ABS School of Real Estate

NJ Real Estate · VIP Study Guide

Everything you need to pass the NJ Real Estate Exam — built from real instructor notes by Michelle Gomes, MBA.

✓ 14 Chapter breakdowns with key terms & exam tips
✓ Memory mnemonics for the hardest topics
✓ Math formulas with worked examples
✓ Exam strategy & common traps to avoid
✓ Members-only bonus content

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ABS School of Real Estate · New Jersey

Pass the NJ Real Estate Exam

Your complete VIP study guide — built from instructor notes, exam tips, math formulas, and chapter breakdowns.

Michelle Gomes, MBA Master Instructor & Co-Founder, ABS School

Explore the guide

Study Method

Consistency Beats Cramming

Short, focused sessions using the right material will always outperform marathon cramming the night before. Follow this rhythm.

Before Class

Skim chapter headings and bold terms (15–20 min). Don't memorize — just familiarize yourself with the landscape before diving in.

During Class

Follow along with your binder, take notes directly on the pages, and ask questions when concepts are unclear. Active engagement matters.

After Class

Same day if possible — re-read chapter notes, review highlighted sections, complete any quiz while the material is still fresh in your mind.

Weekly Review

Spend 30–45 minutes reviewing prior chapters. Focus on definitions, formulas, and exam tips. Small reviews compound into big results.

Study Definitions Right

Read the definition → rewrite in your own words → associate with a real-world example → compare similar terms side by side.

Exam Mindset

Read questions slowly. Identify what is truly being asked. Eliminate clearly wrong answers first. The exam wants the best answer, not just a correct one.

Course Content

All 22 Chapters

Click any chapter to expand key concepts, exam tips, and common traps.

0 / 22 chapters reviewed

Memory Anchors

Key Mnemonics to Know Cold

These acronyms show up repeatedly on the exam. Memorize them — they unlock entire question categories.

OLD CAR

Fiduciary Duties

Obedience — follow lawful instructions
Loyalty — client's interests first
Disclosure — reveal material facts
Confidentiality — protect client info
Accounting — safeguard funds
Reasonable Care — skill & diligence

C-O-C-L

Valid Contract Elements

Competent parties
Offer and acceptance
Consideration
Lawful objective

P-E-T-E

Government Powers

Police Power — zoning, codes
Eminent Domain — public taking
Taxation — property taxes
Escheat — no heir reverts to state

MARIA

Fixture Test

Method of attachment
Adaptability
Relationship of the parties
Intention of the parties ★
Agreement

Real Estate Math

Essential Formulas Quick Sheet

You don't need to be a mathematician. Know the formula, read carefully, and don't rush.

Percentages (Foundation)

Part = Whole × Rate

Rate = Part ÷ Whole

Whole = Part ÷ Rate

Always convert % to decimals first. 6% = 0.06 | 12.5% = 0.125

Commission

Commission = Sales Price × Rate

Agent Share = Commission × Split %

Example: $450,000 × 6% = $27,000 total. $27,000 × 70% = $18,900 agent share.

Area Calculations

Rectangle: Length × Width

Triangle: ½ × Base × Height

Circle: π × r² (π ≈ 3.14)

Volume: L × W × H

Land Measurement

1 Acre = 43,560 sq ft

1 Section = 1 sq mile = 640 acres

1 Township = 36 sections

Sq Ft ÷ 43,560 = Acres

Property Taxes

Tax = Assessed Value × Tax Rate

Mill Rate: (AV ÷ 1,000) × Mills

1 mill = $1 per $1,000 of assessed value

Prorations

Daily Rate = Annual Amount ÷ 365

Seller pays through day of closing

Buyer begins day AFTER closing

Always read the question — it will tell you who pays.

Income Property

Cap Rate = NOI ÷ Value

Value = NOI ÷ Cap Rate

GRM = Price ÷ Gross Rent

⚠ NOI does NOT include mortgage payments.

Loan-to-Value & Net

LTV = Loan ÷ Property Value

Seller Net = Sales Price − (Mortgage + Commission + Closing Costs)

PITI = Principal + Interest + Taxes + Insurance. HOA fees NOT included.

Exam Day

Final Exam Strategy

The exam tests rules and concepts, not tricks. If it feels "reasonable" but not legal — it's probably wrong.

✓ How to Approach Questions

Read every question completely before answering
Look for key words: EXCEPT, NOT, MOST LIKELY
Eliminate clearly wrong answers first
Trust your first instinct if you studied
Don't second-guess unnecessarily
Mark difficult questions and return later

✗ Common Exam Traps

Federal vs. NJ law (NJ controls when stricter)
Broker vs. salesperson responsibility
CMA vs. appraisal — they are NOT the same
Assumption vs. subject-to (who is liable?)
Tax liens vs. mortgage lien priority
Referral agents — they can do very little
Guaranty Fund protects public, not licensees
Co-op = shares, no deed; Condo = deed

📋 Before the Exam Checklist

Review the math quick sheet
Memorize federal protected classes (7)
Know agency & fiduciary duties (OLD CAR)
Understand all ownership types
Review FHA vs. VA vs. Conventional
Know lien priority order
Review PITI components
Get good sleep the night before

⚡ Quick Key Rules

License required when acting for others for compensation
Salespersons may ONLY be paid by their broker
Commission rates are always negotiable — price fixing is illegal
Trust funds must NEVER be commingled
Dual agency must always be disclosed in writing
NJ uses judicial foreclosure
Highest & best use must be legally permissible
Street address ≠ legal description

Exclusive Access

Members-Only Resources

Bonus materials available only to enrolled ABS School students.

Practice Quiz

Customizable Practice Quiz

Test yourself with NJ exam-style questions. Pick your topics, set the length, and turn on timed mode to simulate real exam pressure.

120+ questions across all 22 chapters
Filter by topic — study weak areas
Timed mode (30s – 120s per question)
Instant explanations after each answer

Instructor Notes

Michelle's Private Study Notes

Annotated chapter summaries drawn directly from instructor prep sessions — not available in the public guide.

High-frequency exam topics highlighted
NJ-specific rule differences flagged
Margin notes from past exam patterns
Updated for current exam cycle

Bonus Mnemonics

Extended Memory System

12 additional mnemonics for topics that frequently trip students up in the final stretch — liens, deeds, title, leases, and more.

METAL — Lien priority order
DWELL — Deed requirements
CLUE — Illegal landlord actions
DUST — Four elements of value

Flashcard Deck

Study Flashcards

Flip through term-definition cards for all 22 chapters. Mark what you know and retry the rest.

130+ cards across all chapters
Filter by chapter for targeted review
Card flip animation — term → definition
Track Know It / Not Yet with retry mode

Direct Support

Instructor Support

Have a question before your exam? Reach out to ABS School of Real Estate directly for guidance and support.