Free Real Estate Practice Exam & 21 Sample Questions
Gina is a licensed real estate salesperson, experienced trainer, and former high school educator of 1,000+ learners. She writes for Fit Small Business with a focus on real estate content.
Jealie is a staff writer at Fit Small Business, specializing in real estate education.
This article is part of a larger series on How to Become a Real Estate Agent.
Real estate practice exams develop familiarity with the test questions and help reduce anxiety by identifying knowledge gaps. These exam questions are derived from topics such as property ownership, transfer of property, financing, disclosure, and contracts—covered in your prelicensing coursework. These practice questions are formatted similarly to the actual exam, which is made up of multiple-choice questions.
Take our free practice exam below to see if you’re ready to ace the real estate exam. Then, review additional sample questions and the best real estate exam providers to ensure you are extra confident walking into exam day.
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Property Ownership Questions
Every aspiring real estate agent must learn and understand the different kinds of property ownership, legal terms, and property rights of owning real estate. These items provide insight into the legal processes and limits of the rights an owner has in a particular property he owns.
1. What is the highest form of ownership?
- Joint tenancy
- Sole ownership
- Fee simple
- Owning partnership
Answer: C. Fee simple. It means the land is owned outright, without any limitations or restrictions other than local zoning ordinances.
(This practice question was taken from the practice test provided by proprofs.com.)
2. When a person or entity uses the land of another for a specific purpose, it is known as a(n):
- Easement
- Restrictive covenant
- Littoral right
- Lien
Answer: A. Easement. An easement is when land is owned by one party and is allowed to be used or restricted by another party. The most common types of easements are access, utility, and drainage easements.
(This practice question was taken from the practice test provided by uniontestprep.com.)
3. Mr. Smith has died. By what rights does his wife lay claim to his property?
- Littoral rights
- Dower rights
- Riparian rights
- Claimancy
Answer: B. Dower rights. Dower rights grant a wife (or child) interest in her husband’s estate. Courtesy laws recognize the rights of a husband in the event of his wife’s death.
(This practice question was taken from the practice test provided by uniontestprep.com.)
Laws of Agency & Fiduciary Duty Questions
The laws of agency and fiduciary duties comprise topics about the legal aspects of real estate transactions and business relationships between principals and agents. These questions help prospective agents learn more about the legal proceedings and laws pertaining to a contract. These rules create the agency relationship and reverse the general principle of the duties between agents and principals.
4. A property owner suffers a loss because of the fraudulent misrepresentation of a broker. The owner should first:
- File a claim with the Real Estate Commissioner
- File a claim with the Real Estate Education Research and Recovery Fund
- Sue the broker for damages
- None of these
Answer: C. Sue the broker for damages. When a principal feels there is a grievance with a broker, they must first pursue the broker for damages. If unsuccessful in collecting after prevailing in court, they can submit the judgment to the Recovery Fund for payment.
(This practice question was taken from the practice test provided by quizlet.com.)
5. The position of trust assumed by the broker as an agent for a principal is described most accurately as:
- A trustee
- A trustor relationship
- A fiduciary relationship
- An employment relationship
Answer: C. A fiduciary relationship. It is a relationship in which one party places special trust, confidence, and reliance on and is influenced by another who has a fiduciary duty to act for the party’s benefit.
(This practice question was taken from the practice test provided by proprofs.com.)
Property Valuation Questions
Aspiring real estate agents must learn and understand property valuation because it helps in identifying the accurate value of a property during its buying and selling. It also helps with tax calculations, evaluating the return on investment, determining income-generating potential, and mortgage matters.
6. Market value is different from market price in that market price _______.
- is not an actual value, but just an idea
- is taxable and market value is not
- is always 10% below market value
- is a fact that has actually occurred
Answer: D. is a fact that has actually occurred. Market value is just an estimate of what a property should sell for in the current market. Market price is what the property sold for.
(This practice question was taken from the practice test provided by uniontestprep.com.)
7. The sales comparison approach to valuation is directly related to _______.
- all pending, canceled, and short-sale listings
- market investment return rates
- the quality and amount of sales data available
- the principle of anticipation
Answer: C. the quality and amount of sales data available. The sales comparison (sometimes still referred to as “market”) approach to valuation involves an appraiser locating similar properties to the property being appraised. When there are more homes on the market, it is easier for the appraiser to find similar properties and to make valuation adjustments as appropriate.
(This practice question was taken from the practice test provided by uniontestprep.com.)
8. The value of a single-family residence is most negatively affected by:
- Deferred maintenance
- Strict zoning
- Questionable neighborhood
- Obsolescence
Answer: A. Deferred maintenance. It is a physical deterioration or loss in value of a building resulting from postponed maintenance of the building. Strict zoning could actually increase value, while the neighborhood and obsolescence could lower the value, but not as drastically as deferred maintenance.
(This practice question was taken from the practice test provided by quizlet.com.)
Financing Questions
Agents must understand financing concepts that affect real estate transactions and investments. Mortgage rates, prime interest rates, and other home loan factors will all help to determine whether a client can purchase a property, either for their primary residence or as an investment.
