NATIONAL REAL ESTATE EXAM
PRACTICE TEST QUESTIONS AND
ANSWERS 2026 VERIFIED.
In most cases, broker compensation, as a percentage of home price, falls somewhere between: -
ANS 5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the
federal Fair Housing Act, is this legal? - ANS Yes. Religious organizations which rent to tenants
for residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property? - ANS The
tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a
conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. What is
the maximum amount of additional long-term obligations this borrower may have after PITI? -
ANS $280
A square bedroom measures 10 feet by 10 feet. What is the area of the room? - ANS 100
square feet
Which of these is an economic characteristic that makes land a distinctive commodity?* -
ANS situs
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 17
,In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is: -
ANS predetermined
Which is exempt from the federal Fair Housing Act? - ANS renting a room in a house occupied
by the owner
The Americans with Disabilities Act applies to: - ANS privately owned or government-owned
public accommodations
Condemnation is the act of seizing private property from citizens. What gives the government
the right to do this? - ANS eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-homogenous, and: -
ANS immobile
Which statement BEST defines the term contingency? - ANS stipulation that must be satisfied
before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender the ability to: -
ANS call the entire loan balance due immediately
A metes and bounds legal description always returns to: - ANS the point of beginning
What should a license holder do if a client instructs them to do something that would
discriminate against a protected class? - ANS advise the client they cannot legally
discriminate against certain groups
What is a novation? - ANS the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their neighborhood has rapidly
grown in popularity, and they were able to sell their home this year for $950,000. How much of
that money will they be required to pay capital gains tax on? - ANS $50,000
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 17
, Which element of a valid contract states that the contract cannot require any illegal activities or
outcomes? - ANS lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal recourse because
too many years have passed since the offending incident. What is this an example of? -
ANS statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate for Pedro's
county is 2.375%, what will he pay in ad valorem taxes this year? - ANS $6,887.50
A potentially valid contract in which at least one party has the option to rescind is described as:
- ANS voidable
When you're talking about mortgages, what is another name for an origination fee? -
ANS points
Both parties involved in an agency agreement agree to end the agreement early. What is this
called? - ANS mutual rescission
What does a standard title insurance policy do?* - ANS protects against any defects
discovered in the title after closing
Which term describes the transfer of property from the current owner to another party by sale
or gift?* - ANS voluntary alienation
In the sales comparison approach to property valuation, what does the principle of substitution
state?* - ANS The value of a property is only what a consumer would pay to acquire a
comparable property.
Who can require a buyer to purchase homeowners insurance? - ANS lender
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 17
PRACTICE TEST QUESTIONS AND
ANSWERS 2026 VERIFIED.
In most cases, broker compensation, as a percentage of home price, falls somewhere between: -
ANS 5-7%
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the
federal Fair Housing Act, is this legal? - ANS Yes. Religious organizations which rent to tenants
for residential purposes are exempt from the Fair Housing Act
What happens to trade fixtures after a business moves out of a leased property? - ANS The
tenant removes their trade fixtures and takes them upon moving out.
Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a
conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. What is
the maximum amount of additional long-term obligations this borrower may have after PITI? -
ANS $280
A square bedroom measures 10 feet by 10 feet. What is the area of the room? - ANS 100
square feet
Which of these is an economic characteristic that makes land a distinctive commodity?* -
ANS situs
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 17
,In a fixed-rate mortgage that is fully amortized, the total amount of interest to be paid is: -
ANS predetermined
Which is exempt from the federal Fair Housing Act? - ANS renting a room in a house occupied
by the owner
The Americans with Disabilities Act applies to: - ANS privately owned or government-owned
public accommodations
Condemnation is the act of seizing private property from citizens. What gives the government
the right to do this? - ANS eminent domain
The PHYSICAL characteristics of land are that land is indestructible, non-homogenous, and: -
ANS immobile
Which statement BEST defines the term contingency? - ANS stipulation that must be satisfied
before the contract can be performed
If a borrower is behind on payments, the acceleration clause gives the lender the ability to: -
ANS call the entire loan balance due immediately
A metes and bounds legal description always returns to: - ANS the point of beginning
What should a license holder do if a client instructs them to do something that would
discriminate against a protected class? - ANS advise the client they cannot legally
discriminate against certain groups
What is a novation? - ANS the substitution of one contract for another
A married couple bought a home ten years ago for $400,000. Their neighborhood has rapidly
grown in popularity, and they were able to sell their home this year for $950,000. How much of
that money will they be required to pay capital gains tax on? - ANS $50,000
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 17
, Which element of a valid contract states that the contract cannot require any illegal activities or
outcomes? - ANS lawful objective
Deanna wants to sue her real estate agent, but finds out that she has no legal recourse because
too many years have passed since the offending incident. What is this an example of? -
ANS statute of limitations
Pedro bought his house for $370,000. The assessed value is $290,000. If the tax rate for Pedro's
county is 2.375%, what will he pay in ad valorem taxes this year? - ANS $6,887.50
A potentially valid contract in which at least one party has the option to rescind is described as:
- ANS voidable
When you're talking about mortgages, what is another name for an origination fee? -
ANS points
Both parties involved in an agency agreement agree to end the agreement early. What is this
called? - ANS mutual rescission
What does a standard title insurance policy do?* - ANS protects against any defects
discovered in the title after closing
Which term describes the transfer of property from the current owner to another party by sale
or gift?* - ANS voluntary alienation
In the sales comparison approach to property valuation, what does the principle of substitution
state?* - ANS The value of a property is only what a consumer would pay to acquire a
comparable property.
Who can require a buyer to purchase homeowners insurance? - ANS lender
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 17
