NATIONAL REAL ESTATE EXAM PRACTICE QUESTIONS WITH ANSWERS (2022
NEW GRADED A) EXAM SOLUTION
A property owner has decided to do some landscaping work on his yard. He has planted a tree
surrounded by some flowering shrubs. The tree and shrubs are an example of... - improvements
A property owner has a waterfront lot on a stream. He has the right to use the water from the
stream. What is this right called? - riparian
A tenant is aware that his lease will expire at the end of the month. He has begun to
disassemble his display cabinets and shelves. Which of the following statements about this is
true - the tenant can take these as they are trade fixtures
A seller is attending the closing on his property. The title company has discovered an unsatisfied
M&M lien on the property. Which of the following is the most likely reason for the lien? -
plumbing work that was completed but never paid for
A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the
listing agent that his neighbor's satellite dish trespasses on his property. This is an example of...
- encroachment
A father gives his son a life estate on a property. The son leases the property. The tenant dies.
What happens to the property? - it goes back to the son until he dies
A man leaves his second wife a life estate in their home after which the property goes to his
children from his first marriage. The children... - are remaindermen
Which of the following statements about an easement is true? - an easement is a benefit to the
dominant property owner
P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P do? -
file a suit for partition
A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D
have? - tenants in common
Under what right can the government change property use from commercial to residential
only? - police power
Ownership of the common areas of condominiums is most likely to be: - tenancy in common
What should a buyer do to ensure that his is getting the best title to real property? - get a
general warranty deed
,Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any
claims on the property? - the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to... - the borrower
After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the
foreclosure sale. This is called: - right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of... - a buffer zone
A couple purchased a condominium. The complex has an exercise room for all residents. The
couple does not use the exercise room and does not want to pay the monthly fee for the use of
the facility. What can they do to avoid this fee? - they must pay the fee as they have a tenancy
in common interest in all common areas
Which of the following is personal property? - a lease
A landlord leased space in his new retail property to an inexperienced business person. Based
on location and the type of business, the landlord believes it will be a great success. What type
of lease can he enter into with the tenant that will allow the landlord to benefit from the
tenant's success? - a percentage lease
A buyer has purchased a property and after closing the seller will continue to occupy the
property. This is an example of... - sale and leaseback
Your client will be able to qualify for a property they wish to purchase in about 6 months, after
they had an opportunity to reduce their consumer debt. They have found a property that they
would like to purchase now. What type of agreement can they enter into with a seller that will
allow them to occupy the property now and purchase it within the 6 months? - lease with an
option to buy
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
heirs inherit the property. They give the tenants notice to vacate. What is true? - the tenants
can stay until the end of the lease
A developer decides to build a commercial property in the middle of a residential subdivision.
What is required? - a variance
A zoning ordinance would affect which of the following? - the concentration of housing in a
residential area
If a person dies without a will, who receives their estate? - spouse and children
, What are the requirements/ criteria for real estate to have values? - demand, utility, scarcity,
transferability
What principle of value defines the most important factor for appraisal? - highest and best use
What approach would an appraiser most likely use to value a residential rent house in
neighborhood where a majority of the homes are leased? - income approach
A licensed broker is advertising that he will perform a free appraisal if you contact him for a
listing appointment. He is not in violation of the law... - if he is a licensed appraiser
Which of the following is NOT an example of functional obsolescence? - deferred maintenance
According to the Statute of Frauds, which of the following leases must be in writing? - a lease
for more than one year
Your client is an investor who would like to have the right to purchase a commercial tract for $5
million for the next 6 months. What type of contract should he enter into with the seller? - an
option contract
A signed sales contract that has not yet gone to closing is... - executory
When does an offer become a contract? - When the offeree gives the offeror notice of the
acceptance
Which of the following statements is true about the duties of an agent according to the
common law of agency? - an agent must treat both clients and customers with honesty and
fairness
A property manager is hired and signs a management agreement with the owner. At this time,
the property manager is... - a general agent
A buyer and seller have negotiated a contract on the seller's property with a closing set for June
14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him
the seller will be unable to close on the 14th. The seller can close on the 16th. At this time,
what is true? - the contract is voidable by the buyer
A licensee is representing a seller in a commercial transaction. The property is under contract
and all contingencies have been met. The listing agent learns the State Department of
Transportation has authorized the construction of an exit ramp to the interstate right behind
the commercial property. The exit ramp will greatly increase the value of the seller's property.
