https://www.stuvia.com/user/Performance
NSAR / NSREC SALESPERSON LICENSING UPDATED!!!
EXAMINATION QUESTIONS With Answers and Rationales
Updated for 2026/2027
SECTION 1: REAL ESTATE FUNDAMENTALS (Questions)
1. Real property is best defined as:
A) The land only
B) The land, improvements, and the rights associated with
ownership
C) The buildings only
D) Personal property attached to the land
Answer: B
Rationale: Real property includes land, improvements
(buildings, fixtures), and the bundle of rights.
2. The "bundle of rights" includes all of the following EXCEPT:
A) Right to sell
B) Right to lease
C) Right to use
D) Right to trespass on neighboring land
Answer: D
Rationale: The bundle of rights does not include the right to
trespass on others' property.
,https://www.stuvia.com/user/Performance
3. Personal property is also known as:
A) Real property
B) Chattel
C) Fixture
D) Improvement
Answer: B
Rationale: Personal property is movable and referred to as
chattel.
4. A fixture is:
A) Personal property that has become permanently attached to
real property
B) Real property that can be moved
C) Any item in a house
D) Landscaping only
Answer: A
Rationale: Fixtures are items that were once personal property
but are now attached to the land or building.
5. The test used to determine if an item is a fixture includes all
of the following EXCEPT:
A) Method of attachment
B) Adaptation to the property
C) Intention of the parties
D) The item's color
,https://www.stuvia.com/user/Performance
Answer: D
Rationale: Color is not a factor in determining fixture status.
6. The "highest and best use" of a property is the use that:
A) Generates the highest property taxes
B) Is physically possible, legally permissible, financially feasible,
and maximally productive
C) The current owner prefers
D) The municipality designates
Answer: B
Rationale: Highest and best use must meet all four criteria.
7. An "easement" is:
A) Ownership of land
B) The right to use another's land for a specific purpose
C) A type of mortgage
D) A property tax
Answer: B
Rationale: An easement is a non-possessory right to use
another's property.
8. A "right of way" is an example of:
A) A lien
B) An easement
C) A deed restriction
D) A mortgage
, https://www.stuvia.com/user/Performance
Answer: B
Rationale: A right of way allows passage across another's land.
9. "Estate in fee simple" means:
A) The highest form of ownership with full rights
B) A leasehold estate
C) A life estate
D) A joint tenancy
Answer: A
Rationale: Fee simple is absolute ownership.
10. A "life estate" is:
A) Ownership that lasts forever
B) Ownership limited to the lifetime of a person
C) A leasehold interest
D) A government estate
Answer: B
Rationale: Life estate terminates upon death of the life tenant.
11. "Joint tenancy" includes the right of:
A) Partition
B) Survivorship
C) Encumbrance
D) Redemption
NSAR / NSREC SALESPERSON LICENSING UPDATED!!!
EXAMINATION QUESTIONS With Answers and Rationales
Updated for 2026/2027
SECTION 1: REAL ESTATE FUNDAMENTALS (Questions)
1. Real property is best defined as:
A) The land only
B) The land, improvements, and the rights associated with
ownership
C) The buildings only
D) Personal property attached to the land
Answer: B
Rationale: Real property includes land, improvements
(buildings, fixtures), and the bundle of rights.
2. The "bundle of rights" includes all of the following EXCEPT:
A) Right to sell
B) Right to lease
C) Right to use
D) Right to trespass on neighboring land
Answer: D
Rationale: The bundle of rights does not include the right to
trespass on others' property.
,https://www.stuvia.com/user/Performance
3. Personal property is also known as:
A) Real property
B) Chattel
C) Fixture
D) Improvement
Answer: B
Rationale: Personal property is movable and referred to as
chattel.
4. A fixture is:
A) Personal property that has become permanently attached to
real property
B) Real property that can be moved
C) Any item in a house
D) Landscaping only
Answer: A
Rationale: Fixtures are items that were once personal property
but are now attached to the land or building.
5. The test used to determine if an item is a fixture includes all
of the following EXCEPT:
A) Method of attachment
B) Adaptation to the property
C) Intention of the parties
D) The item's color
,https://www.stuvia.com/user/Performance
Answer: D
Rationale: Color is not a factor in determining fixture status.
6. The "highest and best use" of a property is the use that:
A) Generates the highest property taxes
B) Is physically possible, legally permissible, financially feasible,
and maximally productive
C) The current owner prefers
D) The municipality designates
Answer: B
Rationale: Highest and best use must meet all four criteria.
7. An "easement" is:
A) Ownership of land
B) The right to use another's land for a specific purpose
C) A type of mortgage
D) A property tax
Answer: B
Rationale: An easement is a non-possessory right to use
another's property.
8. A "right of way" is an example of:
A) A lien
B) An easement
C) A deed restriction
D) A mortgage
, https://www.stuvia.com/user/Performance
Answer: B
Rationale: A right of way allows passage across another's land.
9. "Estate in fee simple" means:
A) The highest form of ownership with full rights
B) A leasehold estate
C) A life estate
D) A joint tenancy
Answer: A
Rationale: Fee simple is absolute ownership.
10. A "life estate" is:
A) Ownership that lasts forever
B) Ownership limited to the lifetime of a person
C) A leasehold interest
D) A government estate
Answer: B
Rationale: Life estate terminates upon death of the life tenant.
11. "Joint tenancy" includes the right of:
A) Partition
B) Survivorship
C) Encumbrance
D) Redemption
