REAL ESTATE SALESPERSON
EXAM QUESTIONS AND ANSWERS
2025|2026 VERIFIED GRADED A+
ALREADY PASSED!
What is hypothecation? - CORRECT ANSWER-When you get a mortgage
you "hypothecate" or pledge your house as security (so if you dont pay
mortgage you default and bank gets house).
What part of a mortgage is the promise to pay the bank? - CORRECT
ANSWER-The promissory note
What do you call the theoretical price a property would sell for in a
typical transaction? - CORRECT ANSWER-Market value
What is the difference between price and market value? - CORRECT
ANSWER-A seller can place any price on real estate, but it may be
higher or lower than the real market value.
,If a property sells at a certain price, does that mean it sold at full market
value? - CORRECT ANSWER-No
What is the definition of market value? - CORRECT ANSWER-the price
that a reasonable buyer will pay given enough time, without duress
(pressure), acting in his own best interest, with enough information.
Who creates planning policy in a city? - CORRECT ANSWER-Planning
board
Who regulates things like subdivision development? - CORRECT
ANSWER-Planning board
What is the purpose of the habendum clause? - CORRECT ANSWER-
Habendum is latin for have.
habendum clause in the deed tells what the owner is going to do with
the real estate (which is to "have and hold"). It's the clause that gives
ownership.
,What fiduciary responsibility does the broker break by not telling his
seller client that the buyer customer can't afford the down payment? -
CORRECT ANSWER-Disclosure
What should a broker do if he receives a low offer that will offend the
seller client? - CORRECT ANSWER-Tell the seller client (disclosure)
Which is a form of voluntary alienation? - CORRECT ANSWER-A sale,
gift, or devise in a will are voluntary.
What clause in a mortgage makes the mortgage unassumable? -
CORRECT ANSWER-Alienation clause
What is minimum electrical service for a house in amps? - CORRECT
ANSWER-100
, What is the force that pushes electricity through a wire? - CORRECT
ANSWER-Volts
What is the most common electrical service for a house in volts? -
CORRECT ANSWER-110 volts
Why are circuit breakers better than fuses? - CORRECT ANSWER-If a
fuse breaks you need a new one. But a circuit breaker just needs to be
switched back on.
Circuit breakers are safer, newer, and more convenient than fuses.
What was used in buildings before circuit breakers? - CORRECT
ANSWER-Fuses
What is the reason for a 1031 exchange? - CORRECT ANSWER-Lets
building owners delay (defer) capital gains and transfer tax by "trading"
property instead of selling it.
EXAM QUESTIONS AND ANSWERS
2025|2026 VERIFIED GRADED A+
ALREADY PASSED!
What is hypothecation? - CORRECT ANSWER-When you get a mortgage
you "hypothecate" or pledge your house as security (so if you dont pay
mortgage you default and bank gets house).
What part of a mortgage is the promise to pay the bank? - CORRECT
ANSWER-The promissory note
What do you call the theoretical price a property would sell for in a
typical transaction? - CORRECT ANSWER-Market value
What is the difference between price and market value? - CORRECT
ANSWER-A seller can place any price on real estate, but it may be
higher or lower than the real market value.
,If a property sells at a certain price, does that mean it sold at full market
value? - CORRECT ANSWER-No
What is the definition of market value? - CORRECT ANSWER-the price
that a reasonable buyer will pay given enough time, without duress
(pressure), acting in his own best interest, with enough information.
Who creates planning policy in a city? - CORRECT ANSWER-Planning
board
Who regulates things like subdivision development? - CORRECT
ANSWER-Planning board
What is the purpose of the habendum clause? - CORRECT ANSWER-
Habendum is latin for have.
habendum clause in the deed tells what the owner is going to do with
the real estate (which is to "have and hold"). It's the clause that gives
ownership.
,What fiduciary responsibility does the broker break by not telling his
seller client that the buyer customer can't afford the down payment? -
CORRECT ANSWER-Disclosure
What should a broker do if he receives a low offer that will offend the
seller client? - CORRECT ANSWER-Tell the seller client (disclosure)
Which is a form of voluntary alienation? - CORRECT ANSWER-A sale,
gift, or devise in a will are voluntary.
What clause in a mortgage makes the mortgage unassumable? -
CORRECT ANSWER-Alienation clause
What is minimum electrical service for a house in amps? - CORRECT
ANSWER-100
, What is the force that pushes electricity through a wire? - CORRECT
ANSWER-Volts
What is the most common electrical service for a house in volts? -
CORRECT ANSWER-110 volts
Why are circuit breakers better than fuses? - CORRECT ANSWER-If a
fuse breaks you need a new one. But a circuit breaker just needs to be
switched back on.
Circuit breakers are safer, newer, and more convenient than fuses.
What was used in buildings before circuit breakers? - CORRECT
ANSWER-Fuses
What is the reason for a 1031 exchange? - CORRECT ANSWER-Lets
building owners delay (defer) capital gains and transfer tax by "trading"
property instead of selling it.
