1 | Page
Pearson VUE National Real Estate Exam:
Key Concepts and Practice Questions and
Answers
Passing score
Ans: 80
Correct answers
Ans: 53/150
Incorrect answers
Ans: 97/150
General agent
Ans: Property managers are general agents, who, through the property
management agreement, are given the authority to act on behalf of the
property owner and are responsible for all of the dealings on a specific
piece of property.
Agency relationship
Ans: Agency is created through either an express or an implied agency
agreement such as a listing agreement.
Protection clause
Ans: Protection clauses provide assurance to licensees that they'll be
paid if, after the agency agreement terminates, the client completes a
transaction with a buyer whom the licensee introduced to the property.
Stigmatized property
© 2025 All rights reserved
, 2 | Page
Ans: State requirements related to stigmatized property disclosures
vary, so licensees must be aware of the laws that impact them and their
clients.
Illegal tie-in arrangement
Ans: A tie-in arrangement includes making use of one service dependent
on the client obtaining another specific service or agreeing to provide
some service only if the client refrains from doing business with another
third-party vendor.
BPO comps value presentation
Ans: You'll normally present a range of values based on your analysis
and calculations; depending on the client, you may be asked to present a
single best estimate of value.
Exclusive agency agreement
Ans: Aldino signed an exclusive agency agreement with a buyer client,
Leslie. Two months later, Leslie produced a ready, willing, and able
buyer.
Listing agreement expiration
Ans: Morty's listing agreement with Tim, his agent, expired. He relisted
his property with another firm and sold the property within three days
to a buyer who'd just moved to town.
Termination with protection clause
Ans: Rob's listing agreement with his seller client Carmine terminated.
The agreement included a 30-day protection clause. Five days after the
agreement terminated, Carmine sold the property to a family who had
looked at the house during the listing period.
Buyer qualification failure
Ans: Two months into a six-month listing agreement, Tennyson, the
listing agent, produced a buyer for Roger's property. Right before closing
day, the buyer lost her job and couldn't qualify for the mortgage loan,
thus terminating the purchase agreement.
© 2025 All rights reserved
, 3 | Page
Advice on stigmatized properties
Ans: Licensees must understand the definition of a stigmatized property
so they can make any required disclosures.
Rebate commission agreement
Ans: A licensee agrees to rebate a portion of the commission earned
when her buyer client buys a house if the client also lists her current
home with the licensee.
Brokerage services condition
Ans: A licensee tells her buyer client she won't perform any brokerage
services for him unless he signs an agency agreement.
Specific company representation
Ans: A licensee tells his seller client he'll only represent her if the client
uses a specific company to close her transaction.
Median value presentation
Ans: As a median (the middle value of the six you calculated)
Average of sold comps
Ans: As an average of the three sold comps
Average of sold and active comps
Ans: As an average of the three sold and the three active comps
Range of values presentation
Ans: As a range of values
Fiduciary duty of confidentiality
Ans: Prohibits licensees from disclosing confidential information about
a client, even after the agency relationship ends.
Buyer representation agreement
© 2025 All rights reserved
, 4 | Page
Ans: Guarantees the buyer will receive representation and all fiduciary
duties of a client.
Subdivision
Ans: Land divided into lots for development.
Paired testing
Ans: A strategy used to uncover discriminatory acts by comparing the
treatment of matched testers.
Listing terminated by performance
Ans: A listing agreement is terminated by completion/performance only
if it successfully closes.
Loan origination fee
Ans: The amount paid for points calculated as loan amount multiplied
by the number of points.
Implied agency
Ans: Exists when a buyer and licensee create an agency relationship
through actions, despite not signing a formal agreement.
Points
Ans: A percentage of the loan amount charged by lenders, where one
point equals 1% of the loan.
HUD vs. Pontoriero
Ans: A case that exemplifies the use of paired testing to provide
evidence of discrimination.
Down payment
Ans: The initial upfront portion of the total amount due, which is
$50,000 in the example provided.
