NATIONAL REAL ESTATE EXAM PRACTICE TEST {ALREADY GRADED A+ } NEWEST VERSION

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NATIONAL REAL ESTATE EXAM

PRACTICE TEST {ALREADY GRADED

A+ } NEWEST VERSION

Question 1: Condemnation is the act of seizing private property from citizens. What gives the government the right to do this?

• police power
• escheat
• eminent domain
• adverse possession

Correct Answer: C) eminent domain

Question 2: The Americans with Disabilities Act applies to:

• exclusively federal government buildings
• privately owned or government-owned public accommodations
• only residential housing properties
• privately owned private residences

Correct Answer: B) privately owned or government-owned public accommodations

Question 3: Which is exempt from the federal Fair Housing Act?

• renting a room in a house occupied by the owner
• an apartment complex with 20 units
• a real estate broker selling a single-family home
• a commercial property leased to a retail store

Correct Answer: A) renting a room in a house occupied by the owner

Question 4: In a fixed-rate mortgage that is fully amortized, the total amount of interest to

be paid is:

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• fluctuating
• predetermined
• variable based on the prime rate
• recalculated annually

Correct Answer: B) predetermined

Question 5: Which of these is an economic characteristic that makes land a distinctive commodity?*

• immobility
• indestructibility
• non-homogeneity
• situs

Correct Answer: D) situs

Question 6: A square bedroom measures 10 feet by 10 feet. What is the area of the room?

• 20 square feet
• 40 square feet
• 100 square feet
• 1000 square feet

Correct Answer: C) 100 square feet

Question 7: Suppose that a borrower has a gross monthly income of $3,000 and wants to qualify for a conforming loan (total debt service ratio of 36%) with a monthly PITI payment of $800. What is the maximum amount of additional long-term obligations this borrower may have after PITI?

A) $280

B) $800

C) $1,080

D) $2,200

Correct Answer: A) $280

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Question 8: What happens to trade fixtures after a business moves out of a leased property?

• They become the property of the landlord.
• The tenant removes their trade fixtures and takes them upon moving out.
• They are sold to the next tenant.
• They must be left in place as part of the real estate.

Correct Answer: B) The tenant removes their trade fixtures and takes them upon moving out.Question 9: A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the federal Fair Housing Act, is this legal?

• No. Religious organizations cannot discriminate under any circumstances.
• Yes. Religious organizations which rent to tenants for residential purposes are exempt

from the Fair Housing Act.

• No. The Fair Housing Act strictly prohibits discrimination based on religion in all housing.
• Yes, but only if they also accept government housing vouchers.

Correct Answer: B) Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act.Question 10: In most cases, broker compensation, as a percentage of home price, falls

somewhere between:

A) 1-3%

B) 3-5%

C) 5-7%

D) 7-10%

Correct Answer: C) 5-7%

Question 11: The PHYSICAL characteristics of land are that land is indestructible, non-

homogenous, and:

• immobile
• scarce

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• liquid
• subject to improvements

Correct Answer: A) immobile

Question 12: Which statement BEST defines the term contingency?

Correct Answer: stipulation that must be satisfied before the contract can be performed Question 13: If a borrower is behind on payments, the acceleration clause gives the lender

the ability to:

Correct Answer: call the entire loan balance due immediately

Question 14: A metes and bounds legal description always returns to:

Correct Answer: the point of beginning

Question 15: What should a license holder do if a client instructs them to do something that would discriminate against a protected class?

• advise the client they cannot legally discriminate against certain groups
• quietly follow the client's instructions to maintain the relationship
• ignore the instruction and proceed normally
• report the client to the local housing authority immediately

Correct Answer: A) advise the client they cannot legally discriminate against certain groups

Question 16: What is a novation?

Correct Answer: the substitution of one contract for another

Question 17: A married couple bought a home ten years ago for $400,000. Their

neighborhood has rapidly grown in popularity, and they were able to sell their home this year for $950,000. How much of that money will they be required to pay capital gains tax on?

A) $50,000

B) $550,000

• $0

D) $250,000