New Zealand Real Estate Salesperson
Practice Exam | Comprehensive Examination
2026–2027|Multiple-Choice Questions with
Detailed Answer Rationales
7. Which authority regulates real estate agents in New Zealand?
A. Reserve Bank of New Zealand
B. Real Estate Authority (REA)
C. Ministry of Education
D. Land Information Office
CORRECT ANSWER: B. Real Estate Authority (REA)
RATIONALE:
B. Real Estate Authority (REA) is correct because it is the statutory body responsible for
licensing and regulating real estate professionals in New Zealand.
3. What is the primary purpose of the Real Estate Agents Act 2008?
A. To regulate vehicle sales
B. To regulate real estate agency conduct and protect consumers
C. To set property prices
D. To manage tax collection
CORRECT ANSWER: B. To regulate real estate agency conduct and protect consumers
RATIONALE:
B. To regulate real estate agency conduct and protect consumers is correct because the Act
establishes standards of professional conduct and consumer protection in real estate transactions.
10. Which type of property ownership in New Zealand includes shared ownership with
defined shares but no automatic survivorship?
A. Joint tenancy
B. Tenancy in common
C. Leasehold estate
D. Strata title
,CORRECT ANSWER: B. Tenancy in common
RATIONALE:
B. Tenancy in common is correct because each owner holds a separate share that can be
transferred or inherited independently.
5. What is a “sale and purchase agreement” in New Zealand real estate?
A. A mortgage document
B. A legally binding contract for buying and selling property
C. A tax assessment form
D. A property inspection report
CORRECT ANSWER: B. A legally binding contract for buying and selling property
RATIONALE:
B. A legally binding contract for buying and selling property is correct because it outlines the
agreed terms between buyer and seller.
1. What is a real estate licensee required to disclose under New Zealand law?
A. Only property price history
B. Material information that could affect a buyer’s decision
C. Only mortgage details
D. Only rental income
CORRECT ANSWER: B. Material information that could affect a buyer’s decision
RATIONALE:
B. Material information that could affect a buyer’s decision is correct because licensees must
act honestly and disclose relevant facts.
9. Which of the following is a fiduciary duty of a real estate agent in New Zealand?
A. Maximising personal profit
B. Acting in the client’s best interests
C. Ignoring client instructions
D. Sharing confidential client data publicly
CORRECT ANSWER: B. Acting in the client’s best interests
, RATIONALE:
B. Acting in the client’s best interests is correct because agents must act with loyalty, honesty,
and care.
4. What is the purpose of a LIM report in New Zealand property transactions?
A. To show mortgage repayment schedules
B. To provide council information about land and buildings
C. To set property taxes
D. To transfer ownership
CORRECT ANSWER: B. To provide council information about land and buildings
RATIONALE:
B. To provide council information about land and buildings is correct because a LIM (Land
Information Memorandum) provides important property and planning information.
8. Which document legally transfers ownership of property in New Zealand?
A. Mortgage deed
B. Record of Title transfer (transfer instrument)
C. Rental agreement
D. Building consent
CORRECT ANSWER: B. Record of Title transfer (transfer instrument)
RATIONALE:
B. Record of Title transfer (transfer instrument) is correct because ownership is transferred
through registration with Land Information New Zealand (LINZ).
2. Which of the following best describes a “fixture”?
A. Movable furniture
B. Items permanently attached to land or buildings
C. Rental agreement clause
D. Loan contract
CORRECT ANSWER: B. Items permanently attached to land or buildings
Practice Exam | Comprehensive Examination
2026–2027|Multiple-Choice Questions with
Detailed Answer Rationales
7. Which authority regulates real estate agents in New Zealand?
A. Reserve Bank of New Zealand
B. Real Estate Authority (REA)
C. Ministry of Education
D. Land Information Office
CORRECT ANSWER: B. Real Estate Authority (REA)
RATIONALE:
B. Real Estate Authority (REA) is correct because it is the statutory body responsible for
licensing and regulating real estate professionals in New Zealand.
3. What is the primary purpose of the Real Estate Agents Act 2008?
A. To regulate vehicle sales
B. To regulate real estate agency conduct and protect consumers
C. To set property prices
D. To manage tax collection
CORRECT ANSWER: B. To regulate real estate agency conduct and protect consumers
RATIONALE:
B. To regulate real estate agency conduct and protect consumers is correct because the Act
establishes standards of professional conduct and consumer protection in real estate transactions.
10. Which type of property ownership in New Zealand includes shared ownership with
defined shares but no automatic survivorship?
A. Joint tenancy
B. Tenancy in common
C. Leasehold estate
D. Strata title
,CORRECT ANSWER: B. Tenancy in common
RATIONALE:
B. Tenancy in common is correct because each owner holds a separate share that can be
transferred or inherited independently.
5. What is a “sale and purchase agreement” in New Zealand real estate?
A. A mortgage document
B. A legally binding contract for buying and selling property
C. A tax assessment form
D. A property inspection report
CORRECT ANSWER: B. A legally binding contract for buying and selling property
RATIONALE:
B. A legally binding contract for buying and selling property is correct because it outlines the
agreed terms between buyer and seller.
1. What is a real estate licensee required to disclose under New Zealand law?
A. Only property price history
B. Material information that could affect a buyer’s decision
C. Only mortgage details
D. Only rental income
CORRECT ANSWER: B. Material information that could affect a buyer’s decision
RATIONALE:
B. Material information that could affect a buyer’s decision is correct because licensees must
act honestly and disclose relevant facts.
9. Which of the following is a fiduciary duty of a real estate agent in New Zealand?
A. Maximising personal profit
B. Acting in the client’s best interests
C. Ignoring client instructions
D. Sharing confidential client data publicly
CORRECT ANSWER: B. Acting in the client’s best interests
, RATIONALE:
B. Acting in the client’s best interests is correct because agents must act with loyalty, honesty,
and care.
4. What is the purpose of a LIM report in New Zealand property transactions?
A. To show mortgage repayment schedules
B. To provide council information about land and buildings
C. To set property taxes
D. To transfer ownership
CORRECT ANSWER: B. To provide council information about land and buildings
RATIONALE:
B. To provide council information about land and buildings is correct because a LIM (Land
Information Memorandum) provides important property and planning information.
8. Which document legally transfers ownership of property in New Zealand?
A. Mortgage deed
B. Record of Title transfer (transfer instrument)
C. Rental agreement
D. Building consent
CORRECT ANSWER: B. Record of Title transfer (transfer instrument)
RATIONALE:
B. Record of Title transfer (transfer instrument) is correct because ownership is transferred
through registration with Land Information New Zealand (LINZ).
2. Which of the following best describes a “fixture”?
A. Movable furniture
B. Items permanently attached to land or buildings
C. Rental agreement clause
D. Loan contract
CORRECT ANSWER: B. Items permanently attached to land or buildings
