75+ MOST COMMON REAL ESTATE EXAM QUESTIONS WITH WELL DETAILEDN AND VERIFIED ANSWERS|LATEST 2025/2026|GRADED A+

75+ MOST COMMON REAL ESTATE EXAM
QUESTIONS WITH WELL DETAILEDN AND
VERIFIED ANSWERS|LATEST 2025/2026|GRADED
A+

Construction onto the property of another, like a wall fence, building, is known as what? -
B B B B B B B B B B B B B B B



B ANSWER Encroachment



(think of somebody stepping over a line from their side to yours. an encroachment is the physi
B B B B B B B B B B B B B B B B



cal intrusion of a structure or improvement on the land of another. *ex: fence or driveway or t
B B B B B B B B B B B B B B B B B



ree over the property line)
B B B B




Which method would an appraiser be most likely to use when appraising a newly build (1-
B B B B B B B B B B B B B B B



year old) apartment with no rental history?
B B B B B B




- income approach
B B




- cost approach
B B




- capitalization approach
B B




- market approach - ANSWER
B B B B Cost approach
B




(great when there is nothing to compare it to. the most appropriate approach for a newly built
B B B B B B B B B B B B B B B B



Bincome property with no income history. can't use this approach on older homes because you
B B B B B B B B B B B B B B



Bhave to factor in depreciation)
B B B B




When an appraiser is appraising a property he usually considers all of the following except:
B B B B B B B B B B B B B B




- the assessed value
B B B




- the property rights to be valued
B B B B B B




- a definition of value
B B B B




- the property identification - ANSWER
B B B B B The assessed value
B B




1
Wicky

,(this is used for tax purposes, not by appraisers)
B B B B B B B B




Which of the following loans would be most likely to qualify for FHA insurance?
B B B B B B B B B B B B B




- a loan to purchase a farm
B B B B B B




- a loan to buy a small business
B B B B B B B B




- a loan to purchase 1-4 units of residential rental property
B B B B B B B B B B




- a loan to buy farm equipment - ANSWER
B B B B B B B B a loan to purchase 1-
B B B B



4 units of residential rental property
B B B B B




(FHA loans are for residential property)
B B B B B




Inverse Condemnation - B B



ANSWER
B describes a situation in which a person takes action against the government f B B B B B B B B B B B B



or taking private property but failing to pay compensation as required by the 5th amendment
B B B B B B B B B B B B B B




4 government powers - ANSWER
B B B B P.E.T.E: B




Police power B B




Eminent domain B




Taxation

Escheat



eminent domain - B B



B ANSWER the right of government to take private property for public use
B B B B B B B B B B




The government's right to make laws and regulations for the general welfare of the public is kn
B B B B B B B B B B B B B B B B



own as - ANSWER B B B Police power B




2
Wicky

, (fundamental difference between police power and eminent domain is eminent domain they
B B B B B B B B B B B B



are taking property away and police power says how to use it -
B B B B B B B B B B B B



Bnot taking property away from you)
B B B B B




The total collection of rights which may be claimed by private ownership is best described as: -
B B B B B B B B B B B B B B B B



B ANSWER The bundle of rightsB B B




(the bundle of rights contain all the rights someone obtains with the ownership of real propert
B B B B B B B B B B B B B B B



y, which include the right to enter, use, lease, sell, give away the real estate or the right to not
B B B B B B B B B B B B B B B B B B B B



do any of these things)
B B B B




Listing Agreement - ANSWER B B B - both unilateral and bilateral
B B B B




- employment contract
B B




- contract to find a buyer for a property
B B B B B B B B




An employment contract between a property owner and a real estate firm/broker by which th
B B B B B B B B B B B B B B



e broker is employed to find a ready, willing and able buyer for the owner's real estate on the o
B B B B B B B B B B B B B B B B B B B



wner's terms, for which service the owner agrees to pay a commission.
B B B B B B B B B B B




Encumbrance - ANSWER B B Anything which affects or limits the fee simple title to property
B B B B B B B B B B




(anything that limits you: easements, clouds on title, liens, mortgages)
B B B B B B B B B




Variance - ANSWER B B exception to the rule that will not affect the rest of the community
B B B B B B B B B B B B




Land that is subject to easement is said to be:
B B B B B B B B B




- encroached
B




- appurtenant
B




3
Wicky