Real Estate Practice Exam Questions with
Complete Solutions.
1. Brokerage definition... - Correct Answer the business practice of bringing together the
parties in a practice.
2. What are two examples of special use property? - Correct Answer schools and
cemetary
3. What is an example of functional obsolescence? - Correct Answer bathroom
4. Principal definition... - Correct Answer a consumer of real estate services who has
entered into an agency relationship with a broker or another licensee employed by a
broker.
5. Capitalization definition... - Correct Answer the process of determining the present
value of a property from it's future income.
6. What is the salespersons obligation to a buyer under single agency listing? - Correct
Answer Inform the buyer
8. All are examples of real estate except... - Correct Answer factories
9. What is homeowners insurance? - Correct Answer Insurance to protect owners from
fires and other etc.
10. Special agent definition... - Correct Answer the type of agency in which the principal
authorizes the agent to represent the agent in "one specific transaction or business
activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method - Correct Answer Gross Rent Multiplier Method
, What is steering? - Correct Answer the unlawful act of keeping a buyer away from certain
communities or guiding them to purchase in certain communities.
15. Entitlement to commission when transaction is not consummated. - Correct Answer
Except when listing broker does not disclose information
16. Can a salesperson give legal advice? - Correct Answer No, not unless they are an
attorney.
17. Who determines the commission in a listing contract? - Correct Answer An
agreement between the owner and broker
19. All are typical duties of a property manager with the exception of... - Correct Answer
Investing profits
20. Transfer tax is typically paid by for by whom? - Correct Answer Buyer and seller
21. Blockbusting definition... - Correct Answer An illegal real estate practice caused by
inciting fear and panic selling by suggesting that persons of minority background are or
may be moving into an area or that the majority of residents are moving out of an area.
23. Special agency listing definition... - Correct Answer n/a
25. Net listing definition... - Correct Answer a type of listing in which a seller desires to sell
real property and receive a guaranteed amount of money for the sale, so that the broker's
commission is any sale price amount of money over and above the guaranteed price to
the seller.
26. The main factor a property manager should use to evaluate a prospective tenant is -
Correct Answer can they make monthly rent payments on time.
27. All are examples of single agency disclosures with the exception of - Correct Answer
revealing the owner will except less.
30. What is the most reliable method of appraisal for residential real estate? - Correct
Answer Sales comparison approach
Complete Solutions.
1. Brokerage definition... - Correct Answer the business practice of bringing together the
parties in a practice.
2. What are two examples of special use property? - Correct Answer schools and
cemetary
3. What is an example of functional obsolescence? - Correct Answer bathroom
4. Principal definition... - Correct Answer a consumer of real estate services who has
entered into an agency relationship with a broker or another licensee employed by a
broker.
5. Capitalization definition... - Correct Answer the process of determining the present
value of a property from it's future income.
6. What is the salespersons obligation to a buyer under single agency listing? - Correct
Answer Inform the buyer
8. All are examples of real estate except... - Correct Answer factories
9. What is homeowners insurance? - Correct Answer Insurance to protect owners from
fires and other etc.
10. Special agent definition... - Correct Answer the type of agency in which the principal
authorizes the agent to represent the agent in "one specific transaction or business
activity"
11. Which is not used to determine cost approach to estimate value?
-Quantity Survey Method
-Unit-in-Place Method
-Square Foot Method
-Gross Rent Multiplier Method - Correct Answer Gross Rent Multiplier Method
, What is steering? - Correct Answer the unlawful act of keeping a buyer away from certain
communities or guiding them to purchase in certain communities.
15. Entitlement to commission when transaction is not consummated. - Correct Answer
Except when listing broker does not disclose information
16. Can a salesperson give legal advice? - Correct Answer No, not unless they are an
attorney.
17. Who determines the commission in a listing contract? - Correct Answer An
agreement between the owner and broker
19. All are typical duties of a property manager with the exception of... - Correct Answer
Investing profits
20. Transfer tax is typically paid by for by whom? - Correct Answer Buyer and seller
21. Blockbusting definition... - Correct Answer An illegal real estate practice caused by
inciting fear and panic selling by suggesting that persons of minority background are or
may be moving into an area or that the majority of residents are moving out of an area.
23. Special agency listing definition... - Correct Answer n/a
25. Net listing definition... - Correct Answer a type of listing in which a seller desires to sell
real property and receive a guaranteed amount of money for the sale, so that the broker's
commission is any sale price amount of money over and above the guaranteed price to
the seller.
26. The main factor a property manager should use to evaluate a prospective tenant is -
Correct Answer can they make monthly rent payments on time.
27. All are examples of single agency disclosures with the exception of - Correct Answer
revealing the owner will except less.
30. What is the most reliable method of appraisal for residential real estate? - Correct
Answer Sales comparison approach
