NJRE - New Jersey Real Estate Salesperson License Examination

Question 1: A grantor in Princeton signs a deed transferring a residential parcel to a grantee. The deed must contain several essential elements to operate as a valid conveyance between the parties. Which of the following is one of those essential validity elements?

A title insurance policy

A federally registered mortgage

A legal description of the property

A real estate commission agreement

Question 2: A grantor in Trenton conveys a parcel by deed with the strongest set of grantor warranties recognized at common law. The grantor warrants against all defects in title, even those that arose before the grantor took title. Which type of deed BEST identifies this conveyance?

General warranty deed

Quitclaim deed

Bargain and sale deed without covenants

Special warranty deed

Question 3: A New Jersey residential seller delivers a deed at closing that warrants only against acts of the grantor occurring during the grantor's period of ownership. This is the most common deed form used in New Jersey residential closings. Which of the following BEST identifies this form?

General warranty deed

Quitclaim deed

Grant deed

Bargain and sale with covenants

Question 4: An executor of an estate in Bergen County conveys real property held by the estate to a buyer. The deed warrants only that the grantor has not personally created any encumbrances and contains no other covenants. Which type of deed BEST fits this fiduciary conveyance?

General warranty deed

An executor's (fiduciary) deed

Quitclaim deed

Bargain and sale deed without any covenants

Question 5: An owner of property in Camden conveys to a former co-owner whatever interest the grantor may have without warranting anything about title. The deed is often used to clear a cloud on title or to release a contingent interest. Which of the following BEST identifies this deed?

General warranty deed

Bargain and sale deed with covenants

Quitclaim deed

Sheriff's deed after foreclosure

Question 6: A buyer in Hoboken takes title to a brownstone and purchases title insurance protecting against losses from undiscovered title defects existing as of the policy date. The policy stays with the buyer for as long as the buyer or successors hold ownership. Which type of title policy BEST fits?

Owner's title insurance policy

Lender's title insurance policy

Mortgagee's title coverage only

Hazard insurance policy

Question 7: A title examiner in Mercer County reviews the chain of title for a residential parcel and identifies a thirty-year-old mortgage that was apparently paid off but never released of record. The lien still appears in the records. Which of the following BEST identifies this title imperfection?

A federally registered easement

A homestead exemption claim

An act-of-God encumbrance

A cloud on title

Question 8: A buyer in Jersey City demands a title that is reasonably free from doubt and that a prudent buyer, with knowledge of the facts, would accept without hesitation. A title that meets this standard, even if not perfect, is sufficient under New Jersey contract law. Which term BEST identifies this standard?

Perfect title only

Marketable title

Tax title only

Quitclaim title only

Question 9: A New Jersey title insurer may insure title that has a minor defect even when the title falls short of being fully marketable, by writing the defect as an exception or by accepting the risk. Which of the following BEST captures this concept of title that is insurable but not strictly marketable?

Marketable title

Tax title

Insurable title

Defective title

Question 10: A buyer in Princeton receives a signed deed from the seller at closing in front of the title company representative. Under New Jersey law, the transfer of title legally takes effect upon what event, rather than upon recording of the deed at the county clerk's office?

Recording at the county clerk

The completion of a title search

Issuance of the title insurance policy

Delivery and acceptance of the deed

Question 11: A grantor in Trenton conveys the same parcel to two different grantees on the same day. New Jersey's recording statute determines which grantee prevails based on a combination of recording and notice. Which type of recording statute BEST describes New Jersey's approach?

Race-notice statute

Pure race statute

Pure notice statute

First-acceptance statute

Question 12: A buyer at a residential closing in Newark receives a federal disclosure form that itemizes the final loan terms, all settlement charges, and the cash to close. Under TRID, the lender must generally deliver this form a minimum of three business days before consummation. Which form BEST identifies this disclosure?

The HUD-1 settlement statement

The Loan Estimate

The Closing Disclosure

The Truth in Lending Act notice

Question 13: A New Jersey residential closing in 2026 involves a sale at a price above one million dollars. Under the law as restructured effective July 10, 2025, the New Jersey mansion tax surcharge is now collected from the seller. Which of the following BEST identifies the rate structure?

A flat one percent for any sale

A graduated surcharge by sale price tier

No surcharge on any sale

A two percent flat surcharge only

Question 14: A non-resident seller of New Jersey real property closing in 2026 must address state Gross Income Tax compliance at closing through a specific NJ Division of Taxation form series. Which form series BEST identifies the relevant non-resident sale tax compliance documents?

