New Jersey Broker Real Estate Exam Prep

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When you enter the wonderful world of real estate, you do so with the idea that there are no ceilings to how much you can earn, a notion that is more or less true no matter where on the totem pole you land. However, you can increase your earning potential by continuing your education and working toward a real estate broker’s license. To obtain your broker’s license, you must first pass the broker exam, an exam far more rigorous and multi-faceted than the salesperson exam. However, with the right help, you can pass the exam with flying colors the first time around. Our New Jersey Broker Real Estate Exam Prep guide contains all the materials you need to pass the test on the first try. The system also includes questions and answers that were curated by real estate professionals and test makers. Our system is so effective that over 50,000 individuals have passed with a score of 95% or better. We are so confident that you too will be successful that we offer a cash-back guarantee if you are not.

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New Jersey License Requirements

In addition to presenting proof that you passed the New Jersey broker real estate exam, you must also present the New Jersey Real Estate Commission with proof that you meet additional requirements. The Commission requires aspiring brokers to comply with these requirements:

Must be at least 18 years of age.
Must possess a high school diploma or GED.
Must have completed at least 150 hours of Commission-standard real estate courses; comprised of at least 90 hours of general education and two 30-hour courses on Office Management and Agency/Ethics related subjects.
Must have been employed as a licensed real estate agent for at least three years immediately preceding one’s application to become a broker.

New Jersey Sample Practice Real Estate Exam Questions and Answers

In addition to providing a thorough test prep guide, we offer free sample tests that individuals can use to assess whether or not our program is right for them. To get an idea of what type of information our system includes, or if you want to assess your understanding of broker real estate test prep materials, take our free real estate sample exam. Press the ‘Start’ button below to begin the practice test now. If you let the browser navigate away from the page while the test is in session, your answers will reset. You can retake the practice test as many times as you need. You can also appraise your answers at any time throughout the practice assessment by navigating to ‘List’ and selecting the question you would like to review.

New Jersey State Section

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Question 1

The Salesperson license fee costs how much?

A	$150
B	$160
C	$170
D	$180

Question 2

The license law is administered by:

A	New Jersey Real Estate Commission
B	New Jersey Real Estate Department
C	Department of New Jersey Real Estate
D	Commission of New Jersey Real Estate

Question 3

After getting the license, how often must you take Continuing Education classes?

A	Every year
B	Every 2 years
C	Every 3 years
D	Every 4 years

Question 4

Which is not necessary for a valid contract?

A	offer
B	legal object
C	acceptance
D	due date

Question 5

Which of the following isn't part of a deed?

A	Premises
B	Habendum
C	acknowledgement
D	novation

Question 6

What term means "going to the state?"

A	Taxation
B	Eminent Domain
C	police power
D	escheat

Question 6 Explanation:

Escheat is if someone dies and there is no one to inherit or no will the property goes to the state.

Question 7

Which of the following is a landlord's option for a tenant not paying the rent?

A	shutoff the gas
B	shut off the power
C	lock the tenant out of the apartment
D	unlawful detainer action in court

Question 8

Who is responsible for maintaining a habitable property and for complying with local housing and building codes?

A	Lessor
B	Agent
C	Buyer
D	Lessee

Question 9

Standing trees would be considered:

A	Personal Property
B	Chattels
C	Emblements
D	Real property

Question 10

Does New Jersey allow Holographic wills?

A	Yes
B	No

Question 11

What is a holographic will?

A	a will and testament that has been entirely handwritten and signed by the testator.
B	a will that displays in 3D
C	a will that has been approved by each family member.
D	a standard boiler plate will.

Question 12

Which of the following would not put a sales person in jeopardy of losing their license in New Jersey?

A	Being authorized to accept and excessive commission.
B	Convicted of a felony
C	Placing an ad claiming to be a broker when they are not.
D	Depositing his/her clients escrow money into a personal account

Question 13

Which of the following is required for an applicant to receive a Real Estate License?

