Real Estate Practice Exam Questions
with Correct Answers
1. Brokerage definition... - ANSWER✔✔-the business practice of bringing together the parties in a
practice.
2. What are two examples of special use property? - ANSWER✔✔-schools and cemetary
3. What is an example of functional obsolescence? - ANSWER✔✔-bathroom
4. Principal definition... - 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... - 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? - ANSWER✔✔-Inform
the buyer
8. All are examples of real estate except... - ANSWER✔✔-factories
9. What is homeowners insurance? - ANSWER✔✔-Insurance to protect owners from fires and
other etc.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 10. Special agent definition... - 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 - ANSWER✔✔-Gross Rent Multiplier Method
What is steering? - 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. - ANSWER✔✔-Except
when listing broker does not disclose information
16. Can a salesperson give legal advice? - ANSWER✔✔-No, not unless they are an attorney.
17. Who determines the commission in a listing contract? - ANSWER✔✔-An agreement between
the owner and broker
19. All are typical duties of a property manager with the exception of... - ANSWER✔✔-Investing
profits
20. Transfer tax is typically paid by for by whom? - ANSWER✔✔-Buyer and seller
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
with Correct Answers
1. Brokerage definition... - ANSWER✔✔-the business practice of bringing together the parties in a
practice.
2. What are two examples of special use property? - ANSWER✔✔-schools and cemetary
3. What is an example of functional obsolescence? - ANSWER✔✔-bathroom
4. Principal definition... - 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... - 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? - ANSWER✔✔-Inform
the buyer
8. All are examples of real estate except... - ANSWER✔✔-factories
9. What is homeowners insurance? - ANSWER✔✔-Insurance to protect owners from fires and
other etc.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 10. Special agent definition... - 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 - ANSWER✔✔-Gross Rent Multiplier Method
What is steering? - 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. - ANSWER✔✔-Except
when listing broker does not disclose information
16. Can a salesperson give legal advice? - ANSWER✔✔-No, not unless they are an attorney.
17. Who determines the commission in a listing contract? - ANSWER✔✔-An agreement between
the owner and broker
19. All are typical duties of a property manager with the exception of... - ANSWER✔✔-Investing
profits
20. Transfer tax is typically paid by for by whom? - ANSWER✔✔-Buyer and seller
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
