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

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

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? -
B B B B B B B



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



exempt from the Fair Housing Act
B B B B B




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



B ANSWER 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? -
B B B B B B B B B B B B B B B B



B ANSWER 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? -
B B B B B B B B B



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




1
Wicky

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



B ANSWER 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? -
B B B B B B B



B ANSWER 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: -
B B B B B B B B B



B ANSWER 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? -
B B B B B



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




What is a novation? - ANSWERB 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




2
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?* -
B B B B B B B B



B ANSWER 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?* -
B B



ANSWER
B The value of a property is only what a consumer would pay to acquire a comp
B B B B B B B B B B B B B B B



arable property. B




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




3
Wicky