NATIONAL REAL ESTATE EXAM PRACTICE QUESTIONS
1. Which of the following statements is true about the duties of an agent according to the
common law of agency?: an agent must treat both clients andcustomers with honesty and
fairness
2. A property manager is hired and signs a management agreement with theowner. At this
time, the property manager is...: a general agent
3. A buyer and seller have negotiated a contract on the seller's property witha closing set for
June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and
tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this
time, what is true?: the contract is voidable by the buyer
4. A licensee is representing a seller in a commercial transaction. The prop-erty is under
contract and all contingencies have been met. The listing agentlearns the State Department of
Transportation has authorized the constructionof an exit ramp to the interstate right behind the
commercial property. The exitramp will greatly increase the value of the seller's property. What
should the agent do?: tell the seller and encourage the seller to complete the negotiated sale
5. A listing agent is showing his listing to a buyer customer and notices a problem with the
exterior of the property that he missed when he listed the property. What should he do?: point it
out to the buyer as it is a material fact
6. A buyer's agent has accidentally forwarded confidential information abouthis buyer's
financial background to the listing agent. What is true?: the buyer'sagent is guilty of negligence
and the listing agent must disclose the information to the seller
7. What is the difference between replacement cost and market value?: de-preciation
8. Economic life is defined as: years of depriciation
9. An unlicensed assistant gets a call from a listing owner with questionsabout a contract-
what should the assistant do?: take the information to the listing broker
10. An underage college student signs a lease, then discloses his age to thelandlord. What is
true?: the contract is voidable at the minor's option
11. A seller comes into the office to sign a contract. The seller is stumbling and smells of
alcohol. How do you proceed?: tell the seller to leave and returnanother time
12. A high rise condominium property is advertised as having the "Mostbeautiful view of the
city". This ad is best described as: puffing
13. Which of the following facts about listed property must be disclosed: deathdue to structural
defects
14. A lead paint disclosure is required for all properties built before: 1978
15. Which of the following statements about lead is NOT true?: the propertyowner must
, remediate the presence of lead
16. CERCLA is under the administration of:: EPA
17. Which of the following used in 1978 is both extremely hazardous andfriable?: asbestos
18. Which of the following properties would be the least desirable neighbor-hood?:
brownfields
19. A seller must keep a copy of the lead paint disclosure he provided to thebuyer for: 3 years
20. It has been found that mold can develop due to: air tight windows and doorsfound in
newer construction
21. General liability insurance will: protect a company's assets if someone isinjured on
company property
22. A condo owner's policy will most likely cover the owner if: a guest slips inthe kitchen
23. A condo complex has liability complex has liability insurance. This is leastlikely to cover:
a units owner's carpet damaged by a broken water pipe
24. Accurate record keeping is the responsibility of all the brokers. If a broker'scomputers are
stolen what steps could have been taken to protect records?-
: offsite or cloud storage
25. A license holder has just attended a training seminar about technology inreal estate and is
excited about using social media with her clients. Which ofthe following statements about
social media in real estate is NOT true?: an agent with permission to advertise a property on
social media does not have to worry about protecting confidential information about the client
26. A sales agent is showing a property. He trips in the house causes majordamage to property
of the owner. What type of insurance will cover this accident?: liability insurance
27. Prior to its amendments, the Civil Rights Act of 1968 prohibited discrimi-nation based
on...: national origin
28. A property owner has decided to do some landscaping work on his yard. He has planted a
tree surrounded by some flowering shrubs. The tree and shrubs are an example of...:
improvements
29. 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?: riparian
30. A tenant is aware that his lease will expire at the end of the month. He hasbegun to
disassemble his display cabinets and shelves. Which of the followingstatements about this is
true: the tenant can take these as they are trade fixtures
31. A seller is attending the closing on his property. The title company has discovered an
unsatisfied M&M lien on the property. Which of the following isthe most likely reason for the
lien?: plumbing work that was completed but neverpaid for
