Real Estate Licensing Exams Questions And Correct
Answers (Verified Answers) Plus Rationales 2025/2026
Q&A | Instant Download Pdf.
1. Which type of listing agreement gives a broker the right to earn a commission regardless of who
sells the property?
A. Open listing
B. Exclusive agency listing
C. Exclusive right-to-sell listing
D. Net listing
Exclusive right-to-sell agreements ensure the broker earns a commission no matter who sells the
property, including the owner.
2. A real estate salesperson’s license is typically issued under the supervision of:
A. The state attorney general
B. A licensed broker
C. The local government
D. A mortgage lender
Salespersons must operate under a licensed broker who is responsible for their activities.
3. Which of the following is considered real property?
A. Furniture
B. Land and buildings
C. Stocks and bonds
D. Jewelry
Real property includes land and anything permanently attached to it.
4. The principle that ensures a property is valued based on comparable sales in the area is:
A. Highest and best use
B. Cost approach
C. Market data (sales comparison) approach
D. Income approach
The sales comparison approach uses recently sold comparable properties to estimate value.
5. A contract in which one party makes a promise in exchange for an act performed by another is
called:
A. Bilateral contract
B. Unilateral contract
C. Express contract
D. Implied contract
In unilateral contracts, only one party promises, and the other party performs to complete the
contract.
6. Which of the following is a fiduciary duty of a real estate agent?
,A. Marketing the property only
B. Loyalty to the client
C. Negotiating the highest commission
D. Inspecting properties for defects
Fiduciary duties include loyalty, confidentiality, disclosure, obedience, and accounting.
7. A property is sold “as-is.” What does this mean?
A. The seller must make all repairs
B. The property has no defects
C. The buyer accepts the property in its current condition
D. The seller is liable for hidden defects
“As-is” means the buyer accepts the property without requiring the seller to make repairs.
8. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Special warranty deed
A general warranty deed guarantees the title against all defects, past and present.
9. The legal description method that uses a point of beginning and measurements is:
A. Lot and block
B. Metes and bounds
C. Rectangular survey
D. Metes and bounds
Metes and bounds describe property using directions, distances, and a point of beginning.
10. A loan that covers more than the value of a property is called:
A. Conventional loan
B. Negative amortization loan
C. VA loan
D. FHA loan
Negative amortization loans increase the loan balance over time if payments don’t cover interest.
11. Which agency relationship allows the agent to act on behalf of the client but not make binding
decisions?
A. General agency
B. Special agency
C. Universal agency
D. Dual agency
Special agents have limited authority to act on behalf of the principal in specific transactions.
12. A property manager’s primary responsibility is to:
A. Protect the owner’s investment
B. Increase the property’s tax liability
C. Represent the tenant’s interests
, D. Obtain a mortgage
Property managers act as fiduciaries for property owners.
13. Which federal law prohibits discrimination in housing based on race, color, religion, sex, or
national origin?
A. Fair Housing Act of 1968
B. Americans with Disabilities Act
C. Equal Pay Act
D. Fair Housing Act of 1968
The Fair Housing Act makes it illegal to discriminate in housing transactions.
14. What is the term for the rate at which a lender charges interest on a loan?
A. APR
B. Nominal interest rate
C. Discount rate
D. Yield rate
The nominal interest rate is the stated rate without fees or compounding.
15. When a buyer defaults on a contract, the seller may:
A. Cancel the contract only
B. Sue for specific performance
C. Sell the property immediately without notice
D. Modify the contract unilaterally
Sellers may sue for specific performance to force the buyer to complete the purchase.
16. What type of mortgage allows the borrower to make interest-only payments for a certain
period?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (interest-only option)
C. VA loan
D. Balloon mortgage
Interest-only ARMs allow payment of only interest initially, which later increases principal payments.
17. A broker receives a commission only if the property sells. This is an example of:
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Listing by referral
Exclusive right-to-sell listings guarantee commission upon sale by any party.
18. Which of the following is NOT a method of legally transferring real estate?
A. Deed
B. Lease agreement
C. Will
D. Court order
A lease grants possession but does not transfer ownership.
19. In real estate, “consideration” refers to:
Answers (Verified Answers) Plus Rationales 2025/2026
Q&A | Instant Download Pdf.
