Real Estate License Broker Sale Exam Practice Question Answers

Real Estate License Broker Sale Exam Question Answers: Taking the exams on the computer is good practice for the real exam. On the other hand, if using a computer isn’t convenient, taking the Real Estate License exams on paper will accomplish the same goal—letting you know in which areas you are strong and in which areas you need more work.

Take the Real Estate License Broker Sale Exam Practice Question Answers as relaxed as possible, without worrying about timing. You can time yourself on the other three exams. You should, however, ensure you have enough time to take the entire exam in one sitting. Find a quiet place where you can work without interruptions. This will help your Real Estate License Exam Prep better.

Real Estate License Broker Sale Exam

Exam Name Real Estate License Exam
Position Broker / Sale
Test type sample test
Question Type Multiple Choice
Total Questions 60
Time duration N/A

Q1. Which of the following is most accurately described as personal property?

  • (A) a fixture
  • (B) a chattel
  • (C) an improvement
  • (D) realty
View Correct Answer
Answer Key: B 

Q2. Which of the following is not corporeal property?

  • (A) a building
  • (B) growing crops
  • (C) monthly rent
  • (D) a fixture
View Correct Answer
Answer Key: C 

Questions 3–5 concern the following situation:

Mr. Jones died; his will left to Mrs. Jones the right to use, occupy, and enjoy Mr. Jones’s real estate until her death. At that time the real estate is to become the property of their son Willis.

Q3. Mrs. Jones is a

  • (A) remainderman
  • (B) life tenant
  • (C) joint tenant
  • (D) tenant in common
View Correct Answer
Answer Key: B 

Q4. Willis is a

  • (A) remainderman
  • (B) life tenant
  • (C) joint tenant
  • (D) tenant in common
View Correct Answer
Answer Key: A 

Q5. Mrs. Jones has a

  • (A) fee simple estate in joint tenancy with Willis
  • (B) fee simple estate as tenant in common with Willis
  • (C) life estate
  • (D) life estate in joint tenancy with Willis
View Correct Answer
Answer Key: C 

Q6. Which of the following is not realty?

  • (A) a fee simple estate
  • (B) a leasehold for indefinite duration
  • (C) lumber
  • (D) a life estate
View Correct Answer
Answer Key: C 

Q7. Real estate is best defined as

  • (A) land and buildings
  • (B) land and all permanent attachments
  • (C) land and everything growing on it
  • (D) land only
View Correct Answer
Answer Key: B 

Q8. A freehold estate is

  • (A) one acquired without paying anything
  • (B) any leasehold
  • (C) any estate wherein one may use the property as he wishes
  • (D) an estate of uncertain duration
View Correct Answer
Answer Key: D 

Q9. An item of personalty that is affixed to realty so as to be used as a part of it is

  • (A) a fixture
  • (B) a chattel
  • (C) personal property
  • (D) an encumbrance
View Correct Answer
Answer Key: A 

Q10. Which is not considered a permanent attachment to land?

  • (A) anything growing on it
  • (B) fixtures
  • (C) chattels
  • (D) anything built upon the land
View Correct Answer
Answer Key: C 

Q11. A person who has some rights to use land, but not all possessory rights, is said to have

  • (A) an interest in land
  • (B) an estate in land
  • (C) a life estate in land
  • (D) a tenancy in common
View Correct Answer
Answer Key: A 

Q12. A person who has permission to use land, but has no other rights, has

  • (A) tenancy at sufferance
  • (B) tenancy in common
  • (C) license to use
  • (D) a fee simple estate
View Correct Answer
Answer Key: C 

Q13. A developer includes restrictive covenants in the deeds for all properties within a subdivision. These covenants may dictate all of the following EXCEPT the

  • (A) owner’s use of the property.
  • (B) style of architecture.
  • (C) appearance of outbuildings and fences.
  • (D) ethnic character of future owners.
View Correct Answer
Answer Key: D 

Q14. Jessie Petersen makes a written offer to buy Sam Lewis’s house for $120,000. She confides in Sam’s agent, George Everly, that if necessary, she’d pay $10,000 more, but she doesn’t want Sam to know that. George should

  • (A). present the offer to Sam but respect Jessie’s confidentiality.
  • (B). warn Jessie that he must pass on to Sam anything useful he knows.
  • (C). refuse to convey the lower offer to Sam.
  • (D). explain to Jessie why the house isn’t worth more than $120,000.
View Correct Answer
Answer Key: B 

Q15. FHA mortgage insurance premium is calculated at a rate of ½% annually. How much is the premium for the month in which the remaining principal owed is $92,347?

