NATIONAL REAL ESTATE 2026/2027 EXAMS SCRIPT
QUESTIONS AND ANSWERS RATED A+
✔✔What does a standard title insurance policy do?* - ✔✔protects against any defects
discovered in the title after closing
✔✔Which term describes the transfer of property from the current owner to another
party by sale or gift?* - ✔✔voluntary alienation
✔✔In the sales comparison approach to property valuation, what does the principle of
substitution state?* - ✔✔The value of a property is only what a consumer would pay to
acquire a comparable property.
✔✔Who can require a buyer to purchase homeowners insurance? - ✔✔lender
✔✔Which of the following statements may represent the unauthorized practice of law?*
- ✔✔"You should proceed without ordering a new abstract - this title is clear."
✔✔A property owner has the right to tell other people that they cannot trespass on their
property. What is this right called? - ✔✔right of exclusion
✔✔The term for when the client initiates the termination of the agency agreement is
known as: - ✔✔revocation
✔✔Which of the following terms refers to a surveyor's or developer's map that identifies
lots and blocks? - ✔✔plat
✔✔The statute of frauds requires that real estate agreements: - ✔✔be in writing
✔✔Which type of deed includes the five implied warranties (covenants)? - ✔✔general
warranty deed
✔✔Which of these scenarios does NOT violate fair housing law? - ✔✔An agent
advertises a senior citizen community with the phrase "no children allowed."
✔✔What is the difference between a bill of sale and a deed? - ✔✔A bill of sale is for
personal property; a deed is for real estate.
✔✔A buyer offers additional consideration to add a 10-day option period to the sales
contract. During this period, the buyer can:* - ✔✔terminate the contract for any reason
✔✔Brenda and her husband are interested in buying a house that was constructed in
1971 that has all the original paint, windows, and flooring. What is required from the
, listing agent in this situation?* - ✔✔The agent needs to furnish the buyers with a
pamphlet approved by the EPA concerning lead based paint prior to closing.
✔✔In order to be valid, what MUST a deed have? - ✔✔a legal description
✔✔Hans bought an investment property for $5,250,000. The NOI of this property is
$367,500. At what cap rate did he purchase this property? - ✔✔7%
✔✔What does the principle of anticipation state about the valuation of property? -
✔✔The present value of a property is affected by the anticipated income or utility that
property will give its property owner.
✔✔Which of these is a naturally occurring mineral that is commonly used in insulation,
but if airborne or inhaled, can cause severe respiratory health issues? - ✔✔abestos
✔✔How long after an incident does a victim of housing discrimination have to file a
complaint with HUD? - ✔✔one year
✔✔What is the term for deliberate deception done with the intention of gaining
something of value or causing damage to another person? - ✔✔fraud
✔✔Mary has a loan whose payments and interest rate will stay the same throughout the
life of the loan (not including the cost changes caused by insurance and tax rates).
What kind of loan does Mary have? - ✔✔fixed-rate, fully amortized
✔✔Seller Benjamin told his listing agent, Tyson, that his house does not have a termite
problem. Tyson doesn't see any visible evidence of pests. Tyson then relays this
information to a buyer, citing Benjamin as his source. The buyer later finds out the home
has a termite infestation. What did Agent Tyson engage in? - ✔✔innocent
misrepresentation
✔✔Melissa signed a listing agreement with Shane, a local real estate agent. Melissa
was then contacted by a neighbor who agreed to purchase the house, but Shane still
received compensation. What type of listing agreement did Melissa and Shane sign? -
✔✔exclusive right-to-sell listing
✔✔What is unique about an exclusive right-to-sell listing agreement? - ✔✔The broker
gets compensation regardless of who sells the property.
✔✔Which one of the following actions would be considered the unauthorized practice of
law by a broker? - ✔✔drafting a legal document that transfers an interest in a real
property
QUESTIONS AND ANSWERS RATED A+
✔✔What does a standard title insurance policy do?* - ✔✔protects against any defects
discovered in the title after closing
✔✔Which term describes the transfer of property from the current owner to another
party by sale or gift?* - ✔✔voluntary alienation
✔✔In the sales comparison approach to property valuation, what does the principle of
substitution state?* - ✔✔The value of a property is only what a consumer would pay to
acquire a comparable property.
✔✔Who can require a buyer to purchase homeowners insurance? - ✔✔lender
✔✔Which of the following statements may represent the unauthorized practice of law?*
- ✔✔"You should proceed without ordering a new abstract - this title is clear."
✔✔A property owner has the right to tell other people that they cannot trespass on their
property. What is this right called? - ✔✔right of exclusion
✔✔The term for when the client initiates the termination of the agency agreement is
known as: - ✔✔revocation
✔✔Which of the following terms refers to a surveyor's or developer's map that identifies
lots and blocks? - ✔✔plat
✔✔The statute of frauds requires that real estate agreements: - ✔✔be in writing
✔✔Which type of deed includes the five implied warranties (covenants)? - ✔✔general
warranty deed
✔✔Which of these scenarios does NOT violate fair housing law? - ✔✔An agent
advertises a senior citizen community with the phrase "no children allowed."
✔✔What is the difference between a bill of sale and a deed? - ✔✔A bill of sale is for
personal property; a deed is for real estate.
✔✔A buyer offers additional consideration to add a 10-day option period to the sales
contract. During this period, the buyer can:* - ✔✔terminate the contract for any reason
✔✔Brenda and her husband are interested in buying a house that was constructed in
1971 that has all the original paint, windows, and flooring. What is required from the
, listing agent in this situation?* - ✔✔The agent needs to furnish the buyers with a
pamphlet approved by the EPA concerning lead based paint prior to closing.
✔✔In order to be valid, what MUST a deed have? - ✔✔a legal description
✔✔Hans bought an investment property for $5,250,000. The NOI of this property is
$367,500. At what cap rate did he purchase this property? - ✔✔7%
✔✔What does the principle of anticipation state about the valuation of property? -
✔✔The present value of a property is affected by the anticipated income or utility that
property will give its property owner.
✔✔Which of these is a naturally occurring mineral that is commonly used in insulation,
but if airborne or inhaled, can cause severe respiratory health issues? - ✔✔abestos
✔✔How long after an incident does a victim of housing discrimination have to file a
complaint with HUD? - ✔✔one year
✔✔What is the term for deliberate deception done with the intention of gaining
something of value or causing damage to another person? - ✔✔fraud
✔✔Mary has a loan whose payments and interest rate will stay the same throughout the
life of the loan (not including the cost changes caused by insurance and tax rates).
What kind of loan does Mary have? - ✔✔fixed-rate, fully amortized
✔✔Seller Benjamin told his listing agent, Tyson, that his house does not have a termite
problem. Tyson doesn't see any visible evidence of pests. Tyson then relays this
information to a buyer, citing Benjamin as his source. The buyer later finds out the home
has a termite infestation. What did Agent Tyson engage in? - ✔✔innocent
misrepresentation
✔✔Melissa signed a listing agreement with Shane, a local real estate agent. Melissa
was then contacted by a neighbor who agreed to purchase the house, but Shane still
received compensation. What type of listing agreement did Melissa and Shane sign? -
✔✔exclusive right-to-sell listing
✔✔What is unique about an exclusive right-to-sell listing agreement? - ✔✔The broker
gets compensation regardless of who sells the property.
✔✔Which one of the following actions would be considered the unauthorized practice of
law by a broker? - ✔✔drafting a legal document that transfers an interest in a real
property
