NATIONAL REAL ESTATE EXAM PRACTICE QUESTIONS
A property owner has decided to do some landscaping work on his yard. He has planted a
tree surrounded by some owering shrubs. The tree and shrubs are an example of...
Correct answer: improvements
A property owner has a waterfront lot on a stream. He has the right to use the water from
the stream. What is this right called?
Correct answer: riparian
A tenant is aware that his lease will expire at the end of the month. He has begun to
disassemble his display cabinets and shelves. Which of the following statements about
this is true
Correct answer: the tenant can take these as they are trade xtures
A seller is attending the closing on his property. The title company has discovered an
unsatised M&M lien on the property. Which of the following is the most likely reason for
the lien?
Correct answer: plumbing work that was completed but never paid for
A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the
listing agent that his neighbor's satellite dish trespasses on his property. This is an example
of...
Correct answer: encroachment
A father gives his son a life estate on a property. The son leases the property. The tenant
dies. What happens to the property?
Correct answer: it goes back to the son until he dies
,A man leaves his second wife a life estate in their home after which the property goes to his
children from his rst marriage. The children...
Correct answer: are remaindermen
Which of the following statements about an easement is true?
Correct answer: an easement is a benet to the dominant property owner
P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P
do?
Correct answer: le a suit for partition
A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and
D have?
Correct answer: tenants in common
Under what right can the government change property use from commercial to residential
only?
Correct answer: police power
Ownership of the common areas of condominiums is most likely to be:
Correct answer: tenancy in common
What should a buyer do to ensure that his is getting the best title to real property?
Correct answer: get a general warranty deed
Which covenant in a deed guarantees that the owners will not suer or be disturbed by any
claims on the property?
,Correct answer: the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to...
Correct answer: the borrower
After defaulting on a real estate loan, a borrower is able to pay o the loan prior to the
foreclosure sale. This is called:
Correct answer: right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of...
Correct answer: a buer zone
A couple purchased a condominium. The complex has an exercise room for all residents.
The couple does not use the exercise room and does not want to pay the monthly fee for
the use of the facility. What can they do to avoid this fee?
Correct answer: they must pay the fee as they have a tenancy in common interest in all
common areas
Which of the following is personal property?
Correct answer: a lease
A landlord leased space in his new retail property to an inexperienced business person.
Based on location and the type of business, the landlord believes it will be a great success.
What type of lease can he enter into with the tenant that will allow the landlord to benet
from the tenant's success?
Correct answer: a percentage lease
, A buyer has purchased a property and after closing the seller will continue to occupy the
property. This is an example of...
Correct answer: sale and leaseback
Your client will be able to qualify for a property they wish to purchase in about 6 months,
after they had an opportunity to reduce their consumer debt. They have found a property
that they would like to purchase now. What type of agreement can they enter into with a
seller that will allow them to occupy the property now and purchase it within the 6 months?
Correct answer: lease with an option to buy
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
heirs inherit the property. They give the tenants notice to vacate. What is true?
Correct answer: the tenants can stay until the end of the lease
A developer decides to build a commercial property in the middle of a residential
subdivision. What is required?
Correct answer: a variance
A zoning ordinance would aect which of the following?
Correct answer: the concentration of housing in a residential area
If a person dies without a will, who receives their estate?
Correct answer: spouse and children
What are the requirements/ criteria for real estate to have values?
Correct answer: demand, utility, scarcity, transferability
What principle of value denes the most important factor for appraisal?
A property owner has decided to do some landscaping work on his yard. He has planted a
tree surrounded by some owering shrubs. The tree and shrubs are an example of...
Correct answer: improvements
A property owner has a waterfront lot on a stream. He has the right to use the water from
the stream. What is this right called?
Correct answer: riparian
A tenant is aware that his lease will expire at the end of the month. He has begun to
disassemble his display cabinets and shelves. Which of the following statements about
this is true
Correct answer: the tenant can take these as they are trade xtures
A seller is attending the closing on his property. The title company has discovered an
unsatised M&M lien on the property. Which of the following is the most likely reason for
the lien?
Correct answer: plumbing work that was completed but never paid for
A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the
listing agent that his neighbor's satellite dish trespasses on his property. This is an example
of...
Correct answer: encroachment
A father gives his son a life estate on a property. The son leases the property. The tenant
dies. What happens to the property?
Correct answer: it goes back to the son until he dies
,A man leaves his second wife a life estate in their home after which the property goes to his
children from his rst marriage. The children...
Correct answer: are remaindermen
Which of the following statements about an easement is true?
Correct answer: an easement is a benet to the dominant property owner
P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P
do?
Correct answer: le a suit for partition
A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and
D have?
Correct answer: tenants in common
Under what right can the government change property use from commercial to residential
only?
Correct answer: police power
Ownership of the common areas of condominiums is most likely to be:
Correct answer: tenancy in common
What should a buyer do to ensure that his is getting the best title to real property?
Correct answer: get a general warranty deed
Which covenant in a deed guarantees that the owners will not suer or be disturbed by any
claims on the property?
,Correct answer: the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to...
Correct answer: the borrower
After defaulting on a real estate loan, a borrower is able to pay o the loan prior to the
foreclosure sale. This is called:
Correct answer: right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of...
Correct answer: a buer zone
A couple purchased a condominium. The complex has an exercise room for all residents.
The couple does not use the exercise room and does not want to pay the monthly fee for
the use of the facility. What can they do to avoid this fee?
Correct answer: they must pay the fee as they have a tenancy in common interest in all
common areas
Which of the following is personal property?
Correct answer: a lease
A landlord leased space in his new retail property to an inexperienced business person.
Based on location and the type of business, the landlord believes it will be a great success.
What type of lease can he enter into with the tenant that will allow the landlord to benet
from the tenant's success?
Correct answer: a percentage lease
, A buyer has purchased a property and after closing the seller will continue to occupy the
property. This is an example of...
Correct answer: sale and leaseback
Your client will be able to qualify for a property they wish to purchase in about 6 months,
after they had an opportunity to reduce their consumer debt. They have found a property
that they would like to purchase now. What type of agreement can they enter into with a
seller that will allow them to occupy the property now and purchase it within the 6 months?
Correct answer: lease with an option to buy
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
heirs inherit the property. They give the tenants notice to vacate. What is true?
Correct answer: the tenants can stay until the end of the lease
A developer decides to build a commercial property in the middle of a residential
subdivision. What is required?
Correct answer: a variance
A zoning ordinance would aect which of the following?
Correct answer: the concentration of housing in a residential area
If a person dies without a will, who receives their estate?
Correct answer: spouse and children
What are the requirements/ criteria for real estate to have values?
Correct answer: demand, utility, scarcity, transferability
What principle of value denes the most important factor for appraisal?
