Real Estate Exam Practice Test 2025 (BROKER AND SALESPERSON)

Last Updated on January 17, 2025

Real Estate Exam Practice Test 2025 (BROKER AND SALESPERSON) (50 Question Answers) online quiz. Our Real Estate License Practice Test question will help you better prepare for your Real Estate License Exam Prep. Candidates from Louisiana, Florida, California, New York, Texas, etc., may try this sample Real Estate License Exam for broker sale person for free.

Some states prepare their examination for prospective real estate licensees. Others rely on independent testing services to prepare, administer, and/or score real estate examinations. These tests are revised regularly to reflect current laws and practices. This sample quiz will help you prepare for the real estate salesperson’s licensing examination prepared by an independent testing company, Psychological Services, Inc. (PSI).

Real Estate Exam Practice Test 2025

Exam Name	Real Estate License Exam
Position	Broker / Sale
Test type	sample quiz test
Question Type	Multiple Choice
Total Questions	50
Time duration	N/A

Real Estate BROKER AND SALESPERSON

1 / 50

1) A township is:

A) (A) 36 square miles

B) (B) One square mile

C) (C) A small city

D) (D) 640 acres

2 / 50

2) Which of the following best describes the role of a broker who seeks a buyer?

A) (A) General contractor

B) (B) Independent contractor

C) (C) Special agent

D) (D) Attorney-in-fact

3 / 50

3) Ellen bought a half-acre lot at $10 per square foot and built a house 50' × 50' for $75 per square foot. Her total cost:

A) (A) Was $405,300

B) (B) Was $623,100

C) (C) Was $236,550

D) (D) Cannot be determined from information given

4 / 50

4) A person who wishes to sell his or her own house:

A) (A) Must employ a broker

B) (B) Must employ a salesperson

C) (C) Must employ a Realtor

D) (D) May employ any of the above, but is not required to do so

5 / 50

5) Broker Herman must have an escrow account:

A) (A) Before the state licensing agency will issue his broker’s license

B) (B) When he holds earnest money

C) (C) Before his agents can work

D) (D) When his personal account is overdrawn

6 / 50

6) How is a buyer’s broker typically paid?

A) (A) By the buyer at closing

B) (B) By a finder’s fee paid outside of closing

C) (C) By the buyer prior to closing

D) (D) By the listing broker through a commission split

7 / 50

7) A single agent must:

A) (A) Deal honestly and fairly

B) (B) Be loyal

C) (C) Provide full disclosure

D) (D) All of the above

8 / 50

8) Which of the following, when performed for others, are included as real estate services for the purposes of determining licensure requirements?

A) (A) Buying and selling property

B) (B) Renting and leasing property

C) (C) Auction or exchange of property

D) (D) All of the above

9 / 50

9) Carol is buying a house and has 30 days in which to obtain a financing commitment as specified in the sales contract. The contract states that “time is of the essence” applies to financing approval. Which is true?

A) (A) Carol can arrange financing at her convenience.

B) (B) The financing approval is automatically extended.

C) (C) The lender must check Carol’s credit references.

D) (D) Carol must adhere to the stated time frame, which will end at 11:59 p.m. on the 30th day.

10 / 50

10) A broker with no agency relationship may assist:

A) (A) Buyer

B) (B) Seller

C) (C) Both buyer and seller

D) (D) All of the above

11 / 50

11) An unlicensed employee of a broker who prepares an advertisement to sell a house:

A) (A) Is free to do so

B) (B) Must have the broker’s prior written approval

C) (C) Must become licensed

D) (D) Must accurately describe the house

12 / 50

12) Wear and tear is a form of loss in value called:

A) (A) Physical deterioration

B) (B) Functional obsolescence

C) (C) Deferred maintenance

D) (D) Economic obsolescence

13 / 50

13) When representing a buyer in a real estate transaction, a broker must disclose to the seller all of the following except:

A) (A) The buyer’s motivation

B) (B) The broker’s relationship with the buyer

C) (C) Any agreement to compensate the broker out of the listing broker’s commission

D) (D) The broker’s agreement with the buyer

14 / 50

14) Dual agency is defined as an arrangement in which:

A) (A) The same broker represents both the buyer and the seller

B) (B) The broker is the seller

C) (C) The salesperson and the broker split the commission

D) (D) The listing broker and selling broker cooperate with each other

15 / 50

15) Harry gives Sam a $5,000 payment and a written agreement stating that, on July 1 of the following year, Harry will purchase the property from Sam for $150,000 cash, or Sam may keep the money. This transaction is:

A) (A) A lease with an option to purchase

B) (B) A purchase contract with a delayed settlement

C) (C) An option agreement

D) (D) A limited partnership

16 / 50

16) Sally has shown Rebecca 11 homes, and Rebecca has selected one and made an offer. An hour later Rebecca changes her mind. Which of the following is true?

A) (A) Rebecca has already committed to the first seller and cannot withdraw.

B) (B) Rebecca may withdraw the offer but will forfeit the earnest money.

C) (C) The broker earned a commission.

D) (D) Rebecca may withdraw before the seller accepts the offer.

17 / 50

17) It is a good practice for a broker to prequalify:

A) (A) A prospective buyer

B) (B) A seller

C) (C) A sales agent

D) (D) All clients

18 / 50

18) The best way for a broker acting as a dual agent to minimize his or her risk is to:

A) (A) Hire an attorney

B) (B) Obtain written permission from both parties to act for both sides

C) (C) Read the state’s real estate law

D) (D) Provide full disclosure to all parties

19 / 50

19) A major factor in appraising a business opportunity is the:

A) (A) Net income

B) (B) Number of employees

C) (C) Number of customers

D) (D) Owner’s expertise

20 / 50

20) An owner who sells property that he developed:

A) (A) May engage an unlicensed sales staff who receive commissions

B) (B) May engage an unlicensed sales staff who receive salaries only

C) (C) Must acquire a broker’s license

D) (D) Must acquire a salesperson’s license

21 / 50

21) A single agent relationship provides a _______________ with a seller.

A) (A) Fiduciary relationship

B) (B) Transaction agency

C) (C) No business relationship

D) (D) Subagency

22 / 50

22) The rate of commission on a real estate sale is:

A) (A) Typically 6% of the selling price

B) (B) Mandated at various rates by brokerage law

C) (C) Paid to the salesperson, who gives 50% to the broker

D) (D) Negotiable between the broker and (typically) seller

23 / 50

23) A salesperson is ______________ of the broker.

A) (A) An agent

B) (B) An employee

C) (C) A paid contractor

D) (D) A Realtor

24 / 50

24) If a broker uses a title company to hold escrow deposits, the broker must turn over the funds:

A) (A) On the same day

B) (B) In the same time frame as would be required if the broker maintained the account

C) (C) When convenient

D) (D) At the end of each month

25 / 50

25) In a no brokerage agency arrangement, parties give up their rights to a broker’s:

A) (A) Undivided loyalty

B) (B) Honest dealings

C) (C) Use of skill and care

D) (D) Accounting for funds

26 / 50

26) If a buyer and seller reach oral agreement over the price and terms of a contract but seek a broker’s help to complete written contract forms, the relationship with the broker is likely to be:

A) (A) Single agent

B) (B) Transaction agent

C) (C) No brokerage relationship

D) (D) Any of the above

27 / 50

27) An appraiser opines that a commercial property, if fully leased, would produce $20,000 per month in rent. A vacancy allowance of 9% is applied, and by using a capitalization rate of 12%, the market value of the property is estimated at:

A) (A) $1,820,000

B) (B) $1,666,666

C) (C) $1,516,667

D) (D) $2,400,000

28 / 50

28) When estimating the market value of the subject house, which is 20 years old, which of the following would be of importance?

A) (A) Replacement cost new

B) (B) Reproduction cost new

C) (C) Market value of recently sold comparable properties

D) (D) Market value less depreciation

29 / 50

29) As a general rule, escrow money received by the broker:

A) (A) Is given to the seller on signing the contract

B) (B) May be spent by the broker for repairs to the property

C) (C) Is deposited in the broker’s trust account soon after receipt

D) (D) Is shared equally by the broker and salesperson

30 / 50

30) All other things being equal, the cost per square foot of a two-story house compared to a one-story house having the same square footage:

A) (A) Is less

B) (B) Is more

C) (C) Is the same

D) (D) Depends on height

31 / 50

31) In a no brokerage agency relationship, the seller or buyer:

A) (A) Is responsible for the broker’s acts

B) (B) Is not responsible for the broker’s acts

C) (C) Is not considered a customer of the broker

D) (D) Is an agent of the broker

32 / 50

32) Some ways to terminate a brokerage relationship are:

A) (A) Agreement between the parties

B) (B) Fulfillment of the contract

C) (C) Expiration of the term

D) (D) All of the above

33 / 50

33) Brokerage representation may legally include:

A) (A) A broker working for the seller

B) (B) A broker working as a single agent for buyer or seller (but not both in the same transaction)

C) (C) Broker representing neither buyer nor seller but facilitating the transaction

D) (D) All of the above

34 / 50

34) In which appraisal approach does the appraiser estimate the land value separately from improvements?

