Chapter 3 Quiz

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Chapter 3 Quiz

NJ License Laws

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When money is deposited in a client trust account

1 point

(A) the maintenance of nominal amounts of the licensees' funds in the trust account to meet service charges constitutes commingling.

(B) the deposit cannot be released without written authorization of the seller.

(D) interest must be paid to the buyer until closing.

Clear selection

Which of the following would NOT be a cause for disciplinary action?

1 point

(A) Making promises of a nature likely to persuade or induce a prospective buyer.

(B) Failure to include a specific termination date in an exclusive listing.

(D) Failure to submit to an owner, before his acceptance of an offer, all written offers received for property listed for sale.

Clear selection

If the broker terminates employment of a salesperson, he must:

1 point

(A) state reason for termination on the back of the license.

(B) return the salesperson's license to the REC within 5 business days.

(D) give the salesperson his license.

Clear selection

When there is a first violation of the licensing act, the REC is empowered to:

1 point

(A) impose monetary fines.

(B) revoke the license.

(D) All of the above.

Clear selection

A broker's records must be made available:

1 point

(A) to agents of the Commission providing broker receives 10 days' notice of inspection.

(B) to members of the public as they contain public information.

(D) to agents of the Commission upon receipt of 30 days' notice by registered or certified mail.

Clear selection

Fiduciary relationship refers to:

1 point

(A) the relationship between two brokers.

(B) the relationship created between plaintiff and defendant.

(D) None of the above.

Clear selection

A broker incorporates his business and subsequently dies, and another person becomes the broker for the corporation.

1 point

(A) Any listings he has secured are immediately terminated.

(B) All his listings may be canceled by the principals without further cause.

(D) Contracts with principals do not terminate upon death of the broker under these circumstances.

Clear selection

A newly licensed broker can maintain an office in ALL BUT ONE of the following:

1 point

(A) His residence, provided that it is zoned for that use.

(B) A commercial building.

(D) A marina.

Clear selection

When a licensee is guilty of violating the New Jersey Real Estate License Act or the Rules and Regulations of the New Jersey RealEstate Commission, the Commission may, for the first violation:

1 point

(A) impose a fine of not more than $500.

(B) impose a fine of not more than $5,000.

(D) The Real Estate Commission cannot impose fines.

Clear selection

A real estate broker typically can:

1 point

(A) prepare an abstract of title.

(B) prepare a deed.

(D) None of the above.

Clear selection

Unless otherwise agreed to in writing, the employing broker must pay all commissions due a salesperson within how many days after receipt by the broker?

1 point

(A) Ten days.

(B) Thirty days.

(D) Seven calendar days.

Clear selection

After completion of the real estate license preparation course, what period of time does the applicant have in which to pass the state examination and request issuance of his license?

1 point

(A) Six months.

(B) One year.

(D) The applicant can apply anytime.

Clear selection

Regarding a dispute between licensees concerning the division of commissions, which of the following is correct?

1 point

(A) The Real Estate Commission can demand an accounting (explanation).

(B) The Reed Estate Commission is responsible for settling disputes between licensees.

(D) Only the broker can file a complaint with the Real Estate Commission.

Clear selection

Real estate licenses are renewed:

1 point

(A) annually on January 1st.

(B) biennially on July 1st, in odd-numbered years.

(D) every five years.

Clear selection

Pertaining to the salesperson's license, which of the following is true?

1 point

(A) It must be prominently displayed in the broker's main office.

(B) It must be prominently displayed in the branch office where the salesperson is employed.

(D) It is a right and not a privilege.

Clear selection

A salesperson may accept a commission from which of the following?

1 point

(A) The employing broker.

(B) The employing broker or another sales-person.

(D) Only the seller or employing broker.

Clear selection

Which of the following statements concerningbranch offices is correct?

1 point

(A) The branch office must be open to the public during normal business hours.

(B) The branch office can be open only during evening hours or weekends.

(D) The branch office manager must be licensed as a salesperson for two years.

Clear selection

Broker's real estate ads in New Jersey must include:

1 point

(A) the address.

(B) the name of the brokerage firm.

(D) the name of the agent showing the property.