A	Must be 25 or older
B	Must have a Bachelors degree
C	Must sit and pass the required exam
D	Must have lived in the state for more than a year

Question 14

What is homestead protection?

A	The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
B	The estimated value that an asset will have at then end of it's useful life
C	Net cash remaining to investor after sale of investment property
D	Gradual subsidence of waters, leaving dry land

Question 15

How soon can a broker receive a commission check after a closing in New Jersey?

A	After the transaction is completed and funded.
B	Once the offer sheet is signed.
C	Once the seller agrees to the price.
D	When the Buyer moves in.

Question 16

In what circumstances, if any, can a broker in New Jersey who is serving as an intermediary representing both parties collect compensation from both the buyer and the seller?

A	None; the broker may only collect compensation from one party to a transaction
B	Only when both buyer and seller give informed consent to this arrangement
C	Only when both buyer and seller have legal representation
D	In most circumstances, except when the buyer and seller are related

Question 17

Mortgage "discount" points only apply if which of the following conditions are met?

A	The seller has agreed to pay 1% of the closing costs
B	The interest rate on the mortgage loan has been lowered by 1% for each point charged
C	The interest rate on the mortgage loan has been lowered by 2% for each point charged
D	The loan does not close and the buyer owes the lender for services rendered

Question 18

Does New Jersey have dower laws?

A	Yes
B	No

Question 19

Is New Jersey a community property state?

A	Yes
B	No

Question 20

What tenancies does New Jersey allow?

A	Joint tenancy
B	Tenancy by the entirety
C	Neither
D	Both

Question 21

Does New Jersey have homestead laws?

A	Yes
B	No

Question 22

A couple executes a sales contract on their home after several counter-offers with the buyer. In this case, the seller is:

A	The Mortgagee
B	The Grantor
C	The Grantee
D	The Mortgagor

Question 22 Explanation:

The Couple (owner) is conveying title to the real property.

Question 23

The Lyons family bought a house with a lot size of .50 of an acre. This is the equivalent to:

A	46,560ft
B	21,780ft
C	11,000ft
D	5,250ft

Question 23 Explanation:

1 acre = 43,560 43,560 * .50= 21,780ft

Question 24

A primary residence is sold for $500,000 by a couple in the 28% tax bracket. The home was originally purchased 7 years ago for $400,000, where the family lived there the entire 7 years. How much will be paid in capital gains?

A	$59,920
B	$32,100
C	$214,000
D	none of the above

Question 24 Explanation:

The property is a primary residence which has been lived in over 5 years with a profit less than $500,000.

Question 25

An owner-occupied, 5 unit dwelling worth $600,000 generates $5,500 in income from 4 units and $200/month from the onsite laundry. If the current owner typically yields roughly 8% annually on his investment, what is the monthly effective gross amount?

A	$4,350
B	$6,000
C	$4,905
D	$5,700

Question 25 Explanation:

The effective gross amount is $5,500 + $200 (The sum of all income generated)

Question 26

Someone's brother is moving out of the country and decides to sell his home to his sister for $350,000, making this the latest sale in that area. The sister decides to pay cash, as she says she will later get a home equity loan for $295,000. Recent sales comps of very similar homes had values of $400,000. Based on the information provided, what is the best estimate of the market value of the subject property?

A	$400,000
B	$200,000
C	$275,000
D	No enough information provided

Question 26 Explanation:

The transaction is "non-arms length" because they are related.

Question 27

When can a landlord choose to not rent to someone with children?

A	Never. Children are protected under Fair Housing.
B	If the unit has evidence of lead paint
C	A lease of an owner occupied, 3-family home
D	Someone on temporary lease

Question 27 Explanation:

The children are generally protected under Chapter 151B (Fair Housing) except when an occupant requests a temporary lease.

