Real Estate Principles Questions With Accurate
Answers 2025\2026 A+ Grade
1. Zoning is under the control of:
a. private parties.
b. government agencies.
c. the Bureau of Real Estate.
d. none of the above.
- accurate answers-b. government agencies.
2. Easements appurtenant are for the benefit of:
a. homesteaded landowners.
b. adjoining (neighboring) landowners.
c. the general public.
d. government use only.
- accurate answers-b. adjoining (neighboring) landowners.
3. A contract that is binding and enforceable in a court of law is said to be:
a. proprietary.
b. illusory.
c. valid.
d. all of the above.
- accurate answers-c. valid.
4. Who makes an offer on a property that is for sale?
a. Seller's agent
b. Offeree (Seller)
c. Offeror (Buyer)
d. All oft he above
- accurate answers-c. Offeror (Buyer)
5. Escrows base monthly prorations on how many days?
a. 28
,b. 29
c. 30
d. 31
- accurate answers-c. 30
6. The process of proportionally dividing rents, property taxes, and fire
insurance is called:
a. subdividing.
b. title splitting.
c. proration.
d. escrow debiting
- accurate answers-c. proration.
7. The area of a rectangular lot that is 50 feet wide by 100 feet deep is:
a. 2,500 sq. ft.
b. 500 sq. ft.
c. 5,000 sq. ft.
d. 50,000 sq. ft
- accurate answers-c. 5,000 sq. ft.
8. If the Internal Revenue Service is using a minimum of 39 years for straight-
line depreciation on commercial properties, what would be the annual
depreciation on a newly constructed apartment that cost $1,950,000 and had
an original land cost of $585,000?
a. $35,000
b. $15,000
c. $3,500
d. $50,000
- accurate answers-a. $35,000
9 For how much assessed value is the Homeowner's Property Tax Exemption:
a. $1,000
b. $7,000
c. $2,000
d. $200
- accurate answers-b. $7,000
,10. The difference between property taxes and special assessments is that:
a. special assessments are levied for the cost of specific local improvement
while property tax revenue goes into the general fund.
b. assessment liens can only be levied by local improvement districts.
c. foreclosure of assessment liens can only be achieved by court foreclosure
d. assessment liens are always subordinate to property tax liens
- accurate answers-a. special assessments are levied for the cost of specific
local improvement while property tax revenue goes into the general fund
11. Misuse of the real estate appraisal report or coercion of the appraiser are
now:
a. misdemeanors.
b. federal felonies.
c. infractions.
d. none of the above.
- accurate answers-b. federal felonies.
12. Which of the following is TRUE concerning the Cap Rate?
a. The greater the risk, the greater the Cap Rate.
b. Appraised value increases when the Cap decreases.
c. Finding the Cap Rate is the most difficult step in the income approach.
d. All of the above.
- accurate answers-d. All of the above
13. A person who is authorized by the Secretary of State to witness the
acknowledgment of documents is known as a(n):
a. administrator.
b. librarian.
c. document doctor.
d. notary public.
- accurate answers-d. notary public.
14. An estate for years is an example of a:
, a. life estate.
b. fee estate.
c. freehold estate.
d. less-than-freehold estate for a fixed period of time.
- accurate answers-d. less-than-freehold estate for a fixed period of time.
15. A broker who mixes personal funds with his or her principal's funds is
guilty of:
a. false promise.
b. commingling.
c. divided agency.
d. conversion.
- accurate answers-b. commingling.
16. The Real Estate Commissioner enforces provisions of the:
a. Civil Law.
b. Commercial Law.
c. Property Law.
d. Real Estate Law.
- accurate answers-d. Real Estate Law.
17. Real property consists of:
a. land and structures on the land.
b. anything incidental to the land.
c. anything appurtenant to the land.
d. all of the above.
- accurate answers-d. all of the above.
