NJRE New Jersey Real Estate Salesperson License Examination - Set 2 - Part 2
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 21: An appraiser values a Newark mixed-use building with retail on the ground floor and apartments above by capitalizing the net operating income into a present value, using a rate drawn from comparable investments. Which of the three approaches to value is being applied?
Question 22: An appraiser estimating the value of a Jersey City apartment building applies the formula I divided by R equals V, where I is net operating income, R is the capitalization rate, and V is the value. Which of the following BEST identifies this formula?
Question 23: An appraiser concludes that a Hudson County office building generates a net operating income of two hundred thousand dollars and selects a capitalization rate of eight percent from comparable sales. Which of the following BEST describes the value indication produced by the income approach in concept?
Question 24: An appraiser computing net operating income for a small Trenton apartment building begins with potential gross income, subtracts an allowance for vacancy and collection loss, and then subtracts operating expenses but not debt service. Which of the following BEST identifies the resulting figure?
Question 25: An appraiser values a small Trenton duplex by multiplying the monthly gross rent the property could reasonably produce by a market-derived multiplier drawn from recent sales of similar small rental properties. Which valuation tool is the appraiser primarily applying here?
Question 26: A real estate licensee in Cherry Hill prepares a written comparison of recent sales, current listings, and expired listings to help a seller decide on an asking price. The licensee does not call the document an appraisal. Which of the following BEST identifies what the licensee has prepared?
Question 27: A national lender asks a New Jersey broker to prepare a broker price opinion on a residential property in foreclosure, intending to use the BPO to set the listing price for the lender-owned property. The NJREC views which document as encompassed by the same category as the licensee CMA?
Question 28: An online platform produces a property valuation using public records, recent sales, and statistical regression with no human appraiser involvement. The result is delivered in seconds and includes a confidence score. Which of the following BEST identifies this product?
Question 29: A New Jersey salesperson agrees to prepare a written market value opinion for a divorce client and signs the document calling it an appraisal, accepting a separate fee labeled as an appraisal fee. Which of the following BEST identifies the problem with this work?
Question 30: Under federal regulation Z and the ECOA, a residential mortgage applicant is generally entitled to receive copies of all appraisals and other written valuations developed in connection with the application. Which of the following BEST identifies the timing the lender must meet?
Question 31: A first-time homebuyer in Toms River receives her mortgage from a local credit union that originates the loan and delivers funds at closing. Months later the loan is sold to a federal agency that pools it with others. Which market BEST identifies the local credit union's role at origination?
Question 32: A federally chartered enterprise buys conforming residential mortgages from primary lenders and pools them into mortgage-backed securities sold to investors. It does not lend directly to consumers. Which of the following BEST identifies the role of Fannie Mae in the mortgage market?
Question 33: A homebuyer in Jersey City signs two documents at closing: a written promise to repay the loan to the lender and a separate document that pledges the property as security for that repayment. Which of the following BEST identifies the second document, which creates the security interest?
Question 34: A buyer in Edison borrows two hundred forty thousand dollars to purchase a home priced at three hundred thousand dollars. The lender will measure the loan against the value of the property as collateral. Which ratio BEST identifies the resulting eighty-percent measure?
Question 35: A borrower in Princeton pays one point at closing on a one-hundred-thousand-dollar mortgage to reduce the interest rate over the life of the loan. Which of the following BEST identifies this prepaid interest paid to lower the rate?
Question 36: A conventional mortgage borrower in Newark makes a ten-percent down payment, leaving a ninety-percent loan-to-value ratio. The lender requires the borrower to obtain insurance protecting against borrower default. Which of the following BEST identifies the type of coverage required?
Question 37: A borrower in Cherry Hill makes a monthly housing payment that bundles the loan principal and interest with a one-twelfth share of the annual property taxes and the annual hazard insurance premium. Which of the following BEST identifies this single bundled payment?
Question 38: A New Jersey loan officer evaluates a borrower's application using the five Cs of credit, looking at the borrower's ability to repay, willingness to repay, reserves, value of pledged property, and broader economic conditions. Which of the following correctly identifies the five Cs in standard underwriting?
Question 39: A loan officer evaluating a residential application calculates the ratio of the borrower's proposed monthly housing payment to the borrower's gross monthly income, and separately calculates the ratio of all monthly debt payments to gross monthly income. Which BEST identifies these two ratios?
Question 40: A borrower's mortgage contains a clause permitting the lender to declare the entire outstanding balance immediately due and payable upon default on any installment, on bankruptcy, or on the borrower's violation of other material terms. Which of the following BEST identifies that clause?
Don't Want to Study?
Save Time on Studies, Spend More with Family & Friends! Pay-After-you-Pass!
Get Exam Support