PSI New Jersey Real Estate State Practice Exam 2026 - Free Real Estate License Practice Questions and Study Guide

To determine how much the seller will receive at closing, you need to subtract all relevant expenses from the sale price of the property. In this case, the property sold for $375,000.

First, we calculate the total deductions from the sale which include the mortgage balance and the expenses. The expenses for water, electricity, appliances, and repairs amount to $2,300, and the mortgage balance is $301,000.

Adding the mortgage balance and the expenses gives:

$301,000 (mortgage) + $2,300 (expenses) = $303,300 (total deductions).

Next, we subtract the total deductions from the sale price:

$375,000 (sale price) - $303,300 (total deductions) = $71,700.

Thus, the seller will receive $71,700 at closing, which is the correct calculation reflecting the net proceeds after all expenses and the mortgage balance have been taken into account.