Real Estate practice questions and answers 2026. Tap an option to test yourself — you'll see the correct answer and a plain-English explanation for every question. Free, no login.
Q21An agent becomes the agent of the seller when both the seller and the agent sign a(n):
✓ Correct answer: C. Listing Agreement.
The Listing Agreement is the employment contract that creates the agency relationship between the seller and the listing agent.
Q22Susan owns an apartment house and claimed a depreciation expense of $10,000 on her federal income tax return. To determine the property's basis for income tax purposes, we need to consider the following:
✓ Correct answer: C. decreased by $10,000
Basis is the value carried on the books of the owner. When the owner deducts $10,000 for depreciation, the book value/basis goes down by $10,000.
Q23The areas of law that are crucial for real estate professionals do <i>NOT</i> encompass
✓ Correct answer: D. maritime law
Maritime law is not an area of law that is crucial for real estate professionals. Maritime law, also known as admiralty law, deals with legal matters related to navigation, trade, and commerce on the seas and other navigable waters. Real estate professionals primarily deal with the legal aspects of buying, selling, and managing properties on land.
Q24A parcel of property was purchased jointly by two friends. The deed they received from the seller during the closing process conveyed the property by specifically naming both friends as individual owners, without any additional clarification. As a result, the friends acquired the property as what type of ownership?
✓ Correct answer: D. Tenants in common
In cases where joint tenancy is not explicitly specified in the deed, the grantees acquire title as tenants in common to prevent inadvertent joint tenancy. Non-married individuals are unable to hold community property or become tenants by the entirety, as these forms of ownership are exclusively available for married couples.
Q25Sam is renting property from John, Sam is on a month to month lease agreement, this past month he did not pay his rent, Sam interest would be classified as:
✓ Correct answer: D. Estate at Sufferance
A tenant who continues to occupy the property after his rights have expired is said to occupying the property under an Estate at Sufferance.
Q26Which of the subsequent documents is typically drafted when a buyer of real estate additionally acquires a riding lawn mower sold by the seller?
✓ Correct answer: A. A bill of sale
A bill of sale is a written document that provides proof of the transfer of title to personal property. Personal property typically refers to movable property, such as a lawn mower, and a bill of sale serves as documentation for such transactions.
Q27When a governmental body takes private real property for necessary public use, it is important to adhere to specific legal procedures. This act of taking is a demonstration of the right of:
✓ Correct answer: B. Eminent domain
Eminent domain is a legal mechanism that permits a federal or local government to acquire private property for public use. The authority exercising eminent domain must provide fair market value compensation for the property seized.
Q28Legally speaking, an "attachment" is a term used in real estate referring to:
✓ Correct answer: A. lien.
An attachment is a legal process used to identify specific property owned by a debtor to be transferred to a creditor to cover the cost of the debt. Attachments are regarded as liens against property.
Q29Which of the options below most accurately represents the practice commonly referred to as "puffing"?
✓ Correct answer: A. A licensee exaggerates certain features or benefits of a property.
Puffing occurs when a licensee exaggerates the benefits or features of a property, presenting an inflated portrayal to potential buyers. Legally, it is acknowledged as an opinion rather than a representation of factual information.
Q30Mr. and Mrs. Thomas Martin are seeking to sell their house and are considering utilizing multiple brokers. However, they desire the option to sell the property on their own without incurring any commission fees to the broker. <br/><br/>Which type of listing agreement would enable them to engage various brokers while also enabling them to sell the house independently without being obligated to pay any commission?
✓ Correct answer: C. Open listing
An open listing allows a homeowner to sell their property independently as a "For Sale By Owner." This type of agreement is non-exclusive, enabling the owner to enter into open listings with multiple real estate brokers and only compensate the broker who introduces a qualified buyer whose offer the owner approves.
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Theory