Real Estate Licensing New Jersey Real Estate Salesperson Exam - Topic 3 Question 2 Discussion

Actual exam question for Real Estate Licensing's New Jersey Real Estate Salesperson exam

Question #: 2
Topic #: 3

[All New Jersey Real Estate Salesperson Questions]

A home sold for $400,000. It was appraised for $402,000, and the assessed value was $320,000. Assume in this situation, the real estate transfer tax of 1% is paid by the grantee. How much will the seller owe at closing for transfer fees?

A$0

B$3,200

C$4,000

D$4,020

Show Suggested Answer

Suggested Answer: A

In New Jersey, the Realty Transfer Fee (RTF) is typically paid by the seller, but the question specifies that the tax is paid by the grantee (buyer). When the buyer pays the transfer tax, the seller does not owe any amount at closing for transfer fees.

Additionally, the RTF is calculated based on the consideration amount (sale price), not the appraised or assessed value. But since liability is shifted to the buyer here, the seller's responsibility = $0.

by Melynda at Oct 03, 2025, 04:04 PM

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Jess

2 months ago

I thought it would be more, honestly.

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Joesph

2 months ago

Yep, so that’s $4,000!

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Lemuel

2 months ago

The transfer tax is 1% of the sale price, right?

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Rikki

3 months ago

Wait, how does the assessed value affect this?

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Candra

3 months ago

Totally agree, it’s just based on the sale price!

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Josefa

3 months ago

I feel like the answer might be $4,020 because of some additional fees, but I need to double-check my notes on that.

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Claribel

3 months ago

I practiced a similar question where the tax was based on the assessed value, but I can't recall if that applies here.

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Shantell

4 months ago

I think the transfer tax is calculated on the sale price, which is $400,000, so that would be $4,000, right?

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Onita

4 months ago

I remember something about calculating transfer taxes based on the sale price, but I'm not sure if it's always 1%.

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Iola

4 months ago

Alright, I'm feeling good about this one. The key is recognizing that the transfer tax is 1% of the sale price, which is $400,000, so the answer is C) $4,000.

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Erin

4 months ago

No problem, I've got this. The transfer tax is 1% of the sale price, which is $400,000. So the transfer fee the seller owes is $4,000.

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Tran

4 months ago

Wait, I'm a bit confused. Does the question say the grantee pays the transfer tax? I need to double-check that detail.

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Orville

4 months ago

Okay, I think I understand this. The transfer tax is 1% of the sale price, so I just need to find 1% of $400,000.

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Lemuel

5 months ago

Hmm, this looks like a straightforward real estate transaction question. I'll need to calculate the transfer tax based on the sale price.

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