NJ RE STATE EXAM
QUESTIONS/ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT RATED A+ || UPDATED 2025
Q: A property was purchased for $350,000 with a 20% down payment. The
lender charges 3 discount points. How much does the buyer need to pay to
cover both the down payment and the discount points?
✔✔ B) $78,400
Explanation:
Down payment = 20% of $350,000 = $70,000
Loan amount = 80% of $350,000 = $280,000
Discount points = 3% of $280,000 = $8,400
Total needed = $70,000 + $8,400 = $78,400
Q: According to New Jersey real estate rules, a Competitive Market Analysis
(CMA) must include which of the following?
A) Tax assessed value
B) Listing price of similar homes
✔✔ C) Sales price of pending properties
D) Property owner’s asking price
Q: A real estate broker investigates financial references, checks credit reports,
and understands ADA Title III. What role is this broker most likely acting in?
A) Buyer’s agent
✔✔ B) Escrow officer
C) Property manager
D) Dual agent
,Q: A seller lists their home at a specific price. A buyer offers 90% of that
price. The seller rejects the offer but says they’d accept 95%. The buyer
declines. What is the status of the original offer?
A) Still valid
✔✔ B) Null and void
C) Automatically accepted
D) Legally binding
+ 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 -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? -ANSWER✔✔C. Wraparound
+ A real estate licensee representing a buyer may do all of the following EXCEPT:
-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? -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 -ANSWER✔✔A. the building only
+ During a broker meeting, a broker states that a competitor is not charging enough
commission. the other broker should; -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: -
ANSWER✔✔D. small, fully occupied strip mall housing a delicatessen, a dry
cleaner, and stationary store
+ Quality Supermarkets has taken occupancy of a retail building and has a long
term lease. As part of the their fit-up, they bolt to the floor their meat and dairy
coolers, and shelves. When Quality Supermarket vacates the property at the end of
the lease, will Quality Supermarkets be legally entitled to remove these fixtures? -
ANSWER✔✔D. Yes, if removed prior to the end of the lease.
QUESTIONS/ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT RATED A+ || UPDATED 2025
Q: A property was purchased for $350,000 with a 20% down payment. The
lender charges 3 discount points. How much does the buyer need to pay to
cover both the down payment and the discount points?
✔✔ B) $78,400
Explanation:
Down payment = 20% of $350,000 = $70,000
Loan amount = 80% of $350,000 = $280,000
Discount points = 3% of $280,000 = $8,400
Total needed = $70,000 + $8,400 = $78,400
Q: According to New Jersey real estate rules, a Competitive Market Analysis
(CMA) must include which of the following?
A) Tax assessed value
B) Listing price of similar homes
✔✔ C) Sales price of pending properties
D) Property owner’s asking price
Q: A real estate broker investigates financial references, checks credit reports,
and understands ADA Title III. What role is this broker most likely acting in?
A) Buyer’s agent
✔✔ B) Escrow officer
C) Property manager
D) Dual agent
,Q: A seller lists their home at a specific price. A buyer offers 90% of that
price. The seller rejects the offer but says they’d accept 95%. The buyer
declines. What is the status of the original offer?
A) Still valid
✔✔ B) Null and void
C) Automatically accepted
D) Legally binding
+ 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 -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? -ANSWER✔✔C. Wraparound
+ A real estate licensee representing a buyer may do all of the following EXCEPT:
-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? -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 -ANSWER✔✔A. the building only
+ During a broker meeting, a broker states that a competitor is not charging enough
commission. the other broker should; -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: -
ANSWER✔✔D. small, fully occupied strip mall housing a delicatessen, a dry
cleaner, and stationary store
+ Quality Supermarkets has taken occupancy of a retail building and has a long
term lease. As part of the their fit-up, they bolt to the floor their meat and dairy
coolers, and shelves. When Quality Supermarket vacates the property at the end of
the lease, will Quality Supermarkets be legally entitled to remove these fixtures? -
ANSWER✔✔D. Yes, if removed prior to the end of the lease.
