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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. Last year, an apartment building had a net operating income of $174,000. If a potential buyer is looking for a capitalization rate of 8%, how much should the buyer be willing to pay for the building?

A) $2,175,000
B) $139,200
C) $1,392,000
D) $174,000

2. A buyer-broker locates a property that is listed with another broker. The buyer makes an offer through the buyer-broker and an agreement of sale results. In this situation, the buyer-broker is acting as a:

A) representative of the seller and owes no fiduciary obligations to the buyer
B) representative of the buyer and owes no fiduciary obligations to the seller
C) referring broker with the listing broker
D) subagent of the listing broker

3. A couple secured a home mortgage loan from a lender who appraised the property at $92,500. If the loan-to- value ratio on the property was 85%, what was the minimum amount the couple needed for the down payment?

A) $13,875
B) $10,882
C) $7,862
D) $6,166

4. If an owner wants to list a property for sale "as is," the listing agent should:

A) conclude that if the buyer later discovers defects that were not disclosed the listing agent is relieved of any responsibility.
B) assume that the house is a "fixer-upper."
C) assume that the owner will accept a relatively low price for the property.
D) question the seller as to any known defects.

5. A buyer who is purchasing a property intends to build a chain link fence in the backyard. There is a 12-year- old deed restriction that prohibits chain link fences. The licensee finds out that there are no city codes prohibiting chain link fences. Which of the following statements regarding this situation is true?

A) Deed restrictions always take priority over city codes.
B) This deed restriction is more restrictive and will, therefore, take precedence.
C) This city code takes priority because deed restrictions expire 10 years after a subdivision is developed.
D) City code always takes priority over deed restrictions.

Solutions: