NATIONAL REAL ESTATE EXAM QUESTIONS
1. A potential buyer seems to be very knowledgeable about home purchases,and decided not
to require an inspection, hoping that the lack of an inspectioncontingency will help to convince
the seller that his offer is the best deal. Thebuyer's broker has noticed a few things that have
raised his concerns about the condition of the house. What responsibility, if any, does the
buyer's agenthave in this situation?
A. The agent should demand that the buyer order an inspection before hewrites an offer
B. This buyer is surely aware that he is taking a risk, so the buyer's agentshould write the offer
as instructed
C. Sine the seller is required to disclose any material defects, the buyer's agentshould go along
with his client's strategy
D. The agent should explain his concerns to the buyer and work to persuade the buyer include
an inspection contingency: The agent should explain his concerns to the buyer and work to
persuade the buyer include an inspection contingency
2. An associated licensee has decide to disclose latent defects in proper- ties he lists for the
brokerage firm only if a buyer makes a specific inquiry. The broker in charge has never
discussed this issue with the licensee and does not require any reporting from associated
licensees because they areindependent contractors. When the licensing board investigates
complaintsarising from this practice, they are likely to find the broker in charge
A. Has no liability; as an independent contractor, the licensee is solely respon-sible for failing to
disclose material facts
B. Liable only if he was aware that the associated licensee had adopted thepolicy of
nondisclosure
C. Liable only if the broker was aware of the defects the associated licenseefailed to disclose
D. Share the liability for his licensee's wrongdoing: Share the liability for hislicensee's
wrongdoing
3. The current real estate market has been booming for the last 5 years andthere is still
demand for properties, though the market has slowed for both rental and sales analysis of the
area's job market shows a rise in unemploy- ment and stagnant wages, though living costs are
still rising. For the last few years the area has welcomed influx of new residents, but this ha
almost stopped as job opportunities decline. A real estate broker has been asked by ahomeowner
,whether to sell now or wait until the market higher in the net yearor two. Given the facts, what
course of action would a prudent professional recommend to the seller?
A. Selling the property now, as the market appears likely to adjusted downward
B. Renting the property until market peaks in a few years, then selling it
C. Holding the property for another year, as the market runs in seven yearcycles further
appreciation can be expected
D. Holding the property until it reaches the level of appreciation the seller is seeking, as the
market will continue to appreciate: Selling the property now, asthe market appears likely to
adjusted downward
4. Buyer Jim signs a purchase contract at the asking price with no contingencies and the 30-day
closing date as specified by the seller. Seller Tom changes the contract closing date 40 days and
signed the contract. The contract, in itspresent form is
A. Valid with the 30 day closing date, since Buyer Jim met all the terms asoriginally specified
by the seller
B. Valid with the 40 day closing date, since a 10 day extension is not considered material to the
contract
C. Invalid, since the signed documents do no yet indicate mutually agreesupon terms
D. Enforceable, since the seller has provided valid counter odder: Invalid, since the signed
documents do no yet indicate mutually agrees upon terms
5. A real estate brokerage advertises specifically for a buyer who wishes to purchase using
VA loans. Do these advertisements violate veterans rights or the advertising rules of the
Federal Fair Housing Act?
A. Yes, because such advertising falsely implies that only military veterans canqualify for
purchase
B. Yes, because such advertising discriminates against individuals who have not saved in the
military
C. No, because brokers are entitled to direct property advertisements to any specific segment
of the population
D. No, because veterans from all protected classes can qualify for VA loans: -
,No, because veterans from all protected classes can qualify for VA loans
6. A salesperson represents the seller of a commercial property. The sales- person tells the
buyer a new highway exit ramp will be built within six monthsto give access to the property
although that is only one of the several possibili-ties being considered by local planners.The exit
ramp is subsequently locatedelsewhere. Could the salesperson be liable to the buyer for the
statement about the ramp?
A. No, the statement was the salesperson's opinion
B. No, the statement was puffing
C. Yes, the statement was puffing
D. Yes, the statement was material misrepresentation: Yes, the statement wasmaterial
misrepresentation
7. The buyer was given a loan estimate at the time of the application for themortgage and it
is now 3 business days before the closing. The appraisal andthe closing disclosures have been
given to the buyer.The buyers broker meets
her client at the property for a walkthrough and to review the documents. Which of the
following documents will result in the buyer having the right toan additional 3 days to review
the documents?
A. There was a mathematical error on the proration of taxes or utilities
B. Appliances are missing even though the seller agreed to include them
C. The loans product has changed from fixed rate to one that is adjustable
D. There was an omission in the property disclosure of a recently discovered special
assessment: The loans product has changed from fixed rate to one that isadjustable
8. Which of the following are most likely to be addressed by building codes?
A. Deed restrictions
B. Construction standards
C. Permissible use of structures
D. Restrictive covenants: Construction standards
, 9. A licensee is the property manager for a shopping center. The shopping center owner tells
the licensee to avoid internet marketing because he dis- trusts the technology. The licensee
discusses with the owner, but eventuallycomplies. The licensee's compliance is due to the duty
of
A. Care
B. Loyalty
C. Obedience
D. Fair dealing: Obedience
10. A feature of joint tenancy with a survivorship is that
A. It provides for the disposition of personal possessions
B. A corporation can be a joint tenant
C. The surviving joint tenant(s) acquire the property free and clear of any liensagainst the
deceased
D. It eliminates probate: The surviving joint tenant(s) acquire the property free andclear of any
liens against the deceased
11. An appraisal made by a certified appraiser is required
A. Before real property can transfer from one owner to another
B. When heirs receive property
C. When the buyer is using an FHA loan to purchase
D. Before any property settlement in a divorce: When the buyer is using an FHAloan to
purchase
12. The statement "A contract for the transfer of interest in land, must be inwriting", best
defines which of the following real estate concepts?
A. Acknowledgment
1. A potential buyer seems to be very knowledgeable about home purchases,and decided not
to require an inspection, hoping that the lack of an inspectioncontingency will help to convince
the seller that his offer is the best deal. Thebuyer's broker has noticed a few things that have
raised his concerns about the condition of the house. What responsibility, if any, does the
buyer's agenthave in this situation?
A. The agent should demand that the buyer order an inspection before hewrites an offer
B. This buyer is surely aware that he is taking a risk, so the buyer's agentshould write the offer
as instructed
C. Sine the seller is required to disclose any material defects, the buyer's agentshould go along
with his client's strategy
D. The agent should explain his concerns to the buyer and work to persuade the buyer include
an inspection contingency: The agent should explain his concerns to the buyer and work to
persuade the buyer include an inspection contingency
2. An associated licensee has decide to disclose latent defects in proper- ties he lists for the
brokerage firm only if a buyer makes a specific inquiry. The broker in charge has never
discussed this issue with the licensee and does not require any reporting from associated
licensees because they areindependent contractors. When the licensing board investigates
complaintsarising from this practice, they are likely to find the broker in charge
A. Has no liability; as an independent contractor, the licensee is solely respon-sible for failing to
disclose material facts
B. Liable only if he was aware that the associated licensee had adopted thepolicy of
nondisclosure
C. Liable only if the broker was aware of the defects the associated licenseefailed to disclose
D. Share the liability for his licensee's wrongdoing: Share the liability for hislicensee's
wrongdoing
3. The current real estate market has been booming for the last 5 years andthere is still
demand for properties, though the market has slowed for both rental and sales analysis of the
area's job market shows a rise in unemploy- ment and stagnant wages, though living costs are
still rising. For the last few years the area has welcomed influx of new residents, but this ha
almost stopped as job opportunities decline. A real estate broker has been asked by ahomeowner
,whether to sell now or wait until the market higher in the net yearor two. Given the facts, what
course of action would a prudent professional recommend to the seller?
A. Selling the property now, as the market appears likely to adjusted downward
B. Renting the property until market peaks in a few years, then selling it
C. Holding the property for another year, as the market runs in seven yearcycles further
appreciation can be expected
D. Holding the property until it reaches the level of appreciation the seller is seeking, as the
market will continue to appreciate: Selling the property now, asthe market appears likely to
adjusted downward
4. Buyer Jim signs a purchase contract at the asking price with no contingencies and the 30-day
closing date as specified by the seller. Seller Tom changes the contract closing date 40 days and
signed the contract. The contract, in itspresent form is
A. Valid with the 30 day closing date, since Buyer Jim met all the terms asoriginally specified
by the seller
B. Valid with the 40 day closing date, since a 10 day extension is not considered material to the
contract
C. Invalid, since the signed documents do no yet indicate mutually agreesupon terms
D. Enforceable, since the seller has provided valid counter odder: Invalid, since the signed
documents do no yet indicate mutually agrees upon terms
5. A real estate brokerage advertises specifically for a buyer who wishes to purchase using
VA loans. Do these advertisements violate veterans rights or the advertising rules of the
Federal Fair Housing Act?
A. Yes, because such advertising falsely implies that only military veterans canqualify for
purchase
B. Yes, because such advertising discriminates against individuals who have not saved in the
military
C. No, because brokers are entitled to direct property advertisements to any specific segment
of the population
D. No, because veterans from all protected classes can qualify for VA loans: -
,No, because veterans from all protected classes can qualify for VA loans
6. A salesperson represents the seller of a commercial property. The sales- person tells the
buyer a new highway exit ramp will be built within six monthsto give access to the property
although that is only one of the several possibili-ties being considered by local planners.The exit
ramp is subsequently locatedelsewhere. Could the salesperson be liable to the buyer for the
statement about the ramp?
A. No, the statement was the salesperson's opinion
B. No, the statement was puffing
C. Yes, the statement was puffing
D. Yes, the statement was material misrepresentation: Yes, the statement wasmaterial
misrepresentation
7. The buyer was given a loan estimate at the time of the application for themortgage and it
is now 3 business days before the closing. The appraisal andthe closing disclosures have been
given to the buyer.The buyers broker meets
her client at the property for a walkthrough and to review the documents. Which of the
following documents will result in the buyer having the right toan additional 3 days to review
the documents?
A. There was a mathematical error on the proration of taxes or utilities
B. Appliances are missing even though the seller agreed to include them
C. The loans product has changed from fixed rate to one that is adjustable
D. There was an omission in the property disclosure of a recently discovered special
assessment: The loans product has changed from fixed rate to one that isadjustable
8. Which of the following are most likely to be addressed by building codes?
A. Deed restrictions
B. Construction standards
C. Permissible use of structures
D. Restrictive covenants: Construction standards
, 9. A licensee is the property manager for a shopping center. The shopping center owner tells
the licensee to avoid internet marketing because he dis- trusts the technology. The licensee
discusses with the owner, but eventuallycomplies. The licensee's compliance is due to the duty
of
A. Care
B. Loyalty
C. Obedience
D. Fair dealing: Obedience
10. A feature of joint tenancy with a survivorship is that
A. It provides for the disposition of personal possessions
B. A corporation can be a joint tenant
C. The surviving joint tenant(s) acquire the property free and clear of any liensagainst the
deceased
D. It eliminates probate: The surviving joint tenant(s) acquire the property free andclear of any
liens against the deceased
11. An appraisal made by a certified appraiser is required
A. Before real property can transfer from one owner to another
B. When heirs receive property
C. When the buyer is using an FHA loan to purchase
D. Before any property settlement in a divorce: When the buyer is using an FHAloan to
purchase
12. The statement "A contract for the transfer of interest in land, must be inwriting", best
defines which of the following real estate concepts?
A. Acknowledgment
