NJ Real Estate Exam: Practice Questions Answers:

NJ Real Estate Exam: Practice Questions & Answers: Updated A+ Guide Solution

/. If a broker is expecting to receive 6% commission on a sale of $250,000 house, what will the commission be?

• $750
• $1,500
• $7,500
• $15,000 - Answer-d) $15,000

/.A lot measuring 240' by 400' is selling for $400 a front foot. What is the price?

• $1,600
• $16,000
• $72,000
• $96,000 - Answer-d) $96,000

/.If the frontage of a half acre lot is 100 feet, how deep is it?

• 154 ft
• 218 ft
• 248 ft
• 436 ft - Answer-b) 218 ft

/.An acre is how many Sqft? - Answer-1 Acre= 43,560 Sqft.

A section = 640 acres

/.Life Estate - Answer-Is limited to the life of a specific person; life estate ends with the death of the owner.

/.Which fact or facts is (are) TRUE concerning the DVA loan?

• a DVA loan cannot be assumed

b) DVA loans made after March

1,1998 are freely assumable

• the veteran must be careful how she/he uses up eligibility
• the DVA fixes the rate of interest charged by the lender - Answer-d) the DVA fixes the

rate of interest charged by the lender.

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/.If the tenant exercises his option to buy, can he force the landlord to sell? - Answer- YES

/.A "JUMBO" loan is: - Answer-A loan higher than the secondary markets limit.

/.Selling price: $325,000, 20% down and 2 points plus $2,000 closing fees. What is the total cash required to close?

• 71,500
• 72,200
• 73,500
• 75,600 - Answer-b) $72,200

/.Which of the following is NOT characteristic of a DVA loan?

• loan is guaranteed
• owner occupied
• loan is insured
• little or no down payment - Answer-c) loan is insured

/.If a lender charges 2 points on a $60,000 loan, how much does the lender get?

• 120
• 1,200
• 2,400
• none of the above - Answer-b) $1,200

/.A broker establishes a company policy of charging no less than 6% commission, is this legal? - Answer-YES

/.Money in a trust account, Broker must?

• keep accurate records
• may withdraw commission amount - Answer-a) keep accurate records

/.One who has the right to sign the name of a principal to a contract of sale is:

• an attorney in fact
• broker with a listing
• a special agent
• an attorney at law - Answer-a) an attorney in fact

/.A deed made and delivered but NOT recorded is:

• valid between the parties and valid as to third parties with notice
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