Real Estate Salesperson Practice Questions (2026) — Free Sample Questions with Answers