9. A loan that is approved quickly and has a low down payment usually has ______.
- higher costs and interest rate
- lower costs and interest rate
- higher costs and lower interest rate
- lower costs and higher interest rate
Answer: A. higher costs and interest rate. In general, a lower down payment means higher interest rates and costs because lenders see a higher level of risk when you have a lower stake in the property. A higher down payment means lower interest rates and costs because lenders see a lower level of risk when you have a greater stake in the property.
(This practice question was taken from the practice test provided by proprofs.com.)
10. In checking trust deed documents in the county recorder’s office, you will find that the recorded deed of trust refers to standard clauses contained in a previously recorded deed of trust. This previously recorded trust deed is known as a ______.
- Prima facie deed of trust
- Short form deed of trust
- Master deed of trust
- Fictitious deed of trust
Answer: D. Fictitious deed of trust. Nearly all deeds of trust used by banks, escrow, and title companies are the short form. This merely recites the trustor’s name, the trustee’s name, describes the property, and has a place for signature. The terms of the trust deed are not printed in the short form but refer to an original deed of trust recorded in each county, and it is identified as a fictitious deed of trust. This lists all the terms and conditions in detail.
(This practice question was taken from the practice test provided by quizlet.com.)
Transfer of Property Questions
Real estate agents need to know about the concept and legalities of property transfer because it will help them to know the value of the property and who has the rights to claim the property. The transfer process happens by way of a deed. There are different modes, ways, processes, requirements, and qualifications for transferring property.
11. What is a short sale?
- A bank owns a property and will auction it for sale
- A sale of secured property that produces less money than is owed to a lender
- A delay on a property payment
- A listed property that sells to a buyer within a short period of time
Answer: B. A sale of secured real property that produces less money than is owed to the lender. The lender releases its lien so the property can be sold, saving the delay and expense of foreclosure.
(This practice question was taken from the practice test provided by quizlet.com.)
12. A properly written deed should include:
- A property description
- Any grantor reservations or exceptions
- The grantor’s signature
- All of the above
Answer: D. All of the above. For a deed to be legally operative, it must include the identification of the grantor and grantee, grantor’s signature, any grantor reservation or exceptions, and an adequate description of the property.
(This practice question was taken from the practice test provided by njretest.com.)
13. Mrs. Smith recently died. The title to her real estate is most likely to be conveyed by a(n):
- Sheriff’s deed
- Warranty deed
- Executor’s deed
- Quitclaim deed
Answer: C. Executor’s deed. An executor is someone named to carry out the provisions made in a deceased individual’s will. The executor will be responsible for transfer the title of the property.
(This practice question was taken from the practice test provided by njrerest.com.)
Practice of Real Estate Questions
Practice of real estate questions contain information on how agents must conduct their business in a legal and appropriate manner toward individuals within a transaction. Items will include truth in advertising, fair housing, ethics, property management, and disclosure statements. These rules and regulations dictate how real estate professionals must operate their business to guarantee they are being just and fair to a diverse population.
14. The contract of sale states that the earnest money deposit is to be placed in an interest-bearing account with any interest earned to be given to the buyer. This is:
- Illegal
- Not OK, and the broker should resign the listing
- OK, because the buyer and seller have agreed to this
- Commingling
Answer: C. OK, because the buyer and seller have agreed to this. The law requires a broker to maintain a separate non-interest-bearing trust bank account to receive client funds tendered to the broker in trust but does not require interest earned be distributed in a particular way. The broker is an agent and should carry out the client’s instructions completely, as long as they are legal.
(This practice question was taken from the practice test provided by test-guide.com.)
15. Which option best describes an exclusive-right-to-sell listing?
- The listing agent will be paid a commission only if he/she procures the buyer.
- The agent who procures the buyer will be compensated.
- The listing agent only receives commission if the property sells for a certain amount.
- The listing agent will be paid the commission no matter who procures the buyer.
Answer: D. The listing agent will be paid the commission no matter who procures the buyer. When a principal signs an exclusive-right-to-sell listing with a broker, the principal will pay the broker a commission even if the principal or another agent procures the buyer.
(This practice question was taken from the practice test provided by test-guide.com.)
Disclosure Questions
Disclosure is extremely important for agents and principals to have an honest and transparent transaction. All documents, details, and facts about the property must be reported and recognized by all parties involved before, during, and after the transaction. Usually, the types of questions these include are the fiduciary duties of the agents and principals and agency disclosure laws.
16. In terms of disclosure about material facts that affect the value or use of a property, a realtor _____.
- doesn’t have to disclose anything more than is on the seller’s disclosure form.
- has to disclose anything that he or she knows is of a material nature regardless of what is on the form.
- has a fiduciary duty to the seller to protect the seller’s best interest and so must abide by what the seller discloses.
- has no responsibility; it is the seller’s responsibility only.
