NATIONAL REAL ESTATE TEST PAPER 2026/2027
QUESTIONS AND ANSWERS RATED A+
✔✔A buyer has purchased a property and after closing the seller will continue to occupy
the property. This is an example of... - ✔✔sale and leaseback
✔✔Your client will be able to qualify for a property they wish to purchase in about 6
months, after they had an opportunity to reduce their consumer debt. They have found a
property that they would like to purchase now. What type of agreement can they enter
into with a seller that will allow them to occupy the property now and purchase it within
the 6 months? - ✔✔lease with an option to buy
✔✔Tenants have signed a 3 year lease on a property. In the second year the owner
dies and his heirs inherit the property. They give the tenants notice to vacate. What is
true? - ✔✔the tenants can stay until the end of the lease
✔✔A developer decides to build a commercial property in the middle of a residential
subdivision. What is required? - ✔✔a variance
✔✔A zoning ordinance would affect which of the following? - ✔✔the concentration of
housing in a residential area
✔✔If a person dies without a will, who receives their estate? - ✔✔spouse and children
✔✔What are the requirements/ criteria for real estate to have values? - ✔✔demand,
utility, scarcity, transferability
✔✔What principle of value defines the most important factor for appraisal? - ✔✔highest
and best use
✔✔What approach would an appraiser most likely use to value a residential rent house
in neighborhood where a majority of the homes are leased? - ✔✔income approach
✔✔A licensed broker is advertising that he will perform a free appraisal if you contact
him for a listing appointment. He is not in violation of the law... - ✔✔if he is a licensed
appraiser
✔✔Which of the following is NOT an example of functional obsolescence? - ✔✔deferred
maintenance
✔✔According to the Statute of Frauds, which of the following leases must be in writing?
- ✔✔a lease for more than one year
,✔✔Your client is an investor who would like to have the right to purchase a commercial
tract for $5 million for the next 6 months. What type of contract should he enter into with
the seller? - ✔✔an option contract
✔✔A signed sales contract that has not yet gone to closing is... - ✔✔executory
✔✔When does an offer become a contract? - ✔✔When the offeree gives the offeror
notice of the acceptance
✔✔Which of the following statements is true about the duties of an agent according to
the common law of agency? - ✔✔an agent must treat both clients and customers with
honesty and fairness
✔✔A property manager is hired and signs a management agreement with the owner. At
this time, the property manager is... - ✔✔a general agent
✔✔A buyer and seller have negotiated a contract on the seller's property with a closing
set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's
agent and tells him the seller will be unable to close on the 14th. The seller can close on
the 16th. At this time, what is true? - ✔✔the contract is voidable by the buyer
✔✔A licensee is representing a seller in a commercial transaction. The property is
under contract and all contingencies have been met. The listing agent learns the State
Department of Transportation has authorized the construction of an exit ramp to the
interstate right behind the commercial property. The exit ramp will greatly increase the
value of the seller's property. What should the agent do? - ✔✔tell the seller and
encourage the seller to complete the negotiated sale
✔✔A listing agent is showing his listing to a buyer customer and notices a problem with
the exterior of the property that he missed when he listed the property. What should he
do? - ✔✔point it out to the buyer as it is a material fact
✔✔A buyer's agent has accidentally forwarded confidential information about his
buyer's financial background to the listing agent. What is true? - ✔✔the buyer's agent is
guilty of negligence and the listing agent must disclose the information to the seller
✔✔What is the difference between replacement cost and market value? -
✔✔depreciation
✔✔Economic life is defined as - ✔✔years of depriciation
✔✔An unlicensed assistant gets a call from a listing owner with questions about a
contract- what should the assistant do? - ✔✔take the information to the listing broker
, ✔✔An underage college student signs a lease, then discloses his age to the landlord.