  • (A) $0.05
  • (B) $12.00
  • (C) $38.48
  • (D) $46.17
View Correct Answer
Answer Key: C 

Q16. Ownership of a property that could be terminated upon the happening of a specific event is known as

  • (A) a reverter.
  • (B) a fee estate.
  • (C) an easement.
  • (D) a life estate.
View Correct Answer
Answer Key: D 

Q17. Title to real property is conveyed by involuntary alienation in all of the following EXCEPT

  • (A) a tax deed.
  • (B) a certificate of title.
  • (C) eminent domain.
  • (D) a will.
View Correct Answer
Answer Key: D 

Q18. What will the amount of taxes payable be if the property’s assessed value is $85,000 and the tax rate is 50 mils in a community where the equalization factor is 120%?

  • (A) $10,200
  • (B) $5,100
  • (C) $3,460
  • (D) $4,250
View Correct Answer
Answer Key: B 

Q19. In inflationary times, a property manager would NOT want a long-term lease based on

  • (A) graduated payments.
  • (B) the consumer price index.
  • (C) a fixed rate.
  • (D) a cost-of-living index.
View Correct Answer
Answer Key: C 

Q20. The buyer of a cooperative apartment receives shares in the cooperative and a

  • (A) proprietary lease.
  • (B) bargain and sale deed.
  • (C) joint tenancy.
  • (D) limited partnership.
View Correct Answer
Answer Key: A 

Q21. A lender provides 90% of the financing for a new house. What is the buyer’s down payment if the house appraises for $75,000?

  • (A) $7,500
  • (B) $67,500
  • (C) $9,000
  • (D) $750
View Correct Answer
Answer Key: A 

Q22. Joint ownership of real property by two or more persons, each of whom has an undivided interest (not necessarily equal) without right of survivorship, is

  • (A) a tenancy in partnership
  • (B) a tenancy by the entireties
  • (C) a tenancy in common
  • (D) a leasehold tenancy
View Correct Answer
Answer Key: C 

Q23. Helen and David, who are not married, want to buy a house together. To ensure that if one dies, the other automatically becomes the full owner, their deed must state that they are

  • (A) tenants in common
  • (B) tenants in severalty
  • (C) tenants by the entirety
  • (D) joint tenants
View Correct Answer
Answer Key: D 

Q24. Real property is

  • (A) the land
  • (B) the land, the improvements, and the bundle of rights
  • (C) the land and the right to possess it
  • (D) the land, buildings, and easements
View Correct Answer
Answer Key: B 

Q25. A house has a built-in bookcase and elaborate chandelier. The buyer is also getting a dinette set and a table lamp. Which is correct?

  • (A) The built-in bookcase and chandelier are included in the real estate contract. The lamp and dinette set are chattels and are sold separately.
  • (B) All the items must be included in the real estate contract.
  • (C) The chandelier is real estate; the other items must be sold on a bill of sale.
  • (D) All of the items are real estate because they are sold with the house
View Correct Answer
Answer Key: A 

Q26. Three people bought property with the understanding that if one of them died, his heirs would inherit that interest. Most likely
they took title under which type of estate?

  • (A) joint tenancy
  • (B) tenancy in common
  • (C) estate in common
  • (D) tenancy by entireties
View Correct Answer
Answer Key: B 

Q27. A city wants to buy land to build a convention center. Which of the following is true regarding eminent domain?

  • (A) It is not allowed because a convention center is not a necessity.
  • (B) It can be applied with just compensation paid for the land.
  • (C) It will be too costly.
  • (D) Only federal and state governments have that power.
View Correct Answer
Answer Key: B 

Q28. Jim and Sandy are next-door neighbors. Sandy tells Jim that he can store his camper in her yard for a few weeks until she needs the space. Sandy did not charge Jim rent for the use of her yard. Sandy has given Jim a(n) what?