Loan amount
© 2025 All rights reserved
Pearson VUE National Real Estate Exam:
Key Concepts and Practice Questions and
Answers
Passing score
Ans: 80
Correct answers
Ans: 53/150
Incorrect answers
Ans: 97/150
General agent
Ans: Property managers are general agents, who, through the property
management agreement, are given the authority to act on behalf of the
property owner and are responsible for all of the dealings on a specific
piece of property.
Agency relationship
Ans: Agency is created through either an express or an implied agency
agreement such as a listing agreement.
Protection clause
Ans: Protection clauses provide assurance to licensees that they'll be
paid if, after the agency agreement terminates, the client completes a
transaction with a buyer whom the licensee introduced to the property.
Stigmatized property
© 2025 All rights reserved
, 2 | Page
Ans: State requirements related to stigmatized property disclosures
vary, so licensees must be aware of the laws that impact them and their
clients.
Illegal tie-in arrangement
Ans: A tie-in arrangement includes making use of one service dependent
on the client obtaining another specific service or agreeing to provide
some service only if the client refrains from doing business with another
third-party vendor.
BPO comps value presentation
Ans: You'll normally present a range of values based on your analysis
and calculations; depending on the client, you may be asked to present a
single best estimate of value.
Exclusive agency agreement
Ans: Aldino signed an exclusive agency agreement with a buyer client,
Leslie. Two months later, Leslie produced a ready, willing, and able
buyer.
Listing agreement expiration
Ans: Morty's listing agreement with Tim, his agent, expired. He relisted
his property with another firm and sold the property within three days
to a buyer who'd just moved to town.
Termination with protection clause
Ans: Rob's listing agreement with his seller client Carmine terminated.
The agreement included a 30-day protection clause. Five days after the
agreement terminated, Carmine sold the property to a family who had
looked at the house during the listing period.
Buyer qualification failure
Ans: Two months into a six-month listing agreement, Tennyson, the
listing agent, produced a buyer for Roger's property. Right before closing
day, the buyer lost her job and couldn't qualify for the mortgage loan,
thus terminating the purchase agreement.
© 2025 All rights reserved
, 3 | Page
Advice on stigmatized properties
Ans: Licensees must understand the definition of a stigmatized property
so they can make any required disclosures.
Rebate commission agreement
Ans: A licensee agrees to rebate a portion of the commission earned
when her buyer client buys a house if the client also lists her current
home with the licensee.
Brokerage services condition
Ans: A licensee tells her buyer client she won't perform any brokerage
services for him unless he signs an agency agreement.
Specific company representation
Ans: A licensee tells his seller client he'll only represent her if the client
uses a specific company to close her transaction.
Median value presentation
Ans: As a median (the middle value of the six you calculated)
Average of sold comps
Ans: As an average of the three sold comps
Average of sold and active comps
Ans: As an average of the three sold and the three active comps
Range of values presentation
Ans: As a range of values
Fiduciary duty of confidentiality
Ans: Prohibits licensees from disclosing confidential information about
a client, even after the agency relationship ends.
Buyer representation agreement
© 2025 All rights reserved
, 4 | Page
Ans: Guarantees the buyer will receive representation and all fiduciary
duties of a client.
Subdivision
Ans: Land divided into lots for development.
Paired testing
Ans: A strategy used to uncover discriminatory acts by comparing the
treatment of matched testers.
Listing terminated by performance
Ans: A listing agreement is terminated by completion/performance only
if it successfully closes.
Loan origination fee
Ans: The amount paid for points calculated as loan amount multiplied
by the number of points.
Implied agency
Ans: Exists when a buyer and licensee create an agency relationship
through actions, despite not signing a formal agreement.
Points
Ans: A percentage of the loan amount charged by lenders, where one
point equals 1% of the loan.
HUD vs. Pontoriero
Ans: A case that exemplifies the use of paired testing to provide
evidence of discrimination.
Down payment
Ans: The initial upfront portion of the total amount due, which is
$50,000 in the example provided.
Loan amount
© 2025 All rights reserved
