2026 Edition

Real Estate Practice Tests

Take this free real estate practice test to see what type of questions are on real estate agent and real estate broker licensing exams.

Most real estate licensing exams consist of both a national and state exam, with 80-100 multiple-choice questions about general real estate concepts and 60-80 questions specific to state licensing laws. States administer the tests in two parts, and require the candidate to pass both.

For comprehensive practice, use Tests.com's Real Estate Agent Practice Exam with 350 questions, with fully explained answers. It is written by real estate experts and instructors. Our interactive test platform allows you to simulate the actual exam. Take as many practice tests as you need. There's no time limit or recurrent charges.

For real estate agents looking to get licensed as a broker, use Tests.com's Real Estate Broker Practice Exam.

To learn more about real estate license exams and test prep, see Tests.com's Real Estate study guide.

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Real Estate Agent Exam

1 Real estate is considered to be immobile and indestructible. Another physical characteristic of all real estate parcels is that they _____________.

a. increase in value once improvements are added

b. decrease in value when improvements are added

c. are unique because no two parcels area the same

d. are scarce because there is a finite amount of land, and there is no possibility of creating more of it

Incorrect. Please choose another answer.

All real estate is unique. No two parcels are the same. Even if two parcels were the exact same size, and contained the exact same improvements, the two parcels could not be situated in the same physical location. Scarcity is an economic characteristic of real estate, but not all real estate parcels are scarce. Furthermore, real estate parcels do not always increase or decrease in value with the addition of improvements.

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2 A covenant that becomes part of the property rights and binds successive property owners is a covenant that _____________.

a. runs with the land

b. does not run with the land

c. is personal property

d. can never be changed

Incorrect. Please choose another answer.

A covenant is a promise by the land owner to do or not do some action on the property or to the property. A covenant that runs with the land may also be called a "covenant appurtenant", which means it imposes duties and restrictions upon the land regardless of the owner. (Covenants that impose duties and restrictions upon a particular owner are called "covenants in gross".) Since covenants appurtenant affect title to real property, and are essentially binding promises that land owners make, they must be in writing to satisfy the Statute of Frauds. Also, because these covenants bind successive owners, the original parties to the agreement must have intended that successors be bound by the agreement.

3 When a property owner's fence rests on the land belonging to the adjacent property owner, the fence is _____________ on the adjacent property.

a. an easement by prescription

b. an easement in gross

c. an encroachment

d. an accretion

Incorrect. Please choose another answer.

The fence is encroaching on the adjacent property. The adjacent property owner would do well not to ignore the encroachment, because after a certain period of time (as determined by statute), the owners of the fence might be able to persuade a court to grant a prescriptive easement for the fence, and the fence will remain. One course of action the adjacent property owner might take is to physically remove the fence, although that will likely cause a feud with the fence owner. Perhaps the best course of action is to give the fence owner written permission to use that portion of this property. Such written permission precludes a future prescriptive easement because it effectively negates the hostile use of the land, which is a condition required for prescriptive easement.

4 Legally, what is the nature of agency relationships between listing brokers and sellers?

a. General agency.

b. Specific agency.

c. Universal agency.

d. Limited power of attorney.

Incorrect. Please choose another answer.

Specific agency (or special agency) means that a licensee may act on a principal's behalf only in limited ways for a limited time; generally, for only one transaction. General agency is an agency whereby the agent is given authorization to act as agent for a range of activities. Universal agency is unlimited rights to act on the principal's behalf. A limited power of attorney grants authority to act on the principal's behalf, but limits the authorization to only those acts that are named.

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5 Which of the following is pre-determined compensation that may be due to the seller if the buyer defaults on a real estate purchase contract?

a. compensatory damages

b. judicial damages

c. liquidated damages

d. repairable damages

Incorrect. Please choose another answer.

Liquidated damages are monetary damages for breach of contract, where the parties agreed at the time of contracting on a reasonable figure for compensation to be paid in the event of a breach. The dollar amount of the liquidated damages must be reasonable in light of the anticipated or actual harm caused by the breach. If the parties agree on a figure, but that figure is found to be unreasonable, then in the interest of public policy, the clause will not be enforced.

Real Estate Broker Exam

6 A real estate broker verbally agreed to split a commission with an unlicensed person.

a. This is a violation real estate law.

b. This is permissible.

c. This is permissible, but the broker must first get permission from the state regulatory agency.

d. This is unenforceable because the agreement was not in writing

Incorrect. Please choose another answer.

A person who receives a commission that is based on the sale of real property must be licensed as a real estate broker. Some states have provisions that unlicensed person may receive a commission, if that person lives in an apartment complex and refers a prospective tenant who ultimately signs a lease. However, in every state that allows this practice, the payment cannot be in cash. It must be in the form of a credit on the monthly rent.

7 The broker's duty to make sure all money matters associated with any transaction are carefully tracked is the broker's duty of _____.

a. disclosure

b. obedience

c. accounting

d. loyalty

Incorrect. Please choose another answer.

A broker owes a duty to all buyers and sellers to carefully account for and monitor all of the funds (no matter the form of the funds) associated with any transaction. Misplacing earnest money checks, failure to promptly deposit trust funds checks or failure to maintain proper accounting records are breaches of the duty of accounting. Furthermore, a broker has a continuing duty to advise the customer of foreseeable expenditures associated with the transaction.

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8 A contract performed fully as stipulated in the contract document is _____.

a. an executory contract

b. an executed contract

c. an abrogated contract

d. a subrogated contract

Incorrect. Please choose another answer.

A contract is only fully executed (carried out) when all of the terms of the contract have been completed. Up until that point, the contract is considered executory, which means that both parties are bound to the agreement, and the terms are being carried out. NOTE: There are actually two definitions of the word "executed" as it relates to contracts. The words "executed contract" can also refer to a contract that has been signed by all parties.

9 A water company's right to run a water line through private property would most likely be _____.

a. riparian rights

b. correlative rights

c. an easement in gross

d. a dominant tenement

Incorrect. Please choose another answer.

Easements in gross are the common method of granting use rights to utility companies when it is necessary for water lines or electrical lines to be located on land that does not belong to the utility company. Although property owner's ownership of the land designated as a gross easement remains intact, the owner's use rights within the boundaries of the easement are encumbered by the existence of the water lines.

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10 An ALTA policy of title insurance protects the _____.

a. buyer

b. seller

c. lender

d. borrower

Incorrect. Please choose another answer.

The ALTA policy protects lenders. It expands the standard policy to include rights of parties in possession, unrecorded liens, easements, claims that a correct survey or inspection would show, mining claims, and water rights.