NATIONAL REAL ESTATE EXAM
PRACTICE TEST WITH QUESTIONS
AND CORRECT ANSWERS|GRADED
A+|100%TRUSTED SOURCE|NEWEST
EXAM
In most cases, broker compensation, as a percentage of home price, falls somewhere
between: -ANSWER 5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants.
Under the federal Fair Housing Act, is this legal? -ANSWER Yes. Religious organizations
which rent to tenants for residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property? -
ANSWER The tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for
a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800.
What is the maximum amount of additional long-term obligations this borrower may
have after PITI? -ANSWER $280
A square bedroom measures 10 feet by 10 feet. What is the area of the room? -ANSWER
100 square feet
Which of these is an economic characteristic that makes land a distinctive commodity?*
-ANSWER situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is:
-ANSWER predetermined
Which is exempt from the federal Fair Housing Act? -ANSWER renting a room in a house
occupied by the owner
The Americans with Disabilities Act applies to: -ANSWER privately owned or government-
owned public accommodations
Condemnation is the act of seizing private property from citizens. What gives the
government the right to do this? -ANSWER eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-homogenous,
and: -ANSWER immobile
, Which statement BEST defines the term contingency? -ANSWER stipulation that must be
satisfied before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender the ability
to: -ANSWER call the entire loan balance due immediately
A metes and bounds legal description always returns to: -ANSWER the point of beginning
What should a license holder do if a client instructs them to do something that would
discriminate against a protected class? -ANSWER advise the client they cannot legally
discriminate against certain groups
What is a novation? -ANSWER the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their neighborhood has
rapidly grown in popularity, and they were able to sell their home this year for $950,000.
How much of that money will they be required to pay capital gains tax on? -ANSWER
$50,000
Which element of a valid contract states that the contract cannot require any illegal
activities or outcomes? -ANSWER lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal recourse
because too many years have passed since the offending incident. What is this an
example of? -ANSWER statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate
for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year? -ANSWER
$6,887.50
A potentially valid contract in which at least one party has the option to rescind is
described as: -ANSWER voidable
When you're talking about mortgages, what is another name for an origination fee? -
ANSWER points
Both parties involved in an agency agreement agree to end the agreement early. What
is this called? -ANSWER mutual rescission
What does a standard title insurance policy do?* -ANSWER protects against any defects
discovered in the title after closing
Which term describes the transfer of property from the current owner to another party by
sale or gift?* -ANSWER voluntary alienation
PRACTICE TEST WITH QUESTIONS
AND CORRECT ANSWERS|GRADED
A+|100%TRUSTED SOURCE|NEWEST
EXAM
In most cases, broker compensation, as a percentage of home price, falls somewhere
between: -ANSWER 5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants.
Under the federal Fair Housing Act, is this legal? -ANSWER Yes. Religious organizations
which rent to tenants for residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property? -
ANSWER The tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for
a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800.
What is the maximum amount of additional long-term obligations this borrower may
have after PITI? -ANSWER $280
A square bedroom measures 10 feet by 10 feet. What is the area of the room? -ANSWER
100 square feet
Which of these is an economic characteristic that makes land a distinctive commodity?*
-ANSWER situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is:
-ANSWER predetermined
Which is exempt from the federal Fair Housing Act? -ANSWER renting a room in a house
occupied by the owner
The Americans with Disabilities Act applies to: -ANSWER privately owned or government-
owned public accommodations
Condemnation is the act of seizing private property from citizens. What gives the
government the right to do this? -ANSWER eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-homogenous,
and: -ANSWER immobile
, Which statement BEST defines the term contingency? -ANSWER stipulation that must be
satisfied before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender the ability
to: -ANSWER call the entire loan balance due immediately
A metes and bounds legal description always returns to: -ANSWER the point of beginning
What should a license holder do if a client instructs them to do something that would
discriminate against a protected class? -ANSWER advise the client they cannot legally
discriminate against certain groups
What is a novation? -ANSWER the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their neighborhood has
rapidly grown in popularity, and they were able to sell their home this year for $950,000.
How much of that money will they be required to pay capital gains tax on? -ANSWER
$50,000
Which element of a valid contract states that the contract cannot require any illegal
activities or outcomes? -ANSWER lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal recourse
because too many years have passed since the offending incident. What is this an
example of? -ANSWER statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate
for Pedro's county is 2.375%, what will he pay in ad valorem taxes this year? -ANSWER
$6,887.50
A potentially valid contract in which at least one party has the option to rescind is
described as: -ANSWER voidable
When you're talking about mortgages, what is another name for an origination fee? -
ANSWER points
Both parties involved in an agency agreement agree to end the agreement early. What
is this called? -ANSWER mutual rescission
What does a standard title insurance policy do?* -ANSWER protects against any defects
discovered in the title after closing
Which term describes the transfer of property from the current owner to another party by
sale or gift?* -ANSWER voluntary alienation
