NJRE - New Jersey Real Estate Salesperson License Examination

Question 1: A seller in Newark knows about a chronic basement water leak that is not visible during a normal walk-through. The buyer asks no specific questions about flooding and the seller says nothing. The New Jersey Supreme Court replaced strict caveat emptor with what duty in this kind of case?

Provide a USPAP appraisal

Register the deed within ten days

Provide free property insurance

Disclose known latent defects

Question 2: Three pillars determine whether a fact about residential property is material enough to require disclosure under New Jersey law. The licensee considers whether the fact is known to the seller, not reasonably observable to the buyer, and likely to affect the buyer's decision. Which of the following BEST captures the three pillars?

Knowledge, observability, effect

Price, location, condition

Disclosure, demand, supply

Risk, return, recovery

Question 3: A developer of new homes in Mount Laurel sells residential lots within five hundred feet of a closed industrial landfill known to the developer. The buyer was not told about the landfill. Which 1995 New Jersey Supreme Court decision BEST imposes an affirmative disclosure duty on the developer?

Marini v. Ireland

Berzito v. Gambino

Weintraub v. Krobatsch

Strawn v. Canuso

Question 4: The New Residential Construction Off-Site Conditions Disclosure Act requires sellers of newly built homes to identify certain off-site conditions and give the buyer a specific cancellation right after delivery of the notice. How long is that statutory cancellation window in business days?

Three business days

Five business days

Seven business days

Ten business days

Question 5: A seller in Cherry Hill completes a standard New Jersey Seller's Property Condition Disclosure Statement covering known conditions of the property. The form is given to the buyer before contract. Which of the following BEST identifies the legal effect of this form on the seller's underlying common-law disclosure duty?

It replaces the common-law duty in full

It eliminates the buyer's right to inspect

Supplements but does not replace duty

It transfers liability to the buyer

Question 6: Under N.J.A.C. 11:5-6.4, a New Jersey licensee owes an affirmative duty to deal honestly and to disclose certain conditions to consumers. Which of the following BEST identifies a condition the rule requires the licensee to disclose to the consumer absent a specific exemption?

Known material defects affecting the property

The licensee's personal political affiliation

The seller's anticipated tax bracket

The buyer's expected renovation budget

Question 7: The 2024 Real Estate Consumer Protection Enhancement Act expanded certain disclosure and brokerage obligations in New Jersey, including stronger requirements around brokerage services agreements with buyers. The law became effective on August 1, 2024. Which of the following BEST identifies a key feature of RECPEA?

Eliminating the New Jersey Real Estate Commission

Repealing all licensee disclosure duties

Removing all listing agreement requirements

Recognizing designated agency within a firm

Question 8: A federal statute requires sellers and landlords of most pre-1978 residential housing to provide the EPA-approved lead-paint pamphlet, disclose known lead-based paint hazards, and give buyers a ten-day inspection opportunity for lead. Which federal law BEST imposes all of these specific requirements?

TRID

Regulation Z

Title X / Residential Lead Paint Act

FACTA

Question 9: New Jersey law requires periodic inspection of certain rental dwellings for lead-based paint hazards, with frequency tied to whether the property is in a tier-one or tier-two municipality based on historical lead test data. Which of the following BEST identifies what this 2021 state law primarily targets?

Owner-occupied single-family homes

Pre-1978 residential rental units

Newly constructed condominiums

Industrial commercial buildings

Question 10: An owner in Hunterdon County sells a residential property served by a private well. New Jersey law requires the seller to have the well water tested for specific contaminants and to give the results to the buyer before closing. Which statute BEST imposes this testing obligation?

The Coastal Area Facility Review Act

The Highlands Water Protection Act

The Pinelands Protection Act

The Private Well Testing Act (PWTA)

Question 11: A buyer in Toms River asks the licensee about radon, a naturally occurring radioactive gas that can accumulate in homes. The U.S. EPA recommends mitigation when indoor radon levels exceed a specific level. Which of the following BEST identifies that EPA action level for residential radon?

Four picocuries per liter (4 pCi/L)

One picocurie per cubic meter

Ten parts per million

Twenty micrograms per cubic meter

Question 12: A residential property in Trenton has a buried oil tank that once fueled an older heating system. The tank has not been used for decades and is suspected of leaking. New Jersey law treats unregistered residential heating oil tanks under specific rules. Which framework BEST applies?

Federal Reserve Reg DD

Pinelands Comprehensive Management Plan

NJDEP underground storage tank regulations

Mount Laurel affordable housing rules

Question 13: A small manufacturing facility in Newark plans to sell its real estate to a developer. New Jersey law requires environmental investigation, remediation under a Licensed Site Remediation Professional, and notice to the Department of Environmental Protection before transfer of certain contaminated commercial sites. Which statute BEST imposes these requirements?

The Highlands Water Protection Act

The Industrial Site Recovery Act (ISRA)

The Freshwater Wetlands Protection Act

The Truth in Renting Act

Question 14: A homeowner in Camden suspects mold in her basement and asks the licensee how to handle disclosure. New Jersey treats mold disclosure as part of broader property condition disclosure, but the licensee must avoid practicing engineering or environmental science. Which of the following BEST describes the licensee's appropriate role?

Promise the buyer no mold present

Always insist seller sand visible spots

Avoid mentioning mold to either party

Disclose known facts and recommend professionals

Question 15: A New Jersey owner of formerly industrial commercial property discovers historical contamination on the site. Under a statewide statute, the current owner may be strictly liable for cleanup costs even if the owner did not cause the contamination. Which statute BEST imposes that strict liability under New Jersey law?

The NJ Spill Compensation and Control Act

The NJ Plain Language Act

The NJ Realty Transfer Fee Act

The NJ Truth in Renting Act

Question 16: A residential property in Cape May County sits within a FEMA Special Flood Hazard Area, and the seller knows about prior flooding of the structure. A 2024 New Jersey statute requires the seller to disclose this information to the buyer or tenant. Which of the following BEST identifies that disclosure law?

The Highlands Act flood section

The Pinelands flood overlay

NJ Flood Risk Notification Law

The Realty Transfer Fee Act

Question 17: New Jersey requires every contract for the sale of residential real property to include a specific notice referring the buyer to local law enforcement about the presence of registered sex offenders. Which statute BEST identifies the source of this required contract notice?

The Realty Transfer Fee Act

The Anti-Eviction Act

The Consumer Fraud Act

Megan's Law (N.J.S.A. 2C:7-1 et seq.)

Question 18: A licensee in Atlantic City knows that a prior occupant of a listed property died on the premises by suicide three years ago. The seller does not consider it material to the property's value. New Jersey rules treat this as a psychological impairment. Which of the following BEST identifies the licensee's duty?

Disclose only if specifically asked

Always disclose to every potential buyer

Conceal the fact under fair housing rules

Disclose only to married couple buyers

Question 19: A residential property in Edison was the site of a violent crime several years ago. The seller and licensee are aware that public knowledge of the crime has reduced buyer interest. Which of the following BEST describes the licensee's basic obligation when a buyer asks about the property's reputation?

Misrepresent to protect the seller's price

Decline to answer based on confidentiality

Answer truthfully about known stigmatizing facts

Refer the buyer to the listing's photographs

Question 20: A landlord in Jersey City must install or verify functional smoke alarms and carbon monoxide alarms before a sale or change of occupancy of certain residential dwellings. A municipal certificate confirms the installation. Which certificate BEST identifies this required document?

The Realty Transfer Fee receipt

The CSDCMA certificate

A Tidelands grant certificate

A Highlands exemption certificate