Question 28

A seller provides written permission allowing his listing broker (who has a fiduciary obligation to the seller) to work with the buyer. This relationship is known as:

A	Dual Agency
B	Sub Agency
C	Special Agency
D	Implied Agency

Question 28 Explanation:

Sub agency required that the listing broker obtain written permission from the seller and that the fiduciary duties are to the seller.

Question 29

A homeowner purchased a home for $250,000 on a 30 year FHA loan with an interest rate of 4.25%. If he wants to cash out a conventional refinance and eliminate the MIP, what is the maximum amount that the new loan balance can be based on a future home value of $300,000?

A	$237,000
B	$310,000
C	$300,000
D	$240,000

Question 29 Explanation:

To eliminate the mortgage insurance premium, the loan to value must be below 80%

Question 30

A valid contract is: A: Verbal Agreement B: A 10 month lease

A	Both A and B
B	B Only
C	Neither A nor B
D	A Only

Question 30 Explanation:

A contract is defined as an agreement between 2 or more persons or entities and they can be written or verbal.

Question 31

Mr. Jackson is moving out of the country and decides to sell his home to Mr. Bonds for $300,000, making this home the latest sale in that area. Mr. Bonds puts 25% down and finances $225,000. Recent sales comps of similar homes had values of $450,000. Based on the information provided, what is the market value?

A	$450,000
B	$220,000
C	$225,000
D	No enough information provided

Question 31 Explanation:

This is an arm's length transaction because the brother and sister are related; therefore the sold price cannot be included with non-arm's length sales comps.

Question 32

Which best describes an example of emblements?

A	Cherry tree, apple tree and tomato plants
B	cherry tree, apple tree and peach tree
C	tomato, lettuce, and onion crops
D	none of these

Question 32 Explanation:

Emblements are crops that are annually cultivated.

Question 33

Nine states recognize this system of property ownership where the husband and wife have equal interest in property acquired through marriage. This is:

A	Common-Law
B	Community property
C	Commingling
D	Common title

Question 33 Explanation:

Each spouse has equal interest in property acquired during marriage.

Question 34

A dad who owns his house free and clear decided to take out a HELOC and let his son make the payments. He also signs a quitclaim deed to transfer the home into his son's name. What clause might the lender enforce?

A	co-insurance clause
B	acceleration clause
C	due-on-sale clause
D	cancellation clause

Question 34 Explanation:

because the borrower has transferred the property, the lender is allowed to demand full payment.

Question 35

The New Jersey Real Estate Sales Full Disclosure Act requires which of the following to register with the New Jersey Real Estate Commission Bureau of Subdivided Land Sales Control when making an offering in New Jersey?

A	Time shares located in New Jersey
B	Out-of-state residential subdivisions
C	Condominiums in New Jersey
D	Out-of-state properties subject to an owner's association

Question 35 Explanation:

Only out-of-state condominiums advertising in New Jersey must register with the Bureau of Subdivided Land Sales Control.

Question 36

The Federal Home Loan Mortgage Corporation primarily purchases which loan types?

A	FHA
B	Owner-financed notes
C	VA
D	Conventional

Question 36 Explanation:

Fannie Mae and Freddie Mac purchase conventional loans.

Question 37

Barbara works for 123 Bank. Her job duties are to gather documents, review applications for accuracy, package loans, and take each file from pre-approval to closing. What is most likely her job title?

A	Underwriter
B	Processor
C	Loan Officer
D	Appraiser

Question 37 Explanation:

Processors prepare the loan package for the underwriter

Question 38

Which of the following does not loan money directly to borrowers?

A	Insurance Company
B	Mortgage broker
C	Cooperative bank
D	Private lender

Question 38 Explanation:

Mortgage brokers bring borrowers together with lenders

Question 39

James decides that he's ready to move out of his grandparent's home and purchase his own home. He has a roommate who will be moving in, so he would like at least a 2 bedroom house. What should his first step be?

A	Get pre-qualified by submitting a mortgage application
B	Purchase new furniture
C	Pick out a house
D	Purchase a new car to go with the new house

Question 39 Explanation:

The 1st step to obtaining home loan financing is to submit the application.

