NATIONAL REAL ESTATE 2026 SUMMER-FALL EXAM PRACTICE TEST QUESTIONS WITH
WELL DETAILED SOLUTIONS
In most cases, broker compensation, as a percentage of home price, falls somewhere
between:
5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under
the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are exempt from
the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property?
The tenant removes their trade fixtures and takes them upon moving out.
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:
WELL DETAILED SOLUTIONS
In most cases, broker compensation, as a percentage of home price, falls somewhere
between:
5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under
the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are exempt from
the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property?
The tenant removes their trade fixtures and takes them upon moving out.
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:
