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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A subordination agreement is used to:

A) initiate foreclosure proceedings.
B) assign rents to the lender in case of borrower default.
C) pledge property for a loan without giving up possession.
D) change the priority of mortgages.

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

3. A salesperson working with buyers secures an offer on a property. The offer calls for an initial deposit of
$1,000 to be held in escrow. The salesperson instructs the buyer to issue a personal check in that amount payable to the salesperson. This action is

A) permissible if the salesperson immediately writes a check for the deposit amount payable to their broker's escrow account.
B) prohibited, because checks for deposits to be held in escrow may only be payable to the broker's escrow account.
C) prohibited, because the salesperson accepted a personal check.
D) permissible, because the salesperson is acting as agent for the broker.

4. Prospective buyers asked the licensee representing them if it would be a good idea to check the property they wish to purchase for radon. The licensee's best response would be to tell the buyers that:

A) they should do so, because radon is now considered to be one of the causes of lung cancer.
B) they need not do so, because if radon were present, there would be an odor that would make it easy to detect.
C) it is unlikely that radon would be a problem in that area.
D) as long as they are non-smokers, it should not be an issue.

5. A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?

A) Hire an appraiser and see if a second appraisal yields a higher appraised value.
B) Do nothing, because the seller must sell the property at the appraised value.
C) Make up the difference between the contract price and appraised value in cash.
D) Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.

Solutions: