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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q74-Q79):
NEW QUESTION # 74
A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were for members only. Is the club in violation of the federal Fair Housing Act, and if so, how?
- A. No, because as an integrated club, they could discriminate on the basis of race in renting facilities.
- B. No, because a private club may restrict the rental of its own lodgings to its members as long as the lodgings are not operated commercially.
- C. Yes, because the club had minority members, and therefore was not eligible for exemptions from the federal Fair Housing Act.
- D. Yes, because when race is involved, no exceptions to the federal Fair Housing Act exist.
Answer: B
Explanation:
Under the Federal Fair Housing Act of 1968 (as amended), there are limited exemptions. One is the private club exemption: a bona fide private club that is not operated commercially may restrict the rental or occupancy of lodgings that it owns to members only.
However, even though exemptions exist, race-based discrimination is never permitted in the sale or rental of housing to the public. Here, since the club restricts rentals to members only and does not rent to the general public, it is not in violation of the Act.
Reference: Federal Fair Housing Act, 42 U.S.C. §3607 (Exemptions); NJ Real Estate Salesperson Study Guide, Chapter on Fair Housing and Civil Rights.
NEW QUESTION # 75
A real estate licensee is a partial owner of a local inspection company. It is permissible for the licensee to tell all clients to use this company when:
- A. it is in the best interest of the client
- B. the licensee discloses the interest in the company to the client
- C. the licensee does not know any of the other title companies in the area
- D. the client does not ask for other recommendations
Answer: B
Explanation:
Under RESPA Section 8 and NJREC rules:
A licensee with a financial interest in a related service company (e.g., inspections, title, mortgage) must provide full disclosure in writing to the client.
Without disclosure, this is considered a conflict of interest and a violation.
Disclosure allows the client to make an informed decision and choose alternatives.
Correct answer = D.
Reference: RESPA (Real Estate Settlement Procedures Act); NJREC Rules on Conflicts of Interest.
NEW QUESTION # 76
A seller refuses to honor a sales agreement. The buyer could seek specific performance, which is a legal request to:
- A. force the seller to complete the sales agreement.
- B. collect punitive damages from the seller.
- C. receive monetary damages for losses suffered.
- D. cancel all contractual obligations.
Answer: A
Explanation:
Specific performance is a legal remedy requiring a party to perform as agreed in the contract, rather than just pay damages.
In real estate, because every parcel of land is unique, buyers often sue for specific performance to force the seller to transfer the property.
Options A and B describe rescission and compensatory damages.
Punitive damages are rare in contract law.
Correct answer = C.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Contracts and Remedies.
NEW QUESTION # 77
Last year, an apartment building had a net operating income of $174,000. If a potential buyer is looking for a capitalization rate of 8%, how much should the buyer be willing to pay for the building?
- A. $1,392,000
- B. $2,175,000
- C. $174,000
- D. $139,200
Answer: A
Explanation:
The Income Capitalization Approach formula is:
NEW QUESTION # 78
A CORRECT statement about transaction brokers is that they:
- A. represent both the buyer and the seller
- B. are required to disclose confidential information
- C. represent neither the buyer nor the seller
- D. may conduct transactions without an active real estate license
Answer: C
Explanation:
A transaction broker facilitates a real estate transaction without representing either party as an agent.
They owe both parties honesty and fairness but do not owe fiduciary duties such as loyalty or confidentiality.
They do not require client-level agency agreements.
They must still be licensed.
Correct answer = B.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Agency and Non-Agency Relationships.
NEW QUESTION # 79
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