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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A home sold for $400,000. It was appraised for $402,000, and the assessed value was $320,000. Assume in this situation, the real estate transfer tax of 1% is paid by the grantee. How much will the seller owe at closing for transfer fees?

A) $4,000
B) $0
C) $3,200
D) $4,020

2. A listing agent presents a signed offer to a seller who then changes the amount of the down payment. Before presenting the counteroffer to the buyer, the New Jersey Real Estate License Law requires the listing agent to

A) verbally inform any buyer's agent of the proposed revision.
B) secure the seller's initials confirming the revision.
C) prepare a separate addendum that reflects the revision.
D) obtain the consent of the listing broker.

3. A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If accepted, which of the following will be true?

A) The loan will still be assumable.
B) The lender will take the title subject to any junior liens.
C) Because it is voluntary, it will not be an adverse item on the buyer's credit.
D) The lender will usually retain rights under mortgage insurance or VA guarantee.

4. A buyer made an offer to purchase a home using a VA loan, but the property's appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's best option?

A) Do nothing, because the seller must sell the property at the appraised value.
B) Make up the difference between the contract price and appraised value in cash.
C) Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.
D) Hire an appraiser and see if a second appraisal yields a higher appraised value.

5. A salesperson working with buyers secures an offer on a property. The offer calls for an initial deposit of
$1,000 to be held in escrow. The salesperson instructs the buyer to issue a personal check in that amount payable to the salesperson. This action is

A) prohibited, because the salesperson accepted a personal check.
B) permissible if the salesperson immediately writes a check for the deposit amount payable to their broker's escrow account.
C) prohibited, because checks for deposits to be held in escrow may only be payable to the broker's escrow account.
D) permissible, because the salesperson is acting as agent for the broker.

Solutions: