NATIONAL REAL ESTATE EXAM PRACTICE TEST
1. What is the difference between a bill of sale and a deed?: A bill of sale is for personal
property; a deed is for real estate.
2. A buyer offers additional consideration to add a 10-day option period to the sales contract.
During this period, the buyer can:*: terminate the contractfor any reason
3. Brenda and her husband are interested in buying a house that was con- structed in 1971
that has all the original paint, windows, and flooring. What isrequired from the listing agent in
this situation?*: The agent needs to furnish the buyers with a pamphlet approved by the EPA
concerning lead based paint priorto closing.
4. In order to be valid, what MUST a deed have?: a legal description
5. Hans bought an investment property for $5,250,000. The NOI of this prop-erty is
$367,500. At what cap rate did he purchase this property?: 7%
6. What does the principle of anticipation state about the valuation of prop- erty?: The
present value of a property is affected by the anticipated income or utilitythat property will give
its property owner.
7. Which of these is a naturally occurring mineral that is commonly used in insulation, but if
airborne or inhaled, can cause severe respiratory healthissues?: abestos
8. How long after an incident does a victim of housing discrimination haveto file a
complaint with HUD?: one year
9. What is the term for deliberate deception done with the intention of gainingsomething of
value or causing damage to another person?: fraud
10. Mary has a loan whose payments and interest rate will stay the same throughout the life
of the loan (not including the cost changes caused by insurance and tax rates). What kind of
loan does Mary have?: fixed-rate, fullyamortized
11. Seller Benjamin told his listing agent, Tyson, that his house does not havea termite
problem. Tyson doesn't see any visible evidence of pests. Tyson then relays this information to
a buyer, citing Benjamin as his source. The buyer later finds out the home has a termite
infestation. What did Agent Tysonengage in?: innocent misrepresentation
12. Melissa signed a listing agreement with Shane, a local real estate agent. Melissa was then
contacted by a neighbor who agreed to purchase the house,but Shane still received
compensation. What type of listing agreement did Melissa and Shane sign?: exclusive right-
to-sell listing
13. What is unique about an exclusive right-to-sell listing agreement?: Thebroker gets
compensation regardless of who sells the property.
14. Which one of the following actions would be considered the unauthorizedpractice of law
by a broker?: drafting a legal document that transfers an interest in a real property
, 15. Which of these is an example of a general agency relationship?: broker andsponsored agent
16. What is the defining feature of an estate for years?: It has a definite endingperiod and
there is no automatic renewal.
17. Which federal law amended the Comprehensive Environmental Response,Compensation,
and Liability Act (CERCLA)?: Superfund Amendments and Reauthorization Act (SARA)
18. Which of these is a protected class under the federal Fair Housing law?: -
disability
19. An example of a voidable contract is a contract that:: is made with one partywho is not
competent
20. An investor has purchased a one-family home that they plan to rent as
an investment. Which of these statements accurately describes how it can bedepreciated?: It
can be depreciated over 27.5 years.
21. In general, a broker is responsible for:: their own actions and the actions of agents they
supervise
22. A contract is not considered valid unless consideration is involved. This is due to the idea
that a person:: CANNOT do something of value without receivingsomething in turn
23. How can homeowners get insurance coverage in case of a flood?: Take our a specific flood
insurance policy.
24. Which survey system is most commonly used in urban areas?: lot and block
25. Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will
she pay monthly in interest?: $883.33
26. Which of the following is a participant in the secondary mortgage market?-
: FNMA (Fannie Mae)
27. Who must fill out the Seller's Disclosure Notice?: seller
28. For a listing agreement to be enforceable in court, it MUST be:: in writing
29. CERCLA was passed in 1980 to:: establish a Superfund to clean up uncon-trolled
hazardous waste sites and to respond to spills
30. Sabrina accepted Rebecca's offer to purchase her house, and the closingdate is in a few
weeks. Until then, what does Rebecca have?: equitable title
31. Steering is the practice of:: directing people to or away from a particular area due to the
protected class of the buyer or residents of the neighborhood in a manner that perpetuates
segregated housing
32. In most cases, broker compensation, as a percentage of home price, fallssomewhere
between:: 5-7%
33. A Christian organization owns a fourplex. It wants to rent to only Christiantenants.
1. What is the difference between a bill of sale and a deed?: A bill of sale is for personal
property; a deed is for real estate.
