Rhode Island Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. A real estate salesperson in Rhode Island is showing a property to a buyer
who expresses interest in making an offer. The salesperson has not yet
entered into a written buyer agency agreement. What is the salesperson's
legal relationship to the buyer under Rhode Island law?
The buyer is a customer, and the salesperson owes the buyer only honesty and
fair dealing. Under Rhode Island law, without a written agency agreement, the
salesperson represents the seller and the buyer is considered a customer. The
salesperson must still deal honestly and fairly with the customer but owes
fiduciary duties only to the seller-client.
2. When preparing a comparative market analysis (CMA) for a seller, which of
the following factors should a salesperson consider the MOST important in
determining a property's current market value?
Recent sales prices of comparable properties within the same
neighborhood. Recent closed sales provide the most reliable evidence of current
market value because they reflect actual buyer-seller agreements in the current
market. List prices are aspirational, and tax assessments often lag behind market
conditions.
3. A buyer submits an offer to purchase a property contingent upon obtaining
financing within 30 days. The seller accepts the offer. Before the financing
, contingency expires, the buyer's lender denies the loan application. What is
the buyer's obligation regarding the earnest money deposit?
The buyer is entitled to a return of the earnest money deposit if the contingency
is properly invoked. The financing contingency protects the buyer by allowing
termination and return of earnest money if the buyer cannot obtain financing
despite making a good faith application. The buyer must typically provide written
notice to the seller before the contingency deadline.
4. Under Rhode Island's Real Estate Salesperson Disclosure Act, which of the
following is NOT a required disclosure item on the Seller's Property
Condition Disclosure Statement?
The seller's original purchase price of the property. The Rhode Island disclosure
form requires disclosure of known material defects, environmental hazards, water
supply issues, and structural problems. The seller's original purchase price is not a
required disclosure item as it does not affect the property's physical condition or
safety.
5. A salesperson is showing a property built in 1975 to prospective buyers. The
salesperson notices what appears to be deteriorated pipe insulation in the
basement. What is the salesperson's primary responsibility?
Inform the buyers of the potential presence of asbestos-containing
material. Asbestos was commonly used in pipe insulation and other building
materials before 1980. Rhode Island law requires disclosure of known hazardous
materials. The salesperson should advise the buyers to have a professional
inspection conducted.
6. When calculating a seller's net proceeds from a real estate transaction,
which of the following items would be deducted from the gross sales price?
Outstanding mortgage balance, closing costs, and real estate commission. The
seller's net proceeds are calculated by subtracting all closing costs, including the
remaining mortgage payoff, commission, title charges, transfer taxes, and any
other seller-paid costs from the gross sales price.
, 7. A salesperson receives a referral from an out-of-state broker for a buyer
looking to purchase property in Rhode Island. The referral agreement
specifies a 25% referral fee. What condition must be met for the
salesperson to legally pay this referral fee?
The referral fee must be paid through the salesperson's sponsoring broker and
disclosed to all parties. Rhode Island law requires that all real estate commissions
and referral fees be paid through licensed brokers, not directly to or from
salespersons. The fee must be disclosed to the client and be part of a written
agreement.
8. Which of the following actions constitutes an unfair trade practice under
Rhode Island real estate law?
A salesperson tells a seller that a buyer's offer is too low because the buyer
belongs to a protected class. Discouraging a seller from accepting an offer based
on the buyer's protected class status violates fair housing laws. Steering,
blockbusting, and discriminatory statements are prohibited under both state and
federal law.
9. A property is listed at $300,000. A buyer offers $280,000 with a $5,000
earnest money deposit. The seller counteroffers at $290,000 with a $10,000
earnest money deposit. The buyer signs the counteroffer. What is the legal
status of the original offer?
The original offer is terminated and no longer valid. A counteroffer operates as a
rejection of the original offer and creates a new offer. Once the buyer accepts the
counteroffer, the original terms are no longer binding on either party.
10.In Rhode Island, what is the maximum commission rate that can be charged
by a real estate broker without written disclosure?
There is no statutory maximum commission rate in Rhode Island. Real estate
commissions in Rhode Island are negotiable between the broker and the client.
There is no state-imposed maximum rate, but the rate must be clearly disclosed in
a written agreement before services are provided.
