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National Real Estate ACTUAL EXAM 2026/2027 | 100 + Q&A | Verified Q&A Pass Guaranteed - A+ Graded

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Pass your National Real Estate licensing exam with confidence using this complete actual exam for the 2026/2027 academic year. This verified resource contains over 100 questions with correct answers. Key topics include property ownership and land use, contracts and agency relationships, real estate finance and mortgages, fair housing and disclosure laws, and valuation and appraisal methods. Each answer is clearly presented for reliable study. Backed by our Pass Guarantee. Download now.

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Institution
National Real Estate
Course
National Real Estate

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National Real Estate ACTUAL EXAM
2026/2027 | 100 + Q&A | Verified Q&A
Pass Guaranteed - A+ Graded

Section 1: Property Ownership & Land Use Controls (Questions 1–20)



Q1: A property owner conveys land "to my son for life, then to my granddaughter in fee simple." What
type of estate does the son receive?

A. Fee simple absolute
B. Fee simple determinable
C. Life estate [CORRECT]
D. Estate for years

Correct Answer: C
Rationale: A life estate grants ownership for the duration of a person's life, with a remainder interest
passing to a designated remainderman upon death. The son holds a life estate; the granddaughter holds
a vested remainder in fee simple.



Q2: Two friends purchase a vacation home together. The deed states they hold as "tenants in common
with equal undivided interests." If one friend dies, what happens to their interest?

A. It automatically passes to the surviving friend
B. It passes to the deceased friend's heirs or devisees [CORRECT]
C. It escheats to the state
D. It is divided equally among both friends' families

Correct Answer: B
Rationale: Tenancy in common lacks the right of survivorship; each tenant's interest is inheritable and
passes according to their will or intestate succession. The deceased friend's heirs or devisees receive the
interest, not the surviving co-tenant automatically.

,Q3: A married couple in a community property state purchases a home. Which form of concurrent
ownership is presumed if the deed does not specify?

A. Tenancy in common
B. Joint tenancy
C. Community property [CORRECT]
D. Tenancy by the entirety

Correct Answer: C
Rationale: In community property states, property acquired during marriage is presumed to be
community property owned equally by both spouses. This differs from common law states where
tenancy in common or joint tenancy may apply depending on the deed language.



Q4: A property is subject to a mortgage lien, a mechanic's lien, and a property tax lien. Which lien has
first priority?

A. The mortgage lien, as it was recorded first
B. The mechanic's lien, as it represents labor and materials
C. The property tax lien [CORRECT]
D. All liens share equal priority

Correct Answer: C
Rationale: Property tax liens take absolute priority over all other liens regardless of recording date. Real
property tax liens are statutory super-priorities that supersede even prior-recorded mortgages in the
event of foreclosure.



Q5: A homeowner builds a fence that extends two feet onto a neighbor's property. What is this
encroachment called?

A. An easement
B. A license
C. An encroachment [CORRECT]
D. A deed restriction

Correct Answer: C
Rationale: An encroachment is an unauthorized physical intrusion of one property onto another, such as
a fence, building, or driveway extending beyond property boundaries. Unlike easements,
encroachments are not legal rights and may be removed by court order.

, Q6: Which government power allows states and municipalities to regulate land use for public health,
safety, and welfare?

A. Eminent domain
B. Police power [CORRECT]
C. Taxation
D. Escheat

Correct Answer: B
Rationale: Police power is the inherent government authority to regulate private conduct and property
use to protect public health, safety, morals, and general welfare. Zoning ordinances, building codes, and
environmental regulations are exercises of police power.



Q7: A city takes private property to build a public park, paying the owner fair market value. Which
government power is being exercised?

A. Police power
B. Eminent domain [CORRECT]
C. Taxation
D. Escheat

Correct Answer: B
Rationale: Eminent domain is the government's constitutional power to take private property for public
use with just compensation under the Fifth Amendment. The owner is entitled to fair market value, and
the taking must serve a legitimate public purpose.



Q8: A property owner fails to pay property taxes for several years. The county sells the property to
recover the debt. Which government power is this?

A. Eminent domain
B. Taxation and tax foreclosure [CORRECT]
C. Police power
D. Escheat

Correct Answer: B
Rationale: Taxation includes the government's power to levy and collect property taxes, with tax
foreclosure as the enforcement mechanism for non-payment. Tax liens and foreclosure sales are
statutory remedies that do not require eminent domain proceedings.



Q9: A person dies without a will and has no heirs. What happens to their real property?

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