2019 Edition

Real Estate Agent License Practice Test


Generally, you can expect that your state real estate agent license exam will consist of 80-100 multiple-choice questions about general real estate concepts and 60-80 questions specific to state licensing laws. Most states administer the tests in two parts, and require that the candidate pass both.

The general part of the exam is broken into several categories, similar to the categories you will see in this sample practice test below.  The sample was written by Karen Bohler and Tabitha May Hasin, who are both real estate instructors.  

For all 300 Questions with complete sections check out the Real Estate Agent License Practice Exam - it will help you pass your State Real Estate Agent License Exam the first time.  The Real Estate Broker Practice Exam is also available.


Real Property Characteristics

1. Personal property that, by its attachment to real property, is regarded as real estate is called _____________.
2. Which of the following lists correctly describes the physical and economic characteristics of real estate?

Freehold Estates

3. If a person has complete control over their property, and the ownership in the property is not defeasible, what interest does the person have in the property?
4. Ulyanna and Daniel own two contiguous properties situated on the shores of a fast-moving river. Ulyanna's parcel is situated upstream from Daniel's parcel. Over time, the action of the river's water has moved some silt and dirt from the shores of Ursula's property and deposited it downstream on the shores of Daniel's property. Based upon this fact pattern, which of the following lists best describes what has occurred on Daniel's property?

Real Estate Ownership

5. Which of the following is the difference between the value of a property and the total amount of liens against the property?
6. A parcel of residential real estate is held in a life estate. The life tenancy is held by a woman, and she is the measuring life. Her nephew is the remainderman. The life tenant wants to take out a loan using the property as collateral. Which of the following statements is correct?
7. There are four separate, recently-sold parcels of real estate on Main Street. Parcel 1 was owned by a Real Estate Investment Trust and was voluntarily conveyed to the City where the property is situated. Parcel 2 was owned by four unmarried brothers and was voluntarily conveyed to their father. Parcel 3 was owned by two corporations, until one corporation recently sold its ownership interest in the property to the other corporation. Parcel 4 was owned by Mr. and Mrs. Kim, but was recently sold to Amanda Lee, Trustee of the Lee Family Revocable Trust. What do all of these buyers have in common?

Land Description

8. A metes-and -bounds legal description _____________.

Non-monetary Encumbrances

9. Your neighbors use a portion of your property to reach their guest apartment, which is on their property. As far as you can recall, you never gave them permission to use your property, and you discuss with your attorney the possibility of preventing the neighbors from using your property. Your attorney explains that the ownership of the neighbors' real estate includes an easement appurtenant giving them the right to use that portion of your property. Your property is the _____________.
Real Estate Agent Practice Test
10. The owner of a large parcel of real estate legally divided it into two smaller parcels. Parcel North was directly to the north of Parcel South. The only road in the area bordered Parcel South. The owner intended to keep Parcel North, and wanted to prevent it from becoming landlocked. In the deed to the buyer of Parcel South, the owner reserved a non-exclusive easement for ingress and egress purposes over the westerly 8 feet of Parcel South. After both parcels were sold to two new owners, the new owner of Parcel South fenced in the entire parcel, making ingress and egress over the westerly 8 feet impossible for the new owner of Parcel North. In a lawsuit between the new owner of Parcel North and the new owner of Parcel South, who will most likely win?

Government Restrictions

11. A county government was widening a highway. Prior to construction, the county had to demolish certain dwelling houses and commercial retail properties bordering the old highway. After the legal proceedings were complete, several residential property owners refused to leave their former homes. The sheriff removed several individuals forcibly. In one case, the sheriff was forced to drag an elderly, protesting woman out of a house she had owned for decades. What is the name of the governmental power?
12. There are no nationwide or statewide zoning laws.
13. The illegal and discriminatory practice of _____________ occurs when one person induces another to enter into a real estate transaction by insinuating that the real property values in neighborhood will decline as a result of a member of a protected class buying property in that neighborhood.
14. What is the main purpose of police power?

Real Property Liens

15. What is the difference between a specific lien and a general lien?

Agency

16. Emily Young is selling her 2-bedroom, 1-bathroom condominium. She enters into a written exclusive right-to-sell listing agreement with a local real estate licensee. Which of the following correctly states the agency relationship created by this type of listing agreement?
17. All of the following are agency relationships EXCEPT _____________.

Real Estate Brokerage

18. As it pertains to a real estate brokerage firm, a "company dollar" is:
19. A broker collects a non-refundable fee from the seller when the listing is signed to cover the advertising of the property for sale. Such a fee is called an "advance fee" and is considered trust funds.

Listings and Buyer Agency Agreements

20. A seller and a real estate licensee enter into a listing agreement for a valuable property that is located in a desirable neighborhood. The listing agreement is a bilateral contract, and includes a specific end date. The licensee agrees that, in the event the seller finds a buyer, the licensee will not receive a commission. What is the name of the listing agreement?
21. Selma lists her property with XYZ Realty, ABC Realty, and MNO Realty. In each listing agreement, Selma has agreed to pay a commission to the listing firm only if that firm finds a ready, willing and able buyer and a sale is consummated. This type of listing is _____________.

