NATIONAL REAL ESTATE COMREHENSIVE EXAM 2026/2027
QUESTIONS AND ANSWERS RATED A+
✔✔Which type of listing agreement is most likely to cause a conflict of interest, and is
therefor discouraged? - ✔✔net listing
✔✔John submitted an offer to buy a condo, but he can only carry out the purchase if the
bank approves his request for a loan. For this reason, the contract must contain a: -
✔✔contingency
✔✔If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is
the sales price of the property? - ✔✔$141,176
✔✔What is eminent domain? - ✔✔The power of the government to seize citizen's
private property without the consent of the owner.
✔✔The party responsible for paying the origination fee when obtaining conventional
financing is: - ✔✔the borrower
✔✔What is attached to an original contract before it is signed? - ✔✔addendum
✔✔Arturo is buying a house for $400,000. He will be making a down payment of 5%. He
already submitted a check for $2,000 as earnest money, which will be applied to the
purchase. How much will Arturo need to pay on closing day? - ✔✔$18,000
✔✔An alienation clause would require a borrower to: - ✔✔pay the mortgage debt in its
entirety upon the property being sold
✔✔What act is prohibited by the Sherman Antitrust Act? - ✔✔price fixing
✔✔When a tenancy at sufferance occurs, the tenant is referred to as a: - ✔✔holdover
tenant
✔✔Which is an example of a freehold estate? - ✔✔a couple living in a house they own
✔✔Darleene is looking at an investment property. The annual net operating income
(NOI) of the property is $310,000. If the capitalization rate for this class of property in
this area is currently 9%, what is the total value of this property? - ✔✔$3,444,444.44
✔✔Seller Brian tells his listing agent, Cynthia, that there are no foundation issues in his
house. However, there is a huge crack running down the middle of the living room wall.
Cynthia accepts Brian's claim and goes on to tell prospective buyers that the home's
, foundation is in fine condition. What did Cynthia engage in? - ✔✔negligent
misrepresentation
✔✔In terms of contract validity, what does mutual consent mean? - ✔✔All parties to a
contract agree to the terms of the contract.
✔✔A new $350,000 home is being built in a neighborhood of mostly $200,000 homes.
Although the home has many updates and is in better condition than the surrounding
houses, its value is significantly less than the price. Which principle of appraisal can
explain this? - ✔✔principle of regression
✔✔Listing agreements are between a broker and a(n): - ✔✔seller
✔✔Negligent misrepresentation violates the fiduciary duty of: - ✔✔reasonable care
✔✔What is a report from a licensed appraiser that sums up a property's market value
based on collected data called? - ✔✔appraisal report
✔✔Which of these is a set of regulations pertaining to building design, materials, safety,
sanitation, and structure? - ✔✔building code
✔✔What gives a creditor the right to seize property as collateral for an unpaid debt? -
✔✔lien
✔✔In a verbal agreement, Jesse said that he would sell his house to Giorgio for
$200,000. Jesse later decided that he would like to keep his house instead. Giorgio
can't enforce their verbal contract because it did not meet which of these requirements
for validity? - ✔✔statute of frauds
✔✔Personal property MUST be transferred via: - ✔✔bill of sale
✔✔When there is a breach of contract, the non-breaching party can rescind the
contract, forfeit the contract, or: - ✔✔sue for compensatory damaged and/or specific
performance
✔✔An executory contract is a contract that: - ✔✔has not yet been fully performed
✔✔Your buyer client asks you if a property is located in a flood zone. What should you
do? - ✔✔Direct the buyer to obtain an up-to-date flood map from FEMA.
✔✔Which type of agreement transforms the customer into a client and the broker into a
listing agent? - ✔✔listing agreement
QUESTIONS AND ANSWERS RATED A+
✔✔Which type of listing agreement is most likely to cause a conflict of interest, and is
therefor discouraged? - ✔✔net listing
✔✔John submitted an offer to buy a condo, but he can only carry out the purchase if the
bank approves his request for a loan. For this reason, the contract must contain a: -
✔✔contingency
✔✔If a buyer makes a 15% down payment and obtains a $120,000 mortgage, what is
the sales price of the property? - ✔✔$141,176
✔✔What is eminent domain? - ✔✔The power of the government to seize citizen's
private property without the consent of the owner.
✔✔The party responsible for paying the origination fee when obtaining conventional
financing is: - ✔✔the borrower
✔✔What is attached to an original contract before it is signed? - ✔✔addendum
✔✔Arturo is buying a house for $400,000. He will be making a down payment of 5%. He
already submitted a check for $2,000 as earnest money, which will be applied to the
purchase. How much will Arturo need to pay on closing day? - ✔✔$18,000
✔✔An alienation clause would require a borrower to: - ✔✔pay the mortgage debt in its
entirety upon the property being sold
✔✔What act is prohibited by the Sherman Antitrust Act? - ✔✔price fixing
✔✔When a tenancy at sufferance occurs, the tenant is referred to as a: - ✔✔holdover
tenant
✔✔Which is an example of a freehold estate? - ✔✔a couple living in a house they own
✔✔Darleene is looking at an investment property. The annual net operating income
(NOI) of the property is $310,000. If the capitalization rate for this class of property in
this area is currently 9%, what is the total value of this property? - ✔✔$3,444,444.44
✔✔Seller Brian tells his listing agent, Cynthia, that there are no foundation issues in his
house. However, there is a huge crack running down the middle of the living room wall.
Cynthia accepts Brian's claim and goes on to tell prospective buyers that the home's
, foundation is in fine condition. What did Cynthia engage in? - ✔✔negligent
misrepresentation
✔✔In terms of contract validity, what does mutual consent mean? - ✔✔All parties to a
contract agree to the terms of the contract.
✔✔A new $350,000 home is being built in a neighborhood of mostly $200,000 homes.
Although the home has many updates and is in better condition than the surrounding
houses, its value is significantly less than the price. Which principle of appraisal can
explain this? - ✔✔principle of regression
✔✔Listing agreements are between a broker and a(n): - ✔✔seller
✔✔Negligent misrepresentation violates the fiduciary duty of: - ✔✔reasonable care
✔✔What is a report from a licensed appraiser that sums up a property's market value
based on collected data called? - ✔✔appraisal report
✔✔Which of these is a set of regulations pertaining to building design, materials, safety,
sanitation, and structure? - ✔✔building code
✔✔What gives a creditor the right to seize property as collateral for an unpaid debt? -
✔✔lien
✔✔In a verbal agreement, Jesse said that he would sell his house to Giorgio for
$200,000. Jesse later decided that he would like to keep his house instead. Giorgio
can't enforce their verbal contract because it did not meet which of these requirements
for validity? - ✔✔statute of frauds
✔✔Personal property MUST be transferred via: - ✔✔bill of sale
✔✔When there is a breach of contract, the non-breaching party can rescind the
contract, forfeit the contract, or: - ✔✔sue for compensatory damaged and/or specific
performance
✔✔An executory contract is a contract that: - ✔✔has not yet been fully performed
✔✔Your buyer client asks you if a property is located in a flood zone. What should you
do? - ✔✔Direct the buyer to obtain an up-to-date flood map from FEMA.
✔✔Which type of agreement transforms the customer into a client and the broker into a
listing agent? - ✔✔listing agreement
