NATIONAL PORTION OF REAL ESTATE PRACTICE EXAM QUESTIONS AND ANSWERS|LATEST 2025/2026|GRADED A+|VERIFIED

NATIONAL PORTION OF REAL ESTATE
PRACTICE EXAM QUESTIONS AND
ANSWERS|LATEST 2025/2026|GRADED
A+|VERIFIED

If a 17 year old signs a contract is the contract: - ANSWER
B B B B B B B B B B B B voidable



A property owner advertises property available for lease with a swimming pool. The property
B B B B B B B B B B B B B B



owner may - B B



B ANSWER a.Require the families to live in a specific area away from the pool.
B B B B B B B B B B B B




b.Refuse to rent to families with children.
B B B B B B




c.Require the parents to supervise their children when they are in the pool.
B B B B B B B B B B B B




d.be required to hire a lifegaurd
B B B B B B




C.



Agency means the broker owes to their client's certain duties. Which of the following is NOT tr
B B B B B B B B B B B B B B B B



ue? - ANSWER B B A. Loyalty
B




B Honesty
B




C. Indemnification
B B




D. accounting
B




C.



If the interest for four months on a loan of $80,000 was $3200, what was the annual rate of int
B B B B B B B B B B B B B B B B B B B



erest? - ANSWER B B 12%



In order to establish net operating income in the income approach to valuation, which of the f
B B B B B B B B B B B B B B B B



ollowing would be deducted from effective gross income? - ANSWER
B B B B B B B B B A. TaxesB




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Wicky

,B. Mortgage interest
B B




C. Building depreciation
B B B




D. Capital improvements
B B B




A



A house has a market value of $ 110,000. The assessed value is 30% of the market value. If the
B B B B B B B B B B B B B B B B B B B B



mill levy is 52 mills, what is the yearly tax on the house? - ANSWER
B B B B B B B B B B B B B B $1,716



110,000 x .052 x .3 = $1,716
B B B B B B




***annual tax = assessed value x tax rate (mill)
B B B B B B B B




What would most likely cause housing prices to fall? -
B B B B B B B B B



B ANSWER A. The sale of 3 luxury homes in a neighborhood
B B B B B B B B B B




B. A company hiring 250 engineers
B B B B B B




C. Sharp increase in interest rates
B B B B B




D. A reduction in building activity
B B B B B




C



The Internal Revenue code provides for tax-deferred exchange only of: -
B B B B B B B B B B



B ANSWER A. Residential property
B B




B. Commercial property
B B B




C. Urban property
B B




D. Like kind property
B B B B




**tax-deferred exchange = 1030 B B B




Subordination clause? - ANSWER B B B Allows a change in the order/priority of mortgages
B B B B B B B




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Wicky

,A buyer made an offer to purchase a property. The owner responded with a counteroffer. Whil
B B B B B B B B B B B B B B B



e the buyer was reviewing the counteroffer, the owner received a better offer. The owner can
B B B B B B B B B B B B B B B B



accept the second offer if: -
B B B B B



B ANSWER A. The owner withdraws the counteroffer before it is accepted
B B B B B B B B B B




B. The owner gives the first buyer notice that another offer was received and an opportunity t
B B B B B B B B B B B B B B B B



o revise the bid
B B B




C. The first buyer is informed, in writing, of the owner's intent to accept another offer
B B B B B B B B B B B B B B B




D. It satisfies or exceeds all terms included in the counteroffer
B B B B B B B B B B




A



Building ordinances may specify and regulate:
B B B B B B




A. Use of land
B B B B




B. Zoning
B




C. Material used in plumbing
B B B B




D. Easements - ANSWER
B B B C. Material used in plumbing
B B B B




Seller is giving the buyer a contingency but doesn't want to be stopped from selling forever. Th
B B B B B B B B B B B B B B B B



e seller should consider:
B B B




A. Increasing the earnest money
B B B B B




B. Get proof of buyer financing
B B B B B B




C. Refusing the contingency
B B B B




D. Countering with an escape clause - ANSWER
B B B B B B B D. Countering with an escape clause
B B B B B




Which of the following clauses in a conventional mortgage instrument entitles the lender to ac
B B B B B B B B B B B B B B



celerate the loan if the loan is assumed?
B B B B B B B




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Wicky

, A. Prepayment
B B




B. Due-on-sale
B




C. Right to sell
B B B




D. Defeasance - ANSWER
B B B B. Due-on-sale
B B




***allows a lender to accelerate the loan and demand immediate payment
B B B B B B B B B B




An agreement of sale becomes enforceable when signed by:
B B B B B B B B B




A. The buyer
B B




B. The seller
B B




C. The buyer and listing broker
B B B B B




D. Both buyer and seller - ANSWER
B B B B B B D. Both buyer and seller
B B B B




Just before the close, the buyer noticed a broken window and a man-
B B B B B B B B B B B B



door hanging by one hinge in the detached garage, her inspector had missed these as he consi
B B B B B B B B B B B B B B B B



dered outbuildings as outside the scope of the inspection. What is the buyer's recourse?
B B B B B B B B B B B B B




A. Seller must fix window
B B B B B




B. Buyer's responsibility because she had missed the inspection deadline
B B B B B B B B B B




C. The inspector is at fault
B B B B B




D. Buyer may terminate the agreement or negotiate the inspection deadline -
B B B B B B B B B B B



B ANSWER B. Buyer's responsibility because she had missed the inspection deadline
B B B B B B B B B




A tenant leased property and agrees to pay taxes and insurance. This is a:
B B B B B B B B B B B B B B




A. Gross lease
B B B




B. Variable lease
B B




C. Net lease
B B B




D. Ground lease - ANSWER
B B B B C. Net lease
B B




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Wicky