1
National Real Estate Exam Practice
Questions with Correct Answers 2025-
2026 Edition. Graded A
A broker has a trust account set up to hold client funds. He has earnest
money deposits from several clients in the account at the same time. This
is: - ANS acceptable as long as he has written records
A broker has written permission to represent both the seller and the buyer
as a dual agent. Under these circumstances, which of the duties of the
agent would be the easiest for him to fulfill? - ANSAccounting
A broker is most often - ANSspecial agent
A broker is running short of funds to meet this month's monthly operating
expenses. He places a client's earnest money deposit in his business
account and uses it to pay is rent. After his next closing, he replaces the
client's deposit in his trust account. The broker... - ANSis guilty of
conversion
A broker owes customers - ANShonesty and fairness
A builder is using inferior siding and paint in an effort to construct affordable
housing. This would be an example of... - ANSfunctional obsolescence
1
, 2
A builder is very successful and active in a new subdivision. Homes in the
subdivision are selling well, and the builder is making a good profit on the
sales. Two new builders arrive and begin to sell in the same subdivision. All
experience a lower level of profit. This demonstrates which principle of
appraisal. - ANSThe principle of competition
A buyer and his agent visit a listed property. The buyer loves the property
and wants to purchase it. He speaks with the seller, who is at home at the
time, and they come to an agreement regarding price and terms. They
shake hands on the agreement and the buyer happily leaves the property.
His agent should: - ANSWarn the buyer that the verbal sales contract is
unenforceable
A buyer and seller have negotiated a contract on the seller's property with a
closing set for June 14th, time is of the essence. On June 12th the listing
agent calls the buyer's agent and tells him the seller will be unable to close
on the 14th. The seller can close on the 16th. At this time, what is true? -
ANSthe contract is voidable by the buyer
A buyer has discovered a defect in title and has suffered a loss due to the
defect. The title company has compensated the buyer for the loss.
Subsequently, the buyer is awarded a judgement against the seller. The
title company is entitled to a portion of the judgment as reimbursement for
the claim it paid. This describes... - ANSSubrogation
A buyer has purchased a property and after closing the seller will continue
to occupy the property. This is an example of... - ANSsale and leaseback
2
, 3
A buyer has signed an agreement to purchase a property from a seller. He
has met all the terms and conditions of the listing. The listing broker has
taken the agreement to the seller. The seller has changed his mind about
selling and refuses to sign the agreement. What is true? - ANSThe seller
does not have sell, but he owes the listing broker a commission
A buyer is aware that the interest rates should go down over the nest few
months. What type of loan should he get to enable him to buy now and take
advantage of declining rates in the future? - ANSARM
A buyer's agent has accidentally forwarded confidential information about
his buyer's financial background to the listing agent. What is true? - ANSthe
buyer's agent is guilty of negligence and the listing agent must disclose the
information to the seller
A buyer's agent has helped a buyer to find a home. The buyer has
expressed concern about the possible presence of radon. What should the
buyer's agent do in this case? - ANSRecommend an inspection for
hazardous materials
A buyer's agent is working with a buyer to purchase a property. The buyer
is concerned about the location of the fence as it appears to be
encroaching. What should the buyer's agent do? - ANSRecommend a
survey
3
, 4
A chemical manufacturing company purchases a plant. After closing they
discover that the previous owners had spilled hazardous materials on the
land. According to CERCLA, who is liable for the cost of the cleanup? -
ANSboth the new owners and the previous owners
A condo complex has liability complex has liability insurance. This is least
likely to cover - ANSa units owner's carpet damaged by a broken water
pipe
A condo owner's policy will most likely cover the owner if - ANSa guest slips
in the kitchen
A couple is moving to a new city and they would like time to learn the city
before they purchase a home. What type of lease should their agent
recommend? - ANSa periodic tenancy
A couple is purchasing a home and ask their agent how they should take
title so that if one spouse dies, immediately the surviving spouse will be the
sole owner of the property. The license holder should: - ANSTell them to
talk to an attorney, because the license holder is not permitted to give
advice on how to take title
A couple purchased a condominium. The complex has an exercise room for
all residents. The couple does not use the exercise room and does not want
to pay the monthly fee for the use of the facility. What can they do to avoid
this fee? - ANSthey must pay the fee as they have a tenancy in common
interest in all common areas
4
National Real Estate Exam Practice
Questions with Correct Answers 2025-
2026 Edition. Graded A
A broker has a trust account set up to hold client funds. He has earnest
money deposits from several clients in the account at the same time. This
is: - ANS acceptable as long as he has written records
A broker has written permission to represent both the seller and the buyer
as a dual agent. Under these circumstances, which of the duties of the
agent would be the easiest for him to fulfill? - ANSAccounting
A broker is most often - ANSspecial agent
A broker is running short of funds to meet this month's monthly operating
expenses. He places a client's earnest money deposit in his business
account and uses it to pay is rent. After his next closing, he replaces the
client's deposit in his trust account. The broker... - ANSis guilty of
conversion
A broker owes customers - ANShonesty and fairness
A builder is using inferior siding and paint in an effort to construct affordable
housing. This would be an example of... - ANSfunctional obsolescence
1
, 2
A builder is very successful and active in a new subdivision. Homes in the
subdivision are selling well, and the builder is making a good profit on the
sales. Two new builders arrive and begin to sell in the same subdivision. All
experience a lower level of profit. This demonstrates which principle of
appraisal. - ANSThe principle of competition
A buyer and his agent visit a listed property. The buyer loves the property
and wants to purchase it. He speaks with the seller, who is at home at the
time, and they come to an agreement regarding price and terms. They
shake hands on the agreement and the buyer happily leaves the property.
His agent should: - ANSWarn the buyer that the verbal sales contract is
unenforceable
A buyer and seller have negotiated a contract on the seller's property with a
closing set for June 14th, time is of the essence. On June 12th the listing
agent calls the buyer's agent and tells him the seller will be unable to close
on the 14th. The seller can close on the 16th. At this time, what is true? -
ANSthe contract is voidable by the buyer
A buyer has discovered a defect in title and has suffered a loss due to the
defect. The title company has compensated the buyer for the loss.
Subsequently, the buyer is awarded a judgement against the seller. The
title company is entitled to a portion of the judgment as reimbursement for
the claim it paid. This describes... - ANSSubrogation
A buyer has purchased a property and after closing the seller will continue
to occupy the property. This is an example of... - ANSsale and leaseback
2
, 3
A buyer has signed an agreement to purchase a property from a seller. He
has met all the terms and conditions of the listing. The listing broker has
taken the agreement to the seller. The seller has changed his mind about
selling and refuses to sign the agreement. What is true? - ANSThe seller
does not have sell, but he owes the listing broker a commission
A buyer is aware that the interest rates should go down over the nest few
months. What type of loan should he get to enable him to buy now and take
advantage of declining rates in the future? - ANSARM
A buyer's agent has accidentally forwarded confidential information about
his buyer's financial background to the listing agent. What is true? - ANSthe
buyer's agent is guilty of negligence and the listing agent must disclose the
information to the seller
A buyer's agent has helped a buyer to find a home. The buyer has
expressed concern about the possible presence of radon. What should the
buyer's agent do in this case? - ANSRecommend an inspection for
hazardous materials
A buyer's agent is working with a buyer to purchase a property. The buyer
is concerned about the location of the fence as it appears to be
encroaching. What should the buyer's agent do? - ANSRecommend a
survey
3
, 4
A chemical manufacturing company purchases a plant. After closing they
discover that the previous owners had spilled hazardous materials on the
land. According to CERCLA, who is liable for the cost of the cleanup? -
ANSboth the new owners and the previous owners
A condo complex has liability complex has liability insurance. This is least
likely to cover - ANSa units owner's carpet damaged by a broken water
pipe
A condo owner's policy will most likely cover the owner if - ANSa guest slips
in the kitchen
A couple is moving to a new city and they would like time to learn the city
before they purchase a home. What type of lease should their agent
recommend? - ANSa periodic tenancy
A couple is purchasing a home and ask their agent how they should take
title so that if one spouse dies, immediately the surviving spouse will be the
sole owner of the property. The license holder should: - ANSTell them to
talk to an attorney, because the license holder is not permitted to give
advice on how to take title
A couple purchased a condominium. The complex has an exercise room for
all residents. The couple does not use the exercise room and does not want
to pay the monthly fee for the use of the facility. What can they do to avoid
this fee? - ANSthey must pay the fee as they have a tenancy in common
interest in all common areas
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