NMLS Practice Test Hard Questions / Complete Accurate
Exam Questions with Detailed, Verified Answers / Newest
2025
1. Which of the following is considered real property?
A. Patio furniture
B. A built-in dishwasher ✅
C. A refrigerator
D. A freestanding microwave
2. What type of tenancy allows two or more people to hold an undivided interest in property with the
right of survivorship?
A. Tenancy in common
B. Joint tenancy ✅
C. Estate for years
D. Tenancy at sufferance
3. Which deed provides the most protection to the buyer?
A. Quitclaim deed
B. Special warranty deed
C. General warranty deed ✅
D. Bargain and sale deed
4. Which legal description method uses townships and ranges?
A. Metes and bounds
B. Lot and block
C. Rectangular (government) survey ✅
D. Informal reference
5. What is the primary purpose of a deed?
A. To secure a loan
B. To provide a lien on a property
C. To transfer title ✅
D. To record ownership
, 6. The process of estimating a property's market value based on recent sales of similar properties is:
A. The cost approach
B. The income approach
C. The market data approach ✅
D. The capitalization approach
7. A broker who mixes a client’s earnest money with personal funds is guilty of:
A. Conversion
B. Fraud
C. Commingling ✅
D. Misrepresentation
8. Which type of lease requires the tenant to pay some or all of the property expenses in addition to
rent?
A. Gross lease
B. Percentage lease
C. Net lease ✅
D. Ground lease
9. Which of the following is an example of functional obsolescence?
A. Peeling paint
B. No central heating system ✅
C. A property next to a factory
D. Broken window
10. A written agreement that creates an agency relationship between a buyer and broker is a:
A. Listing agreement
B. Lease agreement
C. Buyer representation agreement ✅
D. Purchase contract
11. When must the earnest money deposit be deposited into a trust account?
A. Immediately upon receiving the offer
B. Within 48 hours of contract acceptance
C. According to state law or within a specified period, typically within 3 business days ✅
D. At closing
Exam Questions with Detailed, Verified Answers / Newest
2025
1. Which of the following is considered real property?
A. Patio furniture
B. A built-in dishwasher ✅
C. A refrigerator
D. A freestanding microwave
2. What type of tenancy allows two or more people to hold an undivided interest in property with the
right of survivorship?
A. Tenancy in common
B. Joint tenancy ✅
C. Estate for years
D. Tenancy at sufferance
3. Which deed provides the most protection to the buyer?
A. Quitclaim deed
B. Special warranty deed
C. General warranty deed ✅
D. Bargain and sale deed
4. Which legal description method uses townships and ranges?
A. Metes and bounds
B. Lot and block
C. Rectangular (government) survey ✅
D. Informal reference
5. What is the primary purpose of a deed?
A. To secure a loan
B. To provide a lien on a property
C. To transfer title ✅
D. To record ownership
, 6. The process of estimating a property's market value based on recent sales of similar properties is:
A. The cost approach
B. The income approach
C. The market data approach ✅
D. The capitalization approach
7. A broker who mixes a client’s earnest money with personal funds is guilty of:
A. Conversion
B. Fraud
C. Commingling ✅
D. Misrepresentation
8. Which type of lease requires the tenant to pay some or all of the property expenses in addition to
rent?
A. Gross lease
B. Percentage lease
C. Net lease ✅
D. Ground lease
9. Which of the following is an example of functional obsolescence?
A. Peeling paint
B. No central heating system ✅
C. A property next to a factory
D. Broken window
10. A written agreement that creates an agency relationship between a buyer and broker is a:
A. Listing agreement
B. Lease agreement
C. Buyer representation agreement ✅
D. Purchase contract
11. When must the earnest money deposit be deposited into a trust account?
A. Immediately upon receiving the offer
B. Within 48 hours of contract acceptance
C. According to state law or within a specified period, typically within 3 business days ✅
D. At closing
