REAL ESTATE SALESPERSON LICENSE
EXAM 1 QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
1. Which of the following is considered real property?
A. Furniture
B. Farm equipment
C. Mineral rights
D. Trade fixtures
Mineral rights are part of the land and are considered real property. The
others are personal property.
2. A fixture is:
A. Always personal property
B. Personal property that becomes real property when attached to land or
a building
C. Real property that can be removed without damage
,D. Furniture attached with screws
Fixtures are items that started as personal property but became real
property due to their attachment and intended permanence.
3. What is the primary purpose of the Truth in Lending Act (Regulation Z)?
A. Prevent discrimination in lending
B. Allow sellers to advertise loans
C. Disclose the cost of credit
D. Protect brokers from liability
Regulation Z requires lenders to disclose the true cost of credit, including
APR, so consumers can compare loans.
4. A "freehold estate" refers to:
A. A leasehold interest
B. A property held as collateral
C. A license to use land
D. Ownership interest in real property with an undetermined length
Freehold estates imply ownership that is not limited in duration, unlike
leases.
5. When does a deed become valid?
A. When it is signed
B. When it is recorded
C. When notarized
D. When it is delivered and accepted
Delivery and acceptance are essential elements for a deed to take effect.
, 6. An easement appurtenant:
A. Only benefits the government
B. Runs with the land and benefits an adjacent property
C. Is temporary
D. Ends with the sale of the property
This type of easement remains with the property even after transfer and
benefits a neighboring parcel.
7. Who holds title in a land sales contract until fully paid?
A. Buyer
B. Real estate broker
C. Seller (vendor)
D. Escrow agent
In a land contract, the seller retains title while the buyer has equitable
interest until payment is complete.
8. Which lien has the highest priority?
A. Judgment lien
B. Mechanic’s lien
C. Mortgage lien
D. Property tax lien
Property tax liens always take precedence over other liens, regardless of
filing date.
9. The agency relationship is based on:
A. Compensation
EXAM 1 QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
1. Which of the following is considered real property?
A. Furniture
B. Farm equipment
C. Mineral rights
D. Trade fixtures
Mineral rights are part of the land and are considered real property. The
others are personal property.
2. A fixture is:
A. Always personal property
B. Personal property that becomes real property when attached to land or
a building
C. Real property that can be removed without damage
,D. Furniture attached with screws
Fixtures are items that started as personal property but became real
property due to their attachment and intended permanence.
3. What is the primary purpose of the Truth in Lending Act (Regulation Z)?
A. Prevent discrimination in lending
B. Allow sellers to advertise loans
C. Disclose the cost of credit
D. Protect brokers from liability
Regulation Z requires lenders to disclose the true cost of credit, including
APR, so consumers can compare loans.
4. A "freehold estate" refers to:
A. A leasehold interest
B. A property held as collateral
C. A license to use land
D. Ownership interest in real property with an undetermined length
Freehold estates imply ownership that is not limited in duration, unlike
leases.
5. When does a deed become valid?
A. When it is signed
B. When it is recorded
C. When notarized
D. When it is delivered and accepted
Delivery and acceptance are essential elements for a deed to take effect.
, 6. An easement appurtenant:
A. Only benefits the government
B. Runs with the land and benefits an adjacent property
C. Is temporary
D. Ends with the sale of the property
This type of easement remains with the property even after transfer and
benefits a neighboring parcel.
7. Who holds title in a land sales contract until fully paid?
A. Buyer
B. Real estate broker
C. Seller (vendor)
D. Escrow agent
In a land contract, the seller retains title while the buyer has equitable
interest until payment is complete.
8. Which lien has the highest priority?
A. Judgment lien
B. Mechanic’s lien
C. Mortgage lien
D. Property tax lien
Property tax liens always take precedence over other liens, regardless of
filing date.
9. The agency relationship is based on:
A. Compensation
