Real Estate Exam Federal Law Practice Test 2025 Question Answers

Last Updated on March 10, 2025

Real Estate Exam Federal Law Practice Test 2025 Question Answers. The first exam is on federal laws and regulations, including Fair Housing laws, Truth in Lending, federal taxation, the Real Estate Settlement Procedures Act, and environmental matters. This is the only final exam that focuses on one broad issue.

The Real Estate Settlement Procedures Act (RESPA) is a federal law that covers most residential mortgage loans used to finance the purchase of one- to four-family properties. Included are a house, a condominium or cooperative apartment unit, a lot with a mobile home, and a lot on which a house will be built or a mobile home placed using the proceeds of a loan.

Real Estate Exam Federal Law Practice Test

Exam Name Real Estate License Exam
Position Federal Law
Test type Math test
Question Type Multiple Choice
Total Questions 50
Time duration N/A
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Real Estate FEDERAL LAW AND REGULATION

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1) The 1968 Fair Housing Act, as amended, prohibits housing discrimination on the basis of:

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2) Broker Bob is showing houses to Joe Chen, who is of Chinese ancestry. Bob shows Joe houses in a neighborhood of predominantly Chinese-American residents because Bob thinks Joe would feel more at home there. This is:

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3) Federal income tax rates are generally:

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4) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a married couple is up to:

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5) Indications of independent contractor status include:

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6) Owners of improved rental property can generally deduct on their federal income tax returns in the year incurred:

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7) Where the dominant population base of an area consists of minorities:

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8) A homeowner, on his or her federal income tax return, may not deduct:

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9) Sullivan wants to rent an apartment but is confined to a wheelchair. At Sullivan’s request, the landlord must:

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10) To qualify as a Section 1031 exchange, the property must be:

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11) Depreciation claimed for income tax purposes:

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12) No federal fair housing laws are violated if a landlord refuses to rent to:

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13) The initial cost of an asset, increased by capital expenditures and reduced by depreciation expenses, from which gain or loss is measured is:

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14) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a single individual is up to:

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15) Federal income tax deductions for a principal residence include:

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16) Harold bought 20 acres for $125,000 and sold the land three years later for $230,000. On his income tax return, he reports:

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17) Double taxation is generally not avoided when using which form of ownership?

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18) Ellen owns a two-family house and lives in one side. She wants to advertise the other side as nonsmoking. Can she legally do so?

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19) Broker Barb is acting as a buyer’s agent for Joe. Joe asks whether any people of a certain race live in a specific neighborhood. How should Barb respond?

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20) Instead of selling business or investment property and paying a tax on the gain, one may prefer:

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21) In the purchase of a home, which is frequently tax-deductible?

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22) A homeowner, on their federal income tax return, may not deduct:

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23) Which amendment to the Constitution provides support by banning racial discrimination?

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24) Cash or other unlike property included to equalize values in a Section 1031 exchange is called:

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25) “Familial status” refers to:

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26) Which of the following is exempt from the federal Fair Housing Act of 1968?

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27) Federal income tax rates are generally:

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28) A Real Estate Investment Trust (REIT) must:

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29) The initial cost of an asset, increased by capital expenditures and reduced by depreciation expenses, from which gain or loss is measured is:

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30) Federal income tax deductions for a principal residence include:

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31) Taxable gain on the sale of commercial real estate is calculated by:

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32) A broker has contacted owners in a certain subdivision and advised them that several members of a particular race have bought homes in the area. The broker has offered to list properties at a reduced rate and encouraged the owners to sell quickly. This is:

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33) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a single individual is up to:

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34) A seller asks his broker about the race of a potential buyer. The broker:

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35) A Real Estate Investment Trust (REIT) must:

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36) In a Subchapter S corporation, the corporation itself:

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37) Cash or other unlike property included to equalize values in a Section 1031 exchange is called:

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38) Court action may be taken by an individual under the Fair Housing Act:

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39) A tax deduction for business property that requires no cash outlay is:

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40) A tax deduction for business property that requires no cash outlay is:

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41) A REIT is like:

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42) If a landlord refuses to rent to a minority prospective tenant with a poor credit record:

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43) The Civil Rights Act of 1968 prohibits:

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44) The report of a sale to the IRS is normally made on Form 1099 by the:

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45) The federal income tax exemption on the gain from the sale of a personal residence held long enough by a married couple is up to:

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46) Under Internal Revenue Code Section 1031, tax on the profit of an exchange is:

47 / 50

47) The two most important income tax deductions for homeowners are:

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48) The two most important income tax deductions for homeowners are:

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49) Mr. and Mrs. Martin jointly bought a principal residence in 2004 for $325,000 and sold it in 2016 for $500,000. What portion of their $175,000 gain is subject to capital gains tax?

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50) When a salesperson’s agreement with a broker is to be an independent contractor, the broker:

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