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BROKER PRACTICE EXAM WITH REAL TEST QUESTIONS
ANSWERS AND RATIONALES 2026-27 LATEST VERSION
Question 1 Correct Mark 1.00 out of 1.00 Flag question
If after a two-year time period, a licensed broker fails to meet the education requirements,
what will happen to their license?
Select one:
a. Automatic suspension of license
b. License will be revoked
c. Considered Null and void
d. Considered Involuntary inactive
Your answer is correct.
If a licensee fails to meet the continuing education requirements, to renew
their license in the second renewal period, or thereafter, their license will
then be classified as involuntary inactive. In order for the agent to activate
their license once more, they will be required to complete a reactivation
course
The correct answer is: Considered Involuntary inactive
Question 2 Incorrect Mark 0.00 out of 1.00 Flag question
The following information should be used to answer questions 89 and 90.
*Each unit in a 20-unit apartment complex rents for $375.00 per month.
*Vacancy and collection losses = 6%
*Fixed expenses = $21,200
*Variable expenses = $24,300
*Reserves for replacements = $9,100
*Annual debt service = $18,000
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What is the operating expense ratio?
Select one:
a. 35.82%
b. 64.54%
c. 53.78%
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d. 39.48%
Potential Gross Income
Vacancy and collection losses
+ Other Income
=
Effective Gross Income
Operating Expenses (including reserves)
=
Net Operating Income
Debt Service
=
Before-Tax Cash Flow (Cash Throw Off)
Taxes (+/-)
=
After-Tax Cash Flow
Potential Gross = 375 * 20 * 12 = $90,000
Effective Gross = Potential Gross - Vacancy and collection losses = 90,000 -
(90,000 * 6%) = $84,600
Operating Expenses does not include Annual Debt Service = 21,200 + 24,300 +
9,100 = 54,600
Operating Expense Ratio = Operating Expenses / Effective Gross = 64.54 %
The correct answer is: 64.54%
Question 3 Correct Mark 1.00 out of 1.00 Flag question
A seller listed a property for $96,000. The property sold for $94,000. How would
the purchase price appear on a settlement statement?
Select one:
a. Debit the seller $94,000 and credit the buyer $96,000.
b. Credit the seller $94,000 and debit the buyer $94,000.
c. Debit the seller $96,000 and credit the buyer $96,000.
d. Credit the seller $96,000 and debit the buyer $94,000.
The correct answer is: Credit the seller $94,000 and debit the buyer $94,000.
Question 4 Incorrect Mark 0.00 out of 1.00 Flag question
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The following information should be used to answer questions 89 and 90.
BROKER PRACTICE EXAM WITH REAL TEST QUESTIONS
ANSWERS AND RATIONALES 2026-27 LATEST VERSION
Question 1 Correct Mark 1.00 out of 1.00 Flag question
If after a two-year time period, a licensed broker fails to meet the education requirements,
what will happen to their license?
Select one:
a. Automatic suspension of license
b. License will be revoked
c. Considered Null and void
d. Considered Involuntary inactive
Your answer is correct.
If a licensee fails to meet the continuing education requirements, to renew
their license in the second renewal period, or thereafter, their license will
then be classified as involuntary inactive. In order for the agent to activate
their license once more, they will be required to complete a reactivation
course
The correct answer is: Considered Involuntary inactive
Question 2 Incorrect Mark 0.00 out of 1.00 Flag question
The following information should be used to answer questions 89 and 90.
*Each unit in a 20-unit apartment complex rents for $375.00 per month.
*Vacancy and collection losses = 6%
*Fixed expenses = $21,200
*Variable expenses = $24,300
*Reserves for replacements = $9,100
*Annual debt service = $18,000
,2
What is the operating expense ratio?
Select one:
a. 35.82%
b. 64.54%
c. 53.78%
,3
d. 39.48%
Potential Gross Income
Vacancy and collection losses
+ Other Income
=
Effective Gross Income
Operating Expenses (including reserves)
=
Net Operating Income
Debt Service
=
Before-Tax Cash Flow (Cash Throw Off)
Taxes (+/-)
=
After-Tax Cash Flow
Potential Gross = 375 * 20 * 12 = $90,000
Effective Gross = Potential Gross - Vacancy and collection losses = 90,000 -
(90,000 * 6%) = $84,600
Operating Expenses does not include Annual Debt Service = 21,200 + 24,300 +
9,100 = 54,600
Operating Expense Ratio = Operating Expenses / Effective Gross = 64.54 %
The correct answer is: 64.54%
Question 3 Correct Mark 1.00 out of 1.00 Flag question
A seller listed a property for $96,000. The property sold for $94,000. How would
the purchase price appear on a settlement statement?
Select one:
a. Debit the seller $94,000 and credit the buyer $96,000.
b. Credit the seller $94,000 and debit the buyer $94,000.
c. Debit the seller $96,000 and credit the buyer $96,000.
d. Credit the seller $96,000 and debit the buyer $94,000.
The correct answer is: Credit the seller $94,000 and debit the buyer $94,000.
Question 4 Incorrect Mark 0.00 out of 1.00 Flag question
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The following information should be used to answer questions 89 and 90.
