PSI New Jersey Real Estate State Practice Exam

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Prepare for the New Jersey Real Estate Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Ace your exam confidently!

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Which payment method is NOT accepted as an earnest money deposit on a sale transaction, according to the Real Estate Licensing Law?

Cash
Check
Credit card
Bank transfer

The correct answer is: Credit card

The correct answer identifies credit cards as a payment method that is not accepted as an earnest money deposit according to the Real Estate Licensing Law. Earnest money is intended to demonstrate a buyer's serious intent to purchase a property, and it typically involves a secure form of payment that can be readily deposited into a trust account. Acceptable methods like cash, checks, and bank transfers offer immediate, verifiable funds that can quickly substantiate the buyer's commitment to the transaction. In contrast, credit cards do not provide this same level of assurance, as they involve a line of credit that can fluctuate and may not guarantee the availability of funds in a timely manner. This distinct difference is why credit cards are not recognized as an appropriate method for earnest money deposits in real estate transactions.