Chapter 2: Commission Rules and Regulations REVIEW QUESTIONS

Question 1

A licensed salesperson is allowed to

Answer 1

leave one broker and affiliate with another.

Question 2

Under some circumstances, a real estate office may be in the home of

Answer 2

a broker.

Question 3

Broker Waldo Rodriguez wants to open a branch office in a new shopping mall in the next town. The office can be supervised by

Answer 3

a broker-salesperson

Question 4

Salesperson Stan Clemenzio accepts an earnest money deposit and turns it over to his broker, Roberta Lee. Roberta must

Answer 4

deposit it within five days in a trust account.

Question 5

An escrow account may be opened in

Answer 5

any authorized New Jersey financial institution.

Question 6

A broker must keep copies of

Answer 6

contracts for six years.

Question 7

Every person who signs a contract is entitled to receive a duplicate original. When are they entitled to receive it?

Answer 7

Immediately

Question 8

Every sales contract prepared by a broker must contain a notice that

Answer 8

the buyer and seller may seek attorney review within three business days.

Question 9

Even when the broker is the seller’s agent, buyers are entitled to

Answer 9

fair dealing

Question 10

For a license law violation, the Real Estate Commission could fine a licensee as much as

Answer 10

$50,000.

Question 11

The Commission will rule that someone could never again get a license after how many violations?

Answer 11

Three

Question 12

Salesperson Joe Kenty is indicted for possession of a controlled substance with intent to sell and is out on bail until the trial. The Real Estate Commission may

Answer 12

suspend his license.

Question 13

The Real Estate Commission must give a licensee how much notice before a hearing is held on a possible violation?

Answer 13

10 days

Question 14

Sun City Realty holds a door-prize drawing at a weekend open house it runs. This practice

Answer 14

violates the Commission’s rules.

Question 15

Donna White, a broker, is offering her mother’s house for sale and will charge no commission. Should she reveal that she is a licensed agent?

Answer 15

Yes, as soon as she meets a prospective buyer.

Question 16

Which statement about broker-run advertisements in newspapers is correct?

Answer 16

Advertising offering free appraisals is prohibited, although CMAs are permitted.

Question 17

The “reasonable effort” licensees are required to make to determine all material information about a property’s physical condition could normally include all of the following except

Answer 17

contracting with a professional to perform an in-depth inspection of the property prior to entering into any agency agreement with the seller.

Question 18

A New Jersey licensee is permitted to represent both parties to a transaction if he or she obtains the

Answer 18

informed, written consent of the seller, buyer, and any other agent involved.

Question 19

Any agreement between competing offices to establish standard commission rates is referred to as

Answer 19

illegal price-fixing.

Question 20

A salesperson working for Broker Betty Barrett was disciplined for pursuing a flagrant and continued course of misrepresentations, making false promises, and failing to pay over money belonging to others. In this case, Betty’s license

Answer 20

will be suspended or revoked only if Betty knew about the salesperson’s activities and did nothing about it.

Question 21

Rebate of part of a commission may be paid to a

Answer 21

buyer only.