NATIONAL REAL ESTATE EXAM PRACTICE QUESTIONS WITH
CORRECTLY SOLVED ANSWERS.
What are an agents duties to his principal? -- Answer ✔✔ Reasonable care, obedience,
t t t t t t t t t t t t t t
loyalty, disclosure, accounting and confidentiality
t t t t
An agent has acted without authority to do so. His principal has found out about the
t t t t t t t t t t t t t t t t
actions and accepted them. What kind of agency does this describe? -- Answer ✔✔ agency
t t t t t t t t t t t t t t t
by ratification
t
A landlord leased space in his new retail property to an inexperienced business person.
t t t t t t t t t t t t t t
Based on location and the type of business, the landlord believes it will be a great success.
t t t t t t t t t t t t t t t t t
What type of lease can he enter into with the tenant that will allow the landlord to benefit
t t t t t t t t t t t t t t t t t t
from the tenant's success? -- Answer ✔✔ a percentage lease
t t t t t t t t t
A buyer has purchased a property and after closing the seller will continue to occupy the
t t t t t t t t t t t t t t t t
property. This is an example of... -- Answer ✔✔ sale and leaseback
t t t t t t t t t t t
Your client will be able to qualify for a property they wish to purchase in about 6 months,
t t t t t t t t t t t t t t t t t t
after they had an opportunity to reduce their consumer debt. They have found a property
t t t t t t t t t t t t t t t
that they would like to purchase now. What type of agreement can they enter into with a
t t t t t t t t t t t t t t t t t
seller that will allow them to occupy the property now and purchase it within the 6
t t t t t t t t t t t t t t t t
months? -- Answer ✔✔ lease with an option to buy t t t t t t t t t
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
t t t t t t t t t t t t t t t t t t
heirs inherit the property. They give the tenants notice to vacate. What is true? -- Answer
t t t t t t t t t t t t t t t t t
✔✔ the tenants can stay until the end of the lease
t t t t t t t t t t
A developer decides to build a commercial property in the middle of a residential
t t t t t t t t t t t t t t
subdivision. What is required? -- Answer ✔✔ a variance t t t t t t t t
,A zoning ordinance would affect which of the following? -- Answer ✔✔ the concentration
t t t t t t t t t t t t t t
of housing in a residential area
t t t t t
If a person dies without a will, who receives their estate? -- Answer ✔✔ spouse and
t t t t t t t t t t t t t t t t
children
What are the requirements/ criteria for real estate to have values? -- Answer ✔✔ demand,
t t t t t t t t t t t t t t
utility, scarcity, transferability
t t t
What principle of value defines the most important factor for appraisal? -- Answer ✔✔
t t t t t t t t t t t t t t
highest and best use t t t
What approach would an appraiser most likely use to value a residential rent house in
t t t t t t t t t t t t t t t
neighborhood where a majority of the homes are leased? -- Answer ✔✔ income approach t t t t t t t t t t t t t
Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent
t t t t t t t t t t t t t t
he must disclose all of the following except: -- Answer ✔✔ his buyer's ability to make a
t t t t t t t t t t t t t t t t t t
higher offer t
A broker has written permission to represent both the seller and the buyer as a dual agent.
t t t t t t t t t t t t t t t t
Under these circumstances, which of the duties of the agent would be the easiest for him
t t t t t t t t t t t t t t t t t
to fulfill? -- Answer ✔✔ Accounting
t t t t t
A property owner has decided to do some landscaping work on his yard. He has planted a
t t t t t t t t t t t t t t t t t
tree surrounded by some flowering shrubs. The tree and shrubs are an example of... --
t t t t t t t t t t t t t t t
Answer ✔✔ improvements t t
A buyer has signed an agreement to purchase a property from a seller. He has met all the
t t t t t t t t t t t t t t t t t t
terms and conditions of the listing. The listing broker has taken the agreement to the
t t t t t t t t t t t t t t t
seller. The seller has changed his mind about selling and refuses to sign the agreement.
