New Jersey Real Estate License Exam Practice Question

Which of the following statements concerning an agreement of sale prepared by a licensee in accordance with New Jersey License Law is CORRECT?

Correct Answer: B

Rationale: In New Jersey, an agreement of sale prepared by a licensee must include an Attorney Review Clause, allowing both parties to seek legal counsel before finalizing the contract. This protects their rights and ensures they understand the terms.

Option A is incorrect as a mortgage contingency clause is not mandatory in every sale agreement; it depends on the buyer's financing needs. Option C is misleading; while buyers may have a right of rescission in some cases, it is not a standard requirement for all agreements. Option D, while important for compliance, is not a mandatory inclusion in every sale agreement.

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