FREC Practice Test Questions and
Answers 2026 Update
1. Which of the following statements is true regarding a
mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage
broker.
b. A mortgage loan originator must have a separate license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have a real estate license.
- Correct Answers ✅B
2. A real estate appraiser's fee for professional service is
based on which of the following?
a. A percentage of the property's gross income.
b. A percentage of the fair market value of the property.
c. The time and difficulty of the appraisal.
d. A percentage of the property's sales price. - Correct
Answers ✅C
3. Which of the following best describes the real estate
brokerage business?
a. Service business
b. Simple business
c. Business with few opportunities available
d. Construction business - Correct Answers ✅A
,FREC Practice Test Questions and
Answers 2026 Update
4. All of the following are responsibilities of a property
manager, EXCEPT:
a. Renting property for an absentee owner.
b. Collecting rent.
c. Overseeing maintenance.
d. Preparing leases - Correct Answers ✅D
5. What does the term "farming" refer to in real estate?
a. Specializing in one geographic area
b. Working in a cooperative manner
c. Specializing in agricultural properties
d. Specializing in the sales of orange groves or cattle farms -
Correct Answers ✅A
6. Which insurance policies can a real estate licensee offer to
the public without additional state licensing?
a. Flood insurance
b. Fire insurance
c. Renter's insurance
d. None of the above - Correct Answers ✅D
7. What is the purpose of the National Association of
REALTORS?
,FREC Practice Test Questions and
Answers 2026 Update
a. Preserve the right of individuals to own real property
through an exchange of information.
b. Organize antigovernment activities.
c. Promote unethical practice of real estate professionals.
d. Promote unethical practice of real estate professionals. -
Correct Answers ✅A
8. What does the designation of REALTOR® signify?
a. Anyone in possession of a real estate license is a
REALTOR®
b. The designation identifies the real estate professional as a
member of the NAR.
c. The designation is evidence that the licensee has an
extensive background in the real estate profession.
d. The designation is evidence that the licensee has
completed extensive real estate studies. - Correct Answers
✅B
9. A developer contracts to build a home according to the
buyer's specifications. This is an example of which type of
building?
a. Tract
b. Custom
c. Speculative
d. Subdivision - Correct Answers ✅B
, FREC Practice Test Questions and
Answers 2026 Update
10. Which of the following best describes licensees who are
involved in business brokerage?
a. They must be able to analyze financial statements and
understand balance sheets.
b. They are not required to know much about the business
they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the
business. - Correct Answers ✅A
11. Real estate licensees are required to be knowledgeable in
all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting - Correct Answers ✅D
12. Which service provided by real estate licensees requires
the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales - Correct Answers ✅B
Answers 2026 Update
1. Which of the following statements is true regarding a
mortgage loan originator (MLO)?
a. A mortgage loan originator is the same as a mortgage
broker.
b. A mortgage loan originator must have a separate license.
c. A mortgage loan originator makes loans.
d. A mortgage loan originator must have a real estate license.
- Correct Answers ✅B
2. A real estate appraiser's fee for professional service is
based on which of the following?
a. A percentage of the property's gross income.
b. A percentage of the fair market value of the property.
c. The time and difficulty of the appraisal.
d. A percentage of the property's sales price. - Correct
Answers ✅C
3. Which of the following best describes the real estate
brokerage business?
a. Service business
b. Simple business
c. Business with few opportunities available
d. Construction business - Correct Answers ✅A
,FREC Practice Test Questions and
Answers 2026 Update
4. All of the following are responsibilities of a property
manager, EXCEPT:
a. Renting property for an absentee owner.
b. Collecting rent.
c. Overseeing maintenance.
d. Preparing leases - Correct Answers ✅D
5. What does the term "farming" refer to in real estate?
a. Specializing in one geographic area
b. Working in a cooperative manner
c. Specializing in agricultural properties
d. Specializing in the sales of orange groves or cattle farms -
Correct Answers ✅A
6. Which insurance policies can a real estate licensee offer to
the public without additional state licensing?
a. Flood insurance
b. Fire insurance
c. Renter's insurance
d. None of the above - Correct Answers ✅D
7. What is the purpose of the National Association of
REALTORS?
,FREC Practice Test Questions and
Answers 2026 Update
a. Preserve the right of individuals to own real property
through an exchange of information.
b. Organize antigovernment activities.
c. Promote unethical practice of real estate professionals.
d. Promote unethical practice of real estate professionals. -
Correct Answers ✅A
8. What does the designation of REALTOR® signify?
a. Anyone in possession of a real estate license is a
REALTOR®
b. The designation identifies the real estate professional as a
member of the NAR.
c. The designation is evidence that the licensee has an
extensive background in the real estate profession.
d. The designation is evidence that the licensee has
completed extensive real estate studies. - Correct Answers
✅B
9. A developer contracts to build a home according to the
buyer's specifications. This is an example of which type of
building?
a. Tract
b. Custom
c. Speculative
d. Subdivision - Correct Answers ✅B
, FREC Practice Test Questions and
Answers 2026 Update
10. Which of the following best describes licensees who are
involved in business brokerage?
a. They must be able to analyze financial statements and
understand balance sheets.
b. They are not required to know much about the business
they are selling.
c. They must have a separate license.
d. They never become involved in the tax aspects of the
business. - Correct Answers ✅A
11. Real estate licensees are required to be knowledgeable in
all of the following areas, EXCEPT:
a. Marketing
b. Valuation
c. Property transfer
d. Accounting - Correct Answers ✅D
12. Which service provided by real estate licensees requires
the most experience and knowledge?
a. Property management
b. Counseling
c. Appraising
d. Agricultural sales - Correct Answers ✅B