Contract Law

22. An owner of a parcel of vacant land and a prospective buyer enter into a written contract. For a nonrefundable fee, the owner agrees to keep the prospective buyer's offer on a property open--for a mutually-acceptable period of time. If the prospective buyer decides to buy the vacant land, both parties have agreed to a purchase price. If the prospective buyer decides against purchasing the property, the owner will keep the nonrefundable fee received from the prospective buyer at the time the contract was signed. Which term most accurately describes the contractual agreement between these two parties?
23. The law in all states provides that contracts for the sale of real estate or an interest in real estate are unenforceable unless they are in writing and signed by the parties. What law is this?

Transfer of Title

24. A 50-year-old surgeon was the sole owner of a parcel of residential real estate. She wanted her eldest son to have this parcel after she died. The mother properly executed a legal deed, designating him as the grantee to the property. "I have put the deed in the top, left-hand drawer of my desk," she told her son. "After I have died, you will find the deed there, and the property will be yours and yours alone." Twenty years later, she passed away. The son found the executed deed in her desk drawer. This fact pattern shows:
25. The legal act of transferring ownership, or the intention to have a deed be operative and effective is manifested by _____________ of the deed.

Financing Principles

26. The Loan-to-Value (LTV) ratio is the maximum amount a lender will lend to finance a loan collateralized by real estate. The loan is based on a percentage of either the purchase price or the appraisal, whichever is less. The 20% down payment lenders traditionally required with conventional financing put homeownership beyond the reach of many Americans. FHA fully-insured financing substantially lowers the down payment lenders require for the purchase of a home because FHA mortgage insurance minimizes lender risk in the event of borrower default. All of the following statements are incorrect, except:
27. What is the name of the lender in a three-party security instrument that hypothecates real estate?
28. A lender is required under the Truth-in-Lending Act (Regulation Z) to furnish an applicant for a real estate loan with a copy of a _____________. This document must be given to the borrower before the borrower can be obligated to repay the loan.

Property Management

29. A real estate brokerage firm specializes in property management. Which one of the following property management activities is illegal?
30. _____________ is NOT part of the property manager's responsibilities.

Leases

31. In the middle of one of the worst snowstorms in the last 20 years, the heat went out in Lessee's residential apartment unit. Lessee immediately called--and spoke to--Lessor to report the problem. Lessor promised to have the heater fixed, but was vague about when the repair would occur. Lessee followed up with multiple phone calls, texts, and emails. After several days without heat, Lessee abandoned the residential rental unit, and subsequently refused to pay rent for the remaining term of the lease. Lessor sued Lessee for the unpaid rent. Who will most likely win the lawsuit?
32. Robin rents a unit from owner Joaquin. Therefore _____________.

Appraisal

33. An appraiser is hired to appraise a single-family residence as part of a purchase transaction. The subject property has 4 bedrooms and 4 bathrooms. The appraiser needs comparables to complete the appraisal, and finds 3 recently-sold properties in the same subdivision. The first comparable has 4 bedrooms and 4 bathrooms. The second comparable has 4 bedrooms and 3 bathrooms. The third comparable has 3 bedrooms and 4 bathrooms. What is a correct statement regarding the market data approach?
34. The principal of appraisal that dictates that home values tend to increase when demand increases is the principle of _____________.

Investment Analysis

35. James Jordan purchases single-family residences to use as residential rental properties. He currently owns 4 properties in the same approximate geographic area, and is considering the purchase of another single-family residence situated nearby. In order to avoid the cost of an appraisal, Jordan uses the Gross Rent Multiplier (GRM) to help him make an appropriate offer. Jordan knows that the monthly GRM for his 4 current properties is 200. In order to maintain a GRM of 200 for a property with a current monthly rent of $2,500, how much should Jordan's offer be?
36. Investing can best be defined as _____________.

Real Property Environmental Issues

37. Construction on a single-family residence in a new subdivision started on June 1, 1977. Construction was completed on January 1, 1978. The current owner, John Ying, acquired the property via first deed out from the developer. The property has not been remodeled or rebuilt since it was originally constructed. Ying is now selling the property, and is represented by a licensee. All of the following choices related to compliance with federal lead-based paint disclosure rules are incorrect, except:
38. The process that involves covering a landfill with two to four feet of clay-like soil and planting grass on the soil is the process of _____________.

Settlement

39. Seller is selling a condominium. Seller and Buyer agree upon a sale price of $450,000. Seller has prepaid the property taxes for the entire tax year. Buyer will be moving into the property four months prior to the end of the tax year. Seller must pay off an outstanding mortgage lien of $350,000, and a mechanic's lien of $2,500. Seller must also pay the brokerage fee to the licensee who brought the ready, willing, and able buyer to the transaction. In the closing statement prepared by the Settlement Officer, which of the following will be a credit to the Seller?
40. Which of the following is the standard real estate settlement form for federally-related mortgage loans?
41. A developer purchases unimproved property to build a new subdivision. The land is $3,542.45 per acre. Here is the legal description of the property purchased: "The Northwest Quarter of the Southeast Quarter, of Section 26..." The acreage in Section 26 is typical for the government survey system. How much money did the developer pay--in total--for the property?

Real Estate Agent License Practice Test Kit

Real estate sales agents must be licensed in every state, and licensure is generally earned with the successful completion of an exam. Licensure is granted by the state’s real estate commission or real estate department.  To learn more about licensing and testing, see our Real Estate Agent Test Guide.

Real Estate Agent Licensing Guides by State:

Real Estate Broker Practice Test

California Real Estate Agent Exam (CalDRE)

FL Real Estate Sales Associate Exam


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