Rhode Island Real Estate Salesperson
Exam – Verified Practice Questions &
Answers with Detailed Rationales (2026
Edition)
1. A Rhode Island real estate salesperson receives an
earnest money deposit. Within what timeframe must it
typically be deposited into the escrow account unless
otherwise agreed in writing?
A. 24 hours
B. 48 hours
C. 5 business days
D. 10 business days
B. 48 hours
In Rhode Island, fiduciary duty and escrow rules generally
require earnest money to be deposited promptly, typically
within 48 hours of receipt, unless the purchase agreement or
brokerage policy specifies otherwise. Delays may constitute
commingling risks or violations of trust accounting rules.
2. Which of the following best describes a “fee simple
defeasible” estate?
,A. Ownership with no restrictions
B. Ownership that lasts for a lifetime only
C. Ownership subject to a condition that may cause forfeiture
D. Ownership held jointly with survivorship rights
C. Ownership subject to a condition that may cause
forfeiture
Fee simple defeasible estates are full ownership interests but
include conditions that can terminate or alter ownership if
violated. This distinguishes them from absolute fee simple
estates.
3. Under Rhode Island law, which entity enforces licensing
standards for real estate professionals?
A. Local zoning board
B. Rhode Island Real Estate Commission
C. Federal Housing Administration
D. County clerk’s office
B. Rhode Island Real Estate Commission
The Rhode Island Real Estate Commission regulates licensing,
education, discipline, and enforcement of real estate
professionals within the state.
4. A broker is acting as a dual agent in Rhode Island. Which
statement is TRUE?
A. Dual agency is prohibited in all cases
B. Dual agency requires informed written consent from both
,parties
C. Dual agents may disclose confidential information freely
D. Dual agents owe fiduciary duty only to the seller
B. Dual agency requires informed written consent from both
parties
Rhode Island permits dual agency only with full disclosure
and written consent from both buyer and seller.
Confidentiality obligations remain strict.
5. Which clause allows a lender to demand full repayment if
the borrower transfers title without consent?
A. Acceleration clause
B. Subordination clause
C. Due-on-sale clause
D. Escalation clause
C. Due-on-sale clause
Due-on-sale clauses protect lenders by triggering loan
repayment upon unauthorized transfer of the property.
6. Which of the following is NOT considered real property?
A. Fixtures
B. Leasehold interests
C. Trade fixtures
D. Air rights
C. Trade fixtures
, Trade fixtures are personal property installed by tenants for
business use and remain personal property if removed
properly.
7. In Rhode Island, adverse possession generally requires
continuous possession for how long?
A. 5 years
B. 10 years
C. 20 years
D. 30 years
C. 20 years
Rhode Island typically requires 20 years of continuous, open,
notorious, and hostile possession to establish adverse
possession.
8. Which valuation approach is MOST appropriate for a
unique historic property?
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Gross rent multiplier approach
A. Cost approach
The cost approach is best for unique or special-purpose
properties where comparable sales are limited.
Exam – Verified Practice Questions &
Answers with Detailed Rationales (2026
Edition)
1. A Rhode Island real estate salesperson receives an
earnest money deposit. Within what timeframe must it
typically be deposited into the escrow account unless
otherwise agreed in writing?
A. 24 hours
B. 48 hours
C. 5 business days
D. 10 business days
B. 48 hours
In Rhode Island, fiduciary duty and escrow rules generally
require earnest money to be deposited promptly, typically
within 48 hours of receipt, unless the purchase agreement or
brokerage policy specifies otherwise. Delays may constitute
commingling risks or violations of trust accounting rules.
2. Which of the following best describes a “fee simple
defeasible” estate?
,A. Ownership with no restrictions
B. Ownership that lasts for a lifetime only
C. Ownership subject to a condition that may cause forfeiture
D. Ownership held jointly with survivorship rights
C. Ownership subject to a condition that may cause
forfeiture
Fee simple defeasible estates are full ownership interests but
include conditions that can terminate or alter ownership if
violated. This distinguishes them from absolute fee simple
estates.
3. Under Rhode Island law, which entity enforces licensing
standards for real estate professionals?
A. Local zoning board
B. Rhode Island Real Estate Commission
C. Federal Housing Administration
D. County clerk’s office
B. Rhode Island Real Estate Commission
The Rhode Island Real Estate Commission regulates licensing,
education, discipline, and enforcement of real estate
professionals within the state.
4. A broker is acting as a dual agent in Rhode Island. Which
statement is TRUE?
A. Dual agency is prohibited in all cases
B. Dual agency requires informed written consent from both
,parties
C. Dual agents may disclose confidential information freely
D. Dual agents owe fiduciary duty only to the seller
B. Dual agency requires informed written consent from both
parties
Rhode Island permits dual agency only with full disclosure
and written consent from both buyer and seller.
Confidentiality obligations remain strict.
5. Which clause allows a lender to demand full repayment if
the borrower transfers title without consent?
A. Acceleration clause
B. Subordination clause
C. Due-on-sale clause
D. Escalation clause
C. Due-on-sale clause
Due-on-sale clauses protect lenders by triggering loan
repayment upon unauthorized transfer of the property.
6. Which of the following is NOT considered real property?
A. Fixtures
B. Leasehold interests
C. Trade fixtures
D. Air rights
C. Trade fixtures
, Trade fixtures are personal property installed by tenants for
business use and remain personal property if removed
properly.
7. In Rhode Island, adverse possession generally requires
continuous possession for how long?
A. 5 years
B. 10 years
C. 20 years
D. 30 years
C. 20 years
Rhode Island typically requires 20 years of continuous, open,
notorious, and hostile possession to establish adverse
possession.
8. Which valuation approach is MOST appropriate for a
unique historic property?
A. Cost approach
B. Income approach
C. Sales comparison approach
D. Gross rent multiplier approach
A. Cost approach
The cost approach is best for unique or special-purpose
properties where comparable sales are limited.
