REAL ESTATE NATIONAL PRACTICE EXAM
/PEARSON VUE REAL ESTATE TEST BANK
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS| CURRENTLY
TESTING VERSION | ALREADY GRADED
A+|NEWEST|EXPERT VERIFIED FOR
GUARANTEED PASS 2026/2027
How is earnest money recorded on the closing disclosure
a. debit to the seller
b. debit to the buyer
c. credit to the seller
d. credit to the buyer
Credit to the buyer
What type of mortgage loan would allow the property owner to borrow additional funds
at future dates
an HELOC
A seller has received $225,000 for the sale of his home. This represents a 20% profit.
What did he pay for the house when he purchased it?
$187,500
A seller wants to net $185,000 on the sale of his property. He must pay a loan balance of
$180,530 and closing costs at $10,000. The commission to the listing broker will be 6%.
What is the lowest price the property can sell for to accomplish this?
$399,500
If an appraiser uses the cost approach to determine the value of a two story building
128 x 97 at $120/sq. ft, with $10,000 in depreciation and a $27,500 lot, what is the value
of the property?
$2,997,340
1|Page
,Mark purchased a home for $150,000 He had an 80% LTV. He has paid off $42,000 of his
purchase mortgage. He is selling the house for $179,000. How much equity does he
have?
$101,000
Maria is planning to buy a house for $200,000. The lender has indicated that he will
charge 3 points plus an origination point. Maria is considering the difference between
an 80% LTV and a 75% LTV. How much will she save on points if she chooses the 75%
LTV?
$400
An office space is 24 feet long and 27 feet wide with 9-ft ceilings. The owner wants to
carpet the office. How many square yards of carpet does he need?
72
A property is listed for $399,500. It sells for $396,000. The negotiated commission is 6%
and will be split evenly between the selling broker and the listing broker. The selling
broker pays his sales associates 60% of the broker's commission. How much does the
selling broker earn?
$4,752
A developer has 2,178,000 sq.ft of property. He sells 80% of it for $5,000 an acre. What
is the total sale price?
$200,000
An office building has a potential gross rent of $20,000.per month. It has a vacancy rate
of 15%. Yearly expenses for the property toatl $115,000. If the owner is earning a 10%
rate of return, what is the value of the building?
$890,000
What monthly income will your buyers need to qualify for a $200,000 loan at 6% for 30
years if lenders are qualifying at 28%? (The loan factors is $6.00). Monthly taxes and
insurance will be $900.
$7,500
A seller is closing on the sale of his home on April 23rd. The property taxes have not
been paid for this year. The annual tax bill is $2,008. Using a 360-day year, how much
will the seller owe for taxes at closing?
$630
2|Page
,An owner sold his house for $250,000 with a $50,000 take back. (A take back is seller
financing. The seller receives a note for this amount at closing and will collect this
amount over the agreed-upon term of the loan). He paid off his loan of $138,500 and ha
paid a 5% commission. He had closing costs of $10,000.
How much did the seller net at closing?
$39,000
John is purchasing a lot 125 feet wide and 127 feet deep for $5.65 a square foot plus $15
a front foot. (A front foot refers to frontage and is the width of the lot.) How much will he
pay for the lot?
$91,568.75
A sale is closing on June 15th and the annual property tax bill has not been paid. The
house is assessed at $350,000 and the tax rate is $2.50 per $100. Using a 360-day year,
how much will the seller owe for the taxes at closing (to the nearest dollar) and how will
this be shown on the CD?
$4010 debit the seller/ credit the buyer
The fact that an individual must go to the land described which of the physical
characteristics of land?
Immobility
John and Mary are co-owners of a property. John has 60% interest in the property and
Mary has a 40% interest. What type of freehold estate do they have?
Tenancy in common
A property is surveyed to determine a legal description. The surveyor works from a point
of beginning, and measures terminal points and angles. What method of land
description is he using?
Metes and bounds
Mary and John are married with grown children. Both are intestate. If John dies and Mary
becomes the owner of their home, what type of ownership did they have?
Tenancy by the entirety
The local government needs your land to build a new high school. They have the right to
take your land for the public good. This is called
The right of eminent domain
You have recently purchased property in an area regulated by zoning. It has come to
your attention that you have a zoning violation on the property. What should you do?
3|Page
, Request a variance from the zoning board
One of the property owners in a subdivision is violating the deed restrictions. What can
the other property owners do to get him to comply?
Seek an injunction from the courts
Your property borders a non-navigable waterway and you have riparian rights. You have
built a 10 foot pier at the water's edge. How do measure your property?
To the middle of the waterway
Mary, a single woman, has no children. She owns real property and dies intestate. What
happens to her real property?
The court will appoint an administrator and it will be distributed to her heirs by the Law
of Descent
A property owner has a gas station on his land. The zoning committee changes the
zoning to R-1. What must the property owner do?
Nothing- his property is automatically considered a non-conforming use
A property owner receives a notice that his land is in an improvement district. What
does this mean?
He will receive an additional tax bill
A property owner has installed a chain link fence on his property. He has received on
official notice requiring the removal of this type of fence. This fence is most likely a
violation of...
Deed restrictions or deed covenants
A single property is regulated by building codes, zoning and deed restrictions. The rules
are in conflict with one another. Which must the property owner obey?
The property owner must obey whichever rules are the strictest or most limiting
Which of the following conveys title to real property and insure good title?
A general warranty deed
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...
Subrogation
4|Page
/PEARSON VUE REAL ESTATE TEST BANK
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS| CURRENTLY
TESTING VERSION | ALREADY GRADED
A+|NEWEST|EXPERT VERIFIED FOR
GUARANTEED PASS 2026/2027
How is earnest money recorded on the closing disclosure
a. debit to the seller
b. debit to the buyer
c. credit to the seller
d. credit to the buyer
Credit to the buyer
What type of mortgage loan would allow the property owner to borrow additional funds
at future dates
an HELOC
A seller has received $225,000 for the sale of his home. This represents a 20% profit.
What did he pay for the house when he purchased it?
$187,500
A seller wants to net $185,000 on the sale of his property. He must pay a loan balance of
$180,530 and closing costs at $10,000. The commission to the listing broker will be 6%.
What is the lowest price the property can sell for to accomplish this?
$399,500
If an appraiser uses the cost approach to determine the value of a two story building
128 x 97 at $120/sq. ft, with $10,000 in depreciation and a $27,500 lot, what is the value
of the property?
$2,997,340
1|Page
,Mark purchased a home for $150,000 He had an 80% LTV. He has paid off $42,000 of his
purchase mortgage. He is selling the house for $179,000. How much equity does he
have?
$101,000
Maria is planning to buy a house for $200,000. The lender has indicated that he will
charge 3 points plus an origination point. Maria is considering the difference between
an 80% LTV and a 75% LTV. How much will she save on points if she chooses the 75%
LTV?
$400
An office space is 24 feet long and 27 feet wide with 9-ft ceilings. The owner wants to
carpet the office. How many square yards of carpet does he need?
72
A property is listed for $399,500. It sells for $396,000. The negotiated commission is 6%
and will be split evenly between the selling broker and the listing broker. The selling
broker pays his sales associates 60% of the broker's commission. How much does the
selling broker earn?
$4,752
A developer has 2,178,000 sq.ft of property. He sells 80% of it for $5,000 an acre. What
is the total sale price?
$200,000
An office building has a potential gross rent of $20,000.per month. It has a vacancy rate
of 15%. Yearly expenses for the property toatl $115,000. If the owner is earning a 10%
rate of return, what is the value of the building?
$890,000
What monthly income will your buyers need to qualify for a $200,000 loan at 6% for 30
years if lenders are qualifying at 28%? (The loan factors is $6.00). Monthly taxes and
insurance will be $900.
$7,500
A seller is closing on the sale of his home on April 23rd. The property taxes have not
been paid for this year. The annual tax bill is $2,008. Using a 360-day year, how much
will the seller owe for taxes at closing?
$630
2|Page
,An owner sold his house for $250,000 with a $50,000 take back. (A take back is seller
financing. The seller receives a note for this amount at closing and will collect this
amount over the agreed-upon term of the loan). He paid off his loan of $138,500 and ha
paid a 5% commission. He had closing costs of $10,000.
How much did the seller net at closing?
$39,000
John is purchasing a lot 125 feet wide and 127 feet deep for $5.65 a square foot plus $15
a front foot. (A front foot refers to frontage and is the width of the lot.) How much will he
pay for the lot?
$91,568.75
A sale is closing on June 15th and the annual property tax bill has not been paid. The
house is assessed at $350,000 and the tax rate is $2.50 per $100. Using a 360-day year,
how much will the seller owe for the taxes at closing (to the nearest dollar) and how will
this be shown on the CD?
$4010 debit the seller/ credit the buyer
The fact that an individual must go to the land described which of the physical
characteristics of land?
Immobility
John and Mary are co-owners of a property. John has 60% interest in the property and
Mary has a 40% interest. What type of freehold estate do they have?
Tenancy in common
A property is surveyed to determine a legal description. The surveyor works from a point
of beginning, and measures terminal points and angles. What method of land
description is he using?
Metes and bounds
Mary and John are married with grown children. Both are intestate. If John dies and Mary
becomes the owner of their home, what type of ownership did they have?
Tenancy by the entirety
The local government needs your land to build a new high school. They have the right to
take your land for the public good. This is called
The right of eminent domain
You have recently purchased property in an area regulated by zoning. It has come to
your attention that you have a zoning violation on the property. What should you do?
3|Page
, Request a variance from the zoning board
One of the property owners in a subdivision is violating the deed restrictions. What can
the other property owners do to get him to comply?
Seek an injunction from the courts
Your property borders a non-navigable waterway and you have riparian rights. You have
built a 10 foot pier at the water's edge. How do measure your property?
To the middle of the waterway
Mary, a single woman, has no children. She owns real property and dies intestate. What
happens to her real property?
The court will appoint an administrator and it will be distributed to her heirs by the Law
of Descent
A property owner has a gas station on his land. The zoning committee changes the
zoning to R-1. What must the property owner do?
Nothing- his property is automatically considered a non-conforming use
A property owner receives a notice that his land is in an improvement district. What
does this mean?
He will receive an additional tax bill
A property owner has installed a chain link fence on his property. He has received on
official notice requiring the removal of this type of fence. This fence is most likely a
violation of...
Deed restrictions or deed covenants
A single property is regulated by building codes, zoning and deed restrictions. The rules
are in conflict with one another. Which must the property owner obey?
The property owner must obey whichever rules are the strictest or most limiting
Which of the following conveys title to real property and insure good title?
A general warranty deed
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...
Subrogation
4|Page
