REAL ESTATE BROKER LICENSING
EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. Which of the following best describes the primary role of a real estate
broker?
A. Conduct property inspections
B. Act as an intermediary between buyers and sellers
C. Provide legal advice
D. Draft zoning laws
Rationale: A broker’s main responsibility is to facilitate transactions
between buyers and sellers, ensuring proper representation and adherence
to laws.
2. A real estate broker’s fiduciary duty includes all of the following EXCEPT:
A. Loyalty
B. Confidentiality
C. Setting property prices
D. Disclosure
Rationale: Fiduciary duties involve acting in the client’s best interest, not
making pricing decisions, which is ultimately the client’s responsibility.
3. Which type of listing agreement allows a seller to list with multiple brokers
and pay only the broker who brings the buyer?
A. Exclusive right-to-sell
B. Open listing
C. Exclusive agency
, D. Net listing
Rationale: An open listing permits multiple brokers to market the property,
and only the broker who finds the buyer earns a commission.
4. The term “escrow” in real estate refers to:
A. A neutral third party holding funds/documents until closing
B. An appraisal of the property
C. A type of mortgage loan
D. A legal proceeding for disputes
Rationale: Escrow ensures that money and documents are securely held
until all conditions of the transaction are met.
5. Which of the following is TRUE about a real estate broker’s license?
A. It is permanent once issued
B. It can be used to practice law
C. It must be renewed periodically
D. It allows the holder to sell insurance
Rationale: Licenses typically require renewal every few years and may
require continuing education.
6. A broker lists a property for $300,000. The seller accepts an offer of
$290,000. The difference is an example of:
A. Appreciation
B. Depreciation
C. Negotiation
D. Commingling
Rationale: Negotiation is the process where the buyer and seller agree on
the final price.
7. What is a “comparative market analysis” (CMA)?
A. An estimate of a property’s value based on similar properties
B. A legal property description
C. A mortgage calculation
D. A tax appraisal
, Rationale: A CMA helps determine market value by comparing similar
properties recently sold in the area.
8. In real estate, “title insurance” primarily protects:
A. The buyer’s personal belongings
B. The buyer or lender against defects in title
C. The broker from lawsuits
D. Property taxes
Rationale: Title insurance ensures that the property’s ownership is clear of
liens or claims.
9. A seller instructs a broker not to disclose certain defects in a property. The
broker:
A. Must comply with the seller
B. Must disclose material defects regardless of seller instructions
C. Can ignore disclosure laws
D. Should withdraw from the transaction without disclosure
Rationale: Material facts that affect value or safety must be disclosed under
law, regardless of the seller’s wishes.
10.Which of the following is a form of agency relationship?
A. Trustee
B. Principal-agent
C. Mortgagee
D. Lender
Rationale: Agency involves a principal (client) and an agent (broker) where
the agent acts on the principal’s behalf.
11.Which document legally transfers ownership of real estate?
A. Lease agreement
B. Mortgage
C. Deed
D. Contract of sale
Rationale: A deed is the legal instrument that conveys title from the seller to
the buyer.
EXAMINATION QUESTIONS AND
CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A
| INSTANT DOWNLOAD PDF
1. Which of the following best describes the primary role of a real estate
broker?
A. Conduct property inspections
B. Act as an intermediary between buyers and sellers
C. Provide legal advice
D. Draft zoning laws
Rationale: A broker’s main responsibility is to facilitate transactions
between buyers and sellers, ensuring proper representation and adherence
to laws.
2. A real estate broker’s fiduciary duty includes all of the following EXCEPT:
A. Loyalty
B. Confidentiality
C. Setting property prices
D. Disclosure
Rationale: Fiduciary duties involve acting in the client’s best interest, not
making pricing decisions, which is ultimately the client’s responsibility.
3. Which type of listing agreement allows a seller to list with multiple brokers
and pay only the broker who brings the buyer?
A. Exclusive right-to-sell
B. Open listing
C. Exclusive agency
, D. Net listing
Rationale: An open listing permits multiple brokers to market the property,
and only the broker who finds the buyer earns a commission.
4. The term “escrow” in real estate refers to:
A. A neutral third party holding funds/documents until closing
B. An appraisal of the property
C. A type of mortgage loan
D. A legal proceeding for disputes
Rationale: Escrow ensures that money and documents are securely held
until all conditions of the transaction are met.
5. Which of the following is TRUE about a real estate broker’s license?
A. It is permanent once issued
B. It can be used to practice law
C. It must be renewed periodically
D. It allows the holder to sell insurance
Rationale: Licenses typically require renewal every few years and may
require continuing education.
6. A broker lists a property for $300,000. The seller accepts an offer of
$290,000. The difference is an example of:
A. Appreciation
B. Depreciation
C. Negotiation
D. Commingling
Rationale: Negotiation is the process where the buyer and seller agree on
the final price.
7. What is a “comparative market analysis” (CMA)?
A. An estimate of a property’s value based on similar properties
B. A legal property description
C. A mortgage calculation
D. A tax appraisal
, Rationale: A CMA helps determine market value by comparing similar
properties recently sold in the area.
8. In real estate, “title insurance” primarily protects:
A. The buyer’s personal belongings
B. The buyer or lender against defects in title
C. The broker from lawsuits
D. Property taxes
Rationale: Title insurance ensures that the property’s ownership is clear of
liens or claims.
9. A seller instructs a broker not to disclose certain defects in a property. The
broker:
A. Must comply with the seller
B. Must disclose material defects regardless of seller instructions
C. Can ignore disclosure laws
D. Should withdraw from the transaction without disclosure
Rationale: Material facts that affect value or safety must be disclosed under
law, regardless of the seller’s wishes.
10.Which of the following is a form of agency relationship?
A. Trustee
B. Principal-agent
C. Mortgagee
D. Lender
Rationale: Agency involves a principal (client) and an agent (broker) where
the agent acts on the principal’s behalf.
11.Which document legally transfers ownership of real estate?
A. Lease agreement
B. Mortgage
C. Deed
D. Contract of sale
Rationale: A deed is the legal instrument that conveys title from the seller to
the buyer.
