REAL ESTATE PRACTICE FINAL EXAM QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
A listing agreement is:
A. A contract between seller and broker
B. A loan contract
C. A lease agreement
D. A title document
Answer: A
Rationale: Authorizes broker to market and sell property.
2.
A buyer representation agreement is between:
A. Buyer and broker
B. Seller and broker
C. Lender and buyer
D. Government and agent
Answer: A
Rationale: Defines agency relationship with buyer.
3.
Exclusive right-to-sell listing means:
A. Broker earns commission regardless of who sells
B. Seller sells alone only
C. No commission paid
D. Open listing only
Answer: A
Rationale: Most protective listing for broker.
4.
,An open listing allows:
A. Multiple brokers to market property
B. Only one broker
C. No marketing
D. Government sale
Answer: A
Rationale: Only successful broker earns commission.
5.
A net listing is:
A. Seller keeps agreed amount, broker keeps excess
B. Fixed commission only
C. Illegal everywhere
D. Buyer agreement
Answer: A
Rationale: Broker earns difference above net price.
6.
MLS stands for:
A. Multiple Listing Service
B. Mortgage Loan System
C. Market Legal Structure
D. Money Lending Service
Answer: A
Rationale: Shared property listing database.
7.
Commission is usually paid by:
A. Seller
B. Buyer
C. Government
D. Appraiser
Answer: A
Rationale: Seller compensates listing broker.
, 8.
Agency disclosure must occur:
A. At first meaningful contact
B. After closing
C. Only in court
D. Never required
Answer: A
Rationale: Ensures transparency early.
9.
Dual agency requires:
A. Consent of both parties
B. Only seller approval
C. No disclosure
D. Court order
Answer: A
Rationale: Both must agree.
10.
Fiduciary duty includes:
A. Loyalty and confidentiality
B. Self-interest
C. Misrepresentation
D. No responsibility
Answer: A
Rationale: Highest ethical standard.
11.
Commingling means:
A. Mixing client funds with personal funds
B. Sharing listings
C. Splitting commission
CORRECT ANSWER WITH EXPLANATION LATEST 2025-
2026
1.
A listing agreement is:
A. A contract between seller and broker
B. A loan contract
C. A lease agreement
D. A title document
Answer: A
Rationale: Authorizes broker to market and sell property.
2.
A buyer representation agreement is between:
A. Buyer and broker
B. Seller and broker
C. Lender and buyer
D. Government and agent
Answer: A
Rationale: Defines agency relationship with buyer.
3.
Exclusive right-to-sell listing means:
A. Broker earns commission regardless of who sells
B. Seller sells alone only
C. No commission paid
D. Open listing only
Answer: A
Rationale: Most protective listing for broker.
4.
,An open listing allows:
A. Multiple brokers to market property
B. Only one broker
C. No marketing
D. Government sale
Answer: A
Rationale: Only successful broker earns commission.
5.
A net listing is:
A. Seller keeps agreed amount, broker keeps excess
B. Fixed commission only
C. Illegal everywhere
D. Buyer agreement
Answer: A
Rationale: Broker earns difference above net price.
6.
MLS stands for:
A. Multiple Listing Service
B. Mortgage Loan System
C. Market Legal Structure
D. Money Lending Service
Answer: A
Rationale: Shared property listing database.
7.
Commission is usually paid by:
A. Seller
B. Buyer
C. Government
D. Appraiser
Answer: A
Rationale: Seller compensates listing broker.
, 8.
Agency disclosure must occur:
A. At first meaningful contact
B. After closing
C. Only in court
D. Never required
Answer: A
Rationale: Ensures transparency early.
9.
Dual agency requires:
A. Consent of both parties
B. Only seller approval
C. No disclosure
D. Court order
Answer: A
Rationale: Both must agree.
10.
Fiduciary duty includes:
A. Loyalty and confidentiality
B. Self-interest
C. Misrepresentation
D. No responsibility
Answer: A
Rationale: Highest ethical standard.
11.
Commingling means:
A. Mixing client funds with personal funds
B. Sharing listings
C. Splitting commission
