NATIONAL REAL ESTATE 2026/2027 MAIN EXAM TEST
QUESTIONS AND ANSWERS RATED A+
✔✔Which of the following would be considered an operating expense by a property
manager preparing an operating budget for the owner? - ✔✔interior painting of
apartments
✔✔The property management agreement creates what kind of agency? - ✔✔General
agency
✔✔Who would use the remedy of Forcible Entry and Detainer? - ✔✔the landlord
✔✔The landlord pays the expenses of the property. The tenants pay rent plus utilities.
What type of lease is this? - ✔✔net lease
✔✔When a landlord allows the property condition to deteriorate so much that the
tenants are forced to leave it is called: - ✔✔constructive eviction
✔✔A couple is moving to a new city and they would like time to learn the city before
they purchase a home. What type of lease should their agent recommend? - ✔✔a
periodic tenancy
✔✔A young couple leases an apartment in an apartment complex for one year. During
the year, they become concerned about crime in the area and ask for permission to
install an alarm system in the apartment. The landlord grants permission. When the
lease is up, what happens to the alarm system? - ✔✔the system stays as it is now a
fixture
✔✔What type of verbal lease agreement would be enforceable? - ✔✔a lease for one
year or less
✔✔John has a three year lease on office space. In the second year the landlord dies.
His heirs inherit the property. They do not want it and they sell it. The new owner wants
John to move out. Does John have to leave? - ✔✔No, because he has a lease
✔✔What type of business entity is owned by shareholders, but avoids "double
taxation"? - ✔✔An S corporation
✔✔What is the difference between a general partner and a limited partner? - ✔✔a
general partner has full liability and a limited partner has limited liability
✔✔A one on one relationship between a broker and a client is called - ✔✔agency
, ✔✔A license holder sponsored by a broker must have a written agreement - ✔✔to work
as an independent contractor
✔✔A broker has a trust account set up to hold client funds. He has earnest money
deposits from several clients in the account at the same time. This is: - ✔✔acceptable
as long as he has written records
✔✔Which of the following actions of a broker could jeopardize the independent
contractor status of the license holders he sponsors? - ✔✔Requiring his license holders
to work scheduled hours
✔✔A buyer's agent is working with a buyer to purchase a property. The buyer is
concerned about the location of the fence as it appears to be encroaching. What should
the buyer's agent do? - ✔✔Recommend a survey
✔✔A couple is purchasing a home and ask their agent how they should take title so that
if one spouse dies, immediately the surviving spouse will be the sole owner of the
property. The license holder should: - ✔✔Tell them to talk to an attorney, because the
license holder is not permitted to give advice on how to take title
✔✔A license holder is representing a young couple purchasing their first home. She
shows them many properties and finally they find one to buy. They have some concerns
about the contract and ask to speak an attorney. the agent should... - ✔✔Send the
clients to an attorney of their choice before they sign
✔✔A license holder advertises a listed property as having the most beautiful
landscaping in the neighborhood. This is an example of... - ✔✔Puffing
✔✔A license holder is showing her own listing to a buyer customer. While showing the
property she notices that there is a serious slope to the porch floor. What should she
do? - ✔✔She must point it out to the buyer
✔✔Which of the following is false about a property manager? - ✔✔He is a universal
agent to the owner
✔✔A leased property is not for sale at this time. The tenant has a four year lease on the
space. The tenant also has the right to match or better any offer before the property will
be sold to anyone else. What agreement between the landlord and tenant gave the
tenant that right? - ✔✔a lease with a Right of First Refusal
✔✔Which of the following statements about the difference between a license holder
who is an employee and a license holder who is an independent contractor would be
QUESTIONS AND ANSWERS RATED A+
✔✔Which of the following would be considered an operating expense by a property
manager preparing an operating budget for the owner? - ✔✔interior painting of
apartments
✔✔The property management agreement creates what kind of agency? - ✔✔General
agency
✔✔Who would use the remedy of Forcible Entry and Detainer? - ✔✔the landlord
✔✔The landlord pays the expenses of the property. The tenants pay rent plus utilities.
What type of lease is this? - ✔✔net lease
✔✔When a landlord allows the property condition to deteriorate so much that the
tenants are forced to leave it is called: - ✔✔constructive eviction
✔✔A couple is moving to a new city and they would like time to learn the city before
they purchase a home. What type of lease should their agent recommend? - ✔✔a
periodic tenancy
✔✔A young couple leases an apartment in an apartment complex for one year. During
the year, they become concerned about crime in the area and ask for permission to
install an alarm system in the apartment. The landlord grants permission. When the
lease is up, what happens to the alarm system? - ✔✔the system stays as it is now a
fixture
✔✔What type of verbal lease agreement would be enforceable? - ✔✔a lease for one
year or less
✔✔John has a three year lease on office space. In the second year the landlord dies.
His heirs inherit the property. They do not want it and they sell it. The new owner wants
John to move out. Does John have to leave? - ✔✔No, because he has a lease
✔✔What type of business entity is owned by shareholders, but avoids "double
taxation"? - ✔✔An S corporation
✔✔What is the difference between a general partner and a limited partner? - ✔✔a
general partner has full liability and a limited partner has limited liability
✔✔A one on one relationship between a broker and a client is called - ✔✔agency
, ✔✔A license holder sponsored by a broker must have a written agreement - ✔✔to work
as an independent contractor
✔✔A broker has a trust account set up to hold client funds. He has earnest money
deposits from several clients in the account at the same time. This is: - ✔✔acceptable
as long as he has written records
✔✔Which of the following actions of a broker could jeopardize the independent
contractor status of the license holders he sponsors? - ✔✔Requiring his license holders
to work scheduled hours
✔✔A buyer's agent is working with a buyer to purchase a property. The buyer is
concerned about the location of the fence as it appears to be encroaching. What should
the buyer's agent do? - ✔✔Recommend a survey
✔✔A couple is purchasing a home and ask their agent how they should take title so that
if one spouse dies, immediately the surviving spouse will be the sole owner of the
property. The license holder should: - ✔✔Tell them to talk to an attorney, because the
license holder is not permitted to give advice on how to take title
✔✔A license holder is representing a young couple purchasing their first home. She
shows them many properties and finally they find one to buy. They have some concerns
about the contract and ask to speak an attorney. the agent should... - ✔✔Send the
clients to an attorney of their choice before they sign
✔✔A license holder advertises a listed property as having the most beautiful
landscaping in the neighborhood. This is an example of... - ✔✔Puffing
✔✔A license holder is showing her own listing to a buyer customer. While showing the
property she notices that there is a serious slope to the porch floor. What should she
do? - ✔✔She must point it out to the buyer
✔✔Which of the following is false about a property manager? - ✔✔He is a universal
agent to the owner
✔✔A leased property is not for sale at this time. The tenant has a four year lease on the
space. The tenant also has the right to match or better any offer before the property will
be sold to anyone else. What agreement between the landlord and tenant gave the
tenant that right? - ✔✔a lease with a Right of First Refusal
✔✔Which of the following statements about the difference between a license holder
who is an employee and a license holder who is an independent contractor would be
