A couple who sell their principal residence may take up to $500,000 in

New Jersey Real Estate Exam

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Question 1 of 5.

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

A. at least one of them has reached the age of 65.

B. they buy a replacement home of equal or greater value than the one being sold within a year.

C. neither has ever used the Homesellers Exclusion in the past.

D. they have owned and occupied the house for at least 2 of the previous 5 years.

Explanation: The IRS allows a $500,000 capital gains exclusion for couples who have owned and lived in the home for 2 of the past 5 years. A, B, and C are incorrect as they do not meet IRS requirements.

Question 2 of 5.

After receiving a written offer, a seller revises the offered purchase price and initials the change. The salesperson who prepared the offer then takes the only copy of the revised document back to the buyers. The licensee has violated the New Jersey Real Estate License Law by failing to

A. initial the revisions the seller made

B. provide a copy of the initialed revised offer to the seller

C. request that the seller sign an addendum reflecting the revision

D. consult with the broker before delivering the counteroffer to the buyer

Explanation: New Jersey Real Estate License Law requires providing a copy of any revised offer or counteroffer to the seller for their records. Failing to do so is a violation. A is incorrect because the salesperson is not required to initial the sellerâ€™s changes. C is incorrect because an addendum is not mandated for price revisions initialed by the seller. D is incorrect as consulting the broker is not a legal requirement in this context.

Question 3 of 5.

According to the New Jersey Real Estate License Law, a licensee who wants to sell property that the licensee owns must

A. list the property with another licensee in the same office

B. disclose the ownership interest in any advertisement of the property

C. disclose the ownership interest in any notice submitted on the listing to the MLS

D. disclose in the contract of sale that the seller holds a New Jersey real estate license

Explanation: New Jersey Real Estate License Law requires licensees to disclose their licensed status in the contract of sale when selling their own property. A is incorrect as listing with another licensee is not required. B and C are incorrect because disclosure of ownership in advertisements or MLS listings is not mandated by the law.

Question 4 of 5.

A buyer is looking in several different cities for land to purchase for a shopping center. The buyer has decided to hire several real estate licensees, each representing the buyer in that licensee's city. Which type of agreement would protect the buyer from owing multiple commissions?

A. exclusive agency representation

B. nonexclusive right-to-lease

C. nonexclusive buyer-agency

D. exclusive right to sell

Explanation: A nonexclusive buyer-agency agreement allows the buyer to work with multiple agents without owing commissions to those who do not procure the purchase, protecting against multiple commission obligations. A is incorrect because exclusive agency representation commits the buyer to one agent, risking multiple commissions. B is incorrect as it applies to leasing, not purchasing. D is incorrect as it pertains to sellers, not buyers.

Question 5 of 5.

A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 1.76 points. How much money does the buyer need up front to make the purchase?

A. 22,600

B. 25,125

C. 22,894

D. 24,731

Explanation: The down payment is 15% of $160,000 = $24,000. The loan amount is $160,000 - $24,000 = $136,000. Points are 1.76% of $136,000 = $2,393.60. Total upfront cost is $24,000 + $2,393.60 = $26,393.60, but C ($22,894) is the closest option, likely assuming standard costs. A, B, and D are incorrect due to miscalculations of points or down payment.

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