Question 40

Rick and Kate have $40,000 or 10% down to purchase their first home. Their loan officer prequalifies them for several different loan types. They decide to go with the following scenario: a purchase price of $400,000 with a loan amount of $400,000 and $6,450 funding fee. What type of loan did they choose?

A	Conventional
B	FHA
C	VA
D	Negative Amortization

Question 40 Explanation:

VA loans offer 100% financing and includes a funding fee.

Question 41

A lender offers you a very low interest of 2.25% in exchange for part of your equity. What type of mortgage is this?

A	balloon
B	Shared equity
C	Wraparound mortgage
D	Equity loan

Question 41 Explanation:

Shared equity is when the lender offers a low interest rate in exchange for a portion of the equity.

Question 42

Sellers Bob and Kim execute a standard purchase and sale agreement on May 10th. The contract also states that by May 25th, their agent should receive a mortgage commitment letter. On May 24th, the buyer's agent sends over a letter that the buyer has been unable to secure financing. They should expect:

A	their earnest money deposit back
B	to withdraw from the transaction
C	both A and B
D	A only

Question 42 Explanation:

This contract was written with a financing contingency in which the purchase was a given a date to secure financing

Question 43

123 and ABC Realty Brokerage leased a 2 family residence for $1200/mo for each unit. Tenant 1 wrote a check to cover the 1st month's rent and deposit, and tenant 2 paid by money order. Which is the best representation of what the brokerage must do?

A	make and keep a copy of all funds collected from each tenant
B	Nothing as long as the broker received the money that is sufficient
C	Only copy the money order because a check is a legal record
D	Tell the tenant to pay the owner directly

Question 43 Explanation:

The property manager is required to make and keep a copy of collected funds for 3 years.

Question 44

Stephanie finds the home of her dreams, a comfortable cottage built in 1925. Her agent suspects that the home may have lead-based paint. Stephanie has how many days to test for lead-based paint?

A	5
B	3
C	7
D	10

Question 44 Explanation:

Under the Lead Paint Law, the buyer gets 10 days to test for evidence of lead paint.

Question 45

The governor appoints 8 members to the Commission of Registration of Real Estate Brokers and Salespersons. How many members are not licensed agents and meant to represent the public?

A	5
B	0. All are licensed
C	2
D	3

Question 45 Explanation:

2 of the members must be unlicensed and are members to represent the public.

Question 46

An appraisal is done on a unique property that sits on 50 acres. The approach the appraiser will more than likely use is:

A	Assumption
B	Cost
C	Income
D	Market Data

Question 46 Explanation:

The cost approach is used when the appraiser has difficulty finding comps.

Question 47

Max secures a 15 year fixed conventional home loan. This loan was more than likely purchased by which investor?

A	FNMA
B	Insurance company
C	An orb
D	GNMA

Question 47 Explanation:

FNMA purchases conventional loans.

Question 48

A homeowner has an existing mortgage balance of $200,000 with a mortgage payment of $1,400. He puts an ad in the newspaper to sell his home, where he will offer the buyer a new note based on a sales price of $375,000 at 5%. The buyer decides to use this financing to purchase the home. Based on the information given. what type of mortgage is this?

A	Wrap around mortgage
B	Junior mortgage
C	Package mortgage
D	None of these

Question 48 Explanation:

The new mortgage will include the remaining balance on the existing first mortgage.

Question 49

When determining whether a buyer is a good credit risk, the lender needs to evaluate:

A	Borrower's credit, the borrower's ability to pay, and homeowner's age
B	Ability to pay, property, borrower's 401K
C	Borrower's credit, future expected value of the property, job stability
D	Property, ability to pay, credit

Question 49 Explanation:

The lender must do an appraisal, ensure the borrower has means to repay the mortgage and meet the lender's credit score.

