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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. After announcing that a new city park will soon be developed, homes in the immediate area experience a rise in value. This is an example of which of the following principles of value?

A) highest and best use
B) contribution
C) anticipation
D) change

2. According to the Real Estate Licensing Law, a real estate licensee can provide a rebate of the commission to a buyer

A) if a writing confirming the terms of the rebate is provided to the buyer at closing.
B) provided it does not exceed 50% of the total commission.
C) if notated on the contract of sale.
D) if the licensee is the broker.

3. A property that contains a 2,500-square-foot house has a land value of $45,000. The house suffers from
$7,000 of physical depreciation and $2,500 of functional obsolescence. If the replacement cost of the house is
$75 per square foot, what is the value of the property?

A) $187,500
B) $223,000
C) $178,000
D) $232,500

4. Which of the following statements correctly describes a standard feature of a buyer-agency agreement?

A) A retainer fee is normally paid at the time the agreement is signed.
B) A buyer-agency agreement is an option rather than an employment contract.
C) It establishes a fiduciary relationship with the buyer.
D) The source of compensation determines the agency relationship.

5. 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.

Solutions: