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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. A property that contains a 2,500-square-foot house has a land value of $45,000. The house suffers from
$7,000 of physical depreciation and $2,500 of functional obsolescence. If the replacement cost of the house is
$75 per square foot, what is the value of the property?

A) $223,000
B) $178,000
C) $232,500
D) $187,500

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

3. A couple who sell their principal residence may take up to $500,000 in federal capital gains tax-free only if:

A) they buy a replacement home of equal or greater value than the one being sold within a year.
B) they have owned and occupied the house for at least 2 of the previous 5 years.
C) neither has ever used the Homesellers Exclusion in the past.
D) at least one of them has reached the age of 65.

4. A Seller's Property Disclosure form states that there are no known material defects with the property, but the listing licensee is aware of asbestos wrapped duct pipes in the basement. The licensee should:

A) suggest the buyers have a home inspection and leave discovery up to the inspector.
B) disclose the existence of asbestos to all potential buyers.
C) suggest to the seller wrap the pipes to contain potential airborne contamination.
D) ask the seller's permission to disclose and abide by the seller's wishes.

5. Evergreen bushes and apple trees on a property that were planted by the current owner are examples of:

A) trade fixtures
B) real estate
C) personal property
D) chattels

Solutions: