1. A property owner grants permission to a neighbor to cross their land to reach a public road, but
this permission can be revoked at any time and does not transfer with the land when sold. This is
best described as which of the following?
A) Easement appurtenant
B) Easement in gross
C) License
D) Easement by necessity
Correct Answer: C) License
License is a personal, revocable privilege that does not run with the land and cannot be assigned to
others.
2. When a seller accepts a buyer's offer but changes the closing date before signing, the seller has
created which of the following legal instruments?
A) A bilateral contract
B) A counter-offer
C) An executed contract
D) An option agreement
Correct Answer: B) A counter-offer
A counter-offer rejects the original offer and creates a new offer that the original offeror may accept
or reject.
3. A tenant farmer who planted crops but then received notice that the land had been sold would
have the legal right to return and harvest those crops under which legal doctrine?
A) Doctrine of adverse possession
B) Doctrine of emblements
C) Doctrine of estoppel
D) Doctrine of laches
Correct Answer: B) Doctrine of emblements
The Doctrine of Emblements protects tenant farmers by allowing them to return and harvest the first
crop after land has been sold.
4. A lender requires a borrower to pay a fee equal to one percent of the loan amount to receive a
reduced interest rate, which would be correctly identified as which of the following?
,A) Origination fee
B) Discount point
C) Underwriting fee
D) Application fee
Correct Answer: B) Discount point
One discount point equals one percent of the loan amount and is paid to reduce the interest rate on
the mortgage loan.
5. When a property owner dies without a valid will and no identifiable heirs can be located, the state
government may take ownership of the property through which legal process?
A) Eminent domain
B) Condemnation
C) Escheat
D) Adverse possession
Correct Answer: C) Escheat
Escheat is the legal process by which the state takes ownership of property when an owner dies
without a will and has no legal heirs.
6. A real estate agent who tries to convince homeowners to sell their properties by suggesting that
property values will decline because families of a certain ethnicity are moving into the neighborhood
is committing which prohibited practice?
A) Steering
B) Redlining
C) Blockbusting
D) Panic peddling
Correct Answer: C) Blockbusting
Blockbusting involves encouraging owners to sell because minority groups are moving into an area,
which is illegal under federal fair housing laws.
7. A contract that contains a promise from one party in exchange for an act from the other party,
with no obligation for the second party to perform the act, is best defined as which type of contract?
A) Bilateral contract
B) Unilateral contract
C) Executed contract
D) Voidable contract
Correct Answer: B) Unilateral contract
A unilateral contract contains one promise given in exchange for completing an act, with no
obligation on the other party to act.
,8. A buyer makes an earnest money deposit and the broker places these funds into the brokerage's
general operating account rather than a separate account. This illegal practice is known by which
term?
A) Conversion
B) Commingling
C) Fraud
D) Puffing
Correct Answer: B) Commingling
Commingling is the illegal practice of mixing client funds with the broker's personal or operating
account funds.
9. A person who holds a life estate based on the lifetime of another person rather than their own life
is correctly said to hold which type of life estate?
A) Estate for years
B) Periodic estate
C) Pur autre vie
D) Estate in reversion
Correct Answer: C) Pur autre vie
Pur autre vie is French meaning "for another's life" and describes a life estate measured by the
lifetime of a person other than the holder.
10. When a buyer assumes the existing mortgage on a property and the lender releases the original
borrower from all future liability, this legal arrangement is properly called which of the following?
A) Assignment
B) Subordination
C) Novation
D) Acceleration
Correct Answer: C) Novation
Novation substitutes a new obligation for an old one and releases the original party from liability
when a new party takes over the agreement.
11. A real estate salesperson who is employed by a broker and has supervisory responsibility over
other licensees within the brokerage would hold which level of license?
A) Associate broker
B) Management-level licensee
C) Principal broker
D) Supervising agent
, Correct Answer: B) Management-level licensee
A management-level licensee is employed by or affiliated with a brokerage and has supervisory
responsibility over other licensees.
12. The right of a landowner whose property borders a river or stream to use the water from that
waterway is legally referred to as which of the following?
A) Littoral rights
B) Riparian rights
C) Prior appropriation rights
D) Percolating rights
Correct Answer: B) Riparian rights
Riparian rights are granted to landowners whose property is adjacent to a river or flowing body of
water.
13. A lender denies a mortgage loan application because the property is located in a predominantly
minority neighborhood, which is an illegal practice known by which term?
A) Blockbusting
B) Steering
C) Redlining
D) Reverse discrimination
Correct Answer: C) Redlining
Redlining illegally denies loans in certain areas based on race, religion, sex, familial status, or
disability rather than property or borrower qualifications.
14. When a buyer and seller are both represented by the same brokerage firm in a single real estate
transaction, this situation is properly called which of the following?
A) Dual representation
B) In-company transaction
C) Designated agency
D) Single agency
Correct Answer: B) In-company transaction
An in-company transaction occurs when the buyer and seller are both represented by the same
brokerage firm.
15. A complete history of all ownership transfers, liens, encumbrances, and legal actions affecting a
specific property is best defined as which of the following documents?
this permission can be revoked at any time and does not transfer with the land when sold. This is
best described as which of the following?
A) Easement appurtenant
B) Easement in gross
C) License
D) Easement by necessity
Correct Answer: C) License
License is a personal, revocable privilege that does not run with the land and cannot be assigned to
others.
2. When a seller accepts a buyer's offer but changes the closing date before signing, the seller has
created which of the following legal instruments?
A) A bilateral contract
B) A counter-offer
C) An executed contract
D) An option agreement
Correct Answer: B) A counter-offer
A counter-offer rejects the original offer and creates a new offer that the original offeror may accept
or reject.
3. A tenant farmer who planted crops but then received notice that the land had been sold would
have the legal right to return and harvest those crops under which legal doctrine?
A) Doctrine of adverse possession
B) Doctrine of emblements
C) Doctrine of estoppel
D) Doctrine of laches
Correct Answer: B) Doctrine of emblements
The Doctrine of Emblements protects tenant farmers by allowing them to return and harvest the first
crop after land has been sold.
4. A lender requires a borrower to pay a fee equal to one percent of the loan amount to receive a
reduced interest rate, which would be correctly identified as which of the following?
,A) Origination fee
B) Discount point
C) Underwriting fee
D) Application fee
Correct Answer: B) Discount point
One discount point equals one percent of the loan amount and is paid to reduce the interest rate on
the mortgage loan.
5. When a property owner dies without a valid will and no identifiable heirs can be located, the state
government may take ownership of the property through which legal process?
A) Eminent domain
B) Condemnation
C) Escheat
D) Adverse possession
Correct Answer: C) Escheat
Escheat is the legal process by which the state takes ownership of property when an owner dies
without a will and has no legal heirs.
6. A real estate agent who tries to convince homeowners to sell their properties by suggesting that
property values will decline because families of a certain ethnicity are moving into the neighborhood
is committing which prohibited practice?
A) Steering
B) Redlining
C) Blockbusting
D) Panic peddling
Correct Answer: C) Blockbusting
Blockbusting involves encouraging owners to sell because minority groups are moving into an area,
which is illegal under federal fair housing laws.
7. A contract that contains a promise from one party in exchange for an act from the other party,
with no obligation for the second party to perform the act, is best defined as which type of contract?
A) Bilateral contract
B) Unilateral contract
C) Executed contract
D) Voidable contract
Correct Answer: B) Unilateral contract
A unilateral contract contains one promise given in exchange for completing an act, with no
obligation on the other party to act.
,8. A buyer makes an earnest money deposit and the broker places these funds into the brokerage's
general operating account rather than a separate account. This illegal practice is known by which
term?
A) Conversion
B) Commingling
C) Fraud
D) Puffing
Correct Answer: B) Commingling
Commingling is the illegal practice of mixing client funds with the broker's personal or operating
account funds.
9. A person who holds a life estate based on the lifetime of another person rather than their own life
is correctly said to hold which type of life estate?
A) Estate for years
B) Periodic estate
C) Pur autre vie
D) Estate in reversion
Correct Answer: C) Pur autre vie
Pur autre vie is French meaning "for another's life" and describes a life estate measured by the
lifetime of a person other than the holder.
10. When a buyer assumes the existing mortgage on a property and the lender releases the original
borrower from all future liability, this legal arrangement is properly called which of the following?
A) Assignment
B) Subordination
C) Novation
D) Acceleration
Correct Answer: C) Novation
Novation substitutes a new obligation for an old one and releases the original party from liability
when a new party takes over the agreement.
11. A real estate salesperson who is employed by a broker and has supervisory responsibility over
other licensees within the brokerage would hold which level of license?
A) Associate broker
B) Management-level licensee
C) Principal broker
D) Supervising agent
, Correct Answer: B) Management-level licensee
A management-level licensee is employed by or affiliated with a brokerage and has supervisory
responsibility over other licensees.
12. The right of a landowner whose property borders a river or stream to use the water from that
waterway is legally referred to as which of the following?
A) Littoral rights
B) Riparian rights
C) Prior appropriation rights
D) Percolating rights
Correct Answer: B) Riparian rights
Riparian rights are granted to landowners whose property is adjacent to a river or flowing body of
water.
13. A lender denies a mortgage loan application because the property is located in a predominantly
minority neighborhood, which is an illegal practice known by which term?
A) Blockbusting
B) Steering
C) Redlining
D) Reverse discrimination
Correct Answer: C) Redlining
Redlining illegally denies loans in certain areas based on race, religion, sex, familial status, or
disability rather than property or borrower qualifications.
14. When a buyer and seller are both represented by the same brokerage firm in a single real estate
transaction, this situation is properly called which of the following?
A) Dual representation
B) In-company transaction
C) Designated agency
D) Single agency
Correct Answer: B) In-company transaction
An in-company transaction occurs when the buyer and seller are both represented by the same
brokerage firm.
15. A complete history of all ownership transfers, liens, encumbrances, and legal actions affecting a
specific property is best defined as which of the following documents?
