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PEARSON VUE PROPERTY INSURANCE EXAM
ACTUAL EXAM UPDATED 2025-2026 WITH ALL
NEW QUESTIONS AND EXACTLY RIGHT
ANSWERS | A+ QUALITY GUARANTEE
1. 1A buyer purchases a furnished con do minimum apartment as an
investment. The document that evidences the buyer's ownership of the furniture is
a
a. Special warranty deed
b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
ANSWER: Bill of sale
2. Using the cost approach, an f calculates the current new replacement cost of
a 15 year old structure. The next factor the appraiser will consider n completing
this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
ANSWER: Accrued depreciation
3. A buyer purchases a home for $55,000 and gets a commitment from a lender
for an 80% loan. The lender has advised the buyer that 3 discount points will be
charged. If additional closing costs are $2,000, how much total cash MUST the
buyer have at closing?
a. 1300
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b. 13200
c. 14320
d. 15650
ANSWER: 14320
4. Any referral of a settlement service provider for compensation is
a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
ANSWER: Always prohibited
5. A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business
account
b. Earnest monies and rents received from a client's various properties in the
same escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the
same escrow/trust account.
ANSWER: Earnest monies received from a clients properties in the agency's
business account
6. A lease calls for a commercial tenant to pay a guaranteed rental of $1,775
per month plus 6.5% of the gross income in excess of $325,000 per year. If the
yearly gross income is $785,000, what is the annual rent?
a. 51025
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b. 51200
c. 52800
d. 72325
ANSWER: 51200
7. The lease of a restaurant terminates and the tenant wishes to move to another
location. Which of the following items can the tenant remove from the restaurant
as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
ANSWER: Built-in dishwasher
8. A buyer's interest in real property, acquired at the moment the seller and the
buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title
c. Fee simple determinable
d. An option to purchase
ANSWER: Equitable title
9. K owns and operates a small restaurant in an area recently annexed by a
nearby city. As part of the annexation, the area was zoned for single-family
residence, but K is allowed to continue operating the restaurant under the city's
amended zoning ordinance. The allowance for K's continued operation is known
as:
a. Variance
PEARSON VUE PROPERTY INSURANCE EXAM
ACTUAL EXAM UPDATED 2025-2026 WITH ALL
NEW QUESTIONS AND EXACTLY RIGHT
ANSWERS | A+ QUALITY GUARANTEE
1. 1A buyer purchases a furnished con do minimum apartment as an
investment. The document that evidences the buyer's ownership of the furniture is
a
a. Special warranty deed
b. Homeowner's insurance policy
c. Bill of sale
d. Buyers inventory
ANSWER: Bill of sale
2. Using the cost approach, an f calculates the current new replacement cost of
a 15 year old structure. The next factor the appraiser will consider n completing
this approach is:
a. Land value
b. Capitalization rate
c. Net operating income
d. Accrued depreciation
ANSWER: Accrued depreciation
3. A buyer purchases a home for $55,000 and gets a commitment from a lender
for an 80% loan. The lender has advised the buyer that 3 discount points will be
charged. If additional closing costs are $2,000, how much total cash MUST the
buyer have at closing?
a. 1300
,2|Page
b. 13200
c. 14320
d. 15650
ANSWER: 14320
4. Any referral of a settlement service provider for compensation is
a. Only allowed on federally funded transaction
b. Allowed when fully disclosed
c. Always prohibited
d. Only prohibited on federally funded transaction
ANSWER: Always prohibited
5. A licensee is commingling trust funds by depositing:
a. Earnest monies received from a clients properties in the agency's business
account
b. Earnest monies and rents received from a client's various properties in the
same escrow/trust account
c. Rents received from the licensee's own properties in a personal account
d. Tenants security depositites received from various clients properties in the
same escrow/trust account.
ANSWER: Earnest monies received from a clients properties in the agency's
business account
6. A lease calls for a commercial tenant to pay a guaranteed rental of $1,775
per month plus 6.5% of the gross income in excess of $325,000 per year. If the
yearly gross income is $785,000, what is the annual rent?
a. 51025
, 3|Page
b. 51200
c. 52800
d. 72325
ANSWER: 51200
7. The lease of a restaurant terminates and the tenant wishes to move to another
location. Which of the following items can the tenant remove from the restaurant
as trade fixtures?
a. Sprinkler system
b. Radiators
c. Built-in dishwasher
d. Recessed ceiling lighting
ANSWER: Built-in dishwasher
8. A buyer's interest in real property, acquired at the moment the seller and the
buyer enter into a sales contract, is known as:
a. Legal title
b. Equitable title
c. Fee simple determinable
d. An option to purchase
ANSWER: Equitable title
9. K owns and operates a small restaurant in an area recently annexed by a
nearby city. As part of the annexation, the area was zoned for single-family
residence, but K is allowed to continue operating the restaurant under the city's
amended zoning ordinance. The allowance for K's continued operation is known
as:
a. Variance
