National real estate Knowledge test Exam Toolkit
Questions and Verified Marking Scheme 2024/2025
An owner has been using a parcel of land for heavy industry since 1973. The property is
subsequently zoned as commercial, excluding industrial uses. The owner's continued
industrial use of the property is a(n):
A.) Violation of the existing zoning
B.) Deviation from the master plan
C.) Example of zoning variance
D.) Illegal non-conforming use - correct answer a
In a residential subdivision, the developer established a central playground that uses
four feet of each owner's backyard. Brynes wants to put an organic garden in his
backyard, but a central playground swing set sits there. To fix this, brynes plans to
remove the swing set. His neighbor yates, objects. What can yates do?
A.) Nothing, so long as byrnes owns the property in question
B.) Ask a court for help
C.) Nothing, if the statutory period for adverse possession has run out
D.) Seek a lis pendens - correct answer b
The right of a city government to take title to private property for public improvements is
subject to all of the following except:
A.) The ownership interest held by the current owner
B.) Public purpose
C.) Economically profitable uses of the land by the owner
D.) Both a and c - correct answer both a and c
One of the principal reasons for zoning is to:
A.) Restrict business activities
B.) Effectively plan
,C.) Affect property values
D.) Generate revenue through taxes - correct answer b
To be a professional property manager of a large apartment complex, one would need
to know about all of the following except:
A.) Property maintenance
B.) Property insurance
C.) Human relations
D.) Appraisal techniques - correct answer d
Property owner paul makes significant improvements to a lot that he has been holding
for seven years. Which of the following statements is most likely to be true regarding
paul's improvements?
A.) Paul's land will increase in value
B.) Paul's land will decrease in value
C.) Paul is developing a subdivision
D.) Either a or b - correct answer either a or b
Property management agreements usually represent:
A.) General agency
B.) Special agency
C.) Dual agency
D.) Universal agency - correct answer a
To qualify for a tax-deferred exchange, properties must:
A.) Have the same income
B.) Have different incomes
C.) Be of like-kind
D.) Have deeds in corporation names - correct answer c
,A property management contract is between the property manager and:
A.) His or her employees
B.) The owner of the property
C) the tenants
D.) All of the above - correct answer b
Industrial property includes all of the following uses except:
A.) Mines
B.) Warehouses
C.) Ranches
D.) Vacant lots - correct answer c
In terms of management, puds most clearly resemble:
A.) Leasing
B.) Cooperative ownership
C.) Condominium ownership
D.) Time-share ownership - correct answer c
A 19 year old inherit property from his grandfather, then immediately contracts to sell it.
Can he later refuse to sell the property?
A.) Yes, because contracts with minors are void
B.) Yes, because contracts with minors are voidable
C.) Yes, because the contract is unenforcable
D.) No, the contract is valid and binding on all parties - correct answer d
Under the typical lease, landlords are legally obligated to provide tenants all of the
following except:
A.) Safe and habitable premises
, B.) Quiet enjoyment of the premises
C.) Possession of the premises
D.) Use of the premises as the tenant and landlord negotiate - correct answer d
A buyer and a seller enter into a valid sales contract. The buyer asks to be released for
personal reasons, but locates another person to buy the property. The seller enters into
a new sales contract with this other person and releases the first buyer. This is most
likely an example of:
A.) Assignment
B.) Novation
C.) Implied consent agreement
D.) Redemption - correct answer b
When a seller makes a counteroffer, which of the following statements is not true?
A.) It is a partial acceptance of the original offer
B.) The seller has obligated herself
C.) The original offeror becomes the offeree in the counteroffer
D.) It is a rejection of an earlier offer - correct answer a
If a person has contracted for the opportunity to purchase a property at a specified
price, within a specified time, the person has:
A.) A right of first refusal
B.) An option
C.) A sales contract
D.) Both a and b - correct answer b
Vernon presents an offer to a seller, with a provision that it must be accepted within 72
hours. Under which of the following circumstances would the offer terminate?
