National Real Estate
Licensing Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
Download Pdf
1. A real estate license is primarily issued by:
A. Federal government
B. Local city council
C. State real estate commission
D. National Association of Realtors
,Rationale: Real estate licensing is regulated at the state
level by a state commission or department.
2. Which of the following best defines “real property”?
A. Movable personal items
B. Stocks and bonds
C. Land and anything permanently attached to it
D. Cash investments
Rationale: Real property includes land and fixtures attached
to it.
3. A fiduciary relationship requires:
A. Equal bargaining power
B. Arm’s length transaction
C. Trust and loyalty from agent to client
D. Government supervision
Rationale: Fiduciary duty involves trust, loyalty, and care
toward the client.
4. Which is NOT a fiduciary duty?
A. Obedience
B. Disclosure
C. Accounting
D. Self-interest promotion
,Rationale: Agents must prioritize client interests, not their
own.
5. The term “eminent domain” refers to:
A. Private land ownership rights
B. Government’s right to take property for public use with
compensation
C. Leasing property
D. Foreclosure process
Rationale: Eminent domain allows government acquisition
with just compensation.
6. The “bundle of rights” includes all EXCEPT:
A. Possession
B. Control
C. Enjoyment
D. Tax exemption
Rationale: Ownership rights do not include exemption from
taxes.
7. A deed is used to:
A. Transfer possession only
B. Transfer ownership of real property
C. Record mortgage payments
D. Establish zoning laws
, Rationale: A deed legally transfers title ownership.
8. Which deed offers the most protection to the buyer?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Sheriff's deed
Rationale: A general warranty deed provides full
guarantees against title defects.
9. A mortgage is:
A. Ownership document
B. Lease agreement
C. Security instrument for a loan using property as collateral
D. Property tax record
Rationale: A mortgage secures repayment of a loan.
10. Foreclosure occurs when:
A. Buyer sells property
B. Tenant breaks lease
C. Borrower fails to meet loan obligations
D. Property value increases
Rationale: Foreclosure is the lender’s remedy for default.
Licensing Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
Download Pdf
1. A real estate license is primarily issued by:
A. Federal government
B. Local city council
C. State real estate commission
D. National Association of Realtors
,Rationale: Real estate licensing is regulated at the state
level by a state commission or department.
2. Which of the following best defines “real property”?
A. Movable personal items
B. Stocks and bonds
C. Land and anything permanently attached to it
D. Cash investments
Rationale: Real property includes land and fixtures attached
to it.
3. A fiduciary relationship requires:
A. Equal bargaining power
B. Arm’s length transaction
C. Trust and loyalty from agent to client
D. Government supervision
Rationale: Fiduciary duty involves trust, loyalty, and care
toward the client.
4. Which is NOT a fiduciary duty?
A. Obedience
B. Disclosure
C. Accounting
D. Self-interest promotion
,Rationale: Agents must prioritize client interests, not their
own.
5. The term “eminent domain” refers to:
A. Private land ownership rights
B. Government’s right to take property for public use with
compensation
C. Leasing property
D. Foreclosure process
Rationale: Eminent domain allows government acquisition
with just compensation.
6. The “bundle of rights” includes all EXCEPT:
A. Possession
B. Control
C. Enjoyment
D. Tax exemption
Rationale: Ownership rights do not include exemption from
taxes.
7. A deed is used to:
A. Transfer possession only
B. Transfer ownership of real property
C. Record mortgage payments
D. Establish zoning laws
, Rationale: A deed legally transfers title ownership.
8. Which deed offers the most protection to the buyer?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Sheriff's deed
Rationale: A general warranty deed provides full
guarantees against title defects.
9. A mortgage is:
A. Ownership document
B. Lease agreement
C. Security instrument for a loan using property as collateral
D. Property tax record
Rationale: A mortgage secures repayment of a loan.
10. Foreclosure occurs when:
A. Buyer sells property
B. Tenant breaks lease
C. Borrower fails to meet loan obligations
D. Property value increases
Rationale: Foreclosure is the lender’s remedy for default.
