NEW JERSEY (NJ) Real Estate Test Questions with Answers 2023

NEW JERSEY (NJ) Real Estate Test Questions with Answers 1. If a broker is expecting to receive 6% commission on a sale of $250,000 house, what will the commission be? a) $750 b) $1,500 c) $7,500 d) $15,000: d) $15,000 2. A lot measuring 240' by 400' is selling for $400 a front foot. What is the price? a) $1,600 b) $16,000 c) $72,000 d) $96,000: d) $96,000 3. If the frontage of a half acre lot is 100 feet, how deep is it? a) 154 ft b) 218 ft c) 248 ft d) 436 ft: b) 218 ft 4. An acre is how many Sqft?: 1 Acre= 43,560 Sqft. A section = 640 acres 5. Life Estate: Is limited to the life of a specific person; life estate ends with the death of the owner. 6. Which fact or facts is (are) TRUE concerning the DVA loan? a) a DVA loan cannot be assumed b) DVA loans made after March 1,1998 are freely assumable c) the veteran must be careful how she/he uses up eligibility d) the DVA fixes the rate of interest charged by the lender: d) the DVA fixes the rate of interest charged by the lender. 7. If the tenant exercises his option to buy, can he force the landlord to sell?: YES 8. A "JUMBO" loan is:: A loan higher than the secondary markets limit. 9. Selling price: $325,000, 20% down and 2 points plus $2,000 closing fees. What is the total cash required to close? a) 71,500 b) 72,200 c) 73,500 d) 75,600: b) $72,200 10. Which of the following is NOT characteristic of a DVA loan? a) loan is guaranteed b) owner occupied c) loan is insured d) little or no down payment: c) loan is insured 11. If a lender charges 2 points on a $60,000 loan, how much does the lender get? a) 120 b) 1,200 c) 2,400 d) none of the above: b) $1,200 12. A broker establishes a company policy of charging no less than 6% commission, is this legal?: YES 13. Money in a trust account, Broker must? a) keep accurate records b) may withdraw commission amount: a) keep accurate records 14. One who has the right to sign the name of a principal to a contract of sale is: a) an attorney in fact b) broker with a listing c) a special agent d) an attorney at law: a) an attorney in fact 15. A deed made and delivered but NOT recorded is: a) valid between the parties and valid as to third parties with notice b) invalid between the parties: a) valid between the parties and valid as to third parties with notice 16. Two partners own real estate, one has 60% interest, the other has 40% this is : a) joint tenancy b) tenancy in common (no right of survivorship): b) tenancy in common (no right of survivorship) 17. Which is true of Real Estate Appraisers? a) they may not advertise b) fee is based on % of appraised value c) must have designation such as MAI or SREA d) None of the above: d) none of the above 18. The term littoral describes which of the following? a) land bordering water affected by the tide currents b) land bordering water that is flowing like a stream c) land bordering any kind of body of water: a) land bordering water affected by the tide currents 19. The phrase "bundle of legal rights" is properly included in: a) definition of real property b) a legal description c) Real estate transactions d) leases for less than one year: a) definition of real property 20. Which of the following is a freehold estate? a) estate for years b) life estate c) estate at will d) easement in gross: b) life estate 21. An easement acquired by constant, open and adverse use is called an easement by .... a) appurtenance b) prescription c) necessity d) implication: b) prescription 22. Which of the following encumbrances affects the title to property and is considered an general lien? a) unpaid real estate taxes b)mortgage c) judgement