National - Real Estate Exam Practice
Questions & answers 2025
Qs
All of the following are used in calculating income rate value (IRV) except:
a. property value
b. rate of return
c. net annual income
d. depreciation factor - n
Ans✔
d. depreciation factor
Qs
A woman grants a life estate to her son-in-law and stipulates that, upon his death,
the title to the property will pass to her grandson. The grandson's interest is known
as a(n):
a. remainder
b. reversion
c. estate at sufferance
d. estate for years - n
Ans✔
a. remainder
Qs
A percolation test:
a. needed to qualify a buyer for financing
b. required to determine radon levels
,c. must be passed to determine if a lot will sustain a septic system
d. necessary if a house can be installed with an outside water spigot - n
Ans✔
c. must be passed to determine if a lot will sustain a septic system
Qs
A primary benefit of property held in joint tenancy is:
a. ownership by a maximum of two people
b. the fractional interests of the owners, which can be different
c. the fact that additional owners may be added later
d. the right of survivorship - n
Ans✔
d. the right of survivorship
Qs
A licensed real estate sales associate has a written contract with the employing
broker that specifies that the sales associate will not be treated as an employee for
federal tax purposes. The sales associate's entire income is from sales commissions
rather than an hourly wage. Based on these facts, the sales associate will be treated
by the IRS as:
a. real estate assistant
b. employee
c. subagent
d. qualified real estate agent - n
Ans✔
d. qualified real estate agent
Qs
, A woman conveys the ownership of an office building to a nursing home. The
nursing home agrees that the rental income produced by the building will pay for
the expenses of caring for the women's parents. When both her parents have died,
ownership of the office building will revert to the woman. The estate held by the
nursing home is a:
a. remainder life estate
b. legal life estate
c. life estate pur autre vie
d. temporary leasehold estate - n
Ans✔
c. life estate pur autre vie
Qs
A country music singer who owns a cattle ranch enters into a sale and leaseback
agreement with a local dentist. Which statement is TRUE of this arrangement?
a. the singer retains title to the ranch
b. the dentist receives possession of the property
c. the dentist is the lessor
d. the singer is the lessor - n
Ans✔
c. the dentist is the lessor
Qs
The basic principle of the income approach to value is:
a. value divided by rate = income
b. value multiplied by rate = income
c. income multiplied by rate = value
d. rate divided by income = value - n
Questions & answers 2025
Qs
All of the following are used in calculating income rate value (IRV) except:
a. property value
b. rate of return
c. net annual income
d. depreciation factor - n
Ans✔
d. depreciation factor
Qs
A woman grants a life estate to her son-in-law and stipulates that, upon his death,
the title to the property will pass to her grandson. The grandson's interest is known
as a(n):
a. remainder
b. reversion
c. estate at sufferance
d. estate for years - n
Ans✔
a. remainder
Qs
A percolation test:
a. needed to qualify a buyer for financing
b. required to determine radon levels
,c. must be passed to determine if a lot will sustain a septic system
d. necessary if a house can be installed with an outside water spigot - n
Ans✔
c. must be passed to determine if a lot will sustain a septic system
Qs
A primary benefit of property held in joint tenancy is:
a. ownership by a maximum of two people
b. the fractional interests of the owners, which can be different
c. the fact that additional owners may be added later
d. the right of survivorship - n
Ans✔
d. the right of survivorship
Qs
A licensed real estate sales associate has a written contract with the employing
broker that specifies that the sales associate will not be treated as an employee for
federal tax purposes. The sales associate's entire income is from sales commissions
rather than an hourly wage. Based on these facts, the sales associate will be treated
by the IRS as:
a. real estate assistant
b. employee
c. subagent
d. qualified real estate agent - n
Ans✔
d. qualified real estate agent
Qs
, A woman conveys the ownership of an office building to a nursing home. The
nursing home agrees that the rental income produced by the building will pay for
the expenses of caring for the women's parents. When both her parents have died,
ownership of the office building will revert to the woman. The estate held by the
nursing home is a:
a. remainder life estate
b. legal life estate
c. life estate pur autre vie
d. temporary leasehold estate - n
Ans✔
c. life estate pur autre vie
Qs
A country music singer who owns a cattle ranch enters into a sale and leaseback
agreement with a local dentist. Which statement is TRUE of this arrangement?
a. the singer retains title to the ranch
b. the dentist receives possession of the property
c. the dentist is the lessor
d. the singer is the lessor - n
Ans✔
c. the dentist is the lessor
Qs
The basic principle of the income approach to value is:
a. value divided by rate = income
b. value multiplied by rate = income
c. income multiplied by rate = value
d. rate divided by income = value - n
