National Real Estate Exam
Practice Questions and answers
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
An appraiser is using the Market Data Approach to determine the value of a residential property. What
is FALSE? - Answer His comparable should not be more than one year old
What expenses of home ownership can a buyer deduct on his income taxes? - Answer taxes and interest
on his mortgage
Mark has an option to purchase Bob's property. The option expires at the end of the month and Mark
would like to extend the option. What would he need to do? - Answer pay an additional option fee
A buyer has signed an agreement to purchase a property from a seller. He has met all the terms and
conditions of the listing. The listing broker has taken the agreement to the seller. The seller has changed
,his mind about selling and refuses to sign the agreement. What is true? - Answer The seller does not
have sell, but he owes the listing broker a commission
Mark has an Open Listing on a seller's property. He had shown the property three times to the same
potential buyers. Each time, he notified the sellers of the showing by phone. He heard from the sellers
that he should no longer show the property as it was sold. Several weeks later, he learned that it was
sold to the buyers he brought to the property. What are Mark's rights with respect to a commission
from the sellers? - Answer Mark is not entitled to any commission as he did not bring the offer to the
sellers
The best description of a counteroffer is - Answer a rejection of an offer
Which of the following contracts would be voidable? - Answer A contract with a minor
A buyer and his agent visit a listed property. The buyer loves the property and wants to purchase it. He
speaks with the seller, who is at home at the time, and they come to an agreement regarding price and
terms. They shake hands on the agreement and the buyer happily leaves the property. His agent should:
- Answer Warn the buyer that the verbal sales contract is unenforceable
Which of the following terms is used to describe a situation where a buyer and seller agree to terminate
a contract? - Answer Mutual recession
A seller's property is listed for $399,900. A buyer makes an offer for $389,000. The seller counter offers
for $392,500. The buyers have not responded to the counteroffer. The sellers receive another offered
for $395,000. They would like to accept this new offer. What is true - Answer They can accept the new
offer, but only after withdrawing their counteroffer
A broker owes customers - Answer honesty and fairness
What are an agents duties to his principal? - Answer Reasonable care, obedience, loyalty, disclosure,
accounting and confidentiality
An agent has acted without authority to do so. His principal has found out about the actions and
accepted them. What kind of agency does this describe? - Answer agency by ratification
, Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent he must
disclose all of the following except: - Answer his buyer's ability to make a higher offer
A broker has written permission to represent both the seller and the buyer as a dual agent. Under these
circumstances, which of the duties of the agent would be the easiest for him to fulfill? - Answer
Accounting
A property at 123 Main street has been listed by Mary, a sales license holder at ABC Realty for several
weeks. Last week, Mary died. What effect will Mary's death have on the Listing Agreement? - Answer
None
Which of the following is not a duty of an agent? - Answer (OLD CAR) Trust
A signed employment agreement is necessary to... - Answer sue for commission
A listing agent would probably not disclose - Answer death on the property due to natural causes
Which of the following deaths on the property should never be disclosed? - Answer Death due to
HIV/AIDS
Which of the following properties would be the least desirable neighbor? - Answer Brownfields
How long must a seller or landlord keep a copy of the lead paint disclosure? - Answer 3 years
All of the following are hazardous substances that a license holder should be aware of except - Answer
Acrylic paint
Which of the following is the best example of puffing - Answer I think this is the best floor plan available
from this builder
Practice Questions and answers
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
An appraiser is using the Market Data Approach to determine the value of a residential property. What
is FALSE? - Answer His comparable should not be more than one year old
What expenses of home ownership can a buyer deduct on his income taxes? - Answer taxes and interest
on his mortgage
Mark has an option to purchase Bob's property. The option expires at the end of the month and Mark
would like to extend the option. What would he need to do? - Answer pay an additional option fee
A buyer has signed an agreement to purchase a property from a seller. He has met all the terms and
conditions of the listing. The listing broker has taken the agreement to the seller. The seller has changed
,his mind about selling and refuses to sign the agreement. What is true? - Answer The seller does not
have sell, but he owes the listing broker a commission
Mark has an Open Listing on a seller's property. He had shown the property three times to the same
potential buyers. Each time, he notified the sellers of the showing by phone. He heard from the sellers
that he should no longer show the property as it was sold. Several weeks later, he learned that it was
sold to the buyers he brought to the property. What are Mark's rights with respect to a commission
from the sellers? - Answer Mark is not entitled to any commission as he did not bring the offer to the
sellers
The best description of a counteroffer is - Answer a rejection of an offer
Which of the following contracts would be voidable? - Answer A contract with a minor
A buyer and his agent visit a listed property. The buyer loves the property and wants to purchase it. He
speaks with the seller, who is at home at the time, and they come to an agreement regarding price and
terms. They shake hands on the agreement and the buyer happily leaves the property. His agent should:
- Answer Warn the buyer that the verbal sales contract is unenforceable
Which of the following terms is used to describe a situation where a buyer and seller agree to terminate
a contract? - Answer Mutual recession
A seller's property is listed for $399,900. A buyer makes an offer for $389,000. The seller counter offers
for $392,500. The buyers have not responded to the counteroffer. The sellers receive another offered
for $395,000. They would like to accept this new offer. What is true - Answer They can accept the new
offer, but only after withdrawing their counteroffer
A broker owes customers - Answer honesty and fairness
What are an agents duties to his principal? - Answer Reasonable care, obedience, loyalty, disclosure,
accounting and confidentiality
An agent has acted without authority to do so. His principal has found out about the actions and
accepted them. What kind of agency does this describe? - Answer agency by ratification
, Broker B has signed a Buyer Representation Agreement with his clients. As a Buyer's agent he must
disclose all of the following except: - Answer his buyer's ability to make a higher offer
A broker has written permission to represent both the seller and the buyer as a dual agent. Under these
circumstances, which of the duties of the agent would be the easiest for him to fulfill? - Answer
Accounting
A property at 123 Main street has been listed by Mary, a sales license holder at ABC Realty for several
weeks. Last week, Mary died. What effect will Mary's death have on the Listing Agreement? - Answer
None
Which of the following is not a duty of an agent? - Answer (OLD CAR) Trust
A signed employment agreement is necessary to... - Answer sue for commission
A listing agent would probably not disclose - Answer death on the property due to natural causes
Which of the following deaths on the property should never be disclosed? - Answer Death due to
HIV/AIDS
Which of the following properties would be the least desirable neighbor? - Answer Brownfields
How long must a seller or landlord keep a copy of the lead paint disclosure? - Answer 3 years
All of the following are hazardous substances that a license holder should be aware of except - Answer
Acrylic paint
Which of the following is the best example of puffing - Answer I think this is the best floor plan available
from this builder