The form 1040 federal return

The IRS Schedule E

The federal FIRPTA waiver

The GIT/REP series of forms

Question 15: A New Jersey foreclosure on a residential mortgage runs through the courts because the state requires the lender to obtain a court judgment before any sheriff's sale. Which of the following BEST identifies the principal court in which the foreclosure complaint is filed?

The Superior Court, Chancery Division

The federal district court in Newark

The municipal court of the property

The New Jersey Real Estate Commission

Question 16: A buyer in Toms River agrees to purchase a residential property for less than the outstanding mortgage balance, with the existing lender's approval. The lender agrees to accept the net sale proceeds in lieu of pursuing the borrower for the deficiency. Which transaction type BEST applies?

Sheriff's sale only

REO bank-owned sale

Short sale

Tax lien certificate sale

Question 17: An executor of an estate in Bergen County wants to sell a parcel held by the decedent's estate. To execute the deed and bind the estate, the executor must produce documentation showing court authority. Which of the following BEST identifies that documentation issued by the County Surrogate?

A federal tax clearance certificate

A municipal building permit

An NJ Real Estate Commission license

Letters testamentary

Question 18: Congress passed the Fair Housing Act of 1968 to address discrimination in residential transactions on the basis of certain protected classes. Several amendments later expanded the list. Which of the following BEST identifies the full set of currently protected classes under the federal Fair Housing Act?

Race, color, religion, sex, disability

Race only, with no additional protections

Race and color only

Age, income, marital status only

Question 19: A New Jersey owner rents out a small owner-occupied four-unit building and chooses not to use a real estate agent or discriminatory advertising. The owner declines to rent to a tenant solely because of the tenant's national origin. Which of the following BEST identifies the federal Fair Housing Act treatment?

Always exempt under federal law

Permitted under Civil Rights Act of 1866

May be exempt under Mrs. Murphy

Always a federal felony

Question 20: A licensee in Newark steers a family of color away from a predominantly white neighborhood and toward a predominantly minority neighborhood, based on assumptions about where the family would prefer to live. Which fair housing concept BEST identifies the violation?

Anti-blockbusting safe harbor

Steering by protected characteristic

Permissible market education

Designated agency under RECPEA

NJRE New Jersey Real Estate Salesperson License Examination - Set 5 - Part 1

Question 1: A grantor in Princeton signs a deed transferring a residential parcel to a grantee. The deed must contain several essential elements to operate as a valid conveyance between the parties. Which of the following is one of those essential validity elements?

Question 2: A grantor in Trenton conveys a parcel by deed with the strongest set of grantor warranties recognized at common law. The grantor warrants against all defects in title, even those that arose before the grantor took title. Which type of deed BEST identifies this conveyance?

Question 3: A New Jersey residential seller delivers a deed at closing that warrants only against acts of the grantor occurring during the grantor's period of ownership. This is the most common deed form used in New Jersey residential closings. Which of the following BEST identifies this form?

Question 4: An executor of an estate in Bergen County conveys real property held by the estate to a buyer. The deed warrants only that the grantor has not personally created any encumbrances and contains no other covenants. Which type of deed BEST fits this fiduciary conveyance?

Question 5: An owner of property in Camden conveys to a former co-owner whatever interest the grantor may have without warranting anything about title. The deed is often used to clear a cloud on title or to release a contingent interest. Which of the following BEST identifies this deed?

Question 10: A buyer in Princeton receives a signed deed from the seller at closing in front of the title company representative. Under New Jersey law, the transfer of title legally takes effect upon what event, rather than upon recording of the deed at the county clerk's office?

Question 11: A grantor in Trenton conveys the same parcel to two different grantees on the same day. New Jersey's recording statute determines which grantee prevails based on a combination of recording and notice. Which type of recording statute BEST describes New Jersey's approach?

Question 13: A New Jersey residential closing in 2026 involves a sale at a price above one million dollars. Under the law as restructured effective July 10, 2025, the New Jersey mansion tax surcharge is now collected from the seller. Which of the following BEST identifies the rate structure?

Question 14: A non-resident seller of New Jersey real property closing in 2026 must address state Gross Income Tax compliance at closing through a specific NJ Division of Taxation form series. Which form series BEST identifies the relevant non-resident sale tax compliance documents?

Question 15: A New Jersey foreclosure on a residential mortgage runs through the courts because the state requires the lender to obtain a court judgment before any sheriff's sale. Which of the following BEST identifies the principal court in which the foreclosure complaint is filed?

Question 20: A licensee in Newark steers a family of color away from a predominantly white neighborhood and toward a predominantly minority neighborhood, based on assumptions about where the family would prefer to live. Which fair housing concept BEST identifies the violation?

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