TRELG - Maine Real Estate Exam Prep -
Practice Test 3 Questions Fully Solved
2026 Updated.
The borrower has the right to reconsider and cancel a home equity loan within:
A. 1 day.
B. 3 days.
C. 30 days.
D. 90 days. - Answer B. 3 days.
Who signs the warranty deed at the closing?
A. The buyer
B. The seller
C. The buyer and the seller
D. The buyer, the seller and the broker - Answer B. The seller
A deed is a conveyance of ownership rights, not a contract. The seller is the person transferring
rights and making promises, so only the seller signs the deed.
Gabby Grabbie, calls Tom Tylip, the broker, asking how much her ex-husband cleared from the
sale of his real estate. Gabby explains that she has a court order for past due child support, and
that her lawyer wants to be able to garnish the check. Tom should:
A. disclose the sum because the child support is court ordered.
B. refuse to disclose the information unless a court orders Tom to make the disclosure.
C. disclose the sum because Tom has the duty of accountability.
D. refuse to disclose the information unless Gabby signs a release of information statement. -
Answer B. refuse to disclose the information unless a court orders Tom to make the disclosure.
A landlord may properly evict a tenant who is behind in his or her rent by:
A. commencing a suit for payment.
B. changing the locks while the tenant is out of the building.
C. commencing a suit for possession.
D. moving the tenant's personal belongings to a storage facility. - Answer C. commencing a suit
for possession.
To properly prepare a rental property budget, the property manager must:
A. reserve enough money in a sinking fund for major expenses in the future.
,B. decide how to spend the money in the security deposit account.
C. perform a credit check on prospective tenants.
D. offer concessions to attract tenants. - Answer A. reserve enough money in a sinking fund for
major expenses in the future.
The best description of the relationship between a property manager and the property owner is
that the property manager is a:
A. general agent and the owner is the principal.
B. special agent and the owner is a fiduciary.
C. principal and the owner is an universal agent.
D. fiduciary and the owner is a special agent. - Answer A. general agent and the owner is the
principal.
The property management contract creates an agency relationship between the manager and
the owner. The manager is a general agent due to the on-going business relationship with the
owner.
The most common manner in which to transfer risk in real estate property management is
through the use of:
A. indemnification agreements.
B. insurance policies.
C. hold harmless agreements.
D. release of liability forms. - Answer B. insurance policies.
In risk management, the most common and effective manner in to transfer risk is by the use of
insurance policies. The property owner pays a premium, and the insurance company takes on
the liability for the occurrence of the insured event.
Which of the following leasehold estates must be in writing to be enforceable?
A. Tenancy at will
B. Tenancy at sufferance
C. Estate for years
D. Life estate - Answer C. Estate for years.
An estate for years (tenancy for years) must be in writing to be enforceable. (A life estate should
also be in writing, but a life estate is not a lease. A life estate is a freehold estate. Read
carefully!)
United State's currency has value because it is:
A. fiat money.
B. porche money.
, C. based on the gold standard.
D. based on the silver standard. - Answer A. fiat money.
One of the advantages of owning investment property is the:
A. clear calculation of the uncertainty.
B. ability to pyramid the equity.
C. capacity for neutral leverage.
D. opportunity for negative cash flow. - Answer B. ability to pyramid the equity.
Pyramiding occurs when investment property is sold at a profit and the increased equity which
is cashed-out is used to purchase additional investment properties.
Sandi would like to perform a 1031 exchange on the 6-unit apartment building she is selling. A
like-kind qualifying property would include:
A. a 6-unit retail storefront.
B. a 10-unit office building.
C. a 6-unit apartment building.
D. all of the above. - Answer D. all of the above.
A Real Estate Investment Trust (REIT):
A. must be listed on the stock exchange.
B. is a type of corporation used for investing in real estate.
C. provides for investment in personal property through the sale of stocks.
D. is prohibited from paying dividends. - Answer B. is a type of corporation used for investing
in real estate.
The agent notes in the remarks of the Multiple Listing Service state that the property has "a
beautiful view of the mountains". The buyer makes an appointment to see the property and
discovers that the "mountain view" can only be seen from the guest bedroom. This is an
example of:
A. innocent misrepresentation.
B. material misrepresentation.
C. puffing.
D. negligent misrepresentation. - Answer C. puffing.
The seller informs the salesperson that the roof is new. The salesperson cannot verify the age of
the roof, so she decides to advertise the roof as "newer" instead of "new." The use of the term
"newer" is a/an:
Practice Test 3 Questions Fully Solved
2026 Updated.
The borrower has the right to reconsider and cancel a home equity loan within:
A. 1 day.
B. 3 days.
C. 30 days.
D. 90 days. - Answer B. 3 days.
Who signs the warranty deed at the closing?
