Real Estate Salesperson License Exam 2026 | 163
Questions & Answers | Latest Update | Exam Prep |
100% Pass Guarantee
1. Describe the implications for a property owner when their land is designated
as part of an improvement district.
The property owner gains additional rights to develop the land without
restrictions.
The property owner is exempt from all local taxes.
The property owner can sell the land without any legal obligations.
The property owner may be required to pay assessments for local
improvements and services.
2. In a scenario where a buyer enters into a contract under duress, which type
of contract would this likely be classified as, and what are the potential
consequences?
Enforceable contract; the buyer has no option to cancel.
Legally binding contract; the buyer must fulfill the terms.
Void contract; the contract is invalid from the beginning.
Voidable contract; the buyer may choose to void the contract due
to the circumstances.
3. If a broker receives multiple offers after being authorized to accept a full
price offer, what should the broker do to fulfill their agency role?
Evaluate all offers and present them to the seller for consideration.
Accept the highest offer without consulting the seller.
Reject all offers and wait for a better one.
, Inform the buyers that the property is no longer available.
4. If a local government plans to use eminent domain to acquire land for a new
park, what steps must they take to ensure compliance with legal
requirements?
They can only acquire land if the owner agrees to sell.
They must hold a public referendum to decide on the acquisition.
They must provide just compensation to the property owner and
follow due process.
They can take the property without compensation if it is for public use.
5. Describe the importance of clarifying which items are included in a real
estate transaction, such as the fountain mentioned.
It allows the buyer to negotiate a lower price for the property.
It ensures that the property is appraised correctly.
Clarifying which items are included in a transaction prevents
disputes and ensures that both parties have a clear understanding
of what is being sold.
It guarantees that the transaction will close without any issues.
6. Describe the concept of subrogation in the context of title insurance and
property transactions.
Subrogation is a process where the buyer can sue the title company
for defects in title.
Subrogation refers to the title company's responsibility to fix the title
defect without compensation.
Subrogation means the seller must pay the buyer directly for any
losses.
Subrogation allows the title company to step into the buyer's shoes
, and seek reimbursement from the seller after compensating the
buyer for a title defect.
7. Lead-based paint is most likely found in homes built prior to
1989
1983
1990
1978
8. Susan bought a single family home. When she moved it, she noticed the
ceiling fan was missing and wires were coming out from where it was. What
should Susan do?
Nothing. The ceiling fan was never mentioned in the contract.
Tell her agent that they need to replace it.
The ceiling fan was a fixture, real property, and it shouldn't have
been removed.
Sue the seller for taking it with them.
9. "Senior citizen" housing:
Is a violation of the "familial status" protected class.
Is a violation of the "age" protected class.
Must have at least 80% of its units occupied by one person 55 or
older.
May only be occupied by individuals 65 and older.
10. The home expenses homeowners may deduct when preparing their income
tax return are
mortgage interest and real estate taxes.
, repairs and maintenance and real estate taxes.
mortgage interest and room additions
real estate taxes and homeowner's insurance.
11. Your clients are under contract to buy their first home, and elevated radon
levels are discovered during the inspection period. You should advise your
clients _.
To find another home to buy
That radon is potentially serious but that it often can be mitigated.
That radon is harmless and of no concern
That radon can be immediately lethal when breathed
12. Describe the implications of a broker having the authority to accept offers
on behalf of a seller.
The broker's role is limited to marketing the property.
The broker is empowered to negotiate and finalize the sale,
representing the seller's best interests.
The broker only provides information to the seller without making
decisions.
The broker must consult the seller for every decision.
13. A client notices that the home you're showing is listed as 'modular
construction' and asks you what that means. Which of these is the best
response?
This is a factory-built home. If you look underneath the home, you'll
find a steel chassis.
This is a factory-built home that typically has features of lower quality
than a site-built home, so it won't hold its value over time.
Questions & Answers | Latest Update | Exam Prep |
100% Pass Guarantee
1. Describe the implications for a property owner when their land is designated
as part of an improvement district.
The property owner gains additional rights to develop the land without
restrictions.
The property owner is exempt from all local taxes.
The property owner can sell the land without any legal obligations.
The property owner may be required to pay assessments for local
improvements and services.
2. In a scenario where a buyer enters into a contract under duress, which type
of contract would this likely be classified as, and what are the potential
consequences?
Enforceable contract; the buyer has no option to cancel.
Legally binding contract; the buyer must fulfill the terms.
Void contract; the contract is invalid from the beginning.
Voidable contract; the buyer may choose to void the contract due
to the circumstances.
3. If a broker receives multiple offers after being authorized to accept a full
price offer, what should the broker do to fulfill their agency role?
Evaluate all offers and present them to the seller for consideration.
Accept the highest offer without consulting the seller.
Reject all offers and wait for a better one.
, Inform the buyers that the property is no longer available.
4. If a local government plans to use eminent domain to acquire land for a new
park, what steps must they take to ensure compliance with legal
requirements?
They can only acquire land if the owner agrees to sell.
They must hold a public referendum to decide on the acquisition.
They must provide just compensation to the property owner and
follow due process.
They can take the property without compensation if it is for public use.
5. Describe the importance of clarifying which items are included in a real
estate transaction, such as the fountain mentioned.
It allows the buyer to negotiate a lower price for the property.
It ensures that the property is appraised correctly.
Clarifying which items are included in a transaction prevents
disputes and ensures that both parties have a clear understanding
of what is being sold.
It guarantees that the transaction will close without any issues.
6. Describe the concept of subrogation in the context of title insurance and
property transactions.
Subrogation is a process where the buyer can sue the title company
for defects in title.
Subrogation refers to the title company's responsibility to fix the title
defect without compensation.
Subrogation means the seller must pay the buyer directly for any
losses.
Subrogation allows the title company to step into the buyer's shoes
, and seek reimbursement from the seller after compensating the
buyer for a title defect.
7. Lead-based paint is most likely found in homes built prior to
1989
1983
1990
1978
8. Susan bought a single family home. When she moved it, she noticed the
ceiling fan was missing and wires were coming out from where it was. What
should Susan do?
Nothing. The ceiling fan was never mentioned in the contract.
Tell her agent that they need to replace it.
The ceiling fan was a fixture, real property, and it shouldn't have
been removed.
Sue the seller for taking it with them.
9. "Senior citizen" housing:
Is a violation of the "familial status" protected class.
Is a violation of the "age" protected class.
Must have at least 80% of its units occupied by one person 55 or
older.
May only be occupied by individuals 65 and older.
10. The home expenses homeowners may deduct when preparing their income
tax return are
mortgage interest and real estate taxes.
, repairs and maintenance and real estate taxes.
mortgage interest and room additions
real estate taxes and homeowner's insurance.
11. Your clients are under contract to buy their first home, and elevated radon
levels are discovered during the inspection period. You should advise your
clients _.
To find another home to buy
That radon is potentially serious but that it often can be mitigated.
That radon is harmless and of no concern
That radon can be immediately lethal when breathed
12. Describe the implications of a broker having the authority to accept offers
on behalf of a seller.
The broker's role is limited to marketing the property.
The broker is empowered to negotiate and finalize the sale,
representing the seller's best interests.
The broker only provides information to the seller without making
decisions.
The broker must consult the seller for every decision.
13. A client notices that the home you're showing is listed as 'modular
construction' and asks you what that means. Which of these is the best
response?
This is a factory-built home. If you look underneath the home, you'll
find a steel chassis.
This is a factory-built home that typically has features of lower quality
than a site-built home, so it won't hold its value over time.