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A real estate salesperson in Rhode Island is showing a property to a buyer
who expresses interest in making an offer. The salesperson has not yet
entered into a written buyer agency agreement. What is the salesperson's
legal relationship to the buyer under Rhode Island law?
The buyer is a customer, and the salesperson owes the buyer only honesty and
fair dealing. Under Rhode Island law, without a written agency agreement, the
salesperson represents the seller and the buyer is considered a customer. The
salesperson must still deal honestly and fairly with the customer but owes
fiduciary duties only to the seller-client.
2. When preparing a comparative market analysis (CMA) for a seller, which of
the following factors should a salesperson consider the MOST important in
determining a property's current market value?
Recent sales prices of comparable properties within the same
neighborhood. Recent closed sales provide the most reliable evidence of current
market value because they reflect actual buyer-seller agreements in the current
market. List prices are aspirational, and tax assessments often lag behind market
conditions.
3. A buyer submits an offer to purchase a property contingent upon obtaining
financing within 30 days. The seller accepts the offer. Before the financing
, contingency expires, the buyer's lender denies the loan application. What is
the buyer's obligation regarding the earnest money deposit?
The buyer is entitled to a return of the earnest money deposit if the contingency
is properly invoked. The financing contingency protects the buyer by allowing
termination and return of earnest money if the buyer cannot obtain financing
despite making a good faith application. The buyer must typically provide written
notice to the seller before the contingency deadline.
4. Under Rhode Island's Real Estate Salesperson Disclosure Act, which of the
following is NOT a required disclosure item on the Seller's Property
Condition Disclosure Statement?
The seller's original purchase price of the property. The Rhode Island disclosure
form requires disclosure of known material defects, environmental hazards, water
supply issues, and structural problems. The seller's original purchase price is not a
required disclosure item as it does not affect the property's physical condition or
safety.
5. A salesperson is showing a property built in 1975 to prospective buyers. The
salesperson notices what appears to be deteriorated pipe insulation in the
basement. What is the salesperson's primary responsibility?
Inform the buyers of the potential presence of asbestos-containing
material. Asbestos was commonly used in pipe insulation and other building
materials before 1980. Rhode Island law requires disclosure of known hazardous
materials. The salesperson should advise the buyers to have a professional
inspection conducted.
6. When calculating a seller's net proceeds from a real estate transaction,
which of the following items would be deducted from the gross sales price?
Outstanding mortgage balance, closing costs, and real estate commission. The
seller's net proceeds are calculated by subtracting all closing costs, including the
remaining mortgage payoff, commission, title charges, transfer taxes, and any
other seller-paid costs from the gross sales price.
, 7. A salesperson receives a referral from an out-of-state broker for a buyer
looking to purchase property in Rhode Island. The referral agreement
specifies a 25% referral fee. What condition must be met for the
salesperson to legally pay this referral fee?
The referral fee must be paid through the salesperson's sponsoring broker and
disclosed to all parties. Rhode Island law requires that all real estate commissions
and referral fees be paid through licensed brokers, not directly to or from
salespersons. The fee must be disclosed to the client and be part of a written
agreement.
8. Which of the following actions constitutes an unfair trade practice under
Rhode Island real estate law?
A salesperson tells a seller that a buyer's offer is too low because the buyer
belongs to a protected class. Discouraging a seller from accepting an offer based
on the buyer's protected class status violates fair housing laws. Steering,
blockbusting, and discriminatory statements are prohibited under both state and
federal law.
9. A property is listed at $300,000. A buyer offers $280,000 with a $5,000
earnest money deposit. The seller counteroffers at $290,000 with a $10,000
earnest money deposit. The buyer signs the counteroffer. What is the legal
status of the original offer?
The original offer is terminated and no longer valid. A counteroffer operates as a
rejection of the original offer and creates a new offer. Once the buyer accepts the
counteroffer, the original terms are no longer binding on either party.
10.In Rhode Island, what is the maximum commission rate that can be charged
by a real estate broker without written disclosure?
There is no statutory maximum commission rate in Rhode Island. Real estate
commissions in Rhode Island are negotiable between the broker and the client.
There is no state-imposed maximum rate, but the rate must be clearly disclosed in
a written agreement before services are provided.
