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National Real Estate Exam Review
2026/2027 | Updated Study Guide
| Comprehensive Practice
Questions & Detailed Answer
Explanations | Real Estate License
Exam
John, Maria and Mark are joint tenants. Mark dies. Maria sells her share to Jane. John and Jane
are:
a. Joint Tenants
b. Tenants by Partition
c. Sole Owners
d. Tenants in Common
d. tenants in common
John owns lakefront property. He has been granted water rights to the lake. He has:
a. Riparian Rights
b. Appropriative Rights
c. Littoral Rights
d. Prior Appropriation
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c. littoral rights
Mary's parents gave her a life estate on a house. John is the remainderman. Mary leased the
property to Bob for 5 years. During the lease, Bob died. What happens to the property?
a. When the tenant dies the property goes to John.
b. When the tenant dies the property goes to Mary's parents.
c. When the tenant dies the property goes to Mary's heirs.
d. When the tenant dies the property goes to Mary.
d. when the tenant dies the property goes to Mary
Joe received payment from his title insurance company to compensate him for a defect in his
title. Subsequently he was awarded a judgment against the seller, and collected the funds from
the seller, to compensate him for the same defect. The title company has claimed the right to a
refund from Joe. What clause in the title policy allows the title company to make this claim?
a. Subordination
b. Arbitration
c. Subrogation
d. Defeasance
c. Subrogation
A buyer who wants to be sure that he is getting a good title to a property should rely on:
a. An attorney's opinion of title
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b. A title insurance policy
c. A general warranty deed
d. A title commitment based on the abstract of title from the title company
c. A general warranty deed
At closing a seller learns that he has an unsatisfied M&M Lien on his property. This is most
likely the result of:
a. Property Taxes
b. A fence that was built on the property, but not paid for
c. An IRS claim
d. A home improvement loan
b. A fence that was built on the property, but not paid for
An appraiser has valued a single-family rental in a neighborhood where almost all the homes are
leased. What approach did he most likely use to determine the value for this property?
a. The Income Approach
b. The Cost Approach
c. The Sales Comparison Approach
d. The GRM
a. The Income Approach
Which of the following situations would require an appraisal?
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a. A seller wants to be sure to price his home competitively.
b. A buyer wants to make a fair offer on a listed property.
c. A parent wishes to gift a property to a child.
d. A court ordered partition is dividing a joint tenancy.
d. A court ordered partition is dividing a joint tenancy.
An investor has purchased a property that is giving him a 10% rate of return. Potential gross
rents total $10,000.00 a month. Expenses for the property total $47,570.00 per year. The property
has a vacancy rate of 8%. What is the market value of the property?
A. $628,300.00
B. $724,300.00
C. $722,020.00
D. $664,258.00
a. $628,300.00
A buyer's written offer was presented to a seller. The seller sent a written counteroffer to the
buyer, the counteroffer expires at 5 pm on Friday. Which of the following is true?
A. The seller may withdraw any time before the buyer accepts the counteroffer.
B. The seller may withdraw the counteroffer until 5 pm on Friday.
C. The seller may withdraw any time before closing.
D. The seller may not withdraw before 5 pm on Friday.
a. The seller may withdraw any time before the buyer accepts the counteroffer.
National Real Estate Exam Review
2026/2027 | Updated Study Guide
| Comprehensive Practice
Questions & Detailed Answer
Explanations | Real Estate License
Exam
John, Maria and Mark are joint tenants. Mark dies. Maria sells her share to Jane. John and Jane
are:
a. Joint Tenants
b. Tenants by Partition
c. Sole Owners
d. Tenants in Common
d. tenants in common
John owns lakefront property. He has been granted water rights to the lake. He has:
a. Riparian Rights
b. Appropriative Rights
c. Littoral Rights
d. Prior Appropriation
,/////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
c. littoral rights
Mary's parents gave her a life estate on a house. John is the remainderman. Mary leased the
property to Bob for 5 years. During the lease, Bob died. What happens to the property?
a. When the tenant dies the property goes to John.
b. When the tenant dies the property goes to Mary's parents.
c. When the tenant dies the property goes to Mary's heirs.
d. When the tenant dies the property goes to Mary.
d. when the tenant dies the property goes to Mary
Joe received payment from his title insurance company to compensate him for a defect in his
title. Subsequently he was awarded a judgment against the seller, and collected the funds from
the seller, to compensate him for the same defect. The title company has claimed the right to a
refund from Joe. What clause in the title policy allows the title company to make this claim?
a. Subordination
b. Arbitration
c. Subrogation
d. Defeasance
c. Subrogation
A buyer who wants to be sure that he is getting a good title to a property should rely on:
a. An attorney's opinion of title
,/////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
b. A title insurance policy
c. A general warranty deed
d. A title commitment based on the abstract of title from the title company
c. A general warranty deed
At closing a seller learns that he has an unsatisfied M&M Lien on his property. This is most
likely the result of:
a. Property Taxes
b. A fence that was built on the property, but not paid for
c. An IRS claim
d. A home improvement loan
b. A fence that was built on the property, but not paid for
An appraiser has valued a single-family rental in a neighborhood where almost all the homes are
leased. What approach did he most likely use to determine the value for this property?
a. The Income Approach
b. The Cost Approach
c. The Sales Comparison Approach
d. The GRM
a. The Income Approach
Which of the following situations would require an appraisal?
, /////…/.//,.,./.,./.,..,..//…,,…..,,,,,..////.,.,.,[]][‘;@@@2../././/…../////…/;;;.//
a. A seller wants to be sure to price his home competitively.
b. A buyer wants to make a fair offer on a listed property.
c. A parent wishes to gift a property to a child.
d. A court ordered partition is dividing a joint tenancy.
d. A court ordered partition is dividing a joint tenancy.
An investor has purchased a property that is giving him a 10% rate of return. Potential gross
rents total $10,000.00 a month. Expenses for the property total $47,570.00 per year. The property
has a vacancy rate of 8%. What is the market value of the property?
A. $628,300.00
B. $724,300.00
C. $722,020.00
D. $664,258.00
a. $628,300.00
A buyer's written offer was presented to a seller. The seller sent a written counteroffer to the
buyer, the counteroffer expires at 5 pm on Friday. Which of the following is true?
A. The seller may withdraw any time before the buyer accepts the counteroffer.
B. The seller may withdraw the counteroffer until 5 pm on Friday.
C. The seller may withdraw any time before closing.
D. The seller may not withdraw before 5 pm on Friday.
a. The seller may withdraw any time before the buyer accepts the counteroffer.