Real Estate Broker Licensing Exam (2026 Edition)
1. A broker lists a residential property. The seller discloses a previous methamphetamine contamination
that was professionally remediated. The broker must:
A) Disclose only if the buyer asks directly.
B) Disclose the contamination to all potential buyers regardless of remediation.
C) Withhold disclosure because remediation makes it safe.
D) Disclose only to licensed inspectors.
ANSWER: B
Rationale:
A – Incorrect. Passive disclosure only upon inquiry is insufficient in most states; material facts must be
proactively disclosed.
B – Correct. Even with remediation, prior meth contamination is a material fact affecting property value
and safety.
C – Incorrect. Remediation reduces risk but does not eliminate the duty to disclose historic
contamination.
D – Incorrect. Disclosure is owed to buyers, not just inspectors; inspectors are hired by buyers.
2. Under the 2026 updates to RESPA, a real estate broker may receive a referral fee from a title
company if:
A) The fee is disclosed to the buyer at closing.
B) The broker provides actual services for the fee.
C) The fee is a flat $500 or less.
D) The broker’s license allows ancillary services.
ANSWER: B
,Rationale:
A – Incorrect. Disclosure alone does not legalize a kickback; RESPA prohibits unearned fees.
B – Correct. RESPA allows fees for services actually performed (e.g., administrative work), not pure
referrals.
C – Incorrect. No dollar amount exemption for referral fees under RESPA.
D – Incorrect. License type does not override federal anti-kickback rules.
3. A broker’s escrow account must be reconciled:
A) Weekly.
B) Monthly.
C) Quarterly.
D) Only when a complaint is filed.
ANSWER: B
Rationale:
A – Incorrect. While good practice, weekly is not the standard regulatory requirement.
B – Correct. Most states require monthly reconciliation of escrow accounts.
C – Incorrect. Quarterly is too infrequent and risks undetected errors.
D – Incorrect. Reconciliation is a proactive duty, not reactive to complaints.
4. A commercial broker signs a tenant representation agreement. The tenant finds a space online
without the broker’s help and leases it. The broker is:
A) Entitled to commission if the agreement is exclusive.
B) Entitled to nothing because the tenant self-sourced.
C) Entitled only if the landlord agrees to pay.
D) Entitled to a reduced “procuring cause” fee.
ANSWER: A
Rationale:
,A – Correct. An exclusive representation agreement typically obligates the tenant to pay commission
regardless of who found the space.
B – Incorrect. Exclusive agreements override self-sourcing defense.
C – Incorrect. Landlord payment is irrelevant if tenant contractually owes commission.
D – Incorrect. “Procuring cause” applies to seller/listing agreements, not exclusive tenant rep.
5. A broker has a listing agreement expiring on June 30. On June 15, the seller signs an offer from Buyer
A, closing set for July 15. On July 10, the deal falls through. On July 20, Buyer B (who saw the property
during the listing term) submits an offer that the seller accepts. The broker:
A) Is entitled to commission from Buyer B’s sale due to the safety clause.
B) Is not entitled to commission because the listing expired.
C) Is entitled only if Buyer B was introduced after expiration.
D) Is entitled only if the seller extends the listing in writing.
ANSWER: A
Rationale:
A – Correct. Standard safety clauses protect broker’s commission for buyers introduced during listing
term, typically for 30–90 days post-expiration.
B – Incorrect. Safety clause extends commission rights beyond expiration.
C – Incorrect. Buyer B was introduced during the term, making safety clause applicable.
D – Incorrect. No written extension is needed if safety clause is in original listing.
6. A broker must deposit earnest money into an escrow account within:
A) 1 business day.
B) 3 business days.
C) End of next business day.
D) By closing.
ANSWER: C
Rationale:
, A – Incorrect. One day is stricter than most state requirements.
B – Incorrect. Three days is common for some states but not the fastest requirement.
C – Correct. Most states (and 2026 updates) require “next business day” deposit.
D – Incorrect. Holding until closing is a violation of trust account rules.
7. A broker represents both the buyer and seller in the same transaction with written consent. This is:
A) Dual agency, legal in all states.
B) Dual agency, illegal in some states.
C) Designated agency, required in all states.
D) Transaction brokerage, with no fiduciary duties.
ANSWER: B
Rationale:
A – Incorrect. Dual agency is illegal in states like Alaska, Colorado, Maryland, and Texas (as of 2026).
B – Correct. Many states allow with disclosure; others ban it entirely.
C – Incorrect. Designated agency is a separate model where different agents represent each party within
the same firm.
D – Incorrect. Transaction brokerage is a non-fiduciary role, not dual agency.
8. A buyer’s agent fails to disclose a known foundation crack. The buyer purchases and suffers $50,000
in damages. The agent:
A) Has no liability because the buyer should have inspected.
B) May be liable for negligence and misrepresentation.
C) Is protected by the “caveat emptor” doctrine.
D) Must split liability with the seller only.
ANSWER: B
Rationale:
A – Incorrect. Agent’s duty to disclose known material defects is not negated by buyer’s inspection
option.
