REAL ESTATE PRACTICE EXAM
QUESTIONS W ITH CORRECT SOLUTIONS
2025-2026 /GRADED A+
1. B r oker age defi n ition ... - ANSW ER-the busin ess pr actice of br in gin g
togeth er the par ties in a pr actice.
2. W h at ar e tw o exam ples of special use pr oper ty? - ANSW ER-schools and
cem etar y
3. W h at is an exam ple of fun ction al obsolescen ce? - ANSW ER-bathr oom
4. Pr in cipal defi n ition ... - ANSW ER-a con sum er of r eal estate ser vices w h o
h as enter ed in to an agency r elation ship w ith a br oker or an other licensee
em ployed by a br oker .
5. Capitalization defi n ition ... - ANSW ER-the pr ocess of deter m in in g the
pr esen t value of a pr oper ty fr om it's futur e in com e.
6. W h at is the salesper son s obligation to a buyer un der sin gle agency
listin g? - ANSW ER-In for m the buyer
8. All ar e exam ples of r eal estate except... - ANSW ER-factor ies
9. W h at is hom eow ner s in sur an ce? - ANSW ER-In sur an ce to pr otect
ow n ers fr om fi r es an d other etc.
, 10. Special agen t defi n ition ... - ANSW ER-the type of agen cy in w hich the
pr in cipal author izes the agen t to r epr esen t the agen t in "on e specifi c
tr an saction or business activity"
11. W h ich is n ot used to deter m in e cost appr o ach to estim ate value?
-Quan tity Sur vey Method
-Un it-in -Place Method
-Squ ar e Foot Method
-Gr oss Ren t Multiplier Method - ANSW ER-Gr oss Ren t Multiplier Method
W h at is steer in g? - ANSW ER-the un law ful act of keepin g a buyer aw ay
fr om cer tain com m un ities or gu idin g them to pur chase in cer tain
com m un ities.
15. En titlem en t to com m ission w hen tr an saction is n ot consum m ated. -
ANSW ER-Except w hen listin g br oker does n ot disclose in for m ation
16. Can a salesper son give legal advice? - ANSW ER-No, n ot un less they ar e
an attor n ey.
17. W h o deter m in es the com m ission in a listin g contr act? - ANSW ER-An
agr eem en t betw een the ow ner an d br oker
19. All ar e typical duties of a pr oper ty m an ager w ith the exception of... -
ANSW ER-In vestin g pr ofi ts
20. Tr an sfer tax is typically paid by for by w hom ? - ANSW ER-B uyer an d
seller
QUESTIONS W ITH CORRECT SOLUTIONS
2025-2026 /GRADED A+
1. B r oker age defi n ition ... - ANSW ER-the busin ess pr actice of br in gin g
togeth er the par ties in a pr actice.
2. W h at ar e tw o exam ples of special use pr oper ty? - ANSW ER-schools and
cem etar y
3. W h at is an exam ple of fun ction al obsolescen ce? - ANSW ER-bathr oom
4. Pr in cipal defi n ition ... - ANSW ER-a con sum er of r eal estate ser vices w h o
h as enter ed in to an agency r elation ship w ith a br oker or an other licensee
em ployed by a br oker .
5. Capitalization defi n ition ... - ANSW ER-the pr ocess of deter m in in g the
pr esen t value of a pr oper ty fr om it's futur e in com e.
6. W h at is the salesper son s obligation to a buyer un der sin gle agency
listin g? - ANSW ER-In for m the buyer
8. All ar e exam ples of r eal estate except... - ANSW ER-factor ies
9. W h at is hom eow ner s in sur an ce? - ANSW ER-In sur an ce to pr otect
ow n ers fr om fi r es an d other etc.
, 10. Special agen t defi n ition ... - ANSW ER-the type of agen cy in w hich the
pr in cipal author izes the agen t to r epr esen t the agen t in "on e specifi c
tr an saction or business activity"
11. W h ich is n ot used to deter m in e cost appr o ach to estim ate value?
-Quan tity Sur vey Method
-Un it-in -Place Method
-Squ ar e Foot Method
-Gr oss Ren t Multiplier Method - ANSW ER-Gr oss Ren t Multiplier Method
W h at is steer in g? - ANSW ER-the un law ful act of keepin g a buyer aw ay
fr om cer tain com m un ities or gu idin g them to pur chase in cer tain
com m un ities.
15. En titlem en t to com m ission w hen tr an saction is n ot consum m ated. -
ANSW ER-Except w hen listin g br oker does n ot disclose in for m ation
16. Can a salesper son give legal advice? - ANSW ER-No, n ot un less they ar e
an attor n ey.
17. W h o deter m in es the com m ission in a listin g contr act? - ANSW ER-An
agr eem en t betw een the ow ner an d br oker
19. All ar e typical duties of a pr oper ty m an ager w ith the exception of... -
ANSW ER-In vestin g pr ofi ts
20. Tr an sfer tax is typically paid by for by w hom ? - ANSW ER-B uyer an d
seller
