New Jersey — Contracts & Leases — New Jersey Real Estate — State Law Practice Test

This New Jersey Real Estate — State Law New Jersey — Contracts & Leases practice set has 16 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the New Jersey — Contracts & Leases bank with the correct answer and an explanation. The practice quiz above draws 16 questions at random from the same bank.

1. A New Jersey broker fills in a standard form contract for the sale of a 3-family home. To comply with NJ rule, the contract MUST include which provision?

   • A 3-business-day attorney-review clause — Correct answer
   • A clause waiving the seller's right to counsel
   • A 1% commission cap set by statute
   • A clause making the broker liable for title defects

   Explanation: A real-estate sales contract PREPARED BY A BROKER (not by an attorney) for a 1-4 family residence must contain the 3-business-day attorney-review clause; this is the NJ rule that makes such a contract enforceable. Attorney-review（律师审查期）: a mandatory 3-business-day window to review/disapprove a broker-prepared NJ contract. Source: N.J.A.C. 11:5-6.2.

   Handbook: New Jersey Contracts & Leases — attorney-review clause required on broker-prepared contracts (N.J.A.C. 11:5-6.2)

2. During the NJ attorney-review period on a broker-prepared contract, a buyer's attorney disapproves the contract in writing on the second business day. What is the effect?

   • The contract is voided and the deposit is returned — Correct answer
   • The contract is binding because review ends after 1 day
   • Only the seller may cancel, not the buyer
   • The buyer forfeits the deposit as a penalty

   Explanation: A timely WRITTEN DISAPPROVAL delivered within 3 business days voids the broker-prepared contract; the deal is cancelled and the deposit is returned. Either party's attorney may disapprove for any reason during the window. Written disapproval（书面不批准）: the attorney's method of cancelling within the review period. Source: N.J.A.C. 11:5-6.2.

   Handbook: New Jersey Contracts & Leases — timely written disapproval voids the contract (N.J.A.C. 11:5-6.2)

3. A broker-prepared contract for a single-family home is fully signed and delivered to both parties. No attorney disapproves within 3 business days. What happens?

   • The contract becomes legally binding on its terms — Correct answer
   • The contract is automatically void after 3 days
   • Either party may walk away for 30 more days
   • An attorney must still sign for it to take effect

   Explanation: If the 3-business-day attorney-review window passes with NO written disapproval, the broker-prepared contract becomes legally binding (firm) on its existing terms. The window runs from when both parties have a fully-signed copy. Binding（生效确定）: the contract becomes firm once review lapses unobjected. Source: N.J.A.C. 11:5-6.2.

   Handbook: New Jersey Contracts & Leases — contract becomes binding if not disapproved (N.J.A.C. 11:5-6.2)