18. Determining the present value of a property based upon its anticipated
future income and expenses is called the:
a. capitalization or income approach
b. replacement cost method
c. market data method
d. comparison approach
- accurate answers-a. capitalization or income approach
Answers 2025\2026 A+ Grade
1. Zoning is under the control of:
a. private parties.
b. government agencies.
c. the Bureau of Real Estate.
d. none of the above.
- accurate answers-b. government agencies.
2. Easements appurtenant are for the benefit of:
a. homesteaded landowners.
b. adjoining (neighboring) landowners.
c. the general public.
d. government use only.
- accurate answers-b. adjoining (neighboring) landowners.
3. A contract that is binding and enforceable in a court of law is said to be:
a. proprietary.
b. illusory.
c. valid.
d. all of the above.
- accurate answers-c. valid.
4. Who makes an offer on a property that is for sale?
a. Seller's agent
b. Offeree (Seller)
c. Offeror (Buyer)
d. All oft he above
- accurate answers-c. Offeror (Buyer)
5. Escrows base monthly prorations on how many days?
a. 28
,b. 29
c. 30
d. 31
- accurate answers-c. 30
6. The process of proportionally dividing rents, property taxes, and fire
insurance is called:
a. subdividing.
b. title splitting.
c. proration.
d. escrow debiting
- accurate answers-c. proration.
7. The area of a rectangular lot that is 50 feet wide by 100 feet deep is:
a. 2,500 sq. ft.
b. 500 sq. ft.
c. 5,000 sq. ft.
d. 50,000 sq. ft
- accurate answers-c. 5,000 sq. ft.
8. If the Internal Revenue Service is using a minimum of 39 years for straight-
line depreciation on commercial properties, what would be the annual
depreciation on a newly constructed apartment that cost $1,950,000 and had
an original land cost of $585,000?
a. $35,000
b. $15,000
c. $3,500
d. $50,000
- accurate answers-a. $35,000
9 For how much assessed value is the Homeowner's Property Tax Exemption:
a. $1,000
b. $7,000
c. $2,000
d. $200
- accurate answers-b. $7,000
,10. The difference between property taxes and special assessments is that:
a. special assessments are levied for the cost of specific local improvement
while property tax revenue goes into the general fund.
b. assessment liens can only be levied by local improvement districts.
c. foreclosure of assessment liens can only be achieved by court foreclosure
d. assessment liens are always subordinate to property tax liens
- accurate answers-a. special assessments are levied for the cost of specific
local improvement while property tax revenue goes into the general fund
11. Misuse of the real estate appraisal report or coercion of the appraiser are
now:
a. misdemeanors.
b. federal felonies.
c. infractions.
d. none of the above.
- accurate answers-b. federal felonies.
12. Which of the following is TRUE concerning the Cap Rate?
a. The greater the risk, the greater the Cap Rate.
b. Appraised value increases when the Cap decreases.
c. Finding the Cap Rate is the most difficult step in the income approach.
d. All of the above.
- accurate answers-d. All of the above
13. A person who is authorized by the Secretary of State to witness the
acknowledgment of documents is known as a(n):
a. administrator.
b. librarian.
c. document doctor.
d. notary public.
- accurate answers-d. notary public.
14. An estate for years is an example of a:
, a. life estate.
b. fee estate.
c. freehold estate.
d. less-than-freehold estate for a fixed period of time.
- accurate answers-d. less-than-freehold estate for a fixed period of time.
15. A broker who mixes personal funds with his or her principal's funds is
guilty of:
a. false promise.
b. commingling.
c. divided agency.
d. conversion.
- accurate answers-b. commingling.
16. The Real Estate Commissioner enforces provisions of the:
a. Civil Law.
b. Commercial Law.
c. Property Law.
d. Real Estate Law.
- accurate answers-d. Real Estate Law.
17. Real property consists of:
a. land and structures on the land.
b. anything incidental to the land.
c. anything appurtenant to the land.
d. all of the above.
- accurate answers-d. all of the above.
18. Determining the present value of a property based upon its anticipated
future income and expenses is called the:
a. capitalization or income approach
b. replacement cost method
c. market data method
d. comparison approach
- accurate answers-a. capitalization or income approach
