REAL ESTATE EXAM 2025/2026|QUESTIONS AND 100% CORRECT ANSWERS|LATEST UPDATE |GRADED A+

100% CORRECT ANSWERS|LATEST UPDATE

A parcel of vacant land is 80 feet wide on the street side of the property and 200 feet deep. Th
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e parcel was sold for $200 per front foot. How much money would a salesperson receive for hi
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s 60% share in the 10% commission? - ANSWER
B B B B B B B B 80 feet × $200 = $16,000 sale price
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$16,000 × 10% commission(0.10) = $1,600 (total commission)
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$1,600 × 60% (0.60) = $960 (the salesperson's commission)
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Under which type of lien are both the real and personal property of the debtor sold to pay the
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debt?



A). Judgment lien
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B). Assessment lien
B B




C). Mechanic's lien
B B




D). Real estate tax lien -
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BANSWER A judgment is a general, involuntary, equitable lien on both real and personal B B B B B B B B B B B B B



property owned by the debtor. A mechanic's lien is a specific lien against real property filed by
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a contractor, a subcontractor, or a supplier when an owner or a contractor has not paid for wo
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rk or supplies for improvements on a property. A real estate tax lien is a statutory lien against r
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eal property for nonpayment of taxes. An assessment lien is a special assessment levied on rea
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l property to fund public improvements to property.
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A buyer offer of $295,000 was accepted, and a loan was negotiated for 80% at 7% for 25 years.
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BThe closing occurred on January 5, and the buyer's first PITI payment is due on March 1. Using
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Ba 365- B



day year, with the seller having the day of closing, how much interest would the buyer be debi
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ted on the closing statement? -
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BANSWER Step 1, determine the loan amount: $295,000 × 0.80 = $236,000. Step 2, dete B B B B B B B B B B B B B



rmine the interest: $236,000 × 7% (0.07) $16,520. Step 3, determine what the buyer owes. Th
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e buyer will owe 26 days for January (31 -
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B5 = 26 days) and none for February because the March payment will pay the interest in arrear
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s for February. Total amount due ÷ total days × days owed. $16,520 ÷ 365 × 26 = $1,176.77.
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,The LEAST specific method for identifying a legal description of real property is -
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BANSWER A legal description is a precise method of identifying a parcel of land and uses
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metes and bounds, rectangular survey, or lot and block as methods that can be used for identi
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fication. A street address is not a legal description and is, therefore, not as precise.
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A broker assigns a salesperson to work open houses in a new subdivision for a developer that t
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he firm represents. After two months, the salesperson's work has resulted in sales above the d
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eveloper's expectations, and he offers to pay the salesperson a $1,000 bonus. The salesperson
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may receive the bonus payment -
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ANSWER
B Salespersons may not receive commissions or bonus payments from anyone B B B B B B B B B B



other than their principal broker. The salesperson may receive the bonus payment if the devel
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oper pays it directly to the broker, who then gives all or part of the bonus to the salesperson, d
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epending on the salesperson's employment agreement with the broker. Payments of this type
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would be deposited into the firm's operations account, not put into a trust account.
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A broker who has done a proper comparative market analysis (CMA) discusses the probable m
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arket value of the property with the seller, and the seller wants an unrealistic price on the pro
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perty. All of the following are true EXCEPT
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A). the broker should take the listing with the understanding from the seller that price reducti
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ons may be needed to sell the property.
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B) the broker should suggest that the seller have a formal appraisal done.
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C). the broker must take the listing at the proposed seller's high price.
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D). the broker may decline to take the listing at the high price. -
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BANSWER C. Whether a CMA or a formal appraisal is conducted, the value sought is theB B B B B B B B B B B B B B B



property's market value. While it is the property owners' privilege to set their listing price, a br
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oker should consider rejecting any severely out-of-
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line listing. If the broker chooses to accept the listing at the seller's proposed price, the broker
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should advise the seller that the price may have to be reduced in the future in order to sell the
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house.



Which external area can be included in calculating a property's gross living area (GLA)?
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A). Garage B




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, B). Porch B




C). Patio B




D). Closets -
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ANSWER
B Closets are included in the calculation of the GLA of a property. A garage, porc B B B B B B B B B B B B B B



h or patio would not be included in the calculation of the GLA.
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Which of these is an example of private property controls?
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A). Fences in the subdivision must all be white pickets.
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B). All homes must be set back at least 30 feet from the street.
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C). Only single-family residences can be built in the area.
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D). Fences may not exceed 6 feet in height. -
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ANSWER
B A. Height of fences, setbacks, and what type of property is allowed fall under B B B B B B B B B B B B B B



zoning or public controls. B B B




The seller has accepted monetary consideration and has agreed to sell his property for an agre
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ed-
upon amount within a specified time frame if the buyer then chooses to purchase. This contra
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ct is called -
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ANSWER
B An Option Contract. In an option contract, the seller accepts option money an B B B B B B B B B B B B



d agrees to sell his property for a specified amount within a specified time frame if the buyer c
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hooses to purchase in the future.
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A homeowner has a property valued at $125,000, assessed at 35% of its value. What are the m
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onthly taxes if the local tax rate is 6,400 mills per $100 of the assessed value? -
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B ANSWER Tax rate = 6,400 mills ÷ 1,000 = 6.40 ÷ 100 = 0.064
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Assessed value = $125,000 × 35% (0.35) = $43,750
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$43,750 × 0.064 = $2,800 annual tax B B B B B B




$2,800 ÷ 12 = $233.33 monthly tax
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A listing contract must be signed by -
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B ANSWER All parties identified in the listing contract must sign it, including all individual
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