A. The buyer
B. The seller
C. The buyer and the seller
D. The buyer, the seller and the broker - Answer B. The seller
A deed is a conveyance of ownership rights, not a contract. The seller is the person transferring
rights and making promises, so only the seller signs the deed.
Gabby Grabbie, calls Tom Tylip, the broker, asking how much her ex-husband cleared from the
sale of his real estate. Gabby explains that she has a court order for past due child support, and
that her lawyer wants to be able to garnish the check. Tom should:
A. disclose the sum because the child support is court ordered.
B. refuse to disclose the information unless a court orders Tom to make the disclosure.
C. disclose the sum because Tom has the duty of accountability.
D. refuse to disclose the information unless Gabby signs a release of information statement. -
Answer B. refuse to disclose the information unless a court orders Tom to make the disclosure.
A landlord may properly evict a tenant who is behind in his or her rent by:
A. commencing a suit for payment.
B. changing the locks while the tenant is out of the building.
C. commencing a suit for possession.
D. moving the tenant's personal belongings to a storage facility. - Answer C. commencing a suit
for possession.
To properly prepare a rental property budget, the property manager must:
A. reserve enough money in a sinking fund for major expenses in the future.
,B. decide how to spend the money in the security deposit account.
C. perform a credit check on prospective tenants.
D. offer concessions to attract tenants. - Answer A. reserve enough money in a sinking fund for
major expenses in the future.
The best description of the relationship between a property manager and the property owner is
that the property manager is a:
A. general agent and the owner is the principal.
B. special agent and the owner is a fiduciary.
C. principal and the owner is an universal agent.
D. fiduciary and the owner is a special agent. - Answer A. general agent and the owner is the
principal.
The property management contract creates an agency relationship between the manager and
the owner. The manager is a general agent due to the on-going business relationship with the
owner.
The most common manner in which to transfer risk in real estate property management is
through the use of:
A. indemnification agreements.
B. insurance policies.
C. hold harmless agreements.
D. release of liability forms. - Answer B. insurance policies.
In risk management, the most common and effective manner in to transfer risk is by the use of
insurance policies. The property owner pays a premium, and the insurance company takes on
the liability for the occurrence of the insured event.
Which of the following leasehold estates must be in writing to be enforceable?
A. Tenancy at will
B. Tenancy at sufferance
C. Estate for years
D. Life estate - Answer C. Estate for years.
An estate for years (tenancy for years) must be in writing to be enforceable. (A life estate should
also be in writing, but a life estate is not a lease. A life estate is a freehold estate. Read
carefully!)
United State's currency has value because it is:
A. fiat money.
B. porche money.
, C. based on the gold standard.
D. based on the silver standard. - Answer A. fiat money.
One of the advantages of owning investment property is the:
A. clear calculation of the uncertainty.
B. ability to pyramid the equity.
C. capacity for neutral leverage.
D. opportunity for negative cash flow. - Answer B. ability to pyramid the equity.
Pyramiding occurs when investment property is sold at a profit and the increased equity which
is cashed-out is used to purchase additional investment properties.
Sandi would like to perform a 1031 exchange on the 6-unit apartment building she is selling. A
like-kind qualifying property would include:
A. a 6-unit retail storefront.
B. a 10-unit office building.
C. a 6-unit apartment building.
D. all of the above. - Answer D. all of the above.
A Real Estate Investment Trust (REIT):
A. must be listed on the stock exchange.
B. is a type of corporation used for investing in real estate.
C. provides for investment in personal property through the sale of stocks.
D. is prohibited from paying dividends. - Answer B. is a type of corporation used for investing
in real estate.
The agent notes in the remarks of the Multiple Listing Service state that the property has "a
beautiful view of the mountains". The buyer makes an appointment to see the property and
discovers that the "mountain view" can only be seen from the guest bedroom. This is an
example of:
A. innocent misrepresentation.
B. material misrepresentation.
C. puffing.
D. negligent misrepresentation. - Answer C. puffing.
The seller informs the salesperson that the roof is new. The salesperson cannot verify the age of
the roof, so she decides to advertise the roof as "newer" instead of "new." The use of the term
"newer" is a/an:
