NATIONAL REAL ESTATE EXAM
PRACTICE TEST 2026 QUESTIONS WITH
VERIFIED ANSWERS NEW UPDATE
In most cases, broker compensation, as a percentage of home price, falls
somewhere between:
5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian
tenants. Under the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are
exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property?
The tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to
qualify for a conforming loan (total debt service ratio of 36%) with a monthly
PITI payment of $800. What is the maximum amount of additional long-term
obligations this borrower may have after PITI?
$280
A square bedroom measures 10 feet by 10 feet. What is the area of the room?
100 square feet
Which of these is an economic characteristic that makes land a distinctive
commodity?*
situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to
be paid is:
predetermined
Which is exempt from the federal Fair Housing Act?
renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to:
privately owned or government-owned public accommodations
Condemnation is the act of seizing private property from citizens. What gives
the government the right to do this?
eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-
homogenous, and:
, immobile
Which statement BEST defines the term contingency?
stipulation that must be satisfied before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender
the ability to:
call the entire loan balance due immediately
A metes and bounds legal description always returns to:
the point of beginning
What should a license holder do if a client instructs them to do something that
would discriminate against a protected class?
advise the client they cannot legally discriminate against certain groups
What is a novation?
the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to sell their
home this year for $950,000. How much of that money will they be required to
pay capital gains tax on?
$50,000
Which element of a valid contract states that the contract cannot require any
illegal activities or outcomes?
lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal
recourse because too many years have passed since the offending incident.
What is this an example of?
statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax
rate for Pedro's county is 2.375%, what will he pay in ad valorem taxes this
year?
$6,887.50
A potentially valid contract in which at least one party has the option to rescind
is described as:
voidable
When you're talking about mortgages, what is another name for an origination
fee?
points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called?
PRACTICE TEST 2026 QUESTIONS WITH
VERIFIED ANSWERS NEW UPDATE
In most cases, broker compensation, as a percentage of home price, falls
somewhere between:
5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian
tenants. Under the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are
exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property?
The tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to
qualify for a conforming loan (total debt service ratio of 36%) with a monthly
PITI payment of $800. What is the maximum amount of additional long-term
obligations this borrower may have after PITI?
$280
A square bedroom measures 10 feet by 10 feet. What is the area of the room?
100 square feet
Which of these is an economic characteristic that makes land a distinctive
commodity?*
situs
In a fixed-rate mortgage that is fully amortized, the total amount of interest to
be paid is:
predetermined
Which is exempt from the federal Fair Housing Act?
renting a room in a house occupied by the owner
The Americans with Disabilities Act applies to:
privately owned or government-owned public accommodations
Condemnation is the act of seizing private property from citizens. What gives
the government the right to do this?
eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-
homogenous, and:
, immobile
Which statement BEST defines the term contingency?
stipulation that must be satisfied before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender
the ability to:
call the entire loan balance due immediately
A metes and bounds legal description always returns to:
the point of beginning
What should a license holder do if a client instructs them to do something that
would discriminate against a protected class?
advise the client they cannot legally discriminate against certain groups
What is a novation?
the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their
neighborhood has rapidly grown in popularity, and they were able to sell their
home this year for $950,000. How much of that money will they be required to
pay capital gains tax on?
$50,000
Which element of a valid contract states that the contract cannot require any
illegal activities or outcomes?
lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal
recourse because too many years have passed since the offending incident.
What is this an example of?
statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax
rate for Pedro's county is 2.375%, what will he pay in ad valorem taxes this
year?
$6,887.50
A potentially valid contract in which at least one party has the option to rescind
is described as:
voidable
When you're talking about mortgages, what is another name for an origination
fee?
points
Both parties involved in an agency agreement agree to end the agreement early.
What is this called?
