National Real Estate Exam Practice
Questions
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... -
Answer 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? - Answer 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 - Answer 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? - Answer 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... - Answer 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? - Answer 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... - Answer are remaindermen
Which of the following statements about an easement is true? - Answer 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? - Answer 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? - Answer tenants in common
Under what right can the government change property use from commercial to
residential only? - Answer police power
Ownership of the common areas of condominiums is most likely to be: - Answer
tenancy in common
What should a buyer do to ensure that his is getting the best title to real property? -
Answer get a general warranty deed
,National Real Estate Exam Practice
Questions
Which covenant in a deed guarantees that the owners will not suffer or be disturbed by
any claims on the property? - Answer the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to... - Answer 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: - Answer right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of... - Answer 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? - Answer they
must pay the fee as they have a tenancy in common interest in all common areas
Which of the following is personal property? - Answer 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? - Answer 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... - Answer 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? - Answer 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? -
Answer 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? - Answer a variance
A zoning ordinance would affect which of the following? - Answer the concentration of
housing in a residential area
If a person dies without a will, who receives their estate? - Answer spouse and children
, National Real Estate Exam Practice
Questions
What are the requirements/ criteria for real estate to have values? - Answer demand,
utility, scarcity, transferability
What principle of value defines the most important factor for appraisal? - Answer
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? - Answer 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... - Answer if he is a licensed
appraiser
Which of the following is NOT an example of functional obsolescence? - Answer
deferred maintenance
According to the Statute of Frauds, which of the following leases must be in writing? -
Answer 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? - Answer an option contract
A signed sales contract that has not yet gone to closing is... - Answer executory
When does an offer become a contract? - Answer 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? - Answer 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... - Answer 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? - Answer 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
Questions
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... -
Answer 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? - Answer 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 - Answer 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? - Answer 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... - Answer 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? - Answer 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... - Answer are remaindermen
Which of the following statements about an easement is true? - Answer 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? - Answer 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? - Answer tenants in common
Under what right can the government change property use from commercial to
residential only? - Answer police power
Ownership of the common areas of condominiums is most likely to be: - Answer
tenancy in common
What should a buyer do to ensure that his is getting the best title to real property? -
Answer get a general warranty deed
,National Real Estate Exam Practice
Questions
Which covenant in a deed guarantees that the owners will not suffer or be disturbed by
any claims on the property? - Answer the covenant of quiet enjoyment
Excess money at a foreclosure sale goes to... - Answer 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: - Answer right of redemption
The required distance between buildings and a federally protected endangered species
wetlands is an example of... - Answer 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? - Answer they
must pay the fee as they have a tenancy in common interest in all common areas
Which of the following is personal property? - Answer 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? - Answer 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... - Answer 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? - Answer 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? -
Answer 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? - Answer a variance
A zoning ordinance would affect which of the following? - Answer the concentration of
housing in a residential area
If a person dies without a will, who receives their estate? - Answer spouse and children
, National Real Estate Exam Practice
Questions
What are the requirements/ criteria for real estate to have values? - Answer demand,
utility, scarcity, transferability
What principle of value defines the most important factor for appraisal? - Answer
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? - Answer 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... - Answer if he is a licensed
appraiser
Which of the following is NOT an example of functional obsolescence? - Answer
deferred maintenance
According to the Statute of Frauds, which of the following leases must be in writing? -
Answer 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? - Answer an option contract
A signed sales contract that has not yet gone to closing is... - Answer executory
When does an offer become a contract? - Answer 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? - Answer 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... - Answer 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? - Answer 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
