NATIONAL REAL ESTATE EXAM
Questions & Expertly Verified
Quiz_________________?
"You should proceed without ordering a new abstract - this title is clear." -
ANSWER✅
Which of the following statements may represent the unauthorized practice of law?*
Quiz_________________?
$3,444,444.44 -
ANSWER✅
Darleene is looking at an investment property. The annual net operating income (NOI) of
the property is $310,000. If the capitalization rate for this class of property in this area is
currently 9%, what is the total value of this property?
Quiz_________________?
$6,887.50 -
ANSWER✅
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?
1
, Quiz_________________?
$11,956 -
ANSWER✅
Tareq represented the seller in the sale of a house for $427,000. The commission agreed
upon was 7% and Tareq gave half to the buyer's representative. What will he take home if
the split with his brokerage is 80% Tareq - 20% broker?
Quiz_________________?
$12,000 -
ANSWER✅
Emmy just bought a house. To purchase the house, she got a loan for $300,000 with 4
discount points. How much did she pay for the discount points?
Quiz_________________?
$18,000 -
ANSWER✅
Arturo is buying a house for $400,000. He will be making a down payment of 5%. He
already submitted a check for $2,000 as earnest money, which will be applied to the
purchase. How much will Arturo need to pay on closing day?
Quiz_________________?
$22,100 -
ANSWER✅
Burt is buying a house for $100,000 and is making a 20% down payment. He is paying a 1-
point origination fee to a mortgage lender, $500 for a new survey, and $800 for an
environmental report. Based on this, before any prorations, how much cash will Burt have
to bring to the closing?
2
, Quiz_________________?
$40,000 -
ANSWER✅
Ben manages an apartment complex that has an effective gross income of $100,000.
Operating expenses were $60,000. What is the net operating income of the property?
Quiz_________________?
$50,000 -
ANSWER✅
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?
Quiz_________________?
$141,176 -
ANSWER✅
If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is the sales
price of the property?
Quiz_________________?
$276,000 -
ANSWER✅
When Shondra originally bought her house, she made a 30% down payment on the
$600,000 purchase. Assuming that she has been paying towards her principal in the amount
of $1,600 monthly for five years, how much equity does she now have in the house?
3
, Quiz_________________?
$280 -
ANSWER✅
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?
Quiz_________________?
$420,000 -
ANSWER✅
Joel was told by a lender the highest leverage he could achieve was a loan-to-value ratio of
75%. His loan principal is $315,000. What is the total purchase price?
Quiz_________________?
$883.33 -
ANSWER✅
Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will
she pay monthly in interest?
Quiz_________________?
5-7% -
ANSWER✅
In most cases, broker compensation, as a percentage of home price, falls somewhere
between:
4
Questions & Expertly Verified
Quiz_________________?
"You should proceed without ordering a new abstract - this title is clear." -
ANSWER✅
Which of the following statements may represent the unauthorized practice of law?*
Quiz_________________?
$3,444,444.44 -
ANSWER✅
Darleene is looking at an investment property. The annual net operating income (NOI) of
the property is $310,000. If the capitalization rate for this class of property in this area is
currently 9%, what is the total value of this property?
Quiz_________________?
$6,887.50 -
ANSWER✅
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?
1
, Quiz_________________?
$11,956 -
ANSWER✅
Tareq represented the seller in the sale of a house for $427,000. The commission agreed
upon was 7% and Tareq gave half to the buyer's representative. What will he take home if
the split with his brokerage is 80% Tareq - 20% broker?
Quiz_________________?
$12,000 -
ANSWER✅
Emmy just bought a house. To purchase the house, she got a loan for $300,000 with 4
discount points. How much did she pay for the discount points?
Quiz_________________?
$18,000 -
ANSWER✅
Arturo is buying a house for $400,000. He will be making a down payment of 5%. He
already submitted a check for $2,000 as earnest money, which will be applied to the
purchase. How much will Arturo need to pay on closing day?
Quiz_________________?
$22,100 -
ANSWER✅
Burt is buying a house for $100,000 and is making a 20% down payment. He is paying a 1-
point origination fee to a mortgage lender, $500 for a new survey, and $800 for an
environmental report. Based on this, before any prorations, how much cash will Burt have
to bring to the closing?
2
, Quiz_________________?
$40,000 -
ANSWER✅
Ben manages an apartment complex that has an effective gross income of $100,000.
Operating expenses were $60,000. What is the net operating income of the property?
Quiz_________________?
$50,000 -
ANSWER✅
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?
Quiz_________________?
$141,176 -
ANSWER✅
If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is the sales
price of the property?
Quiz_________________?
$276,000 -
ANSWER✅
When Shondra originally bought her house, she made a 30% down payment on the
$600,000 purchase. Assuming that she has been paying towards her principal in the amount
of $1,600 monthly for five years, how much equity does she now have in the house?
3
, Quiz_________________?
$280 -
ANSWER✅
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?
Quiz_________________?
$420,000 -
ANSWER✅
Joel was told by a lender the highest leverage he could achieve was a loan-to-value ratio of
75%. His loan principal is $315,000. What is the total purchase price?
Quiz_________________?
$883.33 -
ANSWER✅
Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will
she pay monthly in interest?
Quiz_________________?
5-7% -
ANSWER✅
In most cases, broker compensation, as a percentage of home price, falls somewhere
between:
4
