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Real Estate New Jersey Real Estate Salesperson Sample Questions:

1. In many states, usury laws:

A) determine the possible legal use of land.
B) establish a maximum rate of interest allowed for loans.
C) provide a right to use property belonging to another.
D) impose a tax on a purchaser of personal property for resale or use.

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 lender will take the title subject to any junior liens.
B) The loan will still be assumable.
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.

3. Are electronic signatures enforceable on a real estate contract?

A) Yes, because they are allowed by the federal government.
B) No, because they are only allowed on deeds.
C) Yes, because they are legal in real estate transactions.
D) No, because they must be signed and witnessed.

4. 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) neither has ever used the Homesellers Exclusion in the past.
C) at least one of them has reached the age of 65.
D) they have owned and occupied the house for at least 2 of the previous 5 years.

5. A public utility company is installing power lines across several counties. Will the utility company be more likely to be granted an easement appurtenant or an easement in gross?

A) easement in gross because it does not require ownership of real property adjacent to the property that is subject to the easement
B) easement appurtenant because it cannot run with the land
C) easement appurtenant because it cannot be extinguished by merger of the dominant and servient tenements
D) easement in gross because it allows the holder of the easement to eventually gain title to the encumbered property

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