Real Estate Principles Practice Test Exam
Questions With Accurate Answers 2025\2026
A+ Grade.
A couple recently married and each person had children from a previous
marriage. They wish to take title to property so they can pass their share to
their own children by will. The best form of title would be?
- accurate answers-Community Property--"community property with right of
survivorship"
Community Property
- accurate answers-1) All property acquired during a valid marriage or
registered domestic partnership
2) Each spouse/partner has the right to dispose of his/her half of community
property by will to whomever he/she wishes
3) If either spouse or partner dies intestate, the surviving spouse or partner
receives all the property; the children if any get nothing
4)There are a few exceptions:
A. Property owned before union as long as the property is not commingled
with community property.
B. Property acquired by gift or inheritance as it is not commingled with
community property
C. Income and profits from separate property as well as property acquired
from these proceeds as long as said income and profits are not commingled
with community property
A valid deed must...
- accurate answers-1) Be in writing
2) Parties (grantor and grantee) are correctly described and identified
3) Grantor must be competent to convey and grantee cable of receiving title
4) Description of the property must be clear--able to locate
5) There must a granting clause--deed must contain words indicating the
intention of the owner to convey the property ("I herby grant")
6) Deed must contain the signature of the grantor
,In July, Easton bought Rothchild's home through the listing broker, McGrew.
After a hard rain in November, the roof developed a severe leak. Easton sued
Rothchild and McGrew for the cost of a new roof. Testimony in court revealed
that Rothchild mentioned the need for a new roof to Broker McGrew. McGrew
did not tell Easton about the need for a new roof. What would most likely
occur?
- accurate answers-Easton would collect from Rothchild; Rothchild would
then seek recourse from McGrew.
A principal must tell the real estate agent of any known defects in the
property so the agent can property disclose the defect to a prospective buyer.
If the seller knows of a property defect and fails to tell the real estate agent,
the seller can be held legally accountable. Sellers of 1-4 residential units are
required to complete a Transfer Disclosure Statement--a complete written
disclosure regarding the property. If a seller withholds material facts about
the property, such as structural defects know to the seller, the seller can be
sued by the buyer.
The difference between judgement liens and mechanics' lines is that:
- accurate answers-Mechanics' liens can take priority before they are recorded
Priority of Claim
- accurate answers-1) Even if a mechanics' lien is recorded after a
construction loan is recorded, the mechanics' lien is given priority if any work
has been done or materials furnished prior to recording the construction loan.
2) If there are multiple Mechanics' Liens on property they all share priority. So
if property is sold for lien payments, each mechanic receives a share based on
his or her pro rata (proportionate) share of work
A quitclaim deed conveys only the present rights of the:
- accurate answers-Grantor
Quitclaim deed
- accurate answers-Provides grantee with least protection of any deed,
carrying no implied warranties and no after acquired title provisions. The
grantor merely relinquishes any right or claim they have in the property.
, A licensed loan broker arranged for a loan and has the borrower sign the
required statement. The broker then discovers a lien that the borrower did
not disclose. If the loan cannot be arranged due to the lien, the borrower is
liable for...
- accurate answers-All cost and expenses and half the commission--
A person purchases a property for $200,000 which was equal to $4.75 per
square foot. The rectangular lot was 300 feet deep. The cost per front foot
was?
- accurate answers-$1,425
$200,000/$4.75 = 42,105.26 sq. ft./300 ft. = 140.35 front ft., then
$200,000/140.35 = $1,425
An owner sells a lot for cash and receives $67,100 from escrow. The only
expenses were a 6% commission and $517 in other expenses. The property
sold for?
- accurate answers-$71,933
$67,100 + 517 = $67,617 (94% of total)
$67,617/0.94 = $71,933
In appraising improved property, the least important factor is?
- accurate answers-Assessed value--
(1) Sales Price, (2) Highest and Best Use, and (3) Prices of Comparables are all
more important
Studs are attached to rest upon the:
- accurate answers-Sole Plate--
Sole Plate = Usually 2x4 on which wall and studs rest
Studs = Vertical boards 2x4 supporting the walls every 16" (on center)
A person borrowed 80% of the value of a studio condo. The loan interest rate
was 7%. The first-year interest was $10,500. The value of the condo was?
