Free Real Estate Licensing New Jersey Real Estate Salesperson Exam Dumps

Calculation (Finance/Math section of the NJ Real Estate Salesperson Pre-Licensure Course Study Guide):

* Total commission = $110,000 6% = $6,600

* Two firms split equally: each broker gets $3,300

* Listing licensee paid 60% of broker's share: $3,300 0.60 = $1,980

Thus, the listing agent's earnings are $1,980.

(Reference: NJ Real Estate Salesperson Pre-Licensure Course Study Guide, Math for Salespersons---Commission Splits.)

For special-purpose properties such as schools, churches, libraries, or government buildings, there are typically few comparable sales and the properties are not income-producing.

In these cases, appraisers use the cost (replacement) approach, which estimates the value by calculating the cost of replacing the structure minus depreciation, plus land value.

Correct answer: C. replacement cost.