Practice Examination Questions With Correct
Answers (Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
1. Which type of property ownership includes the right of
survivorship?
A. Tenancy in common
B. Joint tenancy
C. Severalty
D. Life estate
Answer: B. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship,
meaning ownership automatically transfers to surviving co-
owners upon death.
2. What is the primary purpose of a deed?
A. To finance a property
B. To transfer ownership of real estate
C. To insure the property
, D. To assess property taxes
Answer: B. To transfer ownership of real estate
Rationale: A deed is the legal instrument used to convey title
from one party to another.
3. Which of the following is considered real property?
A. Furniture
B. Appliances not attached
C. Land and improvements
D. Personal belongings
Answer: C. Land and improvements
Rationale: Real property includes land and anything
permanently attached to it.
4. What does “fee simple absolute” mean?
A. Ownership for a limited time
B. Ownership with conditions
C. Complete ownership with no limitations
D. Shared ownership
Answer: C. Complete ownership with no limitations
Rationale: Fee simple absolute is the highest form of property
ownership with full rights.
,5. Which government power allows property to be taken for public
use?
A. Police power
B. Escheat
C. Eminent domain
D. Taxation
Answer: C. Eminent domain
Rationale: Eminent domain allows the government to take
private property for public use with compensation.
6. What is an easement?
A. Ownership interest
B. Right to use another’s land
C. Tax obligation
D. Building permit
Answer: B. Right to use another’s land
Rationale: An easement grants limited use or access rights over
another’s property.
7. Which type of listing gives the broker the greatest protection?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
, D. Net listing
Answer: C. Exclusive right to sell
Rationale: The broker earns a commission regardless of who
finds the buyer.
8. What is the statute of frauds?
A. Law requiring inspections
B. Law requiring written contracts
C. Law regulating taxes
D. Law about zoning
Answer: B. Law requiring written contracts
Rationale: Real estate contracts must be in writing to be
enforceable.
9. Which term refers to the increase in property value over time?
A. Depreciation
B. Appreciation
C. Amortization
D. Allocation
Answer: B. Appreciation
Rationale: Appreciation is the increase in value due to market
conditions.