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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q115-Q120):
NEW QUESTION # 115
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?
Answer: B
Explanation:
For special-purpose properties such as schools, churches, libraries, or government buildings, there are typically few comparable sales and the properties are not income-producing.
In these cases, appraisers use the cost (replacement) approach, which estimates the value by calculating the cost of replacing the structure minus depreciation, plus land value.
Correct answer: C. replacement cost.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Appraisal Methods (Cost Approach for Special-Purpose Properties).
NEW QUESTION # 116
Which of the following differentiates a bilateral contract from a unilateral contract?
Answer: C
Explanation:
A bilateral contract involves mutual promises where both parties are obligated to perform (e.g., a sales contract: buyer promises to pay, seller promises to transfer title).
A unilateral contract involves only one party making a promise contingent on the performance of the other (e.
g., an option contract).
Thus, the key difference is performance obligations of the parties.
Correct answer = B.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Contracts.
NEW QUESTION # 117
A seller places a property on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller rejects that offer, but will accept an offer of 95% of the original asking price. The buyer rejects that counteroffer. The original offer is:
Answer: D
Explanation:
Once an offer is rejected or countered, the original offer is terminated and cannot be revived unless resubmitted.
A counteroffer legally cancels the original offer.
Therefore, the buyer's initial offer is null and void once the seller counters.
Correct answer = B.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Contracts and Offers.
NEW QUESTION # 118
Who may give a supportable opinion of market value to be used in seeking a federally-related loan to finance a real estate transaction?
Answer: A
Explanation:
For federally-related transactions (most residential loans regulated by federal agencies), the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA, 1989) requires an appraisal by a state- licensed or certified appraiser.
Brokers and salespersons may prepare CMAs (Comparative Market Analyses) or BPOs, but these are not acceptable for federally-related loans.
Correct answer = A.
Reference: FIRREA (1989); NJ Real Estate Salesperson Study Guide, Chapter on Appraisal and Valuation.
NEW QUESTION # 119
Which of the following statements correctly describes a standard feature of a buyer-agency agreement?
Answer: D
Explanation:
Under the New Jersey Real Estate Commission rules on agency disclosure and the Salesperson Study Guide (Chapter on Buyer Agency):
A buyer-agency agreement is a form of employment contract creating a fiduciary relationship between the buyer and the broker.
A is incorrect because it is not just an option; it's a binding agreement.
B may or may not be true - a retainer fee is not required in NJ.
C is false because the source of compensation does not determine agency; agency is determined by the agreement and consent of the parties.
D is correct: a buyer-agency agreement creates fiduciary duties such as loyalty, disclosure, confidentiality, and obedience to the buyer.
Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Agency & Fiduciary Duties section; NJREC Agency Disclosure Rules.
NEW QUESTION # 120
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