NJ Title Insurance RE Practice Exam with Correct Questions and Answers

NJ Title Insurance RE Practice Exam with Correct Questions and Answers Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of a - CORRECT ANSWER-a unilateral contract in which only seller A has made a promise to perform. The purchased price for a new home was $230,000. The buyer put down 20%, and the balance was a mortgage for 80%of the purchase price. The appraised value at the time of closing was $220,000. What will the buyer pay for one year's property taxes, if her rate is 0.2%? - CORRECT ANSWER-Assessed value: 220,000 * 0.2% = 440 *look at what property tax they gave you first Which of the following actions is NOT prohibited by the New Jersey Real Estate Commission rules? - CORRECT ANSWER-Firing a new salesperson who did not achieve specific sales goals Bill pays his property tax bill of $980 for the calendar years . He signs a purchase and sale contract on June 28th and closes on July 15 how much is the taxes during the month (365)? - CORRECT ANSWER-*18 days in between June: 980 * 3/365 = 8.054 July: 980 * 15/360 = 40.273 Taxes cost in total: $48.33 A home is being purchased for $275,000. The buyer agrees to an 80% loan with the seller paying $5,000 of the buyer's closing costs. What amount will the buyer have to meet his down payment? - CORRECT ANSWER-275,000 * 20% = 55,000 down payment In order to collect a commission, which of the following is a REQUIREMENT for a broker with an open listing? - CORRECT ANSWER-the broker or one of his licensees must be the procuring cause for the sale. The seller has entered into an exclusive right to sell agreement with Terry Hill. Ms. Hill presents the seller with an offer to purchase which is 20% less than the list price. Which of the following? - CORRECT ANSWER-the seller is under no obligation to accept the offer or make a counter offer. A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by the seller. The buyer - CORRECT ANSWER-Must go through with the purchase because the house is being sold as is. A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this? - CORRECT ANSWER-Alienation Clause