NATIONAL REAL ESTATE CERTIFICATION
PEARSON VUE EXAM 2026
COMPREHENSIVE QUESTIONS WITH 100%
VERIFIED SOLUTIONS
⩥ A broker has written permission to represent both the seller and the
buyer as a dual agent. Under these circumstances, which of the duties of
the agent would be the easiest for him to fulfill? Answer: Accounting
⩥ A broker is most often Answer: special agent
⩥ A broker is running short of funds to meet this month's monthly
operating expenses. He places a client's earnest money deposit in his
business account and uses it to pay is rent. After his next closing, he
replaces the client's deposit in his trust account. The broker... Answer: is
guilty of conversion
⩥ A broker owes customers Answer: honesty and fairness
⩥ A builder is using inferior siding and paint in an effort to construct
affordable housing. This would be an example of... Answer: functional
obsolescence
,⩥ A builder is very successful and active in a new subdivision. Homes in
the subdivision are selling well, and the builder is making a good profit
on the sales. Two new builders arrive and begin to sell in the same
subdivision. All experience a lower level of profit. This demonstrates
which principle of appraisal. Answer: The principle of competition
⩥ A buyer and his agent visit a listed property. The buyer loves the
property and wants to purchase it. He speaks with the seller, who is at
home at the time, and they come to an agreement regarding price and
terms. They shake hands on the agreement and the buyer happily leaves
the property. His agent should: Answer: Warn the buyer that the verbal
sales contract is unenforceable
⩥ A buyer and seller have negotiated a contract on the seller's property
with a closing set for June 14th, time is of the essence. On June 12th the
listing agent calls the buyer's agent and tells him the seller will be unable
to close on the 14th. The seller can close on the 16th. At this time, what
is true? Answer: the contract is voidable by the buyer
⩥ A buyer has discovered a defect in title and has suffered a loss due to
the defect. The title company has compensated the buyer for the loss.
Subsequently, the buyer is awarded a judgement against the seller. The
title company is entitled to a portion of the judgment as reimbursement
for the claim it paid. This describes... Answer: Subrogation
,⩥ A buyer has purchased a property and after closing the seller will
continue to occupy the property. This is an example of... Answer: sale
and leaseback
⩥ A buyer has signed an agreement to purchase a property from a seller.
He has met all the terms and conditions of the listing. The listing broker
has taken the agreement to the seller. The seller has changed his mind
about selling and refuses to sign the agreement. What is true? Answer:
The seller does not have sell, but he owes the listing broker a
commission
⩥ A buyer is aware that the interest rates should go down over the nest
few months. What type of loan should he get to enable him to buy now
and take advantage of declining rates in the future? Answer: ARM
⩥ A buyer's agent has accidentally forwarded confidential information
about his buyer's financial background to the listing agent. What is true?
Answer: the buyer's agent is guilty of negligence and the listing agent
must disclose the information to the seller
⩥ A buyer's agent has helped a buyer to find a home. The buyer has
expressed concern about the possible presence of radon. What should the
buyer's agent do in this case? Answer: Recommend an inspection for
hazardous materials
, ⩥ A buyer's agent is working with a buyer to purchase a property. The
buyer is concerned about the location of the fence as it appears to be
encroaching. What should the buyer's agent do? Answer: Recommend a
survey
⩥ A chemical manufacturing company purchases a plant. After closing
they discover that the previous owners had spilled hazardous materials
on the land. According to CERCLA, who is liable for the cost of the
cleanup? Answer: both the new owners and the previous owners
⩥ A condo complex has liability complex has liability insurance. This is
least likely to cover Answer: a units owner's carpet damaged by a broken
water pipe
⩥ A condo owner's policy will most likely cover the owner if Answer: a
guest slips in the kitchen
⩥ A couple is moving to a new city and they would like time to learn the
city before they purchase a home. What type of lease should their agent
recommend? Answer: a periodic tenancy
⩥ A couple is purchasing a home and ask their agent how they should
take title so that if one spouse dies, immediately the surviving spouse
will be the sole owner of the property. The license holder should:
Answer: Tell them to talk to an attorney, because the license holder is
not permitted to give advice on how to take title