t t t t t t t t t t t t t t t
What is true? -- Answer ✔✔ The seller does not have sell, but he owes the listing broker a
t t t t t t t t t t t t t t t t t t t
commission
Mark has an Open Listing on a seller's property. He had shown the property three times to
t t t t t t t t t t t t t t t t
the same potential buyers. Each time, he notified the sellers of the showing by phone. He
t t t t t t t t t t t t t t t t t
, heard from the sellers that he should no longer show the property as it was sold. Several
t t t t t t t t t t t t t t t t t
weeks later, he learned that it was sold to the buyers he brought to the property. What
t t t t t t t t t t t t t t t t t
are Mark's rights with respect to a commission from the sellers? -- Answer ✔✔ Mark is
t t t t t t t t t t t t t t t t
not entitled to any commission as he did not bring the offer to the sellers
t t t t t t t t t t t t t t
The best description of a counteroffer is -- Answer ✔✔ a rejection of an offer
t t t t t t t t t t t t t t
Which of the following contracts would be voidable? -- Answer ✔✔ A contract with a
t t t t t t t t t t t t t t t
minor
A buyer and his agent visit a listed property. The buyer loves the property and wants to
t t t t t t t t t t t t t t t t t
purchase it. He speaks with the seller, who is at home at the time, and they come to an
t t t t t t t t t t t t t t t t t t t
agreement regarding price and terms. They shake hands on the agreement and the buyer
t t t t t t t t t t t t t t
happily leaves the property. His agent should: -- Answer ✔✔ Warn the buyer that the
t t t t t t t t t t t t t t t
verbal sales contract is unenforceable
t t t t
Which of the following terms is used to describe a situation where a buyer and seller agree
t t t t t t t t t t t t t t t t
to terminate a contract? -- Answer ✔✔ Mutual recession
t t t t t t t t t
A seller's property is listed for $399,900. A buyer makes an offer for $389,000. The seller
t t t t t t t t t t t t t t t t
counter offers for $392,500. The buyers have not responded to the counteroffer. The
t t t t t t t t t t t t t
sellers receive another offered for $395,000. They would like to accept this new offer.
t t t t t t t t t t t t t t
What is true -- Answer ✔✔ They can accept the new offer, but only after withdrawing
t t t t t t t t t t t t t t t t
their counteroffer t
A broker owes customers -- Answer ✔✔ honesty and fairness
t t t t t t t t t
A property at 123 Main street has been listed by Mary, a sales license holder at ABC Realty
t t t t t t t t t t t t t t t t t t
for several weeks. Last week, Mary died. What effect will Mary's death have on the Listing
t t t t t t t t t t t t t t t t
Agreement? -- Answer ✔✔ None t t t t
Which of the following is not a duty of an agent? -- Answer ✔✔ (OLD CAR) Trust
t t t t t t t t t t t t t t t t
A signed employment agreement is necessary to... -- Answer ✔✔ sue for commission
t t t t t t t t t t t t
CORRECTLY SOLVED ANSWERS.
What are an agents duties to his principal? -- Answer ✔✔ Reasonable care, obedience,
t t t t t t t t t t t t t t
loyalty, disclosure, accounting and confidentiality
t t t t
An agent has acted without authority to do so. His principal has found out about the
t t t t t t t t t t t t t t t t
actions and accepted them. What kind of agency does this describe? -- Answer ✔✔ agency
t t t t t t t t t t t t t t t
by ratification
t
A landlord leased space in his new retail property to an inexperienced business person.
t t t t t t t t t t t t t t
Based on location and the type of business, the landlord believes it will be a great success.
t t t t t t t t t t t t t t t t t
What type of lease can he enter into with the tenant that will allow the landlord to benefit
t t t t t t t t t t t t t t t t t t
from the tenant's success? -- Answer ✔✔ a percentage lease
t t t t t t t t t
A buyer has purchased a property and after closing the seller will continue to occupy the
t t t t t t t t t t t t t t t t
property. This is an example of... -- Answer ✔✔ sale and leaseback
t t t t t t t t t t t
Your client will be able to qualify for a property they wish to purchase in about 6 months,
t t t t t t t t t t t t t t t t t t
after they had an opportunity to reduce their consumer debt. They have found a property
t t t t t t t t t t t t t t t
that they would like to purchase now. What type of agreement can they enter into with a
t t t t t t t t t t t t t t t t t
seller that will allow them to occupy the property now and purchase it within the 6
t t t t t t t t t t t t t t t t
months? -- Answer ✔✔ lease with an option to buy t t t t t t t t t
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
t t t t t t t t t t t t t t t t t t
heirs inherit the property. They give the tenants notice to vacate. What is true? -- Answer
t t t t t t t t t t t t t t t t t
✔✔ the tenants can stay until the end of the lease
t t t t t t t t t t
A developer decides to build a commercial property in the middle of a residential
t t t t t t t t t t t t t t
subdivision. What is required? -- Answer ✔✔ a variance t t t t t t t t
,A zoning ordinance would affect which of the following? -- Answer ✔✔ the concentration
t t t t t t t t t t t t t t
of housing in a residential area
t t t t t
If a person dies without a will, who receives their estate? -- Answer ✔✔ spouse and
t t t t t t t t t t t t t t t t
children
What are the requirements/ criteria for real estate to have values? -- Answer ✔✔ demand,
t t t t t t t t t t t t t t
utility, scarcity, transferability
t t t
What principle of value defines the most important factor for appraisal? -- Answer ✔✔
t t t t t t t t t t t t t t
highest and best use t t t
What approach would an appraiser most likely use to value a residential rent house in
t t t t t t t t t t t t t t t
neighborhood where a majority of the homes are leased? -- Answer ✔✔ income approach t t t t t t t t t t t t t
Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent
t t t t t t t t t t t t t t
he must disclose all of the following except: -- Answer ✔✔ his buyer's ability to make a
t t t t t t t t t t t t t t t t t t
higher offer t
A broker has written permission to represent both the seller and the buyer as a dual agent.
