Real Estate Ch. 2

A salesperson may NOT:

• accept any form of compensation except from his or her supervising broker

• negotiate the purchase, sale, or exchange of real estate

• list real estate in the name of the brokerage

• sell lots or other parcels for a developer under a broker

A broker wants to open a branch office in a new shopping mall in the next town. Who is permitted to supervise this branch office?

• a salesperson with at least two years experience

• the primary broker by phone each day

• a cooperative broker who already has an office in that area

• a broker-salesperson

All real estate ads must specify the property's:

• phone number

• municipal location

• mayor

• attorney

A salesperson accepts an earnest money deposit and turns it over to his broker. What does state law require the broker to do with the earnest money?

• open a separate bank account for the deposit

• keep it in the account used for the salespeople's activities

• promptly deposit it in the office's business account and keep a careful record so that it won't get confused with the broker's funds

• deposit it within five days into a trust account

On sales contracts, no contract can contain anything indicating a prescribed fee schedule. Why?

• because commissions are always negotiable between client and broker

• because there is already a set fee and rate established by the state

• because the real estate company being used can require any fee of their choice

• because taxes need to be included afterwards

By New Jersey law, where must a broker open a trust account?

• any authorized New Jersey financial institution

• a New Jersey stockbroker's office

• any out-of-state bank that offers high interest on the deposits

• an internet-based bank that pays high interest

How long does a licensee have to forward all written offers on a sales contract to the seller?

• within 24 hours

• within three business days

• within five business days

• within one week

How long is a broker required to maintain copies of trust account activities?

• one year

• two years

• three years

• six years

Which of the following is the term for the cancellation of a real estate license after a law violation has occurred?

• guilty knowledge

• probation

• revocation

• suspension

What notice is required to be included in every sales contract on a residential property prepared by a real estate licensee?

• a statement that the broker's commission rates do not exceed community standards

• a statement that the buyer may not purchase insurance from the same company that sold the property

• disclosure that the earnest money will be deposited in a trust account

• a statement that the buyer and seller may seek attorney review within three business days