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Real Estate New Jersey Real Estate Salesperson Exam Sample Questions (Q117-Q122):

NEW QUESTION # 117
A subordination agreement is used to:

Answer: C

Explanation:
Lien priority is generally determined by the order of recording.
A subordination agreement is a legal document in which a lienholder voluntarily lowers its lien priority in favor of another lien.
It does not initiate foreclosure, pledge property, or assign rents.
Correct answer = A.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Mortgages and Financing Instruments.


NEW QUESTION # 118
The common area of a condominium development is owned by:

Answer: A

Explanation:
In a condominium, each unit owner owns their unit in fee simple.
All common areas (hallways, grounds, recreational areas) are owned by all unit owners collectively as tenants in common, with each owner's interest proportional to their ownership share.
The Board of Directors manages, but does not own, the common areas.
Correct answer = D.
Reference: NJ Condominium Act, N.J.S.A. 46:8B-1 et seq.; NJ Real Estate Salesperson Study Guide, Chapter on Common Interest Properties.


NEW QUESTION # 119
A couple secured a home mortgage loan from a lender who appraised the property at $92,500. If the loan-to- value ratio on the property was 85%, what was the minimum amount the couple needed for the down payment?

Answer: A

Explanation:
The loan-to-value (LTV) ratio is based on the appraised value (or purchase price, whichever is lower).
Appraised Value = $92,500
LTV = 85% # Loan Amount = $92,500 × 0.85 = $78,625
Down Payment = $92,500 - $78,625 = $13,875
Wait - let's carefully match the options:
$13,875 is Option D.
Corrected answer: D
# The couple must provide $13,875 as the minimum down payment.
Reference: NJ Real Estate Salesperson Study Guide, Real Estate Finance chapter; Loan-to-Value Calculations.


NEW QUESTION # 120
Evergreen bushes and apple trees on a property that were planted by the current owner are examples of:

Answer: C

Explanation:
Natural attachments (trees, bushes, perennial plants) are part of the land and thus real estate.
Annual crops (emblements) are considered personal property.
Chattels = movable personal property.
Trade fixtures = items installed by a tenant for business use.
Correct answer = A.
Reference: NJ Real Estate Salesperson Study Guide, Chapter on Real vs. Personal Property.


NEW QUESTION # 121
A licensee must provide disclosure of licensed status when acting as a principal if

Answer: A

Explanation:
Under N.J.A.C. 11:5-6.4, any licensed New Jersey real estate broker, salesperson, or broker-salesperson must disclose in writing their licensed status when they have a direct or indirect ownership interest in property being sold, purchased, or leased. This is known as disclosure of economic interest.
The purpose of this regulation is to ensure the public is fully aware that they are dealing with a licensed real estate professional, who may have specialized knowledge or influence in the transaction. Disclosure must appear in the contract of sale, lease, or any offer made.
Therefore, the correct answer is C, since a licensee must disclose whenever they have an economic interest in the property.
Reference: NJREC Rules and Regulations, N.J.A.C. 11:5-6.4; New Jersey Real Estate Salesperson Pre- Licensure Course Guide, Chapter on Ethical and Legal Responsibilities.


NEW QUESTION # 122
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