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Practice Test - 01
Essentials of NJ Real Estate
Question | Answer |
---|---|
Which of the following is NOT considered an improvement to land? a. Sewers. b. Roads. c. Buildings. d. Crops. | d. crops. |
To the seller’s agent, the buyer is properly described as a a. client. b. customer. c. principal. d. fiduciary. | b. customer. |
Which appraisal approach computes the value of the land separately from the buildings? a. Cost. b. Income capitalization. c. Market data. d. Market analysis. | a. Cost. |
A person who has absolute control of a parcel of real estate is said to own a a. leasehold estate. b. fee determinable. c. life estate. d. fee simple. | d. fee simple. |
A house is listed for $248, 900. The seller received $223,000 after the broker deducted her 7% commission. What was the selling price of the house? a. Seller received / 100% – 7% = .93 decimal form = Selling price. a. $223,000 / .93 = $240,000. b. Seller received / 100% – 7% = .93 decimal form = Selling price. b. $223,000 / .93 = $223,200. c. Seller received / 100% – 7% = .93 decimal form = Selling price. c. $223,000 / .93 = $231,477. d. Seller received / 100% – 7% = .93 decimal form = | a. Seller received / 100% – 7% = .93 decimal form = Selling price. a. $223,000 / .93 = $240,000. |
A legal description that defines the boundary lines is called a. a geodetic survey. b. metes and bounds. c. a rectangular survey. d. a recorded plat. | b. metes and bounds. |
Which of the following is considered dual agency? a. Broker acting for both buyer and seller. b. Brokers cooperating in a multiple listing service. c. Broker listing and selling to the same person. d. Salesperson listing two houses on the same street. | a. Broker acting for both buyer and seller. |
Which of the following is a lien that does NOT need to be recorded? a. Money judgement. b. Real estate taxes. c. A tax deed. d. A voluntary lien. | b. Real estate taxes. |
Whether a salesperson is associated with a broker as an employee or as an independent contractor is important a. for income tax purposes. b. when applying for a license. c. when listing property, independent contractor may list their name. d. when establishing the escrow account. | a. for income tax purposes. |
A township contains a. 6 square miles. b. 36 sections. c. 18 sections. d. 640 acres | |
A merchant signs a lease for $800 a month or 6% gross sales, Whichever is more. In July gross sales were $14,000. How much is the rent for July? | |
A buyer offers $26,280 for a 20% interest in a building. What is the total value of the building? |