New Jersey Real Estate Practice Exam Free Practice Question
A licensee has an exclusive right-to-sell listing on Smith's store that entitles him to $4,000 in compensation when the store is sold. The licensee also has a similar type of listing on Jones's store that promises $5,000 in compensation when the store is sold. If the licensee arranges an exchange of the above two properties, with the informed consent of both parties, how much compensation, if any, will he receive?
Correct Answer: C
Rationale: The licensee will receive $9,000 in compensation because both properties were sold through the exchange, which effectively counts as two transactions. Each listing agreement remains valid, entitling the licensee to the full compensation from both parties.
Option A ($4,000) only considers the compensation from Smith's store, ignoring the arrangement with Jones's store.
Option B ($5,000) similarly overlooks the compensation from Smith's store.
Option D incorrectly asserts that no compensation is due because the properties were exchanged. In real estate, exchanges can still trigger compensation based on existing agreements.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now