  • (A) easement appurtenant
  • (B) easement by necessity
  • (C) estate in land
  • (D) license
View Correct Answer
Answer Key: D 

Q28. Your neighbors use your driveway to reach their garage on their property. Your attorney explains that the ownership of the neighbors’ real estate includes an easement appurtenant giving them the driveway right. Your property is the:

  • (A) leasehold interest.
  • (B) dominant tenement.
  • (C) servient tenement.
  • (D) license property.
View Correct Answer
Answer Key: C 

Q29. Evan lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, Evan owns stock in the corporation and has a lease on his apartment. This type of ownership is called a(n):

  • (A) condominium.
  • (B) planned unit development.
  • (C) time-share.
  • (D) cooperative
View Correct Answer
Answer Key: D 

Q30. A heating and cooling engineer is drawing up the specifications for the HVAC system in a new building. The floor space measures 200′ × 150 and the ceiling is 12 high. How much air space does the engineer have to heat and cool?

  • (A) 33,333 square yards
  • (B) 300,000 square feet
  • (C) 13,333 cubic yards
  • (D) 36,000 cubic fee
View Correct Answer
Answer Key: C 

Q31. Ken Laughton’s house is “for sale by owner.” Robert Hall falls in love with it during an open house, tells Ken he’ll pay the full asking price, and promises to send Ken an earnest money check for $5,000. Ken accepts the offer. The contract between them is

  • (A) enforceable by court action if either tries to back out.
  • (B) invalid because it lacks consideration.
  • (C) valid only if there were witnesses.
  • (D) unenforceable.
View Correct Answer
Answer Key: D 

Q32. An owner is planning to build on newly purchased property. Zoning laws state that no improvement may exceed 50 feet in height, architectural guidelines limit improvements to 45 feet in height, and the deed restriction states the maximum height to be 30 feet. What is the tallest building the owner can legally construct?

  • (A) 50 feet
  • (B) 45 feet
  • (C) 30 feet
  • (D) The new building can be any size the owner wants.
View Correct Answer
Answer Key: C 

Q33. Agent Converse has just returned from a closing for a property that sold for $125,000. The property was listed by Sporty’s Real Estate Company. Converse received 2.5% of the sale price total commission for the transaction from the closing agent. Converse is on a 55/45 split with his company. About how much commission will Converse receive?

  • (A) $6,250
  • (B) $3,750
  • (C) $1,719
  • (D) $1,406
View Correct Answer
Answer Key: C 

Q34. Three years ago, a couple moved from the house they had lived in for 20 years but did not sell it. They decided to travel and bought a mobile home to live in. They now want to sell the house. How much of their capital gain on the house is taxable?

  • (A) 15 percent, depending on their tax bracket
  • (B) 28 percent, depending on their tax bracket
  • (C) All of it, if it is more than $500,000
  • (D) None of it, if it is less than $500,00
View Correct Answer
Answer Key: D 

Q35. A woman held fee simple title to a vacant lot adjacent to a business and was persuaded to make the lot available to the business. She had her attorney prepare a deed that conveyed ownership of the lot to the business “… as long as it is used for commercial purposes.” After the completion of the gift, the business will own a:

  • (A) Life estate
  • (B) Tenancy for years
  • (C) Determinable fee estate
  • (D) Periodic tenancy
View Correct Answer
Answer Key: C 

Q36. The owner of a secluded area adjacent to an ocean has noticed that people from town walk along the shore in front of his property. The owner also has learned that the local citizens have been walking along this beach for several years. He goes to court to try to stop people from walking along the water’s edge in front of his property. The owner is likely to be:

  • (A) Unsuccessful because the local citizens have been doing this for years and, thus, have an easement
  • (B) Unsuccessful because the owner’s property extends only to the high-water mark, and the public may use the land beyond this point
  • (C) Successful because the owner’s property extends to the low-water mark
  • (D) Successful because the owner can control access to his own property
View Correct Answer
Answer Key: B 