Clear selection

When a real estate broker advertises in the local newspaper, he must:

1 point

(A) state the price of the house.

(B) give the address of the house.

(D) give the name of the authorized broker.

Clear selection

Should the employing broker die, a temporary broker license may be issued to a salesperson provided:

1 point

(A) that the request is made within six months of die broker's death.

(B) that the request is made within 30 days of the broker's death and that the applicant has three years' prior experience.

(D) A salesperson cannot be issued a temporary license under any condition.

Clear selection

Which of the following requires licensee to provide owners with a copy of the Attorney General's Memorandum on the Law Agains Discrimination?

1 point

(A) The New Jersey Law Against Discrimination.

(B) The Rules and Regulations of the New Jersey Real Estate Commission.

(D) All of the above.

Clear selection

The REC may suspend or revoke a license:

1 point

(A) when a broker charges more than 6% commission.

(B) for splitting commission with a broker from out of state.

(D) for being committed for observation in a mental institution.

Clear selection

In advertising a listed property for sale, a broker may NOT legally:

1 point

(A) run an ad which does not give the listing price of the property.

(B) state the kind of financing available.

(D) run an ad giving the impression that he is the owner of the property.

Clear selection

The Realtor® Code of Ethics is:

1 point

(A) a code put into law by the Real Estate Commission of New Jersey.

(B) a code obligatory upon members of the National Association of Realtors®.

(D) part of the Statutes of New Jersey pertaining to licensed real estate salespersons and brokers.

Clear selection

Who is required to comply with the State licensing laws?

1 point

(A) An individual employed to handle the sale of units in a condominium building.

(B) One who for compensation effects an "exchange" of real estate.

(D) All of the above.

Clear selection

A principal broker for a corporation must be:

1 point

(A) a citizen of the United States.

(B) a New Jersey resident.

(D) given a contract for a fixed term unless he has a substantial ownership interest.

Clear selection

A salesperson who has completed a sale would ordinarily receive his commission from the:

1 point

(A) seller.

(B) buyer.

(D) None of the above.

Clear selection

A real estate deal is made between a seller and buyer, without the services of a broker. They arrange with a licensed broker, for a fee, to prepare certain instruments. He may lawfully prepare:

1 point

(A) agreement of sale.

(B) deed.

(D) None of the above.

Clear selection

If a licensee is convicted of forgery, the REC will NOT grant a license within:

1 point

(A) one year.

(B) two years.

(D) five years.

Clear selection

To be licensed as a New Jersey Real Estate Broker, you must be:

1 point

(A) of legal age.

(B) a citizen of the United States.

(D) All of the above.

Clear selection

A broker may properly advertise:

1 point

(A) free appraisal.

(B) free cooking gas.

(D) free market study.

Clear selection

With regard to the maintenance of trust accounts, which of the following statements is NOT true?

1 point

(A) The account may be designated “trust account.”

(B) The account may be designated “escrow account.”

(D) The depository institution may belocated in another state if it is anapproved depository in the other state.

Clear selection

A real estate licensee brings a prospective buyer to see a property and the property owner requests identification from the licensee indicating her licensure status. The proper identification for the licensee to produce is a:

1 point

(A) driver’s license.

(B) real estate license.

(D) pocket card.

Clear selection

Monies may be paid out of the Guaranty Fund in the event:

1 point

(A) a seller suffers a monetary loss due to the embezzlement of money by a licensed broker, a licensed real estate sales person or an unlicensed employee of a real estate broker.

(B) a salesman does not get paid by his broker in accordance with his written agreement.

(D) a co-broker did not honor his agreement.

Clear selection

The responsibilities of the Real Estate Commission include:

1 point

(A) setting the fees for licensing exams.

(B) promulgating real estate laws.

(D) None of the above.

Clear selection

A real estate salesperson may lawfully accept a bonus for the completion of a difficult sale:

1 point

(A) if the sellers wish to give one.

(B) if they pay taxes on the income.

(D) if he or she receives it from the buyer.

Clear selection

The broker owes an obligation to:

1 point

(A) divide the commission with another broker chosen or preferred by the buyer.

(B) divulge to the buyer the lowest price at which the seller will sell.