- accurate answers-$187,500--
Questions With Accurate Answers 2025\2026
A+ Grade.
A couple recently married and each person had children from a previous
marriage. They wish to take title to property so they can pass their share to
their own children by will. The best form of title would be?
- accurate answers-Community Property--"community property with right of
survivorship"
Community Property
- accurate answers-1) All property acquired during a valid marriage or
registered domestic partnership
2) Each spouse/partner has the right to dispose of his/her half of community
property by will to whomever he/she wishes
3) If either spouse or partner dies intestate, the surviving spouse or partner
receives all the property; the children if any get nothing
4)There are a few exceptions:
A. Property owned before union as long as the property is not commingled
with community property.
B. Property acquired by gift or inheritance as it is not commingled with
community property
C. Income and profits from separate property as well as property acquired
from these proceeds as long as said income and profits are not commingled
with community property
A valid deed must...
- accurate answers-1) Be in writing
2) Parties (grantor and grantee) are correctly described and identified
3) Grantor must be competent to convey and grantee cable of receiving title
4) Description of the property must be clear--able to locate
5) There must a granting clause--deed must contain words indicating the
intention of the owner to convey the property ("I herby grant")
6) Deed must contain the signature of the grantor
,In July, Easton bought Rothchild's home through the listing broker, McGrew.
After a hard rain in November, the roof developed a severe leak. Easton sued
Rothchild and McGrew for the cost of a new roof. Testimony in court revealed
that Rothchild mentioned the need for a new roof to Broker McGrew. McGrew
did not tell Easton about the need for a new roof. What would most likely
occur?
- accurate answers-Easton would collect from Rothchild; Rothchild would
then seek recourse from McGrew.
A principal must tell the real estate agent of any known defects in the
property so the agent can property disclose the defect to a prospective buyer.
If the seller knows of a property defect and fails to tell the real estate agent,
the seller can be held legally accountable. Sellers of 1-4 residential units are
required to complete a Transfer Disclosure Statement--a complete written
disclosure regarding the property. If a seller withholds material facts about
the property, such as structural defects know to the seller, the seller can be
sued by the buyer.
The difference between judgement liens and mechanics' lines is that:
- accurate answers-Mechanics' liens can take priority before they are recorded
Priority of Claim
- accurate answers-1) Even if a mechanics' lien is recorded after a
construction loan is recorded, the mechanics' lien is given priority if any work
has been done or materials furnished prior to recording the construction loan.
2) If there are multiple Mechanics' Liens on property they all share priority. So
if property is sold for lien payments, each mechanic receives a share based on
his or her pro rata (proportionate) share of work
A quitclaim deed conveys only the present rights of the:
- accurate answers-Grantor
Quitclaim deed
- accurate answers-Provides grantee with least protection of any deed,
carrying no implied warranties and no after acquired title provisions. The
grantor merely relinquishes any right or claim they have in the property.
, A licensed loan broker arranged for a loan and has the borrower sign the
required statement. The broker then discovers a lien that the borrower did
not disclose. If the loan cannot be arranged due to the lien, the borrower is
liable for...
- accurate answers-All cost and expenses and half the commission--
A person purchases a property for $200,000 which was equal to $4.75 per
square foot. The rectangular lot was 300 feet deep. The cost per front foot
was?
- accurate answers-$1,425
$200,000/$4.75 = 42,105.26 sq. ft./300 ft. = 140.35 front ft., then
$200,000/140.35 = $1,425
An owner sells a lot for cash and receives $67,100 from escrow. The only
expenses were a 6% commission and $517 in other expenses. The property
sold for?
- accurate answers-$71,933
$67,100 + 517 = $67,617 (94% of total)
$67,617/0.94 = $71,933
In appraising improved property, the least important factor is?
- accurate answers-Assessed value--
(1) Sales Price, (2) Highest and Best Use, and (3) Prices of Comparables are all
more important
Studs are attached to rest upon the:
- accurate answers-Sole Plate--
Sole Plate = Usually 2x4 on which wall and studs rest
Studs = Vertical boards 2x4 supporting the walls every 16" (on center)
A person borrowed 80% of the value of a studio condo. The loan interest rate
was 7%. The first-year interest was $10,500. The value of the condo was?
- accurate answers-$187,500--
