REAL ESTATE SALESPERSON LICENSE – PRACTICE QUESTIONS |
COMPLETE EXAM PREP WITH VERIFIED ANSWERS AND STUDY
GUIDE
1. What type of deed offers the grantee the most protection/guarantees?: General warranty
deed
2. A property description that uses metes and bounds relies on what reference points?: A
point of beginning, distances, and angles/directions
3. What is 'joint tenancy' most known for?: The right of survivorship
4. Which type of listing agreement allows an owner to sell the property themselves without
owing a commission?: An exclusive agency listing
5. What is the legal term for a property owner's rights being limited by a utility company's
right to cross the land?: Easement
6. Under agency law, what duty requires an agent to act in the client's best financial
interest?: Fiduciary duty (loyalty)
7. What is 'earnest money' intended to demonstrate?: The buyer's good-faith intent to
complete the purchase
8. Which financing instrument creates a lien but does not transfer title, used in most states?:
A mortgage
9. What does 'RESPA' primarily regulate?: Disclosure of settlement costs in federally
related mortgage loans
10. A property's assessed value is used primarily for what purpose?: Calculating property
taxes
11. What type of zoning variance allows a use not otherwise permitted due to unique
hardship?: A use variance
12. Which appraisal approach is most appropriate for valuing a single-family home?: The
sales comparison approach
13. What is 'steering' in real estate practice?: Illegally guiding buyers toward or away from
neighborhoods based on protected class
14. Which document transfers possession, not ownership, of real property?: A lease
15. What is the term for money held by a neutral third party until a transaction closes?:
Escrow
16. A buyer defaults on a purchase contract. What may the seller typically retain?: Earnest
money deposit as liquidated damages
17. What is a 'lis pendens'?: A recorded notice of pending litigation affecting title to a
property
COMPLETE EXAM PREP WITH VERIFIED ANSWERS AND STUDY
GUIDE
1. What type of deed offers the grantee the most protection/guarantees?: General warranty
deed
2. A property description that uses metes and bounds relies on what reference points?: A
point of beginning, distances, and angles/directions
3. What is 'joint tenancy' most known for?: The right of survivorship
4. Which type of listing agreement allows an owner to sell the property themselves without
owing a commission?: An exclusive agency listing
5. What is the legal term for a property owner's rights being limited by a utility company's
right to cross the land?: Easement
6. Under agency law, what duty requires an agent to act in the client's best financial
interest?: Fiduciary duty (loyalty)
7. What is 'earnest money' intended to demonstrate?: The buyer's good-faith intent to
complete the purchase
8. Which financing instrument creates a lien but does not transfer title, used in most states?:
A mortgage
9. What does 'RESPA' primarily regulate?: Disclosure of settlement costs in federally
related mortgage loans
10. A property's assessed value is used primarily for what purpose?: Calculating property
taxes
11. What type of zoning variance allows a use not otherwise permitted due to unique
hardship?: A use variance
12. Which appraisal approach is most appropriate for valuing a single-family home?: The
sales comparison approach
13. What is 'steering' in real estate practice?: Illegally guiding buyers toward or away from
neighborhoods based on protected class
14. Which document transfers possession, not ownership, of real property?: A lease
15. What is the term for money held by a neutral third party until a transaction closes?:
Escrow
16. A buyer defaults on a purchase contract. What may the seller typically retain?: Earnest
money deposit as liquidated damages
17. What is a 'lis pendens'?: A recorded notice of pending litigation affecting title to a
property
