New Jersey Real Estate Exam Math Practice
Master NJ real estate exam math with practice problems on the Realty Transfer Fee, mansion tax, commission splits, proration, and mortgage calculations.
New Jersey Real Estate Exam Math Practice
Math problems appear on both the national and state sections of the New Jersey real estate exam. The NJ-specific math is particularly important because the Realty Transfer Fee has a two-tier rate structure that requires careful calculation.
New Jersey Realty Transfer Fee
The seller pays the NJ Realty Transfer Fee using a tiered rate: - $2 per $500 for the first $150,000 of consideration - $3.35 per $500 for consideration above $150,000
Formula for first tier: (150,000 / 500) x 2 = 300 x 2 = $600
Formula for second tier: ((Sale Price - 150,000) / 500) x 3.35
Example: A property sells for $400,000. What is the seller's Realty Transfer Fee?
First tier: (150,000 / 500) x 2 = $600 Second tier: ((400,000 - 150,000) / 500) x 3.35 = (250,000 / 500) x 3.35 = 500 x 3.35 = $1,675 Total fee: 600 + 1,675 = $2,275
Practice Problem: A home sells for $280,000. Calculate the seller's Realty Transfer Fee.
First tier: (150,000 / 500) x 2 = $600 Second tier: ((280,000 - 150,000) / 500) x 3.35 = (130,000 / 500) x 3.35 = 260 x 3.35 = $871 Total: 600 + 871 = $1,471
Mansion Tax (1%)
The 1% mansion tax is paid by the buyer on residential properties with a purchase price of $1,000,000 or more.
Formula: Mansion Tax = Sale Price x 0.01
Example: A home sells for $1,400,000. What is the buyer's mansion tax?
1,400,000 x 0.01 = $14,000
Commission Calculations
Example: A property sells for $520,000 at a 5% commission. The listing broker and buyer's broker split 50/50. The listing agent receives 55% of the listing side. How much does the listing agent earn?
Total commission: 520,000 x 0.05 = $26,000 Each side: 26,000 / 2 = $13,000 Listing agent: 13,000 x 0.55 = $7,150
Proration
Example: Annual property taxes are $5,400. Closing occurs on March 1. The seller owes taxes through March 1 (59 days, Jan 1 through Feb 28 plus March 1). How much does the seller owe in tax proration?
Daily rate: 5,400 / 365 = $14.79 Seller owes: 59 x 14.79 = $872.61
Loan-to-Value Ratio
Example: A buyer purchases a $350,000 home with 20% down. What is the loan amount and LTV?
Down payment: 350,000 x 0.20 = $70,000 Loan amount: 350,000 - 70,000 = $280,000 LTV: 280,000 / 350,000 = 80%
Math Study Tips
- Practice the two-tier RTF calculation repeatedly until it becomes automatic
- Know the mansion tax threshold: $1,000,000, buyer pays
- 1 acre = 43,560 square feet
- Always identify whether a question is asking for buyer's cost, seller's cost, or total
For more NJ exam prep, visit [CARealestate.com/states/new-jersey](https://carealestate.com/states/new-jersey).
Ready to test your knowledge?
Start with 5 free CA real estate exam questions — no signup required.
Take the Free Quiz →