NATIONAL REAL ESTATE PRACTICE TEST COMPLETE 2026-2027 EXAM
PAPER- REVISION QUESTIONS & SOLUTIONS
What is eminent domain?
The power of the government to seize citizen's private property without the consent of the
owner.
The party responsible for paying the origination fee when obtaining conventional financing is:
the borrower
What is attached to an original contract before it is signed?
addendum
Arturo is buying a house for $400,000. He will be making a down payment of 5%. He already
submitted a check for $2,000 as earnest money, which will be applied to the purchase. How
much will Arturo need to pay on closing day?
$18,000
An alienation clause would require a borrower to:
pay the mortgage debt in its entirety upon the property being sold
What act is prohibited by the Sherman Antitrust Act?
price fixing
When a tenancy at sufferance occurs, the tenant is referred to as a:
holdover tenant
Which is an example of a freehold estate?
a couple living in a house they own
Darleene is looking at an investment property. The annual net operating income (NOI) of the
property is $310,000. If the capitalization rate for this class of property in this area is currently
9%, what is the total value of this property?
$3,444,444.44
Seller Brian tells his listing agent, Cynthia, that there are no foundation issues in his house.
However, there is a huge crack running down the middle of the living room wall. Cynthia accepts
,Brian's claim and goes on to tell prospective buyers that the home's foundation is in fine
condition. What did Cynthia engage in?
negligent misrepresentation
In terms of contract validity, what does mutual consent mean?
All parties to a contract agree to the terms of the contract.
A new $350,000 home is being built in a neighborhood of mostly $200,000 homes. Although the
home has many updates and is in better condition than the surrounding houses, its value is
significantly less than the price. Which principle of appraisal can explain this?
principle of regression
Listing agreements are between a broker and a(n):
seller
Negligent misrepresentation violates the fiduciary duty of:
reasonable care
What is a report from a licensed appraiser that sums up a property's market value based on
collected data called?
appraisal report
Which of these is a set of regulations pertaining to building design, materials, safety, sanitation,
and structure?
building code
What gives a creditor the right to seize property as collateral for an unpaid debt?
lien
In a verbal agreement, Jesse said that he would sell his house to Giorgio for $200,000. Jesse
later decided that he would like to keep his house instead. Giorgio can't enforce their verbal
contract because it did not meet which of these requirements for validity?
statute of frauds
Personal property MUST be transferred via:
bill of sale
, When there is a breach of contract, the non-breaching party can rescind the contract, forfeit the
contract, or:
sue for compensatory damaged and/or specific performance
An executory contract is a contract that:
has not yet been fully performed
Your buyer client asks you if a property is located in a flood zone. What should you do?
Direct the buyer to obtain an up-to-date flood map from FEMA.
Which type of agreement transforms the customer into a client and the broker into a listing
agent?
listing agreement
What type of listing provides a commission to the broker ONLY if their activities bring about a
sale?*
open
Under federal Fair Housing law, which of the following acts is illegal?
advertising property for sale only to childless couples
The rectangular survey system depends on what?
latitude and longitude
A buyer representation agreement establishes an agency relationship between a buyer and a:
broker
The owner of a landlocked parcel of land may gain access to their land through an:
easement by necessity
When an object that was once personal property becomes permanently attached to real estate,
what happens?
It becomes a fixture.
With the exception of tax liens, how are liens generally prioritized?
Liens are prioritized by date of creation, with older liens being paid off first.
What MUST all listing agreements have?
PAPER- REVISION QUESTIONS & SOLUTIONS
What is eminent domain?
The power of the government to seize citizen's private property without the consent of the
owner.
The party responsible for paying the origination fee when obtaining conventional financing is:
the borrower
What is attached to an original contract before it is signed?
addendum
Arturo is buying a house for $400,000. He will be making a down payment of 5%. He already
submitted a check for $2,000 as earnest money, which will be applied to the purchase. How
much will Arturo need to pay on closing day?
$18,000
An alienation clause would require a borrower to:
pay the mortgage debt in its entirety upon the property being sold
What act is prohibited by the Sherman Antitrust Act?
price fixing
When a tenancy at sufferance occurs, the tenant is referred to as a:
holdover tenant
Which is an example of a freehold estate?
a couple living in a house they own
Darleene is looking at an investment property. The annual net operating income (NOI) of the
property is $310,000. If the capitalization rate for this class of property in this area is currently
9%, what is the total value of this property?
$3,444,444.44
Seller Brian tells his listing agent, Cynthia, that there are no foundation issues in his house.
However, there is a huge crack running down the middle of the living room wall. Cynthia accepts
,Brian's claim and goes on to tell prospective buyers that the home's foundation is in fine
condition. What did Cynthia engage in?
negligent misrepresentation
In terms of contract validity, what does mutual consent mean?
All parties to a contract agree to the terms of the contract.
A new $350,000 home is being built in a neighborhood of mostly $200,000 homes. Although the
home has many updates and is in better condition than the surrounding houses, its value is
significantly less than the price. Which principle of appraisal can explain this?
principle of regression
Listing agreements are between a broker and a(n):
seller
Negligent misrepresentation violates the fiduciary duty of:
reasonable care
What is a report from a licensed appraiser that sums up a property's market value based on
collected data called?
appraisal report
Which of these is a set of regulations pertaining to building design, materials, safety, sanitation,
and structure?
building code
What gives a creditor the right to seize property as collateral for an unpaid debt?
lien
In a verbal agreement, Jesse said that he would sell his house to Giorgio for $200,000. Jesse
later decided that he would like to keep his house instead. Giorgio can't enforce their verbal
contract because it did not meet which of these requirements for validity?
statute of frauds
Personal property MUST be transferred via:
bill of sale
, When there is a breach of contract, the non-breaching party can rescind the contract, forfeit the
contract, or:
sue for compensatory damaged and/or specific performance
An executory contract is a contract that:
has not yet been fully performed
Your buyer client asks you if a property is located in a flood zone. What should you do?
Direct the buyer to obtain an up-to-date flood map from FEMA.
Which type of agreement transforms the customer into a client and the broker into a listing
agent?
listing agreement
What type of listing provides a commission to the broker ONLY if their activities bring about a
sale?*
open
Under federal Fair Housing law, which of the following acts is illegal?
advertising property for sale only to childless couples
The rectangular survey system depends on what?
latitude and longitude
A buyer representation agreement establishes an agency relationship between a buyer and a:
broker
The owner of a landlocked parcel of land may gain access to their land through an:
easement by necessity
When an object that was once personal property becomes permanently attached to real estate,
what happens?
It becomes a fixture.
With the exception of tax liens, how are liens generally prioritized?
Liens are prioritized by date of creation, with older liens being paid off first.
What MUST all listing agreements have?