Q37. A potential buyer is interested in a house that fits most of her needs, but it’s in a busy area where she’s not sure she wants to live. Her concern about the property’s location is called:

  • (A) Physical deterioration
  • (B) Area preference
  • (C) Permanence of investment
  • (D) Immobility
View Correct Answer
Answer Key: B 

Q38. In most transactions where there is a broker, the broker represents

  • (A) the brokerage
  • (B) the seller
  • (C) the buyer
  • (D) all of the above
View Correct Answer
Answer Key: B 

Q39. A broker is killed in a plane crash. His listings are

  • (A) binding on the owners
  • (B) transferable to his heirs
  • (C) terminated
  • (D) transferred to his salespersons
View Correct Answer
Answer Key: C 

Q40. A broker is representing a buyer and showed him a lot in a new subdivision. The broker did not ask the developer but, knowing that the developer had put in streets in other subdivisions, told the buyer that the developer would do the same in this one. The buyer relied on the broker’s statement. The developer did not put in streets in this subdivision. Who is liable for damages?

  • (A) no one because nothing was put in writing
  • (B) the developer for not doing here what he had done elsewhere
  • (C) the broker because he misrepresented what would happen
  • (D) both the broker and the developer
View Correct Answer
Answer Key: C 

Q41. A salesperson may accept compensation from

  • (A) employing broker only
  • (B) co-broker
  • (C) principal
  • (D) mortgage company
View Correct Answer
Answer Key: A 

Q42. To be a dual agent (in states that allow this), the licensee must

  • (A) receive compensation only from the seller
  • (B) receive compensation only from the buyer
  • (C) disclose the relationship and gain consent from both parties
  • (D) be certain that both husband and wife approve the transaction
View Correct Answer
Answer Key: C 

Q43. The buyer gives a $5,000 earnest money check to the seller’s broker with instructions not to deposit the check for a week and not to tell the seller that the check has not been deposited. The seller’s broker should

  • (A) follow the buyer’s instructions
  • (B) disclose the conditions to the seller
  • (C) refuse to accept the check
  • (D) notify the Board of Realtors
View Correct Answer
Answer Key: B 

Q44. If the owner informs the broker that he wants single agent representation, what should the broker do?

  • (A) decline the assignment
  • (B) ask NAR for permission
  • (C) ask MLS for permission
  • (D) provide the single agency notice at or before taking the listing
View Correct Answer
Answer Key: D 

Q45. Mr. and Mrs. Buyer asked broker Bob about the best way to take title to the property they had agreed to buy. What should Bob do?

  • (A) advise the Buyers to ask their parents
  • (B) advise the Buyers to contact an attorney
  • (C) have his accountant advise the Buyers of the best way to take title
  • (D) advise the Buyers to contact the county recorder
View Correct Answer
Answer Key: B 

Q46. Broker Martin holds $10,000 as earnest money on the purchase made by Will. When can Martin remove the earnest money from the escrow account?

  • (A) When the purchase closes escrow.
  • (B) When the buyer gives him permission.
  • (C) When the seller gives him permission.
  • (D) When he needs the money for business expenses, provided it is replaced within five days.
View Correct Answer
Answer Key: A 

Q47. A fiduciary relationship could exist between a principal and all of the following except

  • (A) an appraiser
  • (B) a receiver
  • (C) a trustee
  • (D) an administrator
View Correct Answer
Answer Key: A 

Q48. When a salesperson shows a house that is listed with her firm to a prospective buyer whom she represents, there is a(n)

  • (A) dual agency
  • (B) general agency
  • (C) multiple listing
  • (D) exclusive right to sell
View Correct Answer
Answer Key: A 

Q49. You are representing seller Sam and bring buyer Bill, your customer, to see the house. Bill makes an offer. Bill has confidentially told you that he went through bankruptcy two years ago, but he thinks he will be financially approved to buy the house. What, if anything, should you do with the information about the bankruptcy?

