NJ RE State Exam Questions/Answers 100%
CORRECT TO PASS
- A building was purchased for 350,000 with a 20% down payment. If the lender charges the buyer (3)
discount points, how much will the buyer need to cover these two items - correct answer ✔✔B. $78,400
Points are based on Loan Amount not Purchase Amount
1% per point per 100K borrowed (exp. 3 pts = 3%)
350K x .20 = 70K (Down Payment)
350K x .80 = 280K (Loan Amount)
280K x .03 = 8,400 (Discount Point Cost)
70K + 8,400 =
78,400 Total to cover both items
- The rules governing New Jersey real estate licensees require that a competitive market analysis (CMA)
for a property MUST include: - correct answer ✔✔C. The sales price of pending properties.
- A real estate broker has a fiduciary responsibility to her client and her responsibilities include
investigating financial references, ordering and examining credit reports and familiarity with the ADA
Title III. This broker is most likely working for - correct answer ✔✔B. An Escrow Officer
- a seller places his property on the market for sale at a certain price. A buyer sees the property and
makes a written offer to purchase that is 90% of the asking price. The seller rejectsterm-6 that offer but
states he will accept an offer of 95% of the original asking price. The buyer rejects that counter offer. The
original offer is - correct answer ✔✔B. Null and Void
+ Seller A entered into an option contract with Buyer B. The contract allowed for a price of 200,000
which seller A will honor for a 12 month period exclusively to buyer B. This would be an example of a -
correct answer ✔✔A. Unilateral contract in which only seller A has made a promise to perform
+ A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current
interest rate is 12%. A buyer can pay $60,000 down and wants to carrier mortgage that includes the
, sellers $20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of
10%. What kind of mortgage loan is this? - correct answer ✔✔C. Wraparound
+ A real estate licensee representing a buyer may do all of the following EXCEPT: - correct answer ✔✔D.
disclose the highest price the buyer is willing to pay
+ Ted and Carol want to buy a house that is listed for $105,000, the seller accepts the offer they wrote
for $5,000 less than the list price. They have a 20% down payment and need to get an 80% LTV
mortgage. Their lender offers them 30yr. Mortgage at 5.5% interest. The taxes are $1,494 per yr and the
insurance is $480 per yr. How much is their monthly PITI payment? - correct answer ✔✔C. $618.90
How to Solve
105,000-5,000 =100,000
80% of 100K = 80K
80,000 (LOAN AMOUNT)
80,000/1,000 = 80
80 x 5.68 (Amortization Table under 30 Year @ 5.5%)
454.40 (Principal + Interest Rate)
124.50 (Taxes 1494/12)
40.00 (Insurance 480/12)
618.90 Total PITI
+ Depreciation usually applies to - correct answer ✔✔A. the building only
+ During a broker meeting, a broker states that a competitor is not charging enough commission. the
other broker should; - correct answer ✔✔C. remove themselves from the meeting
it is a violation of Sherman anti-trust laws.
- A salesperson preparing a written offer from a prospect may do so by filling in the blanks on a pre-
approved broker's contract form if the subject property is a: - correct answer ✔✔D. small, fully occupied
strip mall housing a delicatessen, a dry cleaner, and stationary store
CORRECT TO PASS
- A building was purchased for 350,000 with a 20% down payment. If the lender charges the buyer (3)
discount points, how much will the buyer need to cover these two items - correct answer ✔✔B. $78,400
Points are based on Loan Amount not Purchase Amount
1% per point per 100K borrowed (exp. 3 pts = 3%)
350K x .20 = 70K (Down Payment)
350K x .80 = 280K (Loan Amount)
280K x .03 = 8,400 (Discount Point Cost)
70K + 8,400 =
78,400 Total to cover both items
- The rules governing New Jersey real estate licensees require that a competitive market analysis (CMA)
for a property MUST include: - correct answer ✔✔C. The sales price of pending properties.
- A real estate broker has a fiduciary responsibility to her client and her responsibilities include
investigating financial references, ordering and examining credit reports and familiarity with the ADA
Title III. This broker is most likely working for - correct answer ✔✔B. An Escrow Officer
- a seller places his property on the market for sale at a certain price. A buyer sees the property and
makes a written offer to purchase that is 90% of the asking price. The seller rejectsterm-6 that offer but
states he will accept an offer of 95% of the original asking price. The buyer rejects that counter offer. The
original offer is - correct answer ✔✔B. Null and Void
+ Seller A entered into an option contract with Buyer B. The contract allowed for a price of 200,000
which seller A will honor for a 12 month period exclusively to buyer B. This would be an example of a -
correct answer ✔✔A. Unilateral contract in which only seller A has made a promise to perform
+ A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current
interest rate is 12%. A buyer can pay $60,000 down and wants to carrier mortgage that includes the
, sellers $20,000 existing mortgage and the remaining $40,000 for a total of $60,000 at an interest rate of
10%. What kind of mortgage loan is this? - correct answer ✔✔C. Wraparound
+ A real estate licensee representing a buyer may do all of the following EXCEPT: - correct answer ✔✔D.
disclose the highest price the buyer is willing to pay
+ Ted and Carol want to buy a house that is listed for $105,000, the seller accepts the offer they wrote
for $5,000 less than the list price. They have a 20% down payment and need to get an 80% LTV
mortgage. Their lender offers them 30yr. Mortgage at 5.5% interest. The taxes are $1,494 per yr and the
insurance is $480 per yr. How much is their monthly PITI payment? - correct answer ✔✔C. $618.90
How to Solve
105,000-5,000 =100,000
80% of 100K = 80K
80,000 (LOAN AMOUNT)
80,000/1,000 = 80
80 x 5.68 (Amortization Table under 30 Year @ 5.5%)
454.40 (Principal + Interest Rate)
124.50 (Taxes 1494/12)
40.00 (Insurance 480/12)
618.90 Total PITI
+ Depreciation usually applies to - correct answer ✔✔A. the building only
+ During a broker meeting, a broker states that a competitor is not charging enough commission. the
other broker should; - correct answer ✔✔C. remove themselves from the meeting
it is a violation of Sherman anti-trust laws.
- A salesperson preparing a written offer from a prospect may do so by filling in the blanks on a pre-
approved broker's contract form if the subject property is a: - correct answer ✔✔D. small, fully occupied
strip mall housing a delicatessen, a dry cleaner, and stationary store
