REAL ESTATE ACTUAL EXAM 90 QUESTION AND CORRECT
DETAILED ANSWERS WITH RATIONALES RATED A GRADE.
Course
REAL ESTATE 2026
1. Which duty requires a real estate agent to place the client's interests above their own?
A. Accountability
B. Disclosure
C. Fiduciary Duty
D. Fair Housing
Answer: C. Fiduciary Duty
Rationale: A fiduciary relationship requires the licensee to exercise loyalty, obedience,
disclosure, confidentiality, reasonable care, and accounting while always placing the client's
interests first.
2. Which type of listing gives only one broker the right to earn a commission regardless of
who finds the buyer?
A. Open Listing
B. Net Listing
C. Exclusive Right-to-Sell Listing
D. Exclusive Agency Listing
Answer: C. Exclusive Right-to-Sell Listing
Rationale: Under an Exclusive Right-to-Sell Listing, the broker earns a commission whenever the
property sells during the listing period, even if the owner finds the buyer.
3. A fee simple estate represents:
A. A leasehold interest
B. The greatest bundle of ownership rights recognized by law
C. A life estate
,D. A temporary ownership interest
Answer: B. The greatest bundle of ownership rights recognized by law
Rationale: Fee simple ownership provides the broadest rights, including possession, control,
exclusion, enjoyment, and disposition.
4. Which government power allows land to be taken for public use with just compensation?
A. Police Power
B. Escheat
C. Eminent Domain
D. Taxation
Answer: C. Eminent Domain
Rationale: Eminent domain permits government acquisition of private property for public use
while providing just compensation.
5. Which financing method involves the seller acting as the lender?
A. FHA Loan
B. VA Loan
C. Seller Financing
D. Conventional Loan
Answer: C. Seller Financing
Rationale: Seller financing occurs when the seller provides credit directly to the buyer rather
than requiring a traditional lender.
6. Which Fair Housing protected class was added by the 1988 amendments?
A. Race
B. Religion
C. Familial Status
,D. National Origin
Answer: C. Familial Status
Rationale: The Fair Housing Amendments Act of 1988 added Familial Status and Disability as
protected classes.
7. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim Deed
B. Bargain and Sale Deed
C. General Warranty Deed
D. Special Warranty Deed
Answer: C. General Warranty Deed
Rationale: A General Warranty Deed provides the broadest warranties, protecting against
defects arising both before and during the grantor's ownership.
8. Which contract element requires that each party exchange something of value?
A. Capacity
B. Consideration
C. Acceptance
D. Legality
Answer: B. Consideration
Rationale: Consideration is the exchange of value that makes a contract legally enforceable.
9. Which mortgage clause allows the lender to require immediate payment of the remaining
balance after default?
A. Defeasance Clause
B. Escalation Clause
C. Acceleration Clause
, D. Habendum Clause
Answer: C. Acceleration Clause
Rationale: The acceleration clause permits the lender to declare the entire loan balance
immediately due after borrower default.
10. A property owner who transfers ownership but retains the right to occupy the property
for life creates a:
A. Fee Simple Estate
B. Life Estate
C. Leasehold Estate
D. Easement
Answer: B. Life Estate
Rationale: A life estate allows an individual to possess and use property during their lifetime.
11. Which appraisal principle states that value is influenced by the cost of acquiring a similar
property?
A. Substitution
B. Contribution
C. Regression
D. Progression
Answer: A. Substitution
Rationale: Buyers generally will not pay more than the cost of obtaining a comparable
substitute property.
12. Which loan typically requires no down payment for eligible military veterans?
A. Conventional Loan
B. FHA Loan
DETAILED ANSWERS WITH RATIONALES RATED A GRADE.
Course
REAL ESTATE 2026
1. Which duty requires a real estate agent to place the client's interests above their own?
A. Accountability
B. Disclosure
C. Fiduciary Duty
D. Fair Housing
Answer: C. Fiduciary Duty
Rationale: A fiduciary relationship requires the licensee to exercise loyalty, obedience,
disclosure, confidentiality, reasonable care, and accounting while always placing the client's
interests first.
2. Which type of listing gives only one broker the right to earn a commission regardless of
who finds the buyer?
A. Open Listing
B. Net Listing
C. Exclusive Right-to-Sell Listing
D. Exclusive Agency Listing
Answer: C. Exclusive Right-to-Sell Listing
Rationale: Under an Exclusive Right-to-Sell Listing, the broker earns a commission whenever the
property sells during the listing period, even if the owner finds the buyer.
3. A fee simple estate represents:
A. A leasehold interest
B. The greatest bundle of ownership rights recognized by law
C. A life estate
,D. A temporary ownership interest
Answer: B. The greatest bundle of ownership rights recognized by law
Rationale: Fee simple ownership provides the broadest rights, including possession, control,
exclusion, enjoyment, and disposition.
4. Which government power allows land to be taken for public use with just compensation?
A. Police Power
B. Escheat
C. Eminent Domain
D. Taxation
Answer: C. Eminent Domain
Rationale: Eminent domain permits government acquisition of private property for public use
while providing just compensation.
5. Which financing method involves the seller acting as the lender?
A. FHA Loan
B. VA Loan
C. Seller Financing
D. Conventional Loan
Answer: C. Seller Financing
Rationale: Seller financing occurs when the seller provides credit directly to the buyer rather
than requiring a traditional lender.
6. Which Fair Housing protected class was added by the 1988 amendments?
A. Race
B. Religion
C. Familial Status
,D. National Origin
Answer: C. Familial Status
Rationale: The Fair Housing Amendments Act of 1988 added Familial Status and Disability as
protected classes.
7. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim Deed
B. Bargain and Sale Deed
C. General Warranty Deed
D. Special Warranty Deed
Answer: C. General Warranty Deed
Rationale: A General Warranty Deed provides the broadest warranties, protecting against
defects arising both before and during the grantor's ownership.
8. Which contract element requires that each party exchange something of value?
A. Capacity
B. Consideration
C. Acceptance
D. Legality
Answer: B. Consideration
Rationale: Consideration is the exchange of value that makes a contract legally enforceable.
9. Which mortgage clause allows the lender to require immediate payment of the remaining
balance after default?
A. Defeasance Clause
B. Escalation Clause
C. Acceleration Clause
, D. Habendum Clause
Answer: C. Acceleration Clause
Rationale: The acceleration clause permits the lender to declare the entire loan balance
immediately due after borrower default.
10. A property owner who transfers ownership but retains the right to occupy the property
for life creates a:
A. Fee Simple Estate
B. Life Estate
C. Leasehold Estate
D. Easement
Answer: B. Life Estate
Rationale: A life estate allows an individual to possess and use property during their lifetime.
11. Which appraisal principle states that value is influenced by the cost of acquiring a similar
property?
A. Substitution
B. Contribution
C. Regression
D. Progression
Answer: A. Substitution
Rationale: Buyers generally will not pay more than the cost of obtaining a comparable
substitute property.
12. Which loan typically requires no down payment for eligible military veterans?
A. Conventional Loan
B. FHA Loan