What is true? - ✔✔the contract is voidable at the minor's option
✔✔A seller comes into the office to sign a contract. The seller is stumbling and smells of
alcohol. How do you proceed? - ✔✔tell the seller to leave and return another time
✔✔A high rise condominium property is advertised as having the "Most beautiful view of
the city". This ad is best described as - ✔✔puffing
✔✔Which of the following facts about listed property must be disclosed - ✔✔death due
to structural defects
✔✔A lead paint disclosure is required for all properties built before - ✔✔1978
✔✔Which of the following statements about lead is NOT true? - ✔✔the property owner
must remediate the presence of lead
✔✔CERCLA is under the administration of: - ✔✔EPA
✔✔Which of the following used in 1978 is both extremely hazardous and friable? -
✔✔asbestos
✔✔Which of the following properties would be the least desirable neighborhood? -
✔✔brownfields
✔✔A seller must keep a copy of the lead paint disclosure he provided to the buyer for -
✔✔3 years
✔✔It has been found that mold can develop due to - ✔✔air tight windows and doors
found in newer construction
✔✔General liability insurance will - ✔✔protect a company's assets if someone is injured
on company property
✔✔A condo owner's policy will most likely cover the owner if - ✔✔a guest slips in the
kitchen
✔✔A condo complex has liability complex has liability insurance. This is least likely to
cover - ✔✔a units owner's carpet damaged by a broken water pipe
QUESTIONS AND ANSWERS RATED A+
✔✔A buyer has purchased a property and after closing the seller will continue to occupy
the property. This is an example of... - ✔✔sale and leaseback
✔✔Your client will be able to qualify for a property they wish to purchase in about 6
months, after they had an opportunity to reduce their consumer debt. They have found a
property that they would like to purchase now. What type of agreement can they enter
into with a seller that will allow them to occupy the property now and purchase it within
the 6 months? - ✔✔lease with an option to buy
✔✔Tenants have signed a 3 year lease on a property. In the second year the owner
dies and his heirs inherit the property. They give the tenants notice to vacate. What is
true? - ✔✔the tenants can stay until the end of the lease
✔✔A developer decides to build a commercial property in the middle of a residential
subdivision. What is required? - ✔✔a variance
✔✔A zoning ordinance would affect which of the following? - ✔✔the concentration of
housing in a residential area
✔✔If a person dies without a will, who receives their estate? - ✔✔spouse and children
✔✔What are the requirements/ criteria for real estate to have values? - ✔✔demand,
utility, scarcity, transferability
✔✔What principle of value defines the most important factor for appraisal? - ✔✔highest
and best use
✔✔What approach would an appraiser most likely use to value a residential rent house
in neighborhood where a majority of the homes are leased? - ✔✔income approach
✔✔A licensed broker is advertising that he will perform a free appraisal if you contact
him for a listing appointment. He is not in violation of the law... - ✔✔if he is a licensed
appraiser
✔✔Which of the following is NOT an example of functional obsolescence? - ✔✔deferred
maintenance
✔✔According to the Statute of Frauds, which of the following leases must be in writing?
- ✔✔a lease for more than one year
,✔✔Your client is an investor who would like to have the right to purchase a commercial
tract for $5 million for the next 6 months. What type of contract should he enter into with
the seller? - ✔✔an option contract
✔✔A signed sales contract that has not yet gone to closing is... - ✔✔executory
✔✔When does an offer become a contract? - ✔✔When the offeree gives the offeror
notice of the acceptance
✔✔Which of the following statements is true about the duties of an agent according to
the common law of agency? - ✔✔an agent must treat both clients and customers with
honesty and fairness
✔✔A property manager is hired and signs a management agreement with the owner. At
this time, the property manager is... - ✔✔a general agent
✔✔A buyer and seller have negotiated a contract on the seller's property with a closing
set for June 14th, time is of the essence. On June 12th the listing agent calls the buyer's
agent and tells him the seller will be unable to close on the 14th. The seller can close on
the 16th. At this time, what is true? - ✔✔the contract is voidable by the buyer
✔✔A licensee is representing a seller in a commercial transaction. The property is
under contract and all contingencies have been met. The listing agent learns the State
Department of Transportation has authorized the construction of an exit ramp to the
interstate right behind the commercial property. The exit ramp will greatly increase the
value of the seller's property. What should the agent do? - ✔✔tell the seller and
encourage the seller to complete the negotiated sale
✔✔A listing agent is showing his listing to a buyer customer and notices a problem with
the exterior of the property that he missed when he listed the property. What should he
do? - ✔✔point it out to the buyer as it is a material fact
✔✔A buyer's agent has accidentally forwarded confidential information about his
buyer's financial background to the listing agent. What is true? - ✔✔the buyer's agent is
guilty of negligence and the listing agent must disclose the information to the seller
✔✔What is the difference between replacement cost and market value? -
✔✔depreciation
✔✔Economic life is defined as - ✔✔years of depriciation
✔✔An unlicensed assistant gets a call from a listing owner with questions about a
contract- what should the assistant do? - ✔✔take the information to the listing broker
, ✔✔An underage college student signs a lease, then discloses his age to the landlord.
What is true? - ✔✔the contract is voidable at the minor's option
✔✔A seller comes into the office to sign a contract. The seller is stumbling and smells of
alcohol. How do you proceed? - ✔✔tell the seller to leave and return another time
✔✔A high rise condominium property is advertised as having the "Most beautiful view of
the city". This ad is best described as - ✔✔puffing
✔✔Which of the following facts about listed property must be disclosed - ✔✔death due
to structural defects
✔✔A lead paint disclosure is required for all properties built before - ✔✔1978
✔✔Which of the following statements about lead is NOT true? - ✔✔the property owner
must remediate the presence of lead
✔✔CERCLA is under the administration of: - ✔✔EPA
✔✔Which of the following used in 1978 is both extremely hazardous and friable? -
✔✔asbestos
✔✔Which of the following properties would be the least desirable neighborhood? -
✔✔brownfields
✔✔A seller must keep a copy of the lead paint disclosure he provided to the buyer for -
✔✔3 years
✔✔It has been found that mold can develop due to - ✔✔air tight windows and doors
found in newer construction
✔✔General liability insurance will - ✔✔protect a company's assets if someone is injured
on company property
✔✔A condo owner's policy will most likely cover the owner if - ✔✔a guest slips in the
kitchen
✔✔A condo complex has liability complex has liability insurance. This is least likely to
cover - ✔✔a units owner's carpet damaged by a broken water pipe