(C) present to his principal all written offer she receives, including all of the terms and conditions of each offer signed by a prospective buyer.

(D) nobody.

Clear selection

You are the seller's broker negotiating a difficult sales contract between an experienced seller of real estate and a novice purchaser.

1 point

(A) You have no concern about the buyer's lack of experience.

(B) You refuse to continue to negotiate with purchaser.

(D) You suggest that purchaser consider employing another broker.

Clear selection

A real estate broker hires a secretary who does not have a real estate license and agrees to pay her a fixed salary. Which of the following duties may be performed by her?

1 point

(A) Giving information over the telephone as to selling price of the office listings.

(B) Collecting rents from lessees of property managed by the broker.

(D) Typing contracts for the salespersons in the broker's office.

Clear selection

A salesperson may advertise a property for sale only:

1 point

{A) if he personally listed the property .

(B) if the name of his brokerage is included in the ad.

(D) if he pays for the ad himself out of his commission.

Clear selection

A broker must keep permanent records ofhow he handled other persons' funds for:

1 point

(A) 60 days.

(B) two years.

(ID) ten years.

Clear selection

A broker must transmit to his principal:

1 point

(A) all offers.

(B) all offers to purchase at the listed price.

(D) all written offers.

Clear selection

Residential rental referral agencies must include which of the following in their contract with a prospective tenant?

1 point

(A) The date and duration of the contract.

(B) The refund policy.

(D) All of the above.

Clear selection

With regard to the Real Estate Sales Full Disclosure Act, which of the following statements is NOT true?

1 point

(A) Cemetery lots are exempt from the law.

(B) The display of model homes is considered a form of advertising.

(D) Subdivisions containing fewer than 100 lots are generally exempt from the Act.

Clear selection

A salesperson has listed a house for sale and has knowledge of a latent defect in the building. His responsibility is to:

1 point

(A) ignore it.

(B) disclose it to the buyer.

(D) correct the condition.

Clear selection

A New Jersey broker named I. M. First listed a house at 326 Cove Drive in Mantoloking. She may refuse to cooperate with another licensee if:

1 point

(A) she has an exclusive right to selllisting.

(B) she has an exclusive agency listing.

(D) the owner of the home signs a statement directing her not to cooperate.

Clear selection

The maximum fine for violations of the Real Estate Sales Full Disclosure Act is:

1 point

(A) $250 per violation.

(B) $2,000 per violation.

(D) $50,000 per violation.

Clear selection

When a broker prepares a document pertaining to a real estate transaction:

1 point

(A) he must give a copy to all parties signing it at the time the signature is obtained.

(B) he must sign the document himself.

(D) he should record the contract.

Clear selection

Funds received for deposit in the Guaranty Fund:

1 point

(A) may not exceed $150,000.

(B) may be used for educational purposes by the Board of Realtors.

(D) are used to indemnify aggrieved participants in real estate transactions.

Clear selection

Every broker must maintain records of all funds and property of others for not less than six years, except in two cases where records have to be kept for only six months. Name the two exceptions.

1 point

(A) Unaccepted offers and expired listings that did not sell.

(B) Copies of leases and property management agreements.

(D) All bank statements and duplicate deposit slips.

Clear selection

A listing that provides that the agent may retain all sums received over and above a net price to the owner as compensation for his services. A prohibited practice in New Jersey. 11-290

1 point

Pocket Card

Probation

Net Listing

Apprenticeship

Clear selection

Licensed real estate brokers may legally provide a purchaser of residential real estate a rebate from the commission the broker receives. There are a number of restrictions regarding who may provide and receive the rebate, conditions concerning the providing of the rebate, limitations on the nature of the rebate that may be paid, and advertising requirements. 3-21

1 point

Attorney Review Clause

Probation

Rebates

Revocation

Clear selection

A contract drawn for an illegal purpose. For example, where a buyer and seller enter into a second contract with different terms than those on the original contract to benefit fraudulently from the arrangement. 9-236

1 point

Dual Contract

Trust Account

Pocket Card

Net Listing

Clear selection

A form signed by a non-resident licensee agreeing to be open to suit in New Jersey courts if he or she violates the state's laws or regulations. 3-19

