenforceable

Voidable

Implied in fact

Question 5: A homeowner in Hoboken signs a written listing agreement with a broker, and the broker promises to use reasonable efforts to procure a buyer. Both parties make promises that are exchanged. Which classification of contract BEST describes this listing arrangement under general contract law principles?

A unilateral contract

A bilateral contract

An option contract

An installment land contract

Question 6: A buyer in Camden mails a signed acceptance of a written offer to the seller using the same method the seller used to send the original offer. Under the common-law mailbox rule applied in New Jersey, when does the acceptance generally become effective as a matter of contract formation?

When the acceptance is dispatched

When the seller actually receives it

When the seller signs the contract

When the deposit clears the trust account

Question 7: A seller revokes an offer to sell a residential property in Edison before the offeree communicates acceptance. The offeree has not signed the offer or paid any consideration to hold the offer open. Which of the following BEST describes the legal effect of the revocation?

The offer is irrevocable for ten days

The revocation creates a counteroffer

The offer terminates upon revocation

The offeree may still accept within reason

Question 8: A seller in Trenton signs a written agreement that promises to sell a parcel to a buyer at a stated price if the buyer pays a separate fee to keep the seller's promise open for ninety days, during which the buyer has no obligation to purchase. Which BEST identifies this arrangement?

A bilateral purchase contract

An option agreement

A real estate listing

A right of first refusal

Question 9: A buyer in Newark and a seller execute a real estate sales contract by exchanging digital signatures through an authorized e-signing platform. The transaction involves a one-to-four family residence. Under federal and New Jersey law, which of the following BEST identifies the legal status of these signatures?

Unenforceable as a matter of law

Enforceable only if notarized digitally

Require a paper backup

Generally equivalent to wet signatures

Question 10: A seller breaches a signed New Jersey purchase contract after a buyer has tendered the deposit and prepared to close. The buyer wants a court to order the seller to convey the property as the contract requires rather than accept money damages. Which equitable remedy BEST fits this request?

Specific performance

Rescission of the contract

Liquidated damages

Reformation of the deed

Question 11: A New Jersey residential contract contains a clause stating that if the buyer defaults, the seller may retain the earnest money deposit as the seller's sole remedy and as a reasonable forecast of harm. Which of the following BEST identifies this clause?

A specific performance clause

A subordination clause

A liquidated damages clause

A defeasance clause

Question 12: A New Jersey buyer and seller execute a residential purchase contract prepared by a real estate licensee on a standard form. Under the 1983 consent judgment in NJ State Bar v. NJ Ass'n of Realtor Boards, what review period must follow the signing?

Three calendar days for either party

Five business days for the buyer only

Ten calendar days for the seller only

Three business days for either party

Question 13: A buyer's attorney in Cherry Hill disapproves a real estate contract during the attorney review period and proposes substantive changes. The seller does not accept the changes. Which of the following BEST identifies the effect on the contract?

The contract remains binding without modification

The contract is cancelled effective on disapproval

The contract is automatically modified by attorney

The contract enters a thirty-day cure period

Question 14: A New Jersey real estate licensee prepared a contract for a single-family home in Toms River. Under the attorney review rule, which of the following types of property generally fall within the scope of the rule's protections for the buyer and seller?

One-to-four family residences and vacant residential lots

Commercial properties of any size

Industrial parcels and warehouses

Five-or-more unit apartment buildings

Question 15: A licensee preparing a New Jersey residential contract for one-to-four family property crosses several lines by drafting an extensive custom indemnification provision and explaining its legal consequences to the buyer and seller. Which of the following BEST identifies the licensee's principal risk?

Liability for procuring cause disputes

Violation of Real Estate Time Share Act

Unauthorized practice of law

Loss of access to the MLS

Question 16: A landlord of a six-unit apartment building in Camden must give each new tenant a packet of statutorily required information about tenant rights, the eviction process, and certain landlord obligations. Which New Jersey statute BEST imposes this educational delivery requirement on the landlord?

The Truth in Renting Act

The Statute of Frauds

The Anti-Eviction Act

The Realty Transfer Fee Act

Question 17: A landlord in Jersey City asks how long the landlord may hold a tenant's security deposit after the lease ends without returning it or itemizing deductions. The applicable New Jersey statute fixes a strict outer limit on the return window. Which of the following BEST states that rule?

Sixty calendar days after move-out

Ninety calendar days after move-out

Fifteen calendar days after move-out

Thirty calendar days after termination

Question 18: A landlord in Newark wants to evict a residential tenant for one specific cause. New Jersey law restricts residential evictions to grounds enumerated by statute, with notice and process specified for each. Which statute BEST contains that enumerated list of grounds for removal in covered residential tenancies?

The NJ Anti-Eviction Act

The NJ Consumer Fraud Act

The Real Estate Sales Full Disclosure Act

The Truth in Renting Act

Question 19: A residential landlord in Hoboken seeks to remove a tenant whose lease has expired for the landlord's owner-occupation. The landlord must first serve a statutory notice tied to the specific ground for removal. Which type of notice BEST starts this process under the Anti-Eviction Act?

A notice of foreclosure deposit

A notice to quit

A judgment of possession

A warrant of removal

Question 20: A landlord in Toms River wrongfully retains a tenant's security deposit beyond the statutory deadline. The Rent Security Deposit Act provides a specific monetary remedy beyond simple return. Which remedy BEST identifies what the statute authorizes when a landlord wrongfully fails to return the deposit?

Triple damages and punitive interest

Loss of the landlord's rental license

A criminal felony charge for landlord

Double amount wrongfully retained

NJRE New Jersey Real Estate Salesperson License Examination - Set 3 - Part 1