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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year- old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statements regarding this situation is true?

A) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed.
B) This deed restriction is more restrictive and will, therefore, take precedence.
C) Deed restrictions always take priority over city codes.
D) City code always takes priority over deed restrictions.

2. A city has built a new library and has contacted the broker to list and sell the old library building. Which approach should the broker use to estimate the fair market value for the purpose of listing and selling this property?

A) gross rent multiplier
B) sales comparison
C) replacement cost
D) income approach

3. A national company desires a parcel of land which must be 4 times the size of its proposed building. If the building design includes 20,000 square feet, then which of the following minimum sized lots should be purchased?

A) 4 acres
B) 8 acres
C) 1 acre
D) 2 acres

4. To avoid triggering full disclosure under TILA when advertising financing availability on a listed property, which of the following statements must a real estate licensee avoid using?

A) FHA and VA financing available
B) assumable loan
C) buy for less than $650 per month
D) owner willing to finance

5. A contract is delivered to the listing broker by a cooperating broker. The listing broker makes an appointment with the owner to present the offer at 7 p.m. of that day. Before 7 p.m., two more offers arrive on the same property. Which offer should be presented to the owner at the 7 p.m. appointment?

A) the first offer received
B) the offer most favorable to the seller, including price and all terms
C) all three of the offers
D) the offer with the highest sale price

Solutions: