Real Estate Practice Exam Questions
and Answers | Latest Version |
2025/2026 | Correct & Verified
What type of property includes land and anything permanently attached to it?
✔✔Real property
What is the process of determining a property's market value for a loan or sale?
✔✔Appraisal
What is the legal right to use someone else’s land for a specific purpose called?
✔✔Easement
What type of listing allows a seller to hire multiple brokers but pay commission only to the one
who sells the property?
✔✔Open listing
What is the amount of money a borrower must pay upfront to obtain a mortgage?
✔✔Down payment
What is the document that pledges real estate as security for a loan?
✔✔Mortgage
1
,What is the practice of charging higher interest rates to minority groups called?
✔✔Redlining
What type of tenancy is for an indefinite period until either party gives notice?
✔✔Tenancy at will
What is the written promise in a lease guaranteeing certain conditions?
✔✔Warranty
What is the process of settling a real estate dispute outside of court?
✔✔Mediation
What is the legal process for a lender to recover a property after the borrower defaults on a
mortgage?
✔✔Foreclosure
What type of agent represents only the seller in a transaction?
✔✔Seller’s agent
What is the practice of inflating property value through false appraisals called?
✔✔Property flipping fraud
2
,What is the document that outlines the terms of a property sale?
✔✔Purchase agreement
What is the term for the transfer of real estate from one person to another?
✔✔Conveyance
What is the legal principle that real estate cannot be easily replaced or moved?
✔✔Immobility
What type of property ownership allows multiple people to hold equal shares without the right of
survivorship?
✔✔Tenancy in common
What type of property ownership automatically passes to surviving owners?
✔✔Joint tenancy
What is the federal law that prohibits discrimination in housing based on race, color, religion,
sex, or national origin?
✔✔Fair Housing Act
What is the process of estimating value by comparing similar recently sold properties?
✔✔Comparative market analysis (CMA)
3
, What type of mortgage has a fixed interest rate for the life of the loan?
✔✔Fixed-rate mortgage
What type of mortgage allows the interest rate to change periodically?
✔✔Adjustable-rate mortgage (ARM)
What is a lien that gives the government the right to take property for unpaid taxes?
✔✔Tax lien
What is the term for a loan that is not backed by collateral?
✔✔Unsecured loan
What is a property survey used for?
✔✔To establish boundaries and easements
What is the term for a clause that allows a lender to call the full loan due if the property is sold?
✔✔Due-on-sale clause
What type of deed offers the greatest protection to the buyer?
✔✔General warranty deed
4
and Answers | Latest Version |
2025/2026 | Correct & Verified
What type of property includes land and anything permanently attached to it?
✔✔Real property
What is the process of determining a property's market value for a loan or sale?
✔✔Appraisal
What is the legal right to use someone else’s land for a specific purpose called?
✔✔Easement
What type of listing allows a seller to hire multiple brokers but pay commission only to the one
who sells the property?
✔✔Open listing
What is the amount of money a borrower must pay upfront to obtain a mortgage?
✔✔Down payment
What is the document that pledges real estate as security for a loan?
✔✔Mortgage
1
,What is the practice of charging higher interest rates to minority groups called?
✔✔Redlining
What type of tenancy is for an indefinite period until either party gives notice?
✔✔Tenancy at will
What is the written promise in a lease guaranteeing certain conditions?
✔✔Warranty
What is the process of settling a real estate dispute outside of court?
✔✔Mediation
What is the legal process for a lender to recover a property after the borrower defaults on a
mortgage?
✔✔Foreclosure
What type of agent represents only the seller in a transaction?
✔✔Seller’s agent
What is the practice of inflating property value through false appraisals called?
✔✔Property flipping fraud
2
,What is the document that outlines the terms of a property sale?
✔✔Purchase agreement
What is the term for the transfer of real estate from one person to another?
✔✔Conveyance
What is the legal principle that real estate cannot be easily replaced or moved?
✔✔Immobility
What type of property ownership allows multiple people to hold equal shares without the right of
survivorship?
✔✔Tenancy in common
What type of property ownership automatically passes to surviving owners?
✔✔Joint tenancy
What is the federal law that prohibits discrimination in housing based on race, color, religion,
sex, or national origin?
✔✔Fair Housing Act
What is the process of estimating value by comparing similar recently sold properties?
✔✔Comparative market analysis (CMA)
3
, What type of mortgage has a fixed interest rate for the life of the loan?
✔✔Fixed-rate mortgage
What type of mortgage allows the interest rate to change periodically?
✔✔Adjustable-rate mortgage (ARM)
What is a lien that gives the government the right to take property for unpaid taxes?
✔✔Tax lien
What is the term for a loan that is not backed by collateral?
✔✔Unsecured loan
What is a property survey used for?
✔✔To establish boundaries and easements
What is the term for a clause that allows a lender to call the full loan due if the property is sold?
✔✔Due-on-sale clause
What type of deed offers the greatest protection to the buyer?
✔✔General warranty deed
4
