National Real Estate Exam Study Guide 2026/2027 | Practice Questions, Answers & Licensing Exam Review

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NATIONAL REAL ESTATE EXAM
PRACTICE TEST, National Real
Estate Exam Practice Questions
Test Bank


 NATIONAL REAL ESTATE EXAM PRACTICE TEST QUESTIONS AND
ANSWERS

 National Real Estate Exam Practice Questions Answered




 A bank refuses to issue mortgages to a historically Black part of town. This practice is:
CORRECT ANSWER - redlining, and it's illegal




 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:
 CORRECT ANSWER - acceptable as long as he has written records




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 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?
 CORRECT ANSWER - Accounting




 A broker is most often
 CORRECT ANSWER - special 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...
 CORRECT ANSWER - is guilty of conversion




 A broker owes customers
 CORRECT ANSWER - honesty and fairness




 A builder is using inferior siding and paint in an effort to construct affordable housing.
This would be an example of...
 CORRECT ANSWER - functional obsolescence




 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.
 CORRECT ANSWER - The principle of competition




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 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:
 CORRECT ANSWER - Warn 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?
 CORRECT ANSWER - the 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...
 CORRECT ANSWER - Subrogation




 A buyer has purchased a property and after closing the seller will continue to occupy the
property. This is an example of...
 CORRECT ANSWER - sale and leaseback




 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?
 CORRECT ANSWER - The seller does not have sell, but he owes the listing broker a
commission




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 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?
 CORRECT ANSWER - ARM




 A buyer offers additional consideration to add a 10-day option period to the sales
contract. During this period, the buyer can:*
 CORRECT ANSWER - terminate the contract for any reason




 A buyer representation agreement establishes an agency relationship between a buyer
and a:
 CORRECT ANSWER - broker




 A buyer's agent has accidentally forwarded confidential information about his buyer's
financial background to the listing agent. What is true?
 CORRECT ANSWER - the 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?
 CORRECT ANSWER - Recommend 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?
 CORRECT ANSWER - Recommend a survey




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