2. A buyer offers additional consideration to add a 10-day option period to the sales contract.
During this period, the buyer can:*: terminate the contractfor any reason
3. Brenda and her husband are interested in buying a house that was con- structed in 1971
that has all the original paint, windows, and flooring. What isrequired from the listing agent in
this situation?*: The agent needs to furnish the buyers with a pamphlet approved by the EPA
concerning lead based paint priorto closing.
4. In order to be valid, what MUST a deed have?: a legal description
5. Hans bought an investment property for $5,250,000. The NOI of this prop-erty is
$367,500. At what cap rate did he purchase this property?: 7%
6. What does the principle of anticipation state about the valuation of prop- erty?: The
present value of a property is affected by the anticipated income or utilitythat property will give
its property owner.
7. Which of these is a naturally occurring mineral that is commonly used in insulation, but if
airborne or inhaled, can cause severe respiratory healthissues?: abestos
8. How long after an incident does a victim of housing discrimination haveto file a
complaint with HUD?: one year
9. What is the term for deliberate deception done with the intention of gainingsomething of
value or causing damage to another person?: fraud
10. Mary has a loan whose payments and interest rate will stay the same throughout the life
of the loan (not including the cost changes caused by insurance and tax rates). What kind of
loan does Mary have?: fixed-rate, fullyamortized
11. Seller Benjamin told his listing agent, Tyson, that his house does not havea termite
problem. Tyson doesn't see any visible evidence of pests. Tyson then relays this information to
a buyer, citing Benjamin as his source. The buyer later finds out the home has a termite
infestation. What did Agent Tysonengage in?: innocent misrepresentation
12. Melissa signed a listing agreement with Shane, a local real estate agent. Melissa was then
contacted by a neighbor who agreed to purchase the house,but Shane still received
compensation. What type of listing agreement did Melissa and Shane sign?: exclusive right-
to-sell listing
13. What is unique about an exclusive right-to-sell listing agreement?: Thebroker gets
compensation regardless of who sells the property.
14. Which one of the following actions would be considered the unauthorizedpractice of law
by a broker?: drafting a legal document that transfers an interest in a real property
, 15. Which of these is an example of a general agency relationship?: broker andsponsored agent
16. What is the defining feature of an estate for years?: It has a definite endingperiod and
there is no automatic renewal.
17. Which federal law amended the Comprehensive Environmental Response,Compensation,
and Liability Act (CERCLA)?: Superfund Amendments and Reauthorization Act (SARA)
18. Which of these is a protected class under the federal Fair Housing law?: -
disability
19. An example of a voidable contract is a contract that:: is made with one partywho is not
competent
20. An investor has purchased a one-family home that they plan to rent as
an investment. Which of these statements accurately describes how it can bedepreciated?: It
can be depreciated over 27.5 years.
21. In general, a broker is responsible for:: their own actions and the actions of agents they
supervise
22. A contract is not considered valid unless consideration is involved. This is due to the idea
that a person:: CANNOT do something of value without receivingsomething in turn
23. How can homeowners get insurance coverage in case of a flood?: Take our a specific flood
insurance policy.
24. Which survey system is most commonly used in urban areas?: lot and block
25. Jordan took out a loan in the amount of $265,000. Her annual interest rate is 4%. What will
she pay monthly in interest?: $883.33
26. Which of the following is a participant in the secondary mortgage market?-
: FNMA (Fannie Mae)
27. Who must fill out the Seller's Disclosure Notice?: seller
28. For a listing agreement to be enforceable in court, it MUST be:: in writing
29. CERCLA was passed in 1980 to:: establish a Superfund to clean up uncon-trolled
hazardous waste sites and to respond to spills
30. Sabrina accepted Rebecca's offer to purchase her house, and the closingdate is in a few
weeks. Until then, what does Rebecca have?: equitable title
31. Steering is the practice of:: directing people to or away from a particular area due to the
protected class of the buyer or residents of the neighborhood in a manner that perpetuates
segregated housing
32. In most cases, broker compensation, as a percentage of home price, fallssomewhere
between:: 5-7%
33. A Christian organization owns a fourplex. It wants to rent to only Christiantenants.