Answer: B. has to disclose anything that he or she knows is of a material nature regardless of what is on the form. It is the only instance where the fiduciary responsibility is trumped by the law. Realtors must disclose anything of a material nature that affects the value or use of the property.
(This practice question was taken from the practice test provided by realestateninja.com.)
17. Some states have ____ that require agents to disclose who they are representing to the buyers.
- Agency disclosure laws
- Agent identification laws
- Agency branding laws
- Agent identification clauses
Answer: A. Agency disclosure laws. Agency disclosure laws help clear up confusion over whose interests are being represented in a transaction. These laws are in place to protect buyers from being misled by agents who are actually representing the sellers.
(This practice question was taken from the practice test provided by uniontestprep.com.)
Contracts Questions
As a real estate agent, having knowledge about the rules, legalities, and legal terms of a contract is important to avoid any ambiguity within the terms of the real estate transaction. Contract questions include the different types of real estate agreements, essential elements in a contract, types of contracts, and the main principles of contract.
While agents are not attorneys and cannot give legal advice, they should have knowledge about documents like listing agreements, offers and purchase contracts, promissory notes, and purchase and lease options.
18. A buyer agrees to purchase a home once the sale on her current home is completed. Legally, this is known as ____ ?
- Negotiation
- Specific performance
- Option agreement
- Contingency
Answer: D. Contingency. Contingencies, or contingency clauses, are a part of the contract of sale that allows a buyer or seller to get out of the contract without penalty in the case of certain specified events.
(This practice question was taken from the practice test provided by uniontestprep.com.)
19. Mr. and Mrs. Cox make Mr. and Mrs. Green an offer on their home, but they have not heard back from them on whether or not the offer has been accepted. In the meantime, they have found another home they would like to purchase instead. What is their best option?
- Withdraw their offer with no penalty.
- Wait for Mr. and Mrs. Green’s response. If they accept the offer, pay the withdrawal fee outlined in the contract.
- Withdraw their offer with no penalty.
- Modify their offer to one they are confident Mr. and Mrs. Green will not accept.
Answer: A. Withdraw their offer with no penalty. Before an offer has been accepted, the buyers have the right to withdraw their offer with no penalty. However, if the seller has already accepted the offer, the offer now becomes a contract that carries with it legal obligations.
(This practice question was taken from the practice test provided by uniontestprep.com.)
Real Estate Calculations Questions
Every real estate agent should learn how to value real estate properties because it affects the properties’ selling and buying costs, e.g., calculating the return on investment, cap rate, taxes, expenses, profit margin, and property present and future value.
20. Charles wants to buy a house for $250,000. If his bank requires a 20% down payment, what will Charles’ down payment be?
- $75,000
- $60,000
- $50,000
- $20,000
Answer: C. Charles’ down payment is $50,000.
Solution:
Total Sales Price x Percentage of Down Payment = Down Payment
$250,000 x 20% = $50,000
(This practice question was taken from the practice test provided by ezrealestatemath.com.)
21. Ken has an annual salary of $65,000. His mortgage payment is $395 per month and he has an additional debt of $109 per month. Calculate Ken’s front- and back-end debt-to-income (DTI) ratios.
- Front = 0.08, Back = 0.19
- Front = 0.07, Back = 0.19
- Front = 0.07, Back = 0.22
- Front = 0.08, Back = 0.23
Answer: B. Ken’s front-end ratio is 0.07 and his back-end ratio is 0.19.
Solution:
Step 1: Mortgage Payment + Additional Debt = Total Monthly Debt
- $395 + $609 = $1,004
- Total Income / 12 months = Monthly Income
- $65,000 / 12 months = $5,417
Step 2: PITI / Monthly Income = Front-end Ratio
- $395 / $5,417 = 0.07
Step 3: Total Debt / Monthly Income = Back-end Ratio
- $1,004 / $7,500 = 0.19
(This practice question was taken from the practice test provided by ezrealestatemath.com.)
Real Estate Practice Exam Providers
There are numerous methods for studying for the real estate license exam, but having an exam prep course is one of the most efficient and effective because it provides extensive study tools, groups, instructor access, and even a step-by-step strategy to help you study for and pass the exam. We listed the top exam prep courses that might be the best fit for you:
Providers |  |  |  |  |
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Best For | Aspiring agents looking for a large volume of practice questions and exams at a budget-friendly costs | Various study tools, state-specific practice questions, and learning formats | Agents looking for a variety of course package options to choose from | Livestream courses, in-depth study materials, and instructor-led sessions |
Key Features |
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Starting Price | $39 | $59 | $99 | $69 |
Learn More | or | or | or | or |
In addition to exam prep courses, we have several tricks to help you study in our article 10 Tips + Resources & Schools to Prepare for the Real Estate Exam.
Bottom Line
Providers of real estate practice exams provide a large number of sample questions and resources to assist aspiring real estate agents in preparing for national and state-specific real estate licensing exams. Although free practice exams are available online, paid resources provide real estate flashcards, forums, and one-on-one direct instructor assistance to assist test-takers in learning and reviewing exam contents more quickly.
