NATIONAL REAL ESTATE PRACTICE EXAM 2026/2027
QUESTIONS AND ANSWERS RATED A+
✔✔11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method - ✔✔Gross Rent Multiplier Method
✔✔What is steering? - ✔✔the unlawful act of keeping a buyer away from certain
communities or guiding them to purchase in certain communities.
✔✔15. Entitlement to commission when transaction is not consummated. - ✔✔Except
when listing broker does not disclose information
✔✔16. Can a salesperson give legal advice? - ✔✔No, not unless they are an attorney.
✔✔17. Who determines the commission in a listing contract? - ✔✔An agreement
between the owner and broker
✔✔19. All are typical duties of a property manager with the exception of... - ✔✔Investing
profits
✔✔20. Transfer tax is typically paid by for by whom? - ✔✔Buyer and seller
✔✔21. Blockbusting definition... - ✔✔An illegal real estate practice caused by inciting
fear and panic selling by suggesting that persons of minority background are or may be
moving into an area or that the majority of residents are moving out of an area.
✔✔23. Special agency listing definition... - ✔✔n/a
✔✔25. Net listing definition... - ✔✔a type of listing in which a seller desires to sell real
property and receive a guaranteed amount of money for the sale, so that the broker's
commission is any sale price amount of money over and above the guaranteed price to
the seller.
✔✔26. The main factor a property manager should use to evaluate a prospective tenant
is - ✔✔can they make monthly rent payments on time.
✔✔27. All are examples of single agency disclosures with the exception of -
✔✔revealing the owner will except less.
✔✔30. What is the most reliable method of appraisal for residential real estate? -
✔✔Sales comparison approach
, ✔✔31. Assemblage definition... - ✔✔consolidating two separate lots into one.
✔✔32. What would not be a depreciation of value? - ✔✔Unimproved land
✔✔33. What has the greatest effect on real estate value? - ✔✔Demand of people and
location
✔✔34. What rules require fair housing laws to be in a listing contract? - ✔✔PA Human
Relations Act
✔✔40. Typically who pays for title insurance? - ✔✔Buyer
✔✔44. What is the transfer tax charged by the state of PA? - ✔✔1% of the sales price
✔✔45. What should you do about material defect disclosures? - ✔✔inform the buyer
and seller
✔✔48. What is private mortgage insurance? - ✔✔It protects the lender if their is default
✔✔49. What is the first step in the appraisal process? - ✔✔Indicate objective of
appraisal
✔✔50. What is an example of external depreciation? - ✔✔Nearby property that suffers
from lack of maintenance and is negatively affecting the sellers property.
✔✔52. Who does a selling salesperson represent under buyer agency? - ✔✔Buyer
✔✔54. What is not an example of a real estate business violation of the antitrust laws? -
✔✔opening offices in new locations
✔✔56. Equity definition... - ✔✔the value of real estate above any debt on that property.
✔✔57. Who are the parties in a listing agreement? - ✔✔owner and listing broker.
✔✔58. All are examples of fiduciary responsibilities under a single agency listing
agreement except.. . - ✔✔negotiate lowest price.
✔✔60. Reconciliation definition... - ✔✔the process of comparing the property values
derived from different approaches to value, selecting the most suitable approach for the
particular property being appraised and coming to a final conclusion of value.
QUESTIONS AND ANSWERS RATED A+
✔✔11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method - ✔✔Gross Rent Multiplier Method
✔✔What is steering? - ✔✔the unlawful act of keeping a buyer away from certain
communities or guiding them to purchase in certain communities.
✔✔15. Entitlement to commission when transaction is not consummated. - ✔✔Except
when listing broker does not disclose information
✔✔16. Can a salesperson give legal advice? - ✔✔No, not unless they are an attorney.
✔✔17. Who determines the commission in a listing contract? - ✔✔An agreement
between the owner and broker
✔✔19. All are typical duties of a property manager with the exception of... - ✔✔Investing
profits
✔✔20. Transfer tax is typically paid by for by whom? - ✔✔Buyer and seller
✔✔21. Blockbusting definition... - ✔✔An illegal real estate practice caused by inciting
fear and panic selling by suggesting that persons of minority background are or may be
moving into an area or that the majority of residents are moving out of an area.
✔✔23. Special agency listing definition... - ✔✔n/a
✔✔25. Net listing definition... - ✔✔a type of listing in which a seller desires to sell real
property and receive a guaranteed amount of money for the sale, so that the broker's
commission is any sale price amount of money over and above the guaranteed price to
the seller.
✔✔26. The main factor a property manager should use to evaluate a prospective tenant
is - ✔✔can they make monthly rent payments on time.
✔✔27. All are examples of single agency disclosures with the exception of -
✔✔revealing the owner will except less.
✔✔30. What is the most reliable method of appraisal for residential real estate? -
✔✔Sales comparison approach
, ✔✔31. Assemblage definition... - ✔✔consolidating two separate lots into one.
✔✔32. What would not be a depreciation of value? - ✔✔Unimproved land
✔✔33. What has the greatest effect on real estate value? - ✔✔Demand of people and
location
✔✔34. What rules require fair housing laws to be in a listing contract? - ✔✔PA Human
Relations Act
✔✔40. Typically who pays for title insurance? - ✔✔Buyer
✔✔44. What is the transfer tax charged by the state of PA? - ✔✔1% of the sales price
✔✔45. What should you do about material defect disclosures? - ✔✔inform the buyer
and seller
✔✔48. What is private mortgage insurance? - ✔✔It protects the lender if their is default
✔✔49. What is the first step in the appraisal process? - ✔✔Indicate objective of
appraisal
✔✔50. What is an example of external depreciation? - ✔✔Nearby property that suffers
from lack of maintenance and is negatively affecting the sellers property.
✔✔52. Who does a selling salesperson represent under buyer agency? - ✔✔Buyer
✔✔54. What is not an example of a real estate business violation of the antitrust laws? -
✔✔opening offices in new locations
✔✔56. Equity definition... - ✔✔the value of real estate above any debt on that property.
✔✔57. Who are the parties in a listing agreement? - ✔✔owner and listing broker.
✔✔58. All are examples of fiduciary responsibilities under a single agency listing
agreement except.. . - ✔✔negotiate lowest price.
✔✔60. Reconciliation definition... - ✔✔the process of comparing the property values
derived from different approaches to value, selecting the most suitable approach for the
particular property being appraised and coming to a final conclusion of value.
