Practice test

Real Estate Practice Exam 1

Real Estate practice exam 1, Foundations tier: 25 questions on estates, agency, deeds, easements, and mortgages, with full answer explanations.

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

Question 1

1

Which term describes the complete set of legal rights an owner holds in real property, including the rights to possess, use, exclude, and dispose of the property?

Question 2

2

An estate that is of indefinite duration, can be passed to heirs, and represents the most complete form of ownership is known as a:

Question 3

3

A life estate is BEST described as an estate that:

Question 4

4

Which of the following is a freehold estate?

Question 5

5

In an agency relationship, the person who hires the agent to act on their behalf is called the:

Question 6

6

Which fiduciary duty requires an agent to act solely in the best interests of the principal and avoid conflicts of interest?

Question 7

7

A listing agreement that gives one broker the right to sell but lets the seller sell on their own without paying a commission is a(n):

Question 8

8

In a typical mortgage, the borrower who pledges the property as security is called the:

Question 9

9

Which loan instrument involves three parties: a borrower, a lender, and a neutral third party who holds title until the debt is paid?

Question 10

10

A loan in which the payment is applied to both principal and interest so that the loan is fully paid off by the end of the term is described as:

Question 11

11

A right that one party has to use the land of another for a specific purpose, such as a driveway or utility line, is a(n):

Question 12

12

Which of the following is an example of an encumbrance on real property?

Question 13

13

For a real estate contract to be enforceable, the statute of frauds generally requires that the contract be:

Question 14

14

Earnest money in a purchase contract primarily serves to:

Question 15

15

Loan-to-value ratio (LTV) is calculated by dividing the loan amount by the:

Question 16

16

One discount point charged on a mortgage loan equals what percentage of the loan amount?

Question 17

17

A legal description that uses a starting point, then compass directions and distances to outline a parcel, is the:

Question 18

18

In the rectangular (government) survey system, a section contains how many acres?

Question 19

19

When an agent represents the buyer in a transaction, the agent owes fiduciary duties to the:

Question 20

20

The federal law requiring lenders to disclose the annual percentage rate (APR) and total finance charges to consumers is the:

Question 21

21

Which type of value is the most probable price a property should bring in a competitive and open market under fair-sale conditions?

Question 22

22

Ad valorem property taxes are based on the:

Question 23

23

A contingency in a purchase agreement is BEST described as a:

Question 24

24

Which government-backed loan program typically requires no down payment for eligible veterans?

Question 25

25

A deed used to transfer whatever interest the grantor may have, with NO warranties of title, is a:

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