NATIONAL REAL ESTATE EXAM PRACTICE TEST QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+|VERIFIED

NATIONAL REAL ESTATE EXAM PRACTICE




In most cases, broker compensation, as a percentage of home price, falls somewhere between
B B B B B B B B B B B B B



: - ANSWER-
B B 5-7%



A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the f
B B B B B B B B B B B B B B B B



ederal Fair Housing Act, is this legal? - ANSWER-
B B B B B B B B



Yes. Religious organizations which rent to tenants for residential purposes are exempt f
B B B B B B B B B B B B



rom the Fair Housing Act
B B B B




What happens to trade fixtures after a business moves out of a leased property? - ANSWER-
B B B B B B B B B B B B B B B



The tenant removes their trade fixtures and takes them upon moving out.
B B B B B B B B B B B




Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a conf
B B B B B B B B B B B B B B B B B



orming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. What is the
B B B B B B B B B B B B B B B B B



maximum amount of additional long-term obligations this borrower may have after PITI? -
B B B B B B B B B B B B B



B ANSWER- $280



A square bedroom measures 10 feet by 10 feet. What is the area of the room? - ANSWER-
B B B B B B B B B B B B B B B B B



100 square feet B B




Which of these is an economic characteristic that makes land a distinctive commodity?* -
B B B B B B B B B B B B B



B ANSWER- situs



In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is: -
B B B B B B B B B B B B B B B B B



B ANSWER- predetermined



Which is exempt from the federal Fair Housing Act? - ANSWER-
B B B B B B B B B B



renting a room in a house occupied by the owner
B B B B B B B B B




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Wicky

,The Americans with Disabilities Act applies to: - ANSWER-
B B B B B B B B



privately owned or government-owned public accommodations
B B B B B




Condemnation is the act of seizing private property from citizens. What gives the government
B B B B B B B B B B B B B B



the right to do this? - ANSWER-
B B B B B B eminent domain B




The PHYSICAL characteristics of land are that land is indestructible, non-homogenous, and: -
B B B B B B B B B B B B



B ANSWER- immobile



Which statement BEST defines the term contingency? - ANSWER-
B B B B B B B B



stipulation that must be satisfied before the contract can be performed
B B B B B B B B B B




If a borrower is behind on payments, the acceleration clause gives the lender the ability to: -
B B B B B B B B B B B B B B B B



B ANSWER- call the entire loan balance due immediately
B B B B B B




A metes and bounds legal description always returns to: - ANSWER-
B B B B B B B B B B



the point of beginning
B B B




What should a license holder do if a client instructs them to do something that would discrimi
B B B B B B B B B B B B B B B B



nate against a protected class? - ANSWER-
B B B B B B



advise the client they cannot legally discriminate against certain groups
B B B B B B B B B




What is a novation? - ANSWER-
B B B B B the substitution of one contract for another
B B B B B B




A married couple bought a home ten years ago for $400,000. Their neighborhood has rapidly
B B B B B B B B B B B B B B B



grown in popularity, and they were able to sell their home this year for $950,000. How much o
B B B B B B B B B B B B B B B B B



f that money will they be required to pay capital gains tax on? - ANSWER-
B B B B B B B B B B B B B B $50,000



Which element of a valid contract states that the contract cannot require any illegal activities
B B B B B B B B B B B B B B B



or outcomes? - ANSWER-
B B B lawful objective B




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Wicky

, Deanna wants to sue her real estate agent, but finds out that she has no legal recourse becaus
B B B B B B B B B B B B B B B B B



e too many years have passed since the offending incident. What is this an example of? -
B B B B B B B B B B B B B B B B



B ANSWER- statute of limitations B B




Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate for Pedro'
B B B B B B B B B B B B B B B B



s county is 2.375%, what will he pay in ad valorem taxes this year? - ANSWER-
B B B B B B B B B B B B B B B $6,887.50



A potentially valid contract in which at least one party has the option to rescind is described as
B B B B B B B B B B B B B B B B B



: - ANSWER-
B B voidable



When you're talking about mortgages, what is another name for an origination fee? -
B B B B B B B B B B B B B



B ANSWER- points



Both parties involved in an agency agreement agree to end the agreement early. What is this c
B B B B B B B B B B B B B B B B



alled? - ANSWER- B B mutual rescission B




What does a standard title insurance policy do?* - ANSWER-
B B B B B B B B B



protects against any defects discovered in the title after closing
B B B B B B B B B




Which term describes the transfer of property from the current owner to another party by sal
B B B B B B B B B B B B B B B



e or gift?* - ANSWER-
B B B B voluntary alienation B




In the sales comparison approach to property valuation, what does the principle of substitutio
B B B B B B B B B B B B B



n state?* - ANSWER-
B B B



The value of a property is only what a consumer would pay to acquire a comparable pro
B B B B B B B B B B B B B B B B



perty.



Who can require a buyer to purchase homeowners insurance? - ANSWER-
B B B B B B B B B B lender




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Wicky