1. Which of the following statements is true about the duties of an agent according to the
common law of agency?: an agent must treat both clients andcustomers with honesty and
fairness
2. A property manager is hired and signs a management agreement with theowner. At this
time, the property manager is...: a general agent
3. A buyer and seller have negotiated a contract on the seller's property witha closing set for
June 14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and
tells him the seller will be unable to close on the 14th. The seller can close on the 16th. At this
time, what is true?: the contract is voidable by the buyer
4. A licensee is representing a seller in a commercial transaction. The prop-erty is under
contract and all contingencies have been met. The listing agentlearns the State Department of
Transportation has authorized the constructionof an exit ramp to the interstate right behind the
commercial property. The exitramp will greatly increase the value of the seller's property. What
should the agent do?: tell the seller and encourage the seller to complete the negotiated sale
5. A listing agent is showing his listing to a buyer customer and notices a problem with the
exterior of the property that he missed when he listed the property. What should he do?: point it
out to the buyer as it is a material fact
6. A buyer's agent has accidentally forwarded confidential information abouthis buyer's
financial background to the listing agent. What is true?: the buyer'sagent is guilty of negligence
and the listing agent must disclose the information to the seller
7. What is the difference between replacement cost and market value?: de-preciation
8. Economic life is defined as: years of depriciation
9. An unlicensed assistant gets a call from a listing owner with questionsabout a contract-
what should the assistant do?: take the information to the listing broker
10. An underage college student signs a lease, then discloses his age to thelandlord. What is
true?: the contract is voidable at the minor's option
11. A seller comes into the office to sign a contract. The seller is stumbling and smells of
alcohol. How do you proceed?: tell the seller to leave and returnanother time
12. A high rise condominium property is advertised as having the "Mostbeautiful view of the
city". This ad is best described as: puffing
13. Which of the following facts about listed property must be disclosed: deathdue to structural
defects
14. A lead paint disclosure is required for all properties built before: 1978
15. Which of the following statements about lead is NOT true?: the propertyowner must
, remediate the presence of lead
16. CERCLA is under the administration of:: EPA
17. Which of the following used in 1978 is both extremely hazardous andfriable?: asbestos
18. Which of the following properties would be the least desirable neighbor-hood?:
brownfields
19. A seller must keep a copy of the lead paint disclosure he provided to thebuyer for: 3 years
20. It has been found that mold can develop due to: air tight windows and doorsfound in
newer construction
21. General liability insurance will: protect a company's assets if someone isinjured on
company property
22. A condo owner's policy will most likely cover the owner if: a guest slips inthe kitchen
23. A condo complex has liability complex has liability insurance. This is leastlikely to cover:
a units owner's carpet damaged by a broken water pipe
24. Accurate record keeping is the responsibility of all the brokers. If a broker'scomputers are
stolen what steps could have been taken to protect records?-
: offsite or cloud storage
25. A license holder has just attended a training seminar about technology inreal estate and is
excited about using social media with her clients. Which ofthe following statements about
social media in real estate is NOT true?: an agent with permission to advertise a property on
social media does not have to worry about protecting confidential information about the client
26. A sales agent is showing a property. He trips in the house causes majordamage to property
of the owner. What type of insurance will cover this accident?: liability insurance
27. Prior to its amendments, the Civil Rights Act of 1968 prohibited discrimi-nation based
on...: national origin
28. A property owner has decided to do some landscaping work on his yard. He has planted a
tree surrounded by some flowering shrubs. The tree and shrubs are an example of...:
improvements
29. 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?: riparian
30. A tenant is aware that his lease will expire at the end of the month. He hasbegun to
disassemble his display cabinets and shelves. Which of the followingstatements about this is
true: the tenant can take these as they are trade fixtures
31. A seller is attending the closing on his property. The title company has discovered an
unsatisfied M&M lien on the property. Which of the following isthe most likely reason for the
lien?: plumbing work that was completed but neverpaid for
