NJ REAL ESTATE EXAM PRACTICE MATH QUESTIONS WITH CORRECT ANSWERS

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 - Answer d) $15,000 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 - Answer d) $96,000 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 - 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) 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 - Answer d) the DVA fixes the rate of interest charged by the lender. 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? a) 71,500 b) 72,200 c) 73,500 d) 75,600 - Answer b) $72,200 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 - Answer c) loan is insured 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 - 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? a) keep accurate records b) 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: a) an attorney in fact b) broker with a listing c) a special agent d) an attorney at law - Answer a) an attorney in fact 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 - Answer a) valid between the parties and valid as to third parties with notice 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) - Answer b) tenancy in common (no right of survivorship) 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 - Answer d) none of the above 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 - Answer a) land bordering water affected by the tide currents 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 - Answer a) definition of real property Which of the following is a freehold estate? a) estate for years b) life estate c) estate at will d) easement in gross - Answer b) life estate An easement acquired by constant, open and adverse use is called an easement by .... a) appurtenance b) prescription c) necessity d) implication - Answer b) prescription