1. Which type of listing agreement gives a broker the right to earn a commission regardless of who
sells the property?
A. Open listing
B. Exclusive agency listing
C. Exclusive right-to-sell listing
D. Net listing
Exclusive right-to-sell agreements ensure the broker earns a commission no matter who sells the
property, including the owner.
2. A real estate salesperson’s license is typically issued under the supervision of:
A. The state attorney general
B. A licensed broker
C. The local government
D. A mortgage lender
Salespersons must operate under a licensed broker who is responsible for their activities.
3. Which of the following is considered real property?
A. Furniture
B. Land and buildings
C. Stocks and bonds
D. Jewelry
Real property includes land and anything permanently attached to it.
4. The principle that ensures a property is valued based on comparable sales in the area is:
A. Highest and best use
B. Cost approach
C. Market data (sales comparison) approach
D. Income approach
The sales comparison approach uses recently sold comparable properties to estimate value.
5. A contract in which one party makes a promise in exchange for an act performed by another is
called:
A. Bilateral contract
B. Unilateral contract
C. Express contract
D. Implied contract
In unilateral contracts, only one party promises, and the other party performs to complete the
contract.
6. Which of the following is a fiduciary duty of a real estate agent?
,A. Marketing the property only
B. Loyalty to the client
C. Negotiating the highest commission
D. Inspecting properties for defects
Fiduciary duties include loyalty, confidentiality, disclosure, obedience, and accounting.
7. A property is sold “as-is.” What does this mean?
A. The seller must make all repairs
B. The property has no defects
C. The buyer accepts the property in its current condition
D. The seller is liable for hidden defects
“As-is” means the buyer accepts the property without requiring the seller to make repairs.
8. Which type of deed provides the greatest protection to the buyer?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed
D. Special warranty deed
A general warranty deed guarantees the title against all defects, past and present.
9. The legal description method that uses a point of beginning and measurements is:
A. Lot and block
B. Metes and bounds
C. Rectangular survey
D. Metes and bounds
Metes and bounds describe property using directions, distances, and a point of beginning.
10. A loan that covers more than the value of a property is called:
A. Conventional loan
B. Negative amortization loan
C. VA loan
D. FHA loan
Negative amortization loans increase the loan balance over time if payments don’t cover interest.
11. Which agency relationship allows the agent to act on behalf of the client but not make binding
decisions?
A. General agency
B. Special agency
C. Universal agency
D. Dual agency
Special agents have limited authority to act on behalf of the principal in specific transactions.
12. A property manager’s primary responsibility is to:
A. Protect the owner’s investment
B. Increase the property’s tax liability
C. Represent the tenant’s interests
, D. Obtain a mortgage
Property managers act as fiduciaries for property owners.
13. Which federal law prohibits discrimination in housing based on race, color, religion, sex, or
national origin?
A. Fair Housing Act of 1968
B. Americans with Disabilities Act
C. Equal Pay Act
D. Fair Housing Act of 1968
The Fair Housing Act makes it illegal to discriminate in housing transactions.
14. What is the term for the rate at which a lender charges interest on a loan?
A. APR
B. Nominal interest rate
C. Discount rate
D. Yield rate
The nominal interest rate is the stated rate without fees or compounding.
15. When a buyer defaults on a contract, the seller may:
A. Cancel the contract only
B. Sue for specific performance
C. Sell the property immediately without notice
D. Modify the contract unilaterally
Sellers may sue for specific performance to force the buyer to complete the purchase.
16. What type of mortgage allows the borrower to make interest-only payments for a certain
period?
A. Fixed-rate mortgage
B. Adjustable-rate mortgage (interest-only option)
C. VA loan
D. Balloon mortgage
Interest-only ARMs allow payment of only interest initially, which later increases principal payments.
17. A broker receives a commission only if the property sells. This is an example of:
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Listing by referral
Exclusive right-to-sell listings guarantee commission upon sale by any party.
18. Which of the following is NOT a method of legally transferring real estate?
A. Deed
B. Lease agreement
C. Will
D. Court order
A lease grants possession but does not transfer ownership.
19. In real estate, “consideration” refers to:
