NATIONAL REAL ESTATE EXAM PRACTICE TEST QUESTIONS AND ANSWERS WITH SOLUTIONS 2024

NATIONAL REAL ESTATE EXAM
PRACTICE TEST QUESTIONS AND
ANSWERS WITH SOLUTIONS 2024
InUmostUcases,UbrokerUcompensation,UasUaUpercentageUofUhomeUprice,UfallsUsomewhereUbetween:U-
UANSWERU5-7%




AUChristianUorganizationUownsUaUfourplex.UItUwantsUtoUrentUtoUonlyUChristianUtenants.UUnderUtheUfederalU
FairUHousingUAct,UisUthisUlegal?U-
UANSWERUYes.UReligiousUorganizationsUwhichUrentUtoUtenantsUforUresidentialUpurposesUareUexemptUfromUt

heUFairUHousingUAct



WhatUhappensUtoUtradeUfixturesUafterUaUbusinessUmovesUoutUofUaUleasedUproperty?U-
UANSWERUTheUtenantUremovesUtheirUtradeUfixturesUandUtakesUthemUuponUmovingUout.




SupposeUthatUaUborrowerUhasUaUgrossUmonthlyUincomeUofU$3,000UandUwantsUtoUqualifyUforUaUconformingU
loanU(totalUdebtUserviceUratioUofU36%)UwithUaUmonthlyUPITIUpaymentUofU$800.UWhatUisUtheUmaximumUam
ountUofUadditionalUlong-termUobligationsUthisUborrowerUmayUhaveUafterUPITI?U-UANSWERU$280



AUsquareUbedroomUmeasuresU10UfeetUbyU10Ufeet.UWhatUisUtheUareaUofUtheUroom?U-
UANSWERU100UsquareUfeet




WhichUofUtheseUisUanUeconomicUcharacteristicUthatUmakesUlandUaUdistinctiveUcommodity?*U-
UANSWERUsitus




InUaUfixed-rateUmortgageUthatUisUfullyUamortized,UtheUtotalUamountUofUinterestUtoUbeUpaidUis:U-
UANSWERUpredetermined




WhichUisUexemptUfromUtheUfederalUFairUHousingUAct?U-
UANSWERUrentingUaUroomUinUaUhouseUoccupiedUbyUtheUowner




TheUAmericansUwithUDisabilitiesUActUappliesUto:U-UANSWERUprivatelyUownedUorUgovernment-
ownedUpublicUaccommodations

,CondemnationUisUtheUactUofUseizingUprivateUpropertyUfromUcitizens.UWhatUgivesUtheUgovernmentUtheUrigh
tUtoUdoUthis?U-UANSWERUeminentUdomain



TheUPHYSICALUcharacteristicsUofUlandUareUthatUlandUisUindestructible,Unon-homogenous,Uand:U-
UANSWERUimmobile




WhichUstatementUBESTUdefinesUtheUtermUcontingency?U-
UANSWERUstipulationUthatUmustUbeUsatisfiedUbeforeUtheUcontractUcanUbeUperformed




IfUaUborrowerUisUbehindUonUpayments,UtheUaccelerationUclauseUgivesUtheUlenderUtheUabilityUto:U-
UANSWERUcallUtheUentireUloanUbalanceUdueUimmediately




AUmetesUandUboundsUlegalUdescriptionUalwaysUreturnsUto:U-UANSWERUtheUpointUofUbeginning



WhatUshouldUaUlicenseUholderUdoUifUaUclientUinstructsUthemUtoUdoUsomethingUthatUwouldUdiscriminateUag
ainstUaUprotectedUclass?U-
UANSWERUadviseUtheUclientUtheyUcannotUlegallyUdiscriminateUagainstUcertainUgroups




WhatUisUaUnovation?U-UANSWERUtheUsubstitutionUofUoneUcontractUforUanother



AUmarriedUcoupleUboughtUaUhomeUtenUyearsUagoUforU$400,000.UTheirUneighborhoodUhasUrapidlyUgrownUin
Upopularity,UandUtheyUwereUableUtoUsellUtheirUhomeUthisUyearUforU$950,000.UHowUmuchUofUthatUmoneyUwil

lUtheyUbeUrequiredUtoUpayUcapitalUgainsUtaxUon?U-UANSWERU$50,000



WhichUelementUofUaUvalidUcontractUstatesUthatUtheUcontractUcannotUrequireUanyUillegalUactivitiesUorUoutco
mes?U-UANSWERUlawfulUobjective



DeannaUwantsUtoUsueUherUrealUestateUagent,UbutUfindsUoutUthatUsheUhasUnoUlegalUrecourseUbecauseUtooUm
anyUyearsUhaveUpassedUsinceUtheUoffendingUincident.UWhatUisUthisUanUexampleUof?U-
UANSWERUstatuteUofUlimitations

, PedroUboughtUhisUhouseUforU$370,000.UTheUassessedUvalueUisU$290,000.UIfUtheUtaxUrateUforUPedro'sUcount
yUisU2.375%,UwhatUwillUheUpayUinUadUvaloremUtaxesUthisUyear?U-UANSWERU$6,887.50



AUpotentiallyUvalidUcontractUinUwhichUatUleastUoneUpartyUhasUtheUoptionUtoUrescindUisUdescribedUas:U-
UANSWERUvoidable




WhenUyou'reUtalkingUaboutUmortgages,UwhatUisUanotherUnameUforUanUoriginationUfee?U-UANSWERUpoints



BothUpartiesUinvolvedUinUanUagencyUagreementUagreeUtoUendUtheUagreementUearly.UWhatUisUthisUcalled?U-
UANSWERUmutualUrescission




WhatUdoesUaUstandardUtitleUinsuranceUpolicyUdo?*U-
UANSWERUprotectsUagainstUanyUdefectsUdiscoveredUinUtheUtitleUafterUclosing




WhichUtermUdescribesUtheUtransferUofUpropertyUfromUtheUcurrentUownerUtoUanotherUpartyUbyUsaleUorUgift
?*U-UANSWERUvoluntaryUalienation



InUtheUsalesUcomparisonUapproachUtoUpropertyUvaluation,UwhatUdoesUtheUprincipleUofUsubstitutionUstate?
* U-
UANSWERUTheUvalueUofUaUpropertyUisUonlyUwhatUaUconsumerUwouldUpayUtoUacquireUaUcomparableUpropert

y.



WhoUcanUrequireUaUbuyerUtoUpurchaseUhomeownersUinsurance?U-UANSWERUlender



WhichUofUtheUfollowingUstatementsUmayUrepresentUtheUunauthorizedUpracticeUofUlaw?*U-
UANSWERU"YouUshouldUproceedUwithoutUorderingUaUnewUabstractU-UthisUtitleUisUclear."




AUpropertyUownerUhasUtheUrightUtoUtellUotherUpeopleUthatUtheyUcannotUtrespassUonUtheirUproperty.UWhatU
isUthisUrightUcalled?U-UANSWERUrightUofUexclusion



TheUtermUforUwhenUtheUclientUinitiatesUtheUterminationUofUtheUagencyUagreementUisUknownUas:U-
UANSWERUrevocation