1 point

Criminal History Record Check

Irrevocable Consent

Revocation

Pocket Card

Clear selection

The state regulatory agency that governs the licensure process and has the power to approve all real estate licenses. The Commission also is empowered to deny, fine, revoke or suspend a salesperson or broker license if the licensee violates any license law or regulation. 3-15

1 point

Real Estate Commission

Non-Resident License

Moral Turpitude

Referral Agent

Clear selection

An account in which a broker or attorney holds client earnest money deposits or other funds; AKA "escrow account." 3-25

1 point

Escrow Account

Trust Account

License Lending

Prospectus

Clear selection

A card issued which shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson and maintained on said person at all times while in a professional setting.

1 point

Dual Contract

License Lending

Pocket Card

Prospectus

Clear selection

A broker who operates under the supervision of a licensed real estate broker. 3-16

1 point

Dual Agent

Broker-Salesperson

Receiver

Broker

Clear selection

The employment agreement signed by the broker and salesperson (or broker-salesperson). 3-21

1 point

Real Estate Sales Full Disclosure Act

Realtor®-Associate

Non-Resident License

Employment Agreement

Clear selection

Any office other than the main office from which real estate business is conducted. 3-16

1 point

Misdemeanor

Branch Office

Escrow Account

Trust Account

Clear selection

License issued to a salesperson on death or incapacity of a licensed broker or broker-salesperson. 3-18

1 point

Temporary Broker's License

Criminal History Record Check

Misdemeanor

Employing Broker

Clear selection

In New Jersey, a clause that must appear in all purchase and sale agreements and all leases prepared by real estate licensees, allowing buyers and sellers a period of three days to consult an attorney who can review and cancel the contract or lease. 9-242

1 point

Rules and Regulations

Apprenticeship

Temporary Broker's License

Attorney Review Clause

Clear selection

Collecting a commission as a real estate broker in a transaction, when at the same time representing either party in a different transaction for a consideration, i.e., lawyer, executor. 3-28

1 point

Dual Contract

Revocation

Net Listing

Dual Capacity

Clear selection

An agent who represents both buyer and seller in the same transaction. 10-268

1 point

Dual Agent

Broker

Realtor®-Associate

Referral Agent

Clear selection

A crime of lesser consequences than a felony and which is subject to minor jail terms, fines, or both.

1 point

Misrepresentation

Probation

Misdemeanor

Prospectus

Clear selection

An account in which a broker or attorney holds client earnest money deposits or other funds; AKA "trust account." 3-25

1 point

Branch Office

Trust Account

Escrow Account

Probation

Clear selection

A printed statement distributed to describe and to advertise a new business venture, a real estate project or stock issue.

1 point

Prospectus

Escrow Account

Probation

Misdemeanor

Clear selection

A New Jersey law that regulates the sale across state lines of subdivided land under certain conditions. 3-31

1 point

Associate Broker

Realtor®-Associate

Real Estate Sales Full Disclosure Act

Bureau of Subdivided Land Sales Control

Clear selection

The individual responsible for the supervision of an office. 3-21

1 point

Employing Broker

Misrepresentation

Guilty Knowledge

Office Supervisor

Clear selection

The Real Estate Commission is expressly vested with the power and authority to promulgate and enforce all necessary rules and regulations for the conduct of real estate licensees. 3-15

1 point

Irrevocable Consent

Attorney Review Clause

Rules and Regulations

Suspended

Clear selection

A person in a position of great trust and confidence, as the relationship between principal and agent. 10-266

1 point

Guaranty Fund

Receiver

Fiduciary

Dual Agent

Clear selection

A natural person whose brokerage-related activities are limited to referring prospects for the sale, purchase, exchanging, leasing or rental of real estate to the real estate broker through whom he or she is licensed as a referral agent. 3-16

1 point

Realtor®-Associate

Referral Agent

Associate Broker

Guaranty Fund

Clear selection

The supervising broker for a real estate company organized as a sole proprietorship. 3-16

1 point

Employing Broker

Temporary Broker's License

Escrow Account

Office Supervisor

Clear selection

Mixing money belonging to clients with personal funds. 3-27

1 point

Back-Up Offer

Commingling

Cul-de-sac

Branch Office

Clear selection

A bureau within the New Jersey Real Estate Commission that administers the Real Estate Sales Full Disclosure Act. The Act is intended to discourage fraud and misrepresentation in the sale of properties located in other states. 3-31

1 point

Real Estate Sales Full Disclosure Act

Bureau of Subdivided Land Sales Control

Real Estate Commission

Referral Agent

Clear selection

A court-appointed custodian who holds property for the court, pending final disposition of the matter before the court.

1 point

Receiver

Fiduciary

Dual Agent

Broker

Clear selection

A passageway or street with only one outlet; a blind alley; a turn-around.

1 point

Prospectus

Misdemeanor

Cul-de-sac

Commingling

Clear selection

A summary of the New Jersey Law Against Discrimination. Commission rules require every licensed salesperson or broker to give a copy of the memorandum when listing property. 20-424

1 point

Attorney Review Clause

Criminal History Record Check

Rules and Regulations

Attorney General's Memorandum

Clear selection

A license issued to a person who is not a resident of New Jersey.

1 point

Broker

Non-Resident License

Dual Agent

Associate Broker

Clear selection

An act viewed by society as demonstrating a serious lack of morals or conscience, such as embezzlement, fraud, shoplifting or sex crimes.

1 point

Realtor®-Associate

Moral Turpitude

Referral Agent

Guaranty Fund

Clear selection

The right of the Real Estate Commission to deactivate for less than the remaining term the license of a broker or salesperson, in the event of wrongdoing. 3-29

1 point

Rules and Regulations

Revocation

Misdemeanor

Suspended

Clear selection

A licensed person who negotiates the purchase and sale of real estate for another. 3-16

1 point

Receiver

Dual Agent

Broker

Associate Broker

Clear selection

"Formerly, the term used to describe the requirement that broker applicants must have been continuously licensed as salespersons for at least three years immediately preceding application. Today referred to as "experience requirement."

1 point

Dual Contract

Apprenticeship

Net Listing

Pocket Card

Clear selection

Awareness of wrongdoing without any attempt to stop it.

1 point

Duplicate Original

Guilty Knowledge

Commingling

Back-Up Offer

Clear selection

A fund established from licensing fees for paying claims of persons who have been injured by the illegal acts of licensees. 3-20

1 point

Guaranty Fund

Receiver

Fiduciary

Broker-Salesperson

Clear selection

All Applicants must undergo a criminal history record check. An essential part of this process is the recording of each applicant's fingerprints.

1 point

Attorney General's Memorandum

Irrevocable Consent

Criminal History Record Check

License Lending

Clear selection

A false statement made with the intent to induce some action by another party. 9-238

1 point

Misrepresentation

Branch Office

Prospectus

Misdemeanor

Clear selection

A sanction that can be imposed by the Real Estate Commission in addition to suspension or revocation of license and fines. 3-29

1 point

Revocation

Probation

Net Listing

Escrow Account

Clear selection

An offer presented after expiration of the attorney review period. 9-244

1 point

Branch Office

Escrow Account

Trust Account

Back-Up Offer

Clear selection

A photocopy of an original document.

1 point

Irrevocable Consent

Guilty Knowledge

Duplicate Original

Office Supervisor

Clear selection

The intentional and successful employment of deception in order to cheat or deceive another person and to thereby gain some dishonest advantage. 9-242

1 point

Revocation

Fraud

Probation

Suspended

Clear selection

The right of the Real Estate Commission to deactivate a broker or salesperson license for wrongdoing. Revocation is for at least all of the remaining license term. 3-28

1 point

Suspended

Prospectus

Revocation

Probation

Clear selection

Any arrangement under which a broker fails or oversee and direct the operations of the business of which he or she is licensed as a broker of record or employing broker. 3-19

1 point

Rules and Regulations

License Lending

Trust Account

Escrow Account

Clear selection

A salesperson who works for a Realtor®/Broker and belongs to the local Board of Realtors®.

1 point

Broker-Salesperson

Non-Resident License

Associate Broker

Realtor®-Associate

Clear selection

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