NJ Real Estate Exam Practice Questions With Correct Answers

According to fair housing, which of these is not a protected class? A. muslim B. arab C. homosexual D. single mother - Answer C. homosexual The front door key to a house is: A. chattel B. fixture C. improvement D. trade fixture - Answer B. fixture The phrase "bundle of legal rights" is properly included in: A. the definition of real property B. a legal description C. real estate transactions D. leases for less than one year - Answer A. the definition of real property An estate at will: A. cannot be terminated B. is terminated only if stated in the else's last will and testament C. terminates on the death of the lessor or lessee D. terminates on the date specified in the lease agreement - Answer C. terminates on the death of the lessor or lessee Which of the following is an essential element of a valid contract for the sale of real estate? A. price based on certified appraisal B. signature of the listing broker C. offer and acceptance D. social security number of buyer and seller - Answer C. offer and acceptance The HUD-1 statement will still be used for a mortgage secured by a: A. conventional loan used to purchase a single-family dwelling B. single-family dwelling financed by an FHA-insured loan C. a duplex, in which the purchaser will live, financed by a VA-guarenteed loan D. reverse mortgage - Answer D. reverse mortgage Which of the following is a lien that does NOT have to be recorded? A. money judgement B. real estate taxes C. a tax deed D. a voluntary lien - Answer B. real estate taxes Whether a salesperson is associated with a broker as an employee or as an independent contractor is important: A. for income tax purposes B. when applying for a license C. when listing property, because and independent contractor may list in her own name D. when establishing the escrow account - Answer A. for income tax purposes Jane Smith gave the hospital a vacant lot for "as long as it is used for hospital purposes". The hospital owns a: A. fee determinable B. remainder interest C. homestead D. leasehold estate - Answer A. fee determinable Which of the following situations will NOT delay closing under TRID rules? A. escrow amount for taxes and insurance was changed B. lender could not document applicant's overtime C. applicant decided on a different loan program D. prepayment penalty was added - Answer A. escrow amount for taxes and insurance was changed Federal income tax regulations allow a homeowner to reduce taxable income by amounts paid for: A. interest and property tax B. repairs and maintenance C. insurance problems D. all of the above - Answer A. interest and property tax Continuing education courses may be taken: A. in a classroom only B. exclusively over the internet C. entirely by mail D. by mail, internet, or classroom - Answer D. by mail, internet, or classroom The new combined federal TRID: A. requires a lender to provide a Loan Estimate within three business days of completed loan application B. forbids use of the term annual percentage rate C. prevents a broker from saying "FHA financing available" in a classified ad D. requires all mortgage loan applications to be made on standard government forms - Answer A. requires a lender to provide a Loan Estimate within three business days of completed loan application A married couple who meet the ownership and occupancy requirements may sell a principal residence with no federal capital gains tax on profit of up to: A. $125,000 B. $250,000 C. $500,000 D. any amount - Answer C. $500,000 The amount of commission due a salesperson is determined by A. agreement between broker and seller B. agreement between broker and salesperson C. the local association of REALTORS D. state law - Answer B. agreement between broker and salesperson In a real estate sale, transfer tax fees are usually paid by the: A. seller B. state C. buyer D. broker - Answer A. seller A refusal to rent to a couple because they are unmarried violates: A. no law B. New Jersey law C. the Civil Rights Act of 1866 D. the Fair Housing Act of 1968 - Answer B. New Jersey law From which of the following does one obtain an FHA loan? A. Federal Housing Authority B. Federal Home Loan Board C. Local FHA lender D. Farmers Home Agency - Answer C. Local FHA lender In the purchase of real estate, the buyer is held responsible for facts and information obtainable through actual notice and also through: A. caveat emptor B. incorporeal interest C. eminent domain D. constructive notice - Answer D. constructive notice The gross income from a small office building is $73,500 and the annual expense is $52,300. If the owner expects to receive an 11% return on her investment, what should she be willing to pay for the building? A. $192,727 B. $212,000 C. $475,455 D. $668,182 - Answer A. $192,727 Step 1. ( $73,500 - $52,300 = $21,200) Step 2. ($21,200 / 0.11 = $192,727.)