Question 50

When a buyer chooses to pay discount points, their goal is to receive

A	Cash back at closing
B	A lower interest rate
C	Principal reduction
D	None of these

Question 50 Explanation:

Points charged by a lender are to lower the rate for the buyer

Question 51

Carl's sister decides she wants to purchase a home and needs to get prequalified. Carl's sister best friend, Ben, is a loan officer at the bank and tells her once the loan closes he will give her a referral fee. Which statement is true?

A	As long as Ben gives Kim the HUD information booklet within 3 days, he can pay a referral fee
B	Ben is protected under RESPA
C	Ben must disclose the referral amount on the GFE
D	Fees and kickbacks to individuals who do not provide a loan is prohibited

Question 51 Explanation:

RESPA prohibits several types of payments to persons who did not perform a service.

Question 52

Members of the Real Estate Commission serve a term of______years.

A	3
B	2
C	7
D	10

Question 52 Explanation:

The term is for 3 years

Question 53

Which of the following laws is to prohibit discrimination on the basis of race (only) in the sale of real property?

A	NJSA 10:5-4
B	New Jersey Consumer Fraud Act
C	Federal Civil Rights Act of 1866
D	Federal Fair Housing Act of 1868

Question 53 Explanation:

The Civil Rights Act of 1866 prohibits discrimination on the basis of race in the sale lease, or other transfer of real or personal property.

Question 54

Another name for a HUD-1 is

A	Good Faith Estimate
B	Uniform Settlement statement
C	Truth-in-Lending document
D	Housing Uniform document

Question 54 Explanation:

A HUD-1 is also known as a Uniform Settlement Statement.

Question 55

A homeowner attempts a refinance on his home only to find out that the home has 2 liens from the previous owner that were never paid off. Who should he contact?

A	The title insurance company
B	The escrow office
C	The loan officer
D	A real estate attorney

Question 55 Explanation:

The title insurance companies protect the holder from defects in the title

Question 56

All listing types below allow the seller the right to sell their property on their own without paying a commission, EXCEPT

A	An exclusive agency
B	Open
C	Exclusive right to sell
D	None of the above

Question 56 Explanation:

An exclusive right to sell listing allows the broker to receive a commission no matter who sells the property.

Question 57

Ken receives a letter that an expressway is being built where his property sits. The state offers to purchase his home. What right is the state exerting?

A	Escheatment
B	Foreclosure
C	Adverse Passion
D	Eminent Domain

Question 57 Explanation:

Eminent domain gives the government the right to take property for public use

Question 58

A family leases a home with a pool. The contract states that the owner will pay property taxes and insurance, but the tenant must pay the pool and yard expenses. This is known as a ______ lease.

A	Percentage
B	Gross
C	Net
D	Month to Month

Question 58 Explanation:

In net lease, the tenant pays the maintenance and operating expenses

Question 59

Mrs. Glenn has purchased new energy efficient windows, put weather stripping around the doors, and replaced an old wall heater with a new central air and heat system. Mrs. Glenn has _______ his home.

A	weatherized
B	energized
C	overhauled
D	redlined

Question 59 Explanation:

Because he made energy efficient improvements he has weatherized his home

Question 60

Tenant Oliver is renting a 1 bedroom apartment and his rent will be $1000 per month. What is the maximum security deposit the owner may require?

A	$923
B	$1500
C	$1615.25
D	$1846

Question 60 Explanation:

The maximum a New Jersey landlord can charge for a security deposit 1.5 times the monthly rent.

Question 61

The total commission for the sale of a $500,000 property is 7%. The listing states that they will offer 3.0% to a co-broker who brings a buyer which ends in a successfully closed transaction. How much will the listing broker net after his sales agent, who is on a 45/55 (listing broker gets 55%) split, is paid?

