Practice test

Free Real Estate Practice Test

Take our free real estate practice test with 20 questions covering principles, contracts, agency, and finance. Instant scoring with answer explanations.

These questions are for study practice only and are not official exam questions.

Question 1

1

A property owner has the right to use her land, sell it, lease it, or give it away. Together, these rights are commonly called the:

Question 2

2

Which clause in a purchase contract allows a buyer to withdraw without penalty if they cannot obtain financing at specified terms?

Question 3

3

An easement appurtenant benefits:

Question 4

4

A buyer's agent is legally obligated to disclose to the buyer that a house they are considering is located in a flood zone. This is an example of the agent's duty of:

Question 5

5

Loan-to-value ratio (LTV) is calculated as:

Question 6

6

A seller agrees to finance the buyer's purchase by accepting monthly payments instead of a lump sum from a lender. This arrangement is called a:

Question 7

7

Which type of legal description uses compass bearings and distances to describe a parcel of land?

Question 8

8

Which type of deed offers the GREATEST protection to the grantee?

Question 9

9

Two siblings inherit a property and each holds an undivided interest with no right of survivorship. This form of co-ownership is called:

Question 10

10

A developer's property is subject to a deed restriction prohibiting commercial use. The government later zones the area commercial. Which control takes precedence?

Question 11

11

An option contract gives the optionee the right but NOT the obligation to purchase a property. If the optionee decides not to exercise the option, what happens to the option consideration paid?

Question 12

12

Which type of mortgage has a fixed interest rate for the entire loan term?

Question 13

13

An amortizing mortgage has equal monthly payments, but in the early years most of each payment goes toward:

Question 14

14

A lender charges a 1% loan origination fee on a $320,000 loan and requires 1.5 discount points. What is the total upfront cost of these two charges?

Question 15

15

A life estate grants ownership rights that last for:

Question 16

16

A seller accepts a buyer's offer but changes the sales price before signing and initials the change. The buyer has not agreed to the price change. What has the seller created?

Question 17

17

A dual agent represents both the buyer and the seller in the same transaction. Which of the following BEST describes the agent's situation?

Question 18

18

Earnest money deposited by a buyer is typically held by:

Question 19

19

An agent discovers that a home has a leaking underground storage tank on the property. The seller has not disclosed this. What should the agent do?

Question 20

20

A transaction broker (also called a facilitator or non-agent) differs from a traditional agent because:

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