National Real Estate Exam
Practice 2026/2027 Questions
And Correct Answers
In most cases, broker compensation, as a percentage of home price, falls
somewhere between:
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?
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?
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?
$280
A square bedroom measures 10 feet by 10 feet. What is the area of the room?
100 square feet
Which of these is an economic characteristic that makes land a distinctive
commodity?*
Situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to be
paid is:
Predetermined
Which is exempt from the federal Fair Housing Act?
Renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to:
,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?
Eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-
homogenous, and:
Immobile
Which statement BEST defines the term contingency?
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:
Call the entire loan balance due immediately
A metes and bounds legal description always returns to:
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?
Advise the client they cannot legally discriminate against certain groups
What is a novation?
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?
$50,000
Which element of a valid contract states that the contract cannot require any
illegal activities or outcomes?
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?
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?
$6,887.50
A potentially valid contract in which at least one party has the option to rescind
is described as:
Voidable
When you're talking about mortgages, what is another name for an origination
fee?
Points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called?
Mutual rescission
What does a standard title insurance policy do?*
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?*
Voluntary alienation
In the sales comparison approach to property valuation, what does the principle
of substitution state?*
The value of a property is only what a consumer would pay to acquire a comparable
property.
Who can require a buyer to purchase homeowners insurance?
Lender
Which of the following statements may represent the unauthorized practice of
law?*
"You should proceed without ordering a new abstract - this title is clear."
A property owner has the right to tell other people that they cannot trespass on
their property. What is this right called?
Right of exclusion
Practice 2026/2027 Questions
And Correct Answers
In most cases, broker compensation, as a percentage of home price, falls
somewhere between:
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?
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?
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?
$280
A square bedroom measures 10 feet by 10 feet. What is the area of the room?
100 square feet
Which of these is an economic characteristic that makes land a distinctive
commodity?*
Situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to be
paid is:
Predetermined
Which is exempt from the federal Fair Housing Act?
Renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to:
,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?
Eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-
homogenous, and:
Immobile
Which statement BEST defines the term contingency?
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:
Call the entire loan balance due immediately
A metes and bounds legal description always returns to:
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?
Advise the client they cannot legally discriminate against certain groups
What is a novation?
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?
$50,000
Which element of a valid contract states that the contract cannot require any
illegal activities or outcomes?
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?
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?
$6,887.50
A potentially valid contract in which at least one party has the option to rescind
is described as:
Voidable
When you're talking about mortgages, what is another name for an origination
fee?
Points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called?
Mutual rescission
What does a standard title insurance policy do?*
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?*
Voluntary alienation
In the sales comparison approach to property valuation, what does the principle
of substitution state?*
The value of a property is only what a consumer would pay to acquire a comparable
property.
Who can require a buyer to purchase homeowners insurance?
Lender
Which of the following statements may represent the unauthorized practice of
law?*
"You should proceed without ordering a new abstract - this title is clear."
A property owner has the right to tell other people that they cannot trespass on
their property. What is this right called?
Right of exclusion
