Real Estate Investment: Actual Exam
REAL ESTATE INVESTMENT: ACTUAL EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!!
Which type of commercial property offers parking surrounding the outside of the
property, but also indoor parking beneath the building?
Community shopping center
Neighborhood shopping center
Regional shopping center
Strip store - ANSWER-Regional shopping center
What's interest?
Amount of payment that will be applied toward the loan balance
Amount to be sent for payment
Loan balance after the payment is applied
Money paid for the use of money - ANSWER-Money paid for the use of money
Why is it important for buyers of a residential property to understand how taxes
relate to the whole ownership lifecycle?
It helps them appreciate their home more.
It helps them determine what to buy next.
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, Real Estate Investment: Actual Exam
It helps them determine when to sell.
They may be able to take advantage of tax deductions. - ANSWER-They may be
able to take advantage of tax deductions.
In addition to the one major tenant, how many tenants does a neighborhood
shopping center normally have?
Five to 20
Four to 15
Three to 10
Two to eight - ANSWER-Five to 20
What's a legal agreement or promise made between two parties?
A consideration
A covenant
A handshake
A negotiation - ANSWER-A covenant
A decrease in property value over time is called ______.
Amortization
An anomaly
Appreciation
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, Real Estate Investment: Actual Exam
Depreciation - ANSWER-Depreciation
Changes in the national market may have little (or significantly delayed) impact on
local markets. This is because the real estate market is ______.
Immobile
Indestructible
Slow to respond
Unique - ANSWER-Slow to respond
Which one of the following statements is true about land trusts?
A beneficiary's interest in the land must be conveyed through a deed.
Land trusts generally continue for a specified term, such as 10, 20, or 30 years.
The identity of the trust owner is made public.
The person who establishes the trust (the trustor) is rarely the beneficiary. -
ANSWER-Land trusts generally continue for a specified term, such as 10, 20, or 30
years.
Valid real estate contacts require competent parties, a legal description,
consideration, a lawful objective, mutual agreement, and _______.
A reasonable sales price
At least 10% earnest money
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, Real Estate Investment: Actual Exam
At least three addenda
The contract is in writing and signed by the parties - ANSWER-The contract is in
writing and signed by the parties
After being required to put a minimum of 25% down on a loan, Duane invested in
a multi-unit apartment building. What type of property does Duane own?
Commercial
Commercial residential
MUD
Residential - ANSWER-Commercial residential
Martin placed all of his real estate investments in a trust, and the proceeds will be
distributed through the trust to his son Nathan. In this situation, Nathan is the
_______.
Beneficiary
Fiduciary
Trustee
Trustor - ANSWER-Beneficiary
Which of the following statements regarding investment is true?
It's a questionable investment choice because properties lose value over time.
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REAL ESTATE INVESTMENT: ACTUAL EXAM NEWEST 2025/2026
COMPLETE QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW VERSION!!
Which type of commercial property offers parking surrounding the outside of the
property, but also indoor parking beneath the building?
Community shopping center
Neighborhood shopping center
Regional shopping center
Strip store - ANSWER-Regional shopping center
What's interest?
Amount of payment that will be applied toward the loan balance
Amount to be sent for payment
Loan balance after the payment is applied
Money paid for the use of money - ANSWER-Money paid for the use of money
Why is it important for buyers of a residential property to understand how taxes
relate to the whole ownership lifecycle?
It helps them appreciate their home more.
It helps them determine what to buy next.
1|Page
, Real Estate Investment: Actual Exam
It helps them determine when to sell.
They may be able to take advantage of tax deductions. - ANSWER-They may be
able to take advantage of tax deductions.
In addition to the one major tenant, how many tenants does a neighborhood
shopping center normally have?
Five to 20
Four to 15
Three to 10
Two to eight - ANSWER-Five to 20
What's a legal agreement or promise made between two parties?
A consideration
A covenant
A handshake
A negotiation - ANSWER-A covenant
A decrease in property value over time is called ______.
Amortization
An anomaly
Appreciation
2|Page
, Real Estate Investment: Actual Exam
Depreciation - ANSWER-Depreciation
Changes in the national market may have little (or significantly delayed) impact on
local markets. This is because the real estate market is ______.
Immobile
Indestructible
Slow to respond
Unique - ANSWER-Slow to respond
Which one of the following statements is true about land trusts?
A beneficiary's interest in the land must be conveyed through a deed.
Land trusts generally continue for a specified term, such as 10, 20, or 30 years.
The identity of the trust owner is made public.
The person who establishes the trust (the trustor) is rarely the beneficiary. -
ANSWER-Land trusts generally continue for a specified term, such as 10, 20, or 30
years.
Valid real estate contacts require competent parties, a legal description,
consideration, a lawful objective, mutual agreement, and _______.
A reasonable sales price
At least 10% earnest money
3|Page
, Real Estate Investment: Actual Exam
At least three addenda
The contract is in writing and signed by the parties - ANSWER-The contract is in
writing and signed by the parties
After being required to put a minimum of 25% down on a loan, Duane invested in
a multi-unit apartment building. What type of property does Duane own?
Commercial
Commercial residential
MUD
Residential - ANSWER-Commercial residential
Martin placed all of his real estate investments in a trust, and the proceeds will be
distributed through the trust to his son Nathan. In this situation, Nathan is the
_______.
Beneficiary
Fiduciary
Trustee
Trustor - ANSWER-Beneficiary
Which of the following statements regarding investment is true?
It's a questionable investment choice because properties lose value over time.
4|Page