A.) Vernon dies before the seller accepts the offer
B.) The seller resubmits the offer, with a minor change to the settlement date
Questions and Verified Marking Scheme 2024/2025
An owner has been using a parcel of land for heavy industry since 1973. The property is
subsequently zoned as commercial, excluding industrial uses. The owner's continued
industrial use of the property is a(n):
A.) Violation of the existing zoning
B.) Deviation from the master plan
C.) Example of zoning variance
D.) Illegal non-conforming use - correct answer a
In a residential subdivision, the developer established a central playground that uses
four feet of each owner's backyard. Brynes wants to put an organic garden in his
backyard, but a central playground swing set sits there. To fix this, brynes plans to
remove the swing set. His neighbor yates, objects. What can yates do?
A.) Nothing, so long as byrnes owns the property in question
B.) Ask a court for help
C.) Nothing, if the statutory period for adverse possession has run out
D.) Seek a lis pendens - correct answer b
The right of a city government to take title to private property for public improvements is
subject to all of the following except:
A.) The ownership interest held by the current owner
B.) Public purpose
C.) Economically profitable uses of the land by the owner
D.) Both a and c - correct answer both a and c
One of the principal reasons for zoning is to:
A.) Restrict business activities
B.) Effectively plan
,C.) Affect property values
D.) Generate revenue through taxes - correct answer b
To be a professional property manager of a large apartment complex, one would need
to know about all of the following except:
A.) Property maintenance
B.) Property insurance
C.) Human relations
D.) Appraisal techniques - correct answer d
Property owner paul makes significant improvements to a lot that he has been holding
for seven years. Which of the following statements is most likely to be true regarding
paul's improvements?
A.) Paul's land will increase in value
B.) Paul's land will decrease in value
C.) Paul is developing a subdivision
D.) Either a or b - correct answer either a or b
Property management agreements usually represent:
A.) General agency
B.) Special agency
C.) Dual agency
D.) Universal agency - correct answer a
To qualify for a tax-deferred exchange, properties must:
A.) Have the same income
B.) Have different incomes
C.) Be of like-kind
D.) Have deeds in corporation names - correct answer c
,A property management contract is between the property manager and:
A.) His or her employees
B.) The owner of the property
C) the tenants
D.) All of the above - correct answer b
Industrial property includes all of the following uses except:
A.) Mines
B.) Warehouses
C.) Ranches
D.) Vacant lots - correct answer c
In terms of management, puds most clearly resemble:
A.) Leasing
B.) Cooperative ownership
C.) Condominium ownership
D.) Time-share ownership - correct answer c
A 19 year old inherit property from his grandfather, then immediately contracts to sell it.
Can he later refuse to sell the property?
A.) Yes, because contracts with minors are void
B.) Yes, because contracts with minors are voidable
C.) Yes, because the contract is unenforcable
D.) No, the contract is valid and binding on all parties - correct answer d
Under the typical lease, landlords are legally obligated to provide tenants all of the
following except:
A.) Safe and habitable premises
, B.) Quiet enjoyment of the premises
C.) Possession of the premises
D.) Use of the premises as the tenant and landlord negotiate - correct answer d
A buyer and a seller enter into a valid sales contract. The buyer asks to be released for
personal reasons, but locates another person to buy the property. The seller enters into
a new sales contract with this other person and releases the first buyer. This is most
likely an example of:
A.) Assignment
B.) Novation
C.) Implied consent agreement
D.) Redemption - correct answer b
When a seller makes a counteroffer, which of the following statements is not true?
A.) It is a partial acceptance of the original offer
B.) The seller has obligated herself
C.) The original offeror becomes the offeree in the counteroffer
D.) It is a rejection of an earlier offer - correct answer a
If a person has contracted for the opportunity to purchase a property at a specified
price, within a specified time, the person has:
A.) A right of first refusal
B.) An option
C.) A sales contract
D.) Both a and b - correct answer b
Vernon presents an offer to a seller, with a provision that it must be accepted within 72
hours. Under which of the following circumstances would the offer terminate?
A.) Vernon dies before the seller accepts the offer
B.) The seller resubmits the offer, with a minor change to the settlement date