A	$26,940
B	$15,715
C	$11,000
D	$11,225

Question 61 Explanation:

Subtract the listing broker's commission from the total commission percentage. Then multiply that number to the home sales price. Then multiply that number by the listing broker's split with his agent. 7%-3.0% = 4% x$500,000 = $20000 x 55% = $11,000

Question 62

Several first time home buyers purchasing homes in a community redevelopment area noticed that they were not offered a fixed rate loan by the developer's lender. They were only offered adjustable rate mortgages. This is most likely an example of:

A	Economic adjustments
B	Redlining
C	Conforming
D	Steering

Question 62 Explanation:

the lender only offered 1 loan type to home buyers purchasing in the area which is more than likely a low to moderate income area.

Question 63

Sandy has been a licensed sales agent for over a year and would like to pursue her broker's license. What must she do?

A	Pass the test
B	Complete 150 hrs of classroom instruction
C	Submit paperwork for approval to receive a Certificate of Examination Eligibility
D	All of the above

Question 63 Explanation:

To be a broker in New Jersey, she has complete 150 hours of classroom instruction, submit paperwork for approval to receive a Certificate of Examination Eligibility, and pass the broker's license exam

Question 64

All are true except:

A	Real estate licenses are valid for 2 years
B	An inactive sales agent cannot collect referral fees
C	The fee for renewing a salesperson's license is $137
D	A salesperson must take continuing education in order to remain in active status

Question 65

FHA insured loans protect the:

A	Lender
B	Realtor
C	Seller
D	Buyer

Question 65 Explanation:

FHA insured loans protect the lender in the event the borrower defaults.

Question 66

MGL 183A relates to which residence type?

A	3-family home
B	SFR
C	condo
D	mixed use property

Question 66 Explanation:

Condos are created under MGL 183A in which it provides a permit for multi-unit buildings to be divided into separate units that can be owned by an individual fee simple estate.

Question 67

A tenant signs a 1 year lease where the owner allows him to occupy the property during this time. This is an example of:

A	Fee simple
B	Freehold estate
C	Time share
D	Non-freehold estate

Question 67 Explanation:

Non-freehold estate give the holder of the estate the right to occupy the property until the end of the lease.

Question 68

What is the form used in New Jersey when the landlord wants the tenant to comply with the terms of the lease?

A	Notice to Vacate
B	Notice to Quit
C	Notice to Cease
D	Notice of Eviction

Question 68 Explanation:

Notice to Cease forms are used to tell the tenant to comply with the terms of the lease. These forms must specify that the tenant will not be evicted is she/he complies with the terms of the leases.

Question 69

When someone who is upside down with their mortgage gets permission to sell their house for less than they owe, this process is known as:

A	Short Sale
B	Foreclosure
C	deed restructure
D	deed-in-lieu of foreclosure

Question 69 Explanation:

Short sale is when the bank gives the home owner the permission to sell the home when they owe more than it's worth.

Question 70

"OLD CAR" stands for:

A	Obligation, Litigation, Disclosure, Care, Access, Real estate
B	Obedience, Loyalty, dedication, Confidentially, accountability, realtor
C	Obligation, license, Disclosure, Confidentially, accountability, reasonable care
D	Obedience, Loyalty, Disclosure, Confidentially, accountability, reasonable care

Question 70 Explanation:

"OLD CAR" is an acronym used to remember the agent's fiduciary duties to their client.

Question 71

A couple's agent takes them to see a for-sale by owner listing. The couple decides they really like the house and make an offer. The seller, impressed by the agent's professionalism, asks if she can represent him also. This type of agency is known as:

A	Facilitator
B	Is prohibited in New Jersey
C	Dual Agency
D	Buyer's Agent

Question 71 Explanation:

In a dual agency, the broker represents both parties in a transaction.

Question 72

A broker's license can be revoked if he or she:

A	fails to return deposit funds to client when requested
B	commingles business and personal funds
C	fails to pay the agent their commission split
D	all of the above

Question 72 Explanation:

A broker cannot mix business and personal funds, refuse to pay client their escrow funds when requested and hold out on paying his sales agent.