t t t t t t t t t t t t t t t t
Under these circumstances, which of the duties of the agent would be the easiest for him
t t t t t t t t t t t t t t t t t
to fulfill? -- Answer ✔✔ Accounting
t t t t t
A property owner has decided to do some landscaping work on his yard. He has planted a
t t t t t t t t t t t t t t t t t
tree surrounded by some flowering shrubs. The tree and shrubs are an example of... --
t t t t t t t t t t t t t t t
Answer ✔✔ improvements t t
A buyer has signed an agreement to purchase a property from a seller. He has met all the
t t t t t t t t t t t t t t t t t t
terms and conditions of the listing. The listing broker has taken the agreement to the
t t t t t t t t t t t t t t t
seller. The seller has changed his mind about selling and refuses to sign the agreement.
t t t t t t t t t t t t t t t
What is true? -- Answer ✔✔ The seller does not have sell, but he owes the listing broker a
t t t t t t t t t t t t t t t t t t t
commission
Mark has an Open Listing on a seller's property. He had shown the property three times to
t t t t t t t t t t t t t t t t
the same potential buyers. Each time, he notified the sellers of the showing by phone. He
t t t t t t t t t t t t t t t t t
, heard from the sellers that he should no longer show the property as it was sold. Several
t t t t t t t t t t t t t t t t t
weeks later, he learned that it was sold to the buyers he brought to the property. What
t t t t t t t t t t t t t t t t t
are Mark's rights with respect to a commission from the sellers? -- Answer ✔✔ Mark is
t t t t t t t t t t t t t t t t
not entitled to any commission as he did not bring the offer to the sellers
t t t t t t t t t t t t t t
The best description of a counteroffer is -- Answer ✔✔ a rejection of an offer
t t t t t t t t t t t t t t
Which of the following contracts would be voidable? -- Answer ✔✔ A contract with a
t t t t t t t t t t t t t t t
minor
A buyer and his agent visit a listed property. The buyer loves the property and wants to
t t t t t t t t t t t t t t t t t
purchase it. He speaks with the seller, who is at home at the time, and they come to an
t t t t t t t t t t t t t t t t t t t
agreement regarding price and terms. They shake hands on the agreement and the buyer
t t t t t t t t t t t t t t
happily leaves the property. His agent should: -- Answer ✔✔ Warn the buyer that the
t t t t t t t t t t t t t t t
verbal sales contract is unenforceable
t t t t
Which of the following terms is used to describe a situation where a buyer and seller agree
t t t t t t t t t t t t t t t t
to terminate a contract? -- Answer ✔✔ Mutual recession
t t t t t t t t t
A seller's property is listed for $399,900. A buyer makes an offer for $389,000. The seller
t t t t t t t t t t t t t t t t
counter offers for $392,500. The buyers have not responded to the counteroffer. The
t t t t t t t t t t t t t
sellers receive another offered for $395,000. They would like to accept this new offer.
t t t t t t t t t t t t t t
What is true -- Answer ✔✔ They can accept the new offer, but only after withdrawing
t t t t t t t t t t t t t t t t
their counteroffer t
A broker owes customers -- Answer ✔✔ honesty and fairness
t t t t t t t t t
A property at 123 Main street has been listed by Mary, a sales license holder at ABC Realty
t t t t t t t t t t t t t t t t t t
for several weeks. Last week, Mary died. What effect will Mary's death have on the Listing
t t t t t t t t t t t t t t t t
Agreement? -- Answer ✔✔ None t t t t
Which of the following is not a duty of an agent? -- Answer ✔✔ (OLD CAR) Trust
t t t t t t t t t t t t t t t t
A signed employment agreement is necessary to... -- Answer ✔✔ sue for commission
t t t t t t t t t t t t