PEARSON VUE EXAM 2026
COMPREHENSIVE QUESTIONS WITH 100%
VERIFIED SOLUTIONS
⩥ A broker has written permission to represent both the seller and the
buyer as a dual agent. Under these circumstances, which of the duties of
the agent would be the easiest for him to fulfill? Answer: Accounting
⩥ A broker is most often Answer: special agent
⩥ A broker is running short of funds to meet this month's monthly
operating expenses. He places a client's earnest money deposit in his
business account and uses it to pay is rent. After his next closing, he
replaces the client's deposit in his trust account. The broker... Answer: is
guilty of conversion
⩥ A broker owes customers Answer: honesty and fairness
⩥ A builder is using inferior siding and paint in an effort to construct
affordable housing. This would be an example of... Answer: functional
obsolescence
,⩥ A builder is very successful and active in a new subdivision. Homes in
the subdivision are selling well, and the builder is making a good profit
on the sales. Two new builders arrive and begin to sell in the same
subdivision. All experience a lower level of profit. This demonstrates
which principle of appraisal. Answer: The principle of competition
⩥ A buyer and his agent visit a listed property. The buyer loves the
property and wants to purchase it. He speaks with the seller, who is at
home at the time, and they come to an agreement regarding price and
terms. They shake hands on the agreement and the buyer happily leaves
the property. His agent should: Answer: Warn the buyer that the verbal
sales contract is unenforceable
⩥ A buyer and seller have negotiated a contract on the seller's property
with a closing set for June 14th, time is of the essence. On June 12th the
listing agent calls the buyer's agent and tells him the seller will be unable
to close on the 14th. The seller can close on the 16th. At this time, what
is true? Answer: the contract is voidable by the buyer
⩥ A buyer has discovered a defect in title and has suffered a loss due to
the defect. The title company has compensated the buyer for the loss.
Subsequently, the buyer is awarded a judgement against the seller. The
title company is entitled to a portion of the judgment as reimbursement
for the claim it paid. This describes... Answer: Subrogation
,⩥ A buyer has purchased a property and after closing the seller will
continue to occupy the property. This is an example of... Answer: sale
and leaseback
⩥ A buyer has signed an agreement to purchase a property from a seller.
He has met all the terms and conditions of the listing. The listing broker
has taken the agreement to the seller. The seller has changed his mind
about selling and refuses to sign the agreement. What is true? Answer:
The seller does not have sell, but he owes the listing broker a
commission
⩥ A buyer is aware that the interest rates should go down over the nest
few months. What type of loan should he get to enable him to buy now
and take advantage of declining rates in the future? Answer: ARM
⩥ A buyer's agent has accidentally forwarded confidential information
about his buyer's financial background to the listing agent. What is true?
Answer: the buyer's agent is guilty of negligence and the listing agent
must disclose the information to the seller
⩥ A buyer's agent has helped a buyer to find a home. The buyer has
expressed concern about the possible presence of radon. What should the
buyer's agent do in this case? Answer: Recommend an inspection for
hazardous materials
, ⩥ A buyer's agent is working with a buyer to purchase a property. The
buyer is concerned about the location of the fence as it appears to be
encroaching. What should the buyer's agent do? Answer: Recommend a
survey
⩥ A chemical manufacturing company purchases a plant. After closing
they discover that the previous owners had spilled hazardous materials
on the land. According to CERCLA, who is liable for the cost of the
cleanup? Answer: both the new owners and the previous owners
⩥ A condo complex has liability complex has liability insurance. This is
least likely to cover Answer: a units owner's carpet damaged by a broken
water pipe
⩥ A condo owner's policy will most likely cover the owner if Answer: a
guest slips in the kitchen
⩥ A couple is moving to a new city and they would like time to learn the
city before they purchase a home. What type of lease should their agent
recommend? Answer: a periodic tenancy
⩥ A couple is purchasing a home and ask their agent how they should
take title so that if one spouse dies, immediately the surviving spouse
will be the sole owner of the property. The license holder should:
Answer: Tell them to talk to an attorney, because the license holder is
not permitted to give advice on how to take title