A) (A) Cost

B) (B) Sales comparison

C) (C) Income

D) (D) Depreciation

35 / 50

35) An appraiser should:

A) (A) Raise or lower the appraised value to the contract amount

B) (B) Determine the price

C) (C) Be impartial

D) (D) Be a member of the broker’s firm

36 / 50

36) When a broker serves in a single agent capacity, his obligations to the customer include:

A) (A) Loyalty

B) (B) Confidentiality

C) (C) Obedience

D) (D) All of the above

37 / 50

37) When a real estate attorney wants to earn a commission for performing real estate services, he or she must:

A) (A) Become a Realtor

B) (B) Obtain a real estate license

C) (C) Join a franchise

D) (D) Be a member of the bar association

38 / 50

38) A bank acquired property through foreclosure. Upon sale of the property, the bank covenants and warrants the property’s title only against defects occurring during the bank’s ownership. This conveyance is a(n):

A) (A) Administrator’s deed

B) (B) General warranty deed

C) (C) Special warranty deed

D) (D) Covenant deed

39 / 50

39) Termination of a brokerage relationship may occur as a result of:

A) (A) Bankruptcy of the principal or customer

B) (B) Death of either party

C) (C) Destruction of the property

D) (D) All of the above

40 / 50

40) A main goal of an appraiser is:

A) (A) Measuring obsolescence

B) (B) Rendering a market value opinion

C) (C) Narrative reporting

D) (D) Meeting sales contract amount

41 / 50

41) When a broker is an agent of the owner, the salesperson is:

A) (A) A Realtor

B) (B) An independent contractor

C) (C) A subagent

D) (D) An employee

42 / 50

42) To appraise a house valued at over $1,000,000 in a federally related transaction, the person performing the appraisal would need to:

A) (A) Be state certified

B) (B) Be federally licensed

C) (C) Be MAI designated

D) (D) Have 10 years’ experience in appraisal

43 / 50

43) Which is not an appraisal approach?

A) (A) Sales comparison approach

B) (B) Income capitalization approach

C) (C) Cost approach

D) (D) Depreciation approach

44 / 50

44) The subject house being appraised has a swimming pool and a garage. The appraiser estimates that a pool contributes $20,000 to the value and a garage contributes $15,000. A recent sale in the neighborhood for $300,000 is similar except that it has a garage but no pool. The adjusted value of the comparable house is:

A) (A) $300,000

B) (B) $315,000

C) (C) $320,000

D) (D) $335,000

45 / 50

45) Which of the following is a voluntary alienation of real property?

A) (A) Escheat

B) (B) Condemnation

C) (C) Foreclosure

D) (D) A deed of trust

46 / 50

46) Herb is 17 when he signs a contract to lease a small house. After the property manager accepts his offer, the lease contract is:

A) (A) Void

B) (B) Voidable by Herb

C) (C) Voidable by either party

D) (D) Illegal

47 / 50

47) Prices of comparable sales are adjusted:

A) (A) To the subject property

B) (B) Upward if the comparable is inferior to the subject

C) (C) Downward if the comparable is superior to the subject

D) (D) All of the above

48 / 50

48) A deed is the instrument used to convey ownership of:

A) (A) Personal property

B) (B) Short-term use of real estate

C) (C) Real property

D) (D) Any of the above

49 / 50

49) Developers subdivide land and assign lot and block numbers to identify lots in the subdivision. This is a legal description known as:

A) (A) A block party

B) (B) Recorded plat description

C) (C) Developer plat

D) (D) Lot survey method

50 / 50

50) Prima facie evidence refers to evidence that is good and sufficient on its face to:

A) (A) Sell real estate

B) (B) Buy real estate

C) (C) Establish a given fact

D) (D) File a lawsuit

Your score is

See also:

Real Estate License Exam Practice Test 2025 With Study Guide

Real Estate License Tests