What should the agent do? - tell the seller and encourage the seller to complete the negotiated
sale
NEW GRADED A) EXAM SOLUTION
A property owner has decided to do some landscaping work on his yard. He has planted a tree
surrounded by some flowering shrubs. The tree and shrubs are an example of... - improvements
A property owner has a waterfront lot on a stream. He has the right to use the water from the
stream. What is this right called? - riparian
A tenant is aware that his lease will expire at the end of the month. He has begun to
disassemble his display cabinets and shelves. Which of the following statements about this is
true - the tenant can take these as they are trade fixtures
A seller is attending the closing on his property. The title company has discovered an unsatisfied
M&M lien on the property. Which of the following is the most likely reason for the lien? -
plumbing work that was completed but never paid for
A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the
listing agent that his neighbor's satellite dish trespasses on his property. This is an example of...
- encroachment
A father gives his son a life estate on a property. The son leases the property. The tenant dies.
What happens to the property? - it goes back to the son until he dies
A man leaves his second wife a life estate in their home after which the property goes to his
children from his first marriage. The children... - are remaindermen
Which of the following statements about an easement is true? - an easement is a benefit to the
dominant property owner
P, Q and R are joint tenants. P wants to sell the property, but Q and R do not. What can P do? -
file a suit for partition
A, B and C are joint tenants. C dies. B sells his share to D. What type of ownership do A and D
have? - tenants in common
Under what right can the government change property use from commercial to residential
only? - police power
Ownership of the common areas of condominiums is most likely to be: - tenancy in common
What should a buyer do to ensure that his is getting the best title to real property? - get a
general warranty deed
,Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any
claims on the property? - the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to... - the borrower
After defaulting on a real estate loan, a borrower is able to pay off the loan prior to the
foreclosure sale. This is called: - right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of... - a buffer zone
A couple purchased a condominium. The complex has an exercise room for all residents. The
couple does not use the exercise room and does not want to pay the monthly fee for the use of
the facility. What can they do to avoid this fee? - they must pay the fee as they have a tenancy
in common interest in all common areas
Which of the following is personal property? - a lease
A landlord leased space in his new retail property to an inexperienced business person. Based
on location and the type of business, the landlord believes it will be a great success. What type
of lease can he enter into with the tenant that will allow the landlord to benefit from the
tenant's success? - a percentage lease
A buyer has purchased a property and after closing the seller will continue to occupy the
property. This is an example of... - sale and leaseback
Your client will be able to qualify for a property they wish to purchase in about 6 months, after
they had an opportunity to reduce their consumer debt. They have found a property that they
would like to purchase now. What type of agreement can they enter into with a seller that will
allow them to occupy the property now and purchase it within the 6 months? - lease with an
option to buy
Tenants have signed a 3 year lease on a property. In the second year the owner dies and his
heirs inherit the property. They give the tenants notice to vacate. What is true? - the tenants
can stay until the end of the lease
A developer decides to build a commercial property in the middle of a residential subdivision.
What is required? - a variance
A zoning ordinance would affect which of the following? - the concentration of housing in a
residential area
If a person dies without a will, who receives their estate? - spouse and children
, What are the requirements/ criteria for real estate to have values? - demand, utility, scarcity,
transferability
What principle of value defines the most important factor for appraisal? - highest and best use
What approach would an appraiser most likely use to value a residential rent house in
neighborhood where a majority of the homes are leased? - income approach
A licensed broker is advertising that he will perform a free appraisal if you contact him for a
listing appointment. He is not in violation of the law... - if he is a licensed appraiser
Which of the following is NOT an example of functional obsolescence? - deferred maintenance
According to the Statute of Frauds, which of the following leases must be in writing? - a lease
for more than one year
Your client is an investor who would like to have the right to purchase a commercial tract for $5
million for the next 6 months. What type of contract should he enter into with the seller? - an
option contract
A signed sales contract that has not yet gone to closing is... - executory
When does an offer become a contract? - When the offeree gives the offeror notice of the
acceptance
Which of the following statements is true about the duties of an agent according to the
common law of agency? - an agent must treat both clients and customers with honesty and
fairness
A property manager is hired and signs a management agreement with the owner. At this time,
the property manager is... - a general agent
A buyer and seller have negotiated a contract on the seller's property with a closing set for June
14th, time is of the essence. On June 12th the listing agent calls the buyer's agent and tells him
the seller will be unable to close on the 14th. The seller can close on the 16th. At this time,
what is true? - the contract is voidable by the buyer
A licensee is representing a seller in a commercial transaction. The property is under contract
and all contingencies have been met. The listing agent learns the State Department of
Transportation has authorized the construction of an exit ramp to the interstate right behind
the commercial property. The exit ramp will greatly increase the value of the seller's property.
What should the agent do? - tell the seller and encourage the seller to complete the negotiated
sale
