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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q79-Q84):
NEW QUESTION # 79
Under the New Jersey Real Estate Sales Full Disclosure Act, the Act does NOT apply to a development project:
Answer: C
Explanation:
The NJ Real Estate Sales Full Disclosure Act (RESFDA) regulates sales or leases of subdivided land and certain developments to protect consumers.
Exemptions exist for small-scale projects or when the total financial obligation to the purchaser is less than
$5,000.
Developments with 100+ lots typically require registration and a Public Offering Statement.
Thus, the Act does not apply where the financial obligation is under $5,000.
Reference: NJ Real Estate Sales Full Disclosure Act, N.J.S.A. 45:15-16.27; NJ Real Estate Salesperson Study Guide, Chapter on Land Sales.
NEW QUESTION # 80
A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by, the seller. The buyer:
Answer: C
Explanation:
In New Jersey:
An "as is" sale does not relieve the seller from the duty to disclose known latent (hidden) defects.
If a seller fails to disclose a known material defect, the buyer has grounds to rescind (void) the contract or pursue legal remedies.
The buyer is not required to proceed with the purchase.
Correct answer = A.
Reference: NJREC Rules and Regulations; NJ Real Estate Salesperson Study Guide, Chapter on Seller's Disclosure and "As Is" Transactions.
NEW QUESTION # 81
The primary intent of the statute of frauds is to:
Answer: D
Explanation:
The Statute of Frauds (as adopted in New Jersey) requires that certain contracts be in writing to be enforceable, including:
Contracts for the sale of real estate.
Leases longer than 3 years.
Certain other long-term agreements.
Its purpose is to prevent fraud and misunderstandings by requiring written evidence of important contracts.
Reference: N.J.S.A. 25:1-13; NJ Real Estate Salesperson Study Guide, Chapter on Contracts.
NEW QUESTION # 82
A prospective buyer calls a licensed New Jersey salesperson to inquire about a property listed with that salesperson's brokerage. During the first substantive discussion about the property's price and terms, the salesperson must
Answer: A
Explanation:
Under New Jersey Real Estate Commission (NJREC) Regulations, licensed brokers and salespersons are required to provide the Consumer Information Statement (CIS) to clients and customers at the first substantive discussion about the price, terms, or motivation regarding a specific property.
The purpose of the CIS is to disclose to the consumer the various types of business relationships available in New Jersey (seller's agent, buyer's agent, disclosed dual agent, and transaction broker) and to clarify how the licensee intends to work with them.
Important rules from N.J.A.C. 11:5-6.9:
* The CIS must be given before any confidential information is disclosed or before an offer is written
, whichever occurs first.
* A "first substantive contact" means when a buyer or seller begins discussing financial or personal motivation about the transaction.
* Failing to provide the CIS at the proper time is considered a violation of agency disclosure requirements and can subject the licensee to disciplinary action by NJREC.
Therefore, the correct answer is A, because the CIS must be provided immediately at the first substantive discussion.
Reference: New Jersey Real Estate Commission, Rules and Regulations, N.J.A.C. 11:5-6.9 (Agency Disclosure / Consumer Information Statement); New Jersey Real Estate Salesperson Pre-Licensure Course Study Guide, Chapter on Agency and Business Relationships.
NEW QUESTION # 83
A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If accepted, which of the following will be true?
Answer: A
Explanation:
A deed in lieu of foreclosure is sometimes called a "friendly foreclosure." The borrower voluntarily conveys title to the lender to avoid foreclosure proceedings.
However, the lender accepts the property subject to any junior liens or encumbrances already on the title.
It is still an adverse credit event for the borrower.
The loan is extinguished and cannot be assumed afterward.
Thus, the correct answer is B.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Foreclosure and Alternatives.
NEW QUESTION # 84
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