NATIONAL REAL ESTATE EXAM
PRACTICE QUESTIONS WITH CORRECT
SOLUTIONS
1. A property owner has decided to do some landscaping work on
his yard. He has planted a tree surrounded by some flowering
shrubs. The tree and shrubs are an example of... - ANSWER-
improvements
2. A property owner has a waterfront lot on a stream. He has the
right to use the water from the stream. What is this right
called? - ANSWER-riparian
3. A tenant is aware that his lease will expire at the end of the
month. He has begun to disassemble his display cabinets and
shelves. Which of the following statements about this is true -
ANSWER-the tenant can take these as they are trade fixtures
4. A seller is attending the closing on his property. The title
company has discovered an unsatisfied M&M lien on the
property. Which of the following is the most likely reason for
the lien? - ANSWER-plumbing work that was completed but
never paid for
5. A listing agent went to inspect a seller's property hoping to list
it for sale. The seller told the listing agent that his neighbor's
satellite dish trespasses on his property. This is an example
of... - ANSWER-encroachment
6. A father gives his son a life estate on a property. The son leases
the property. The tenant dies. What happens to the property? -
ANSWER-it goes back to the son until he dies
,7. A man leaves his second wife a life estate in their home after
which the property goes to his children from his first marriage.
The children... - ANSWER-are remaindermen
8. Which of the following statements about an easement is true? -
ANSWER-an easement is a benefit to the dominant property
owner
9. P, Q and R are joint tenants. P wants to sell the property, but Q
and R do not. What can P do? - ANSWER-file a suit for partition
10. A, B and C are joint tenants. C dies. B sells his share to D.
What type of ownership do A and D have? - ANSWER-tenants in
common
11. Under what right can the government change property use
from commercial to residential only? - ANSWER-police power
12. Ownership of the common areas of condominiums is most
likely to be: - ANSWER-tenancy in common
13. What should a buyer do to ensure that his is getting the best
title to real property? - ANSWER-get a general warranty deed
14. Which covenant in a deed guarantees that the owners will not
suffer or be disturbed by any claims on the property? -
ANSWER-the covenant of quiet enjoyment
15. Excess money at a foreclosure sale goes to... - ANSWER-the
borrower
, 16. After defaulting on a real estate loan, a borrower is able to
pay off the loan prior to the foreclosure sale. This is called: -
ANSWER-right of redemption
17. The required distance between buildings and a federally
protected endangered species wetlands is an example of... -
ANSWER-a buffer zone
18. 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? -
ANSWER-they must pay the fee as they have a tenancy in
common interest in all common areas
19. Which of the following is personal property? - ANSWER-a lease
20. A landlord leased space in his new retail property to an
inexperienced business person. Based on location and the type
of business, the landlord believes it will be a great success.
What type of lease can he enter into with the tenant that will
allow the landlord to benefit from the tenant's success? -
ANSWER-a percentage lease
21. A buyer has purchased a property and after closing the seller
will continue to occupy the property. This is an example of... -
ANSWER-sale and leaseback
22. Your client will be able to qualify for a property they wish to
purchase in about 6 months, after they had an opportunity to
reduce their consumer debt. They have found a property that
they would like to purchase now. What type of agreement can
PRACTICE QUESTIONS WITH CORRECT
SOLUTIONS
1. A property owner has decided to do some landscaping work on
his yard. He has planted a tree surrounded by some flowering
shrubs. The tree and shrubs are an example of... - ANSWER-
improvements
2. A property owner has a waterfront lot on a stream. He has the
right to use the water from the stream. What is this right
called? - ANSWER-riparian
3. A tenant is aware that his lease will expire at the end of the
month. He has begun to disassemble his display cabinets and
shelves. Which of the following statements about this is true -
ANSWER-the tenant can take these as they are trade fixtures
4. A seller is attending the closing on his property. The title
company has discovered an unsatisfied M&M lien on the
property. Which of the following is the most likely reason for
the lien? - ANSWER-plumbing work that was completed but
never paid for
5. A listing agent went to inspect a seller's property hoping to list
it for sale. The seller told the listing agent that his neighbor's
satellite dish trespasses on his property. This is an example
of... - ANSWER-encroachment
6. A father gives his son a life estate on a property. The son leases
the property. The tenant dies. What happens to the property? -
ANSWER-it goes back to the son until he dies
,7. A man leaves his second wife a life estate in their home after
which the property goes to his children from his first marriage.
The children... - ANSWER-are remaindermen
8. Which of the following statements about an easement is true? -
ANSWER-an easement is a benefit to the dominant property
owner
9. P, Q and R are joint tenants. P wants to sell the property, but Q
and R do not. What can P do? - ANSWER-file a suit for partition
10. A, B and C are joint tenants. C dies. B sells his share to D.
What type of ownership do A and D have? - ANSWER-tenants in
common
11. Under what right can the government change property use
from commercial to residential only? - ANSWER-police power
12. Ownership of the common areas of condominiums is most
likely to be: - ANSWER-tenancy in common
13. What should a buyer do to ensure that his is getting the best
title to real property? - ANSWER-get a general warranty deed
14. Which covenant in a deed guarantees that the owners will not
suffer or be disturbed by any claims on the property? -
ANSWER-the covenant of quiet enjoyment
15. Excess money at a foreclosure sale goes to... - ANSWER-the
borrower
, 16. After defaulting on a real estate loan, a borrower is able to
pay off the loan prior to the foreclosure sale. This is called: -
ANSWER-right of redemption
17. The required distance between buildings and a federally
protected endangered species wetlands is an example of... -
ANSWER-a buffer zone
18. 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? -
ANSWER-they must pay the fee as they have a tenancy in
common interest in all common areas
19. Which of the following is personal property? - ANSWER-a lease
20. A landlord leased space in his new retail property to an
inexperienced business person. Based on location and the type
of business, the landlord believes it will be a great success.
What type of lease can he enter into with the tenant that will
allow the landlord to benefit from the tenant's success? -
ANSWER-a percentage lease
21. A buyer has purchased a property and after closing the seller
will continue to occupy the property. This is an example of... -
ANSWER-sale and leaseback
22. Your client will be able to qualify for a property they wish to
purchase in about 6 months, after they had an opportunity to
reduce their consumer debt. They have found a property that
they would like to purchase now. What type of agreement can
