1
Real Estate Principles (150 Questions) |
Verified Board Solutions| Multiple
Choice Exam 2025
A property owner lists their home with a broker, but later decides to sell the property themselves
without using the broker’s services. What type of listing agreement would allow this?
A. Exclusive agency
B. Exclusive right-to-sell
C. Open listing
D. Net listing
A buyer submits a written offer on a home, and the seller responds with changes to the terms.
What best describes this response?
A. Rejection
B. Acceptance
C. Counteroffer
D. Novation
A broker misrepresents the square footage of a property, causing the buyer to overpay. What
legal concept applies to this situation?
A. Mutual mistake
B. Puffing
C. Negligence
D. Fraud
When a tenant pays a fixed rent amount and the landlord covers all property expenses, what type
of lease is this?
, 2
A. Gross lease
B. Net lease
C. Percentage lease
D. Ground lease
If a buyer defaults on a contract and the seller keeps the earnest money deposit, this is known as:
A. Novation
B. Specific performance
C. Liquidated damages
D. Rescission
A landlord includes a clause in the lease agreement requiring tenants to pay for major structural
repairs. This would likely violate which principle?
A. Covenant of seisin
B. Implied warranty of habitability
C. Non-disturbance clause
D. Quiet enjoyment
What type of deed offers the greatest protection to the buyer?
A. Quitclaim deed
B. General warranty deed
C. Special warranty deed
D. Bargain and sale deed
In a trust deed, who holds the legal title to the property?
A. Trustor
B. Trustee
, 3
C. Beneficiary
D. Grantor
What is the primary purpose of a deed of reconveyance?
A. To release the lien on a property after a loan is repaid
B. To transfer ownership of the property
C. To record a new mortgage
D. To ensure the trustee has equitable title
A real estate agent advises a client to buy in a neighborhood because "it’s a safe area with great
schools." This statement could expose the agent to liability for:
A. Fraud
B. Misrepresentation
C. Puffing
D. Discrimination
A property is sold for $500,000, and the loan-to-value ratio is 80%. What is the buyer’s required
down payment?
A. $80,000
B. $400,000
C. $100,000
D. $300,000
What kind of property ownership involves the right of survivorship?
A. Joint tenancy
B. Tenancy in common
, 4
C. Community property
D. Tenancy by the entirety
A property is zoned for residential use, but a small store has operated there for years. This is an
example of:
A. Downzoning
B. Spot zoning
C. Nonconforming use
D. Conditional use
What is the primary function of a title insurance policy?
A. To verify the value of the property
B. To protect against future claims on the title
C. To record the deed with the county
D. To ensure the loan meets underwriting standards
A broker is found guilty of commingling funds. What does this mean?
A. Mixing client funds with personal or business accounts
B. Misappropriating client funds
C. Charging excessive fees
D. Failing to disclose material facts
A new homeowner receives a property tax bill that includes taxes from the previous year. This is
known as:
A. Escrow adjustment
B. Special assessment
Real Estate Principles (150 Questions) |
Verified Board Solutions| Multiple
Choice Exam 2025
A property owner lists their home with a broker, but later decides to sell the property themselves
without using the broker’s services. What type of listing agreement would allow this?
A. Exclusive agency
B. Exclusive right-to-sell
C. Open listing
D. Net listing
A buyer submits a written offer on a home, and the seller responds with changes to the terms.
What best describes this response?
A. Rejection
B. Acceptance
C. Counteroffer
D. Novation
A broker misrepresents the square footage of a property, causing the buyer to overpay. What
legal concept applies to this situation?
A. Mutual mistake
B. Puffing
C. Negligence
D. Fraud
When a tenant pays a fixed rent amount and the landlord covers all property expenses, what type
of lease is this?
, 2
A. Gross lease
B. Net lease
C. Percentage lease
D. Ground lease
If a buyer defaults on a contract and the seller keeps the earnest money deposit, this is known as:
A. Novation
B. Specific performance
C. Liquidated damages
D. Rescission
A landlord includes a clause in the lease agreement requiring tenants to pay for major structural
repairs. This would likely violate which principle?
A. Covenant of seisin
B. Implied warranty of habitability
C. Non-disturbance clause
D. Quiet enjoyment
What type of deed offers the greatest protection to the buyer?
A. Quitclaim deed
B. General warranty deed
C. Special warranty deed
D. Bargain and sale deed
In a trust deed, who holds the legal title to the property?
A. Trustor
B. Trustee
, 3
C. Beneficiary
D. Grantor
What is the primary purpose of a deed of reconveyance?
A. To release the lien on a property after a loan is repaid
B. To transfer ownership of the property
C. To record a new mortgage
D. To ensure the trustee has equitable title
A real estate agent advises a client to buy in a neighborhood because "it’s a safe area with great
schools." This statement could expose the agent to liability for:
A. Fraud
B. Misrepresentation
C. Puffing
D. Discrimination
A property is sold for $500,000, and the loan-to-value ratio is 80%. What is the buyer’s required
down payment?
A. $80,000
B. $400,000
C. $100,000
D. $300,000
What kind of property ownership involves the right of survivorship?
A. Joint tenancy
B. Tenancy in common
, 4
C. Community property
D. Tenancy by the entirety
A property is zoned for residential use, but a small store has operated there for years. This is an
example of:
A. Downzoning
B. Spot zoning
C. Nonconforming use
D. Conditional use
What is the primary function of a title insurance policy?
A. To verify the value of the property
B. To protect against future claims on the title
C. To record the deed with the county
D. To ensure the loan meets underwriting standards
A broker is found guilty of commingling funds. What does this mean?
A. Mixing client funds with personal or business accounts
B. Misappropriating client funds
C. Charging excessive fees
D. Failing to disclose material facts
A new homeowner receives a property tax bill that includes taxes from the previous year. This is
known as:
A. Escrow adjustment
B. Special assessment