  • (A) Tell Sam.
  • (B) Keep the information confidential as Bill expects you to.
  • (C) Keep the information confidential unless the deal doesn’t go through.
  • (D) Contact the bank to verify Bill’s financial status.
View Correct Answer
Answer Key: A 

Q50. A licensed real estate salesperson can lawfully accept an extra commission in a difficult sale from

  • (A) a broker-employer
  • (B) the mortgage lender
  • (C) an appreciative seller
  • (D) a thankful buyer
View Correct Answer
Answer Key: A 

51. A broker with a listing brings a contract from a ready, willing, and able buyer, at the listed price, which the seller is considering. Generally, the broker has earned his commission

  • (A) now
  • (B) when the seller accepts
  • (C) when contract contingencies are met
  • (D) after closing
View Correct Answer
Answer Key: A 

Q52. A licensee shows an owner-occupied property that has window screens, custom blinds, and a Murphy bed to a buyer whose offer is then accepted by the owner. Before the close of escrow, the seller may remove:

  • (A. All the items because they are trade fixtures
  • (B. Only the blinds as personal property
  • (C. Only the Murphy bed because it is real property
  • (D. None of the identified items
View Correct Answer
Answer Key: D 

Q53. An important characteristic of land is that it may be modified or improved at some point in time. Depending on its type, an improvement may increase the value of real estate greatly. All the following are considered to be improvements except:

  • (A) Sewers
  • (B) Crops
  • (C) Buildings
  • (D) Roads
View Correct Answer
Answer Key: B 

Q54. The current market value of a property is $35,000. For tax purposes, it is assessed at 40 percent of market value. The tax rate is $4 per $100 of assessed value. What is the amount of the tax due?

  • (A) $560
  • (B) $625
  • (C) $705
  • (D) $740
View Correct Answer
Answer Key: A 

Q55. When a company furnishes materials for the construction of a house and is subsequently not paid, it may file:

  • (A) A deficiency judgment
  • (B) A lis pendens
  • (C) An estoppel certificate
  • (D) A mechanic’s lien
View Correct Answer
Answer Key: A 

Q56. A man owns a one-quarter undivided interest in a parcel of land. While he’s still living, he wants his interest transferred to his sister. Generally, which of the following actions will transfer the man’s undivided interest out of his name?

  • (A) Redemption from foreclosure sale
  • (B) Making and signing a will
  • (C) Delivery and acceptance of a deed
  • (D) Signed acceptance of offer to purchase
View Correct Answer
Answer Key: C 

Q57. A listing agent knows that the house has a roof leak, the water heater is not up to city code, and the seller must sell quickly because of financial difficulties. The agent is showing a potential buyer the property. What can or must the agent legally say?

  • (A) “The roof leaks, and the water heater does not meet city code.”
  • (B) “The seller will take less than the asking price.”
  • (C) “The seller is in financial difficulty and must sell quickly.”
  • (D) “The roof leaks, the water heater does not meet city code, and the seller needs a quick sale.”

Q58. The formula for determining the value of investment property is

  • (A) net operating income ÷ capitalization rate = value.
  • (B) potential gross income ÷ capitalization rate = value.
  • (C) effective gross income × capitalization rate = value.
  • (D) cost of replacing the property × capitaliza- tion rate = value.
View Correct Answer
Answer Key: A 

Q59. The Smiths offer to buy the Brown’s house for $125,000, with the closing scheduled for June 15. The Browns sign a written accept- ance, with the provision that the closing is to be on June 16. At this point, which of the following can occur?

  • (A) The Smiths can back out of buying the house with no penalty.
  • (B) The Browns can hold the Smiths to a June 15 closing.
  • (C) The Browns can hold the Smiths to a June 16 closing.
  • (D) The Smiths can sue for specific performance on June 15.
View Correct Answer
Answer Key: A 

Q60. You’re the buyer’s agent for Robert and Debbie, who will be selling their present home with you, in the purchase of 1234 Main Street, listed by ABC Realty. What is your agency relationship with all parties?

  • (A) Robert and Debbie is your customer; no relationship exists with seller of 1234 Main St.
  • (B) The seller of 1234 main St. is your client; you are in a dual-agent relationship with Robert and Debbie.
  • (C) Robert and Debbie are your clients; the seller of 1234 Main St. is your customer.
  • (D) You’re a dual agent to all parties.
View Correct Answer
Answer Key: C 

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