National Real Estate Salesperson Practice Exam – 171
Most Tested Questions & Answers | Latest Update 2026 |
100% Pass Guarantee | Exam Prep
1. What is the term used for a loan where the monthly payments cover both
principal and interest?
Adjustable-rate mortgage
Interest-only loan
Balloon loan
Fully amortized loan
2. If the seller sold the house on April 1 and the buyer is responsible for
property taxes from that date forward, how much credit will the seller receive
for property taxes already paid?
$570
$950
$760
$380
3. What is the typical method for establishing an agency relationship between a
property owner and a property manager?
Through a written agreement
By implied actions
Through a handshake
By verbal consent
,4. If a real estate agency fails to display the equal housing opportunity notice,
what potential consequences could they face?
They would be required to display the notice in a different location.
They could face legal penalties and damage to their reputation.
They would receive a warning but no penalties.
There would be no consequences as it is not a legal requirement.
5. If a property owner wishes to terminate the agency relationship with their
property manager, what is the most appropriate course of action?
Notify the property manager verbally without any documentation.
Wait for the property manager to initiate the termination.
Stop communicating with the property manager.
Refer to the terms outlined in the written agreement.
6. The typical term of coverage for a home warranty is:
two years
five years
ten years
one year
7. Describe the significance of a written agreement in forming an agency
relationship between a property owner and a property manager.
A written agreement can be replaced by a simple email exchange.
A written agreement only serves as a formality without legal
implications.
, A written agreement is not necessary if both parties agree verbally.
A written agreement clearly outlines the responsibilities and
expectations of both parties.
8. The policyholder of a California standard policy of title insurance is insured
against a loss that may occur due to:
Non recorded liens and encumbrances
The right of the parties who have possession
Defects and deficiencies known by the insured before an insurance
policy is issued
Forgery in the chain of title
9. If a homeowner hires a real estate agent to sell their property, what type of
agency relationship is typically formed, and what implications does this have
for the agent's authority?
Implied agency
Special agency
Universal agency
General agency
10. A salesperson qualified a minority couple with two children and defined their
price range as between $110,000 and $120,000 for the three-bedroom house
they wanted. They asked to look at two listings in a nonminority
neighborhood. The salesperson did not show them the properties because
they were priced under $90,000 and had only two small bedrooms. Did the
salesperson act appropriately and why or why not?
Yes, because they were overqualified for the homes they had
requested to see.
, No, because it is appropriate to show any property for which the
buyer is qualified.
No, because the presence of children requires granting occupancy if
they desire it.
Yes, because it is the salesperson's job to tailor the properties shown
to the needs of the buyer.
11. In case of breach by the buyer, most real estate sale contracts include a
provision that the earnest money be regarded as
liquidated damages to the seller
unliquidated damages to the seller
unliquidated damages in escrow
liquidated damages to the broker
12. Describe the significance of the seller's acceptance of an offer in relation to
a broker's commission.
The seller's acceptance of an offer means the property is officially
listed.
The seller's acceptance of an offer signifies that the broker has
fulfilled their obligation to find a buyer, thus earning their
commission.
The seller's acceptance of an offer indicates the buyer is now
responsible for the commission.
The seller's acceptance of an offer is irrelevant to the broker's
commission.
13. What is the purpose of a seller's statement in a property disclosure
document?
Most Tested Questions & Answers | Latest Update 2026 |
100% Pass Guarantee | Exam Prep
1. What is the term used for a loan where the monthly payments cover both
principal and interest?
Adjustable-rate mortgage
Interest-only loan
Balloon loan
Fully amortized loan
2. If the seller sold the house on April 1 and the buyer is responsible for
property taxes from that date forward, how much credit will the seller receive
for property taxes already paid?
$570
$950
$760
$380
3. What is the typical method for establishing an agency relationship between a
property owner and a property manager?
Through a written agreement
By implied actions
Through a handshake
By verbal consent
,4. If a real estate agency fails to display the equal housing opportunity notice,
what potential consequences could they face?
They would be required to display the notice in a different location.
They could face legal penalties and damage to their reputation.
They would receive a warning but no penalties.
There would be no consequences as it is not a legal requirement.
5. If a property owner wishes to terminate the agency relationship with their
property manager, what is the most appropriate course of action?
Notify the property manager verbally without any documentation.
Wait for the property manager to initiate the termination.
Stop communicating with the property manager.
Refer to the terms outlined in the written agreement.
6. The typical term of coverage for a home warranty is:
two years
five years
ten years
one year
7. Describe the significance of a written agreement in forming an agency
relationship between a property owner and a property manager.
A written agreement can be replaced by a simple email exchange.
A written agreement only serves as a formality without legal
implications.
, A written agreement is not necessary if both parties agree verbally.
A written agreement clearly outlines the responsibilities and
expectations of both parties.
8. The policyholder of a California standard policy of title insurance is insured
against a loss that may occur due to:
Non recorded liens and encumbrances
The right of the parties who have possession
Defects and deficiencies known by the insured before an insurance
policy is issued
Forgery in the chain of title
9. If a homeowner hires a real estate agent to sell their property, what type of
agency relationship is typically formed, and what implications does this have
for the agent's authority?
Implied agency
Special agency
Universal agency
General agency
10. A salesperson qualified a minority couple with two children and defined their
price range as between $110,000 and $120,000 for the three-bedroom house
they wanted. They asked to look at two listings in a nonminority
neighborhood. The salesperson did not show them the properties because
they were priced under $90,000 and had only two small bedrooms. Did the
salesperson act appropriately and why or why not?
Yes, because they were overqualified for the homes they had
requested to see.
, No, because it is appropriate to show any property for which the
buyer is qualified.
No, because the presence of children requires granting occupancy if
they desire it.
Yes, because it is the salesperson's job to tailor the properties shown
to the needs of the buyer.
11. In case of breach by the buyer, most real estate sale contracts include a
provision that the earnest money be regarded as
liquidated damages to the seller
unliquidated damages to the seller
unliquidated damages in escrow
liquidated damages to the broker
12. Describe the significance of the seller's acceptance of an offer in relation to
a broker's commission.
The seller's acceptance of an offer means the property is officially
listed.
The seller's acceptance of an offer signifies that the broker has
fulfilled their obligation to find a buyer, thus earning their
commission.
The seller's acceptance of an offer indicates the buyer is now
responsible for the commission.
The seller's acceptance of an offer is irrelevant to the broker's
commission.
13. What is the purpose of a seller's statement in a property disclosure
document?