1. A broker lists a residential property. The seller discloses a previous methamphetamine contamination
that was professionally remediated. The broker must:
A) Disclose only if the buyer asks directly.
B) Disclose the contamination to all potential buyers regardless of remediation.
C) Withhold disclosure because remediation makes it safe.
D) Disclose only to licensed inspectors.
ANSWER: B
Rationale:
A – Incorrect. Passive disclosure only upon inquiry is insufficient in most states; material facts must be
proactively disclosed.
B – Correct. Even with remediation, prior meth contamination is a material fact affecting property value
and safety.
C – Incorrect. Remediation reduces risk but does not eliminate the duty to disclose historic
contamination.
D – Incorrect. Disclosure is owed to buyers, not just inspectors; inspectors are hired by buyers.
2. Under the 2026 updates to RESPA, a real estate broker may receive a referral fee from a title
company if:
A) The fee is disclosed to the buyer at closing.
B) The broker provides actual services for the fee.
C) The fee is a flat $500 or less.
D) The broker’s license allows ancillary services.
ANSWER: B
,Rationale:
A – Incorrect. Disclosure alone does not legalize a kickback; RESPA prohibits unearned fees.
B – Correct. RESPA allows fees for services actually performed (e.g., administrative work), not pure
referrals.
C – Incorrect. No dollar amount exemption for referral fees under RESPA.
D – Incorrect. License type does not override federal anti-kickback rules.
3. A broker’s escrow account must be reconciled:
A) Weekly.
B) Monthly.
C) Quarterly.
D) Only when a complaint is filed.
ANSWER: B
Rationale:
A – Incorrect. While good practice, weekly is not the standard regulatory requirement.
B – Correct. Most states require monthly reconciliation of escrow accounts.
C – Incorrect. Quarterly is too infrequent and risks undetected errors.
D – Incorrect. Reconciliation is a proactive duty, not reactive to complaints.
4. A commercial broker signs a tenant representation agreement. The tenant finds a space online
without the broker’s help and leases it. The broker is:
A) Entitled to commission if the agreement is exclusive.
B) Entitled to nothing because the tenant self-sourced.
C) Entitled only if the landlord agrees to pay.
D) Entitled to a reduced “procuring cause” fee.
ANSWER: A
Rationale:
,A – Correct. An exclusive representation agreement typically obligates the tenant to pay commission
regardless of who found the space.
B – Incorrect. Exclusive agreements override self-sourcing defense.
C – Incorrect. Landlord payment is irrelevant if tenant contractually owes commission.
D – Incorrect. “Procuring cause” applies to seller/listing agreements, not exclusive tenant rep.
5. A broker has a listing agreement expiring on June 30. On June 15, the seller signs an offer from Buyer
A, closing set for July 15. On July 10, the deal falls through. On July 20, Buyer B (who saw the property
during the listing term) submits an offer that the seller accepts. The broker:
A) Is entitled to commission from Buyer B’s sale due to the safety clause.
B) Is not entitled to commission because the listing expired.
C) Is entitled only if Buyer B was introduced after expiration.
D) Is entitled only if the seller extends the listing in writing.
ANSWER: A
Rationale:
A – Correct. Standard safety clauses protect broker’s commission for buyers introduced during listing
term, typically for 30–90 days post-expiration.
B – Incorrect. Safety clause extends commission rights beyond expiration.
C – Incorrect. Buyer B was introduced during the term, making safety clause applicable.
D – Incorrect. No written extension is needed if safety clause is in original listing.
6. A broker must deposit earnest money into an escrow account within:
A) 1 business day.
B) 3 business days.
C) End of next business day.
D) By closing.
ANSWER: C
Rationale:
, A – Incorrect. One day is stricter than most state requirements.
B – Incorrect. Three days is common for some states but not the fastest requirement.
C – Correct. Most states (and 2026 updates) require “next business day” deposit.
D – Incorrect. Holding until closing is a violation of trust account rules.
7. A broker represents both the buyer and seller in the same transaction with written consent. This is:
A) Dual agency, legal in all states.
B) Dual agency, illegal in some states.
C) Designated agency, required in all states.
D) Transaction brokerage, with no fiduciary duties.
ANSWER: B
Rationale:
A – Incorrect. Dual agency is illegal in states like Alaska, Colorado, Maryland, and Texas (as of 2026).
B – Correct. Many states allow with disclosure; others ban it entirely.
C – Incorrect. Designated agency is a separate model where different agents represent each party within
the same firm.
D – Incorrect. Transaction brokerage is a non-fiduciary role, not dual agency.
8. A buyer’s agent fails to disclose a known foundation crack. The buyer purchases and suffers $50,000
in damages. The agent:
A) Has no liability because the buyer should have inspected.
B) May be liable for negligence and misrepresentation.
C) Is protected by the “caveat emptor” doctrine.
D) Must split liability with the seller only.
ANSWER: B
Rationale:
A – Incorrect. Agent’s duty to disclose known material defects is not negated by buyer’s inspection
option.
