New Jersey Real Estate Practice Exam Free Practice Question
Regarding contracts for the sale of residential property, a New Jersey real estate licensee may prepare the contract of sale for one-to four-family properties provided that a:
Correct Answer: A
Rationale: In New Jersey, a three-day attorney review clause is essential in residential property contracts to ensure that buyers have an opportunity to consult legal counsel, thereby protecting their rights and interests.
Option B is incorrect because a commission clause does not fulfill the legal requirements for contract preparation by a licensee. Option C is not valid as the broker of record's signature is not a prerequisite for the contract's legality. Option D is also misleading; while a salesperson's signature may be necessary for certain transactions, it does not satisfy the legal stipulations for preparing the contract. Thus, the inclusion of the attorney review clause is crucial for compliance.
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