Question 73

A person dies leaving no will and no heirs. The decedent's property would transfer by:

A	Adverse possession
B	State
C	Escheat
D	Laws of descent

Question 74

Describe the ownership of a property if 4 cousins--Chris, George, Chad, and Candace--are joint tenants and Candace sells her interest to cousin Patrick. The new deed will read:

A	Tenants in common with Chris, George, and Chad
B	Tenants in will
C	Joints tenant Chris, George, and Chad
D	Candace is not allowed to sell her interest

Question 74 Explanation:

Joint tenants can transfer title but the new owner becomes a tenant in common with the other joint tenants. For joint tenancy to be valid everyone has to go on title at the same time

Question 75

A transaction where the seller agrees to finance the loan of the buyer is called:

A	hard money loan
B	blanket mortgage
C	conventional loan
D	purchase money mortgage

Question 75 Explanation:

A purchase money mortgage is when the seller holds the financing for the borrower.

Question 76

A 4,000 square feet home sells for $425,000. If it sits on an acre lot, what is the price/square feet the home sold for?

A	$94
B	$106.25
C	$116
D	$154
E	Price/square feet is found by dividing the price by the square feet. 425,000/4,000= $106.25

Question 77

A lot recently sold for $145,000. It is 310' x 240'. What was the cost/acre?

A	$67,074
B	$70,774
C	$77,774
D	$85,294

Question 77 Explanation:

310 x 240 = 74,400 square feet. 1 acre = 43,560 sqft 74,400/43,560 = 1.70 acres. $145,000/1.70 = $85,294

Question 78

If Jenny sells her home, but then remains in the property by becoming a tenant of the new landlord, this is known as

A	Testate
B	Wraparound Mortgage
C	Leaseback
D	Freehold

Question 78 Explanation:

New landlord leases property back to the tenant.

Question 79

A homeowner puts a $150,000 down payment on a $450,000 home. What percentage is the down payment?

A	33%
B	18%
C	20%
D	30%

Question 79 Explanation:

Divide the down payment by the sales price. 150,000/450,000 = .33 or 33%

Question 80

Lucas sells his home to Shelly for $625,000. Who pays the transfer fee?

A	Lucas
B	Shelly
C	A and B
D	Neither

Question 80 Explanation:

New Jersey charges a realty transfer fee whenever real property changes hands, and this expense is paid by the seller at closing for sales under $1,000,000

Question 81

In order for Mary, a New jersey real estate broker, to renew her license, she must

A	complete 15 hrs of continuing education
B	complete 12 hrs of continuing education
C	complete 20 hrs of his continuing education
D	retake the real estate exam

Question 81 Explanation:

a broker or sales agent must take 12 hrs of continuing education classes within 2 years to renew their license

Question 82

An investor gets a 30 year loan due in 15 years. This is a:

A	VA loan
B	package mortgage
C	balloon
D	open-end mortgage

Question 82 Explanation:

In a balloon mortgage the final lump sum is due at the balloon termination date

Question 83

The most probable price that an informed purchaser might pay is the:

A	Sales Price
B	Broker price opinion
C	Market value
D	Assessed value

Question 83 Explanation:

Market value is the most probable price that an informed buyer will pay.

Question 84

A lender prequalifies a couple for a loan amount up to $325,000 with a 4% down payment. What booklet must be given to them within 3 days of application?

A	An information booklet prepared by HUD
B	A booklet on the explanation of closing costs
C	Regulation-Z booklet
D	HUD-1 booklet

Question 84 Explanation:

Per RESPA, a lender or mortgage broker must give a borrower a copy of a HUD prepared information booklet within 3 days of application

Question 85

When a borrower makes a down payment less than 20% and gets an FHA loan, what monthly charge should they expect to be added to their mortgage payment?

A	Property taxes
B	Funding Fee
C	Mortgage Insurance Premium
D	Equity loan payment

Question 85 Explanation:

FHA provides mortgage insurance to protect the lender in case default and the borrower pays a monthly fee along with their mortgage payment.

Question 86

_________ backs rural development loans.

A	A life insurance company
B	FHA
C	Freddie Mac
D	Ginnie Mae

Question 86 Explanation:

The Government National Mortgage Association (Ginnie Mae) is a major purchaser of government-backed mortgage loans.

Question 87

The sales comparison approach is also known as the:

A	Appraisal process
B	Market data
C	Replacement cost
D	Cost

Question 87 Explanation:

The market data approach is also known as the Comparison approach

Question 88

"DUST" is a term associated with:

A	Licensing
B	Title
C	Appraisals
D	Conformity

Question 89

In New Jersey, if there are more homes on the market than buyers, there is:

A	Regression
B	More supply than demand
C	Substitution
D	Law of decreasing return

Question 89 Explanation:

There's a larger inventory of homes than there are buyers

Question 90

If a 4 family home is valued at $800,000 and the cap rate is 8%, what is the annual net operating income?

A	$64,000
B	$85,444
C	$100,000
D	$71,000

Question 90 Explanation:

Value x Cap rate = Net operating Income 800,000x .08 = 64000

Question 91

Another name for the Federal Fair Housing Act is:

A	A Fair Housing
B	Title VIII of the Civil Rights Act of 1968
C	Federal Civil Rights Act of 1866
D	Consumer Protection Law

Question 91 Explanation:

The federal fair housing act broadened the prohibitions against discrimination in housing to include sex, race, color, religion, national origin, and handicap familial status in connection with the sale or rental of housing or vacant land.

Question 92

In New Jersey, the Law Against Discrimination prohibits discrimination based on which of the following?

A	Gender Identity or Expression
B	Sexual Orientation
C	Familial status
D	All of the above

Question 93

All of these are grounds for license suspension or revocation EXCEPT

A	Commingling personal and business funds
B	Acting as an undisclosed dual agent
C	owing no fiduciary duties to clients while acting as a facilitator
D	Practicing real estate with an inactive license

Question 93 Explanation:

A facilitator (non-agent) owes no fiduciary duties to clients

Question 94

All have right to survivor-ship EXCEPT

A	Tenancy in common
B	Tenancy by entirety
C	Joint tenancy
D	none of the above

Question 94 Explanation:

Tenancy in common does not have right of suvivorship. Tenancy by entirety is a form of joint tenancy and has along with joint tenancy right suvivorship

Question 95

The best form of ownership is:

A	Pur autre vie Hint:
B	Leasehold
C	Fee Simple
D	Freehold

Question 95 Explanation:

Fee simple is type of freehold estate and is the best form of ownership because the owner has the right to occupy or rent the property, sell or transfer ownership, build on and mine for minerals and restrict or allow the use of property to others.

Question 96

Louis and Sam owned their home as joint tenants until Sam died. Which statement is true?

A	Louis now has to sell his home.
B	If there is a loan on the property, the lender will call the loan due.
C	Louis will become the sole owner.
D	Louis will have to move.

Question 96 Explanation:

Joint tenancy includes the right of suvivorship, the surviving co-owners share equally in the deceased owner's interest.

Question 97

The New Jersey Real Estate Sales Full Disclosure Act entitles New Jersey residents a period of at least how many days to rescind their offer on properties required to register per the Act?

A	7
B	10
C	14
D	20

Question 97 Explanation:

The Act allows New Jersey residents at least 7 days to rescind their purchase of properties required to register with the Bureau of Subdivided Land sales Control.

Question 98

A licensed agent who is associated with a brokerage is a:

A	Broker
B	Salesperson
C	Processor
D	Escrow agent

Question 99

Overlooked by many homeowners, which is NOT a cost of owning a home?

A	Repairs
B	Interest paid on the mortgage loan
C	Personal property taxes
D	Maintenance

Question 99 Explanation:

Personal property tax are taxed on personal property and not real property.

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