Real NJ Real Estate
Final Exam 2024
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,A tax assessor determined that a commercial building with a 3.5% mortgage has a market value of
$400,000. If the assessed value is 60% of market value and the tax rate is 63 1/2
mills, what is the annual tax?
A. $5,305.50
B. $8,837.50
C. $15,150.00
D. $25,250.00 - Answer: C. 15,150.00
Which of the following statements about airborne radon is TRUE? o.
A. it has an easily detectable odor.
B. its only found in older wood frame structures.
C. is inexpensively detected and mitigated.
D. itis not harmful to adults who do not smoke. - Answer: C. is inexpensively detected and mitigated.
Which of the following statements is the BEST example of puffing? 2
A. Since the bus stop is only 1 block away, the home has excellent access to public transportation.
B. This is the best buy you'll find all year.
C. This home has been fitted with double paned windows, as can be seen in the brochure.
D. This property has a net property income of $7,500. - Answer: B. This is the best buy you'll find all
year.
Ted and Carol want to buy s house that Is listed for $105,000. The seller accepts the offer they wrote for
$5,000 less than list price. They have a 20% down payment and need to get "-
an 80% LTV mortgage. Their lender offers them a 30 yr. mortgage at 5.5% interest. The taxes are $1,494
per year and the insurance Is $480 per year. How much is their monthly PIT!
payment? Be sure to use the amortization table.
AMORTIZATION TABLE QUESTION
a) 454.40
b) 596.40
,c) 618.90
4) 641.62 - Answer: c) 618.90
A buyer Is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years
at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference -
between the monthly payments for these two loans?
AMORTIZATION TABLE
A. $309.20
B. $409.20
C. $525.80
D. $850.80 - Answer: b) 409.20
Which of the following best describes the Housing for Older Persons Act?
A. requires that 55-and-older housing have significant facilities and services designed for seniors
B. requires that at least 80% of occupied units have one person age 55 or older living there
C. allows the awarding of monetary damages against those who believed that property designated as
housing for older persons was exempt
D. allows grandparents with grandchildren to be exempt from the provisions of the Act - Answer: B.
requires that at least 80% of occupied units have one person age 55 or older living there.
The purchase and sales agreement provides for release of earnest money to the seller after the buyer's
property inspection. The seller requests the earnest money prior to the property inspection. The broker
should
A. release the earnest money to the seller immediately.
, B. notify the buyer of the broker's intention to release the earnest money to the seller.
C. release the earnest money on the buyer's verbal approval.
D. refuse to release the earnest money. - Answer: D. refuse to release the earnest money.
A CORRECT statement about New Jersey's real estate transfer tax is that it is:
A. waived for new construction
B. payable by the buyer at closing, although no law prohibits contribution by the seller
C. payable at a reduced rate for grantors who are sixty-two or over
D. payable within thirty days of receipt of the recorded deed - Answer: C. payable at a reduced rate for
grantors who are sixty-two or over
Which of the following statements is the BEST example of puffing?
A. Since the bus stop is only 1 block away, the home has excellent access to public transportation.
B. This is the best buy you'll find all year.
C. This home has been fitted with double paned windows, as can be seen in the brochure.
D. This property has a net property income of $7,500. - Answer: B. This is the best buy you'll find all
year.
Final Exam 2024
Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
,A tax assessor determined that a commercial building with a 3.5% mortgage has a market value of
$400,000. If the assessed value is 60% of market value and the tax rate is 63 1/2
mills, what is the annual tax?
A. $5,305.50
B. $8,837.50
C. $15,150.00
D. $25,250.00 - Answer: C. 15,150.00
Which of the following statements about airborne radon is TRUE? o.
A. it has an easily detectable odor.
B. its only found in older wood frame structures.
C. is inexpensively detected and mitigated.
D. itis not harmful to adults who do not smoke. - Answer: C. is inexpensively detected and mitigated.
Which of the following statements is the BEST example of puffing? 2
A. Since the bus stop is only 1 block away, the home has excellent access to public transportation.
B. This is the best buy you'll find all year.
C. This home has been fitted with double paned windows, as can be seen in the brochure.
D. This property has a net property income of $7,500. - Answer: B. This is the best buy you'll find all
year.
Ted and Carol want to buy s house that Is listed for $105,000. The seller accepts the offer they wrote for
$5,000 less than list price. They have a 20% down payment and need to get "-
an 80% LTV mortgage. Their lender offers them a 30 yr. mortgage at 5.5% interest. The taxes are $1,494
per year and the insurance Is $480 per year. How much is their monthly PIT!
payment? Be sure to use the amortization table.
AMORTIZATION TABLE QUESTION
a) 454.40
b) 596.40
,c) 618.90
4) 641.62 - Answer: c) 618.90
A buyer Is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years
at 5 1/2% or for 30 years at 6 1/2%. To the nearest cent, what is the difference -
between the monthly payments for these two loans?
AMORTIZATION TABLE
A. $309.20
B. $409.20
C. $525.80
D. $850.80 - Answer: b) 409.20
Which of the following best describes the Housing for Older Persons Act?
A. requires that 55-and-older housing have significant facilities and services designed for seniors
B. requires that at least 80% of occupied units have one person age 55 or older living there
C. allows the awarding of monetary damages against those who believed that property designated as
housing for older persons was exempt
D. allows grandparents with grandchildren to be exempt from the provisions of the Act - Answer: B.
requires that at least 80% of occupied units have one person age 55 or older living there.
The purchase and sales agreement provides for release of earnest money to the seller after the buyer's
property inspection. The seller requests the earnest money prior to the property inspection. The broker
should
A. release the earnest money to the seller immediately.
, B. notify the buyer of the broker's intention to release the earnest money to the seller.
C. release the earnest money on the buyer's verbal approval.
D. refuse to release the earnest money. - Answer: D. refuse to release the earnest money.
A CORRECT statement about New Jersey's real estate transfer tax is that it is:
A. waived for new construction
B. payable by the buyer at closing, although no law prohibits contribution by the seller
C. payable at a reduced rate for grantors who are sixty-two or over
D. payable within thirty days of receipt of the recorded deed - Answer: C. payable at a reduced rate for
grantors who are sixty-two or over
Which of the following statements is the BEST example of puffing?
A. Since the bus stop is only 1 block away, the home has excellent access to public transportation.
B. This is the best buy you'll find all year.
C. This home has been fitted with double paned windows, as can be seen in the brochure.
D. This property has a net property income of $7,500. - Answer: B. This is the best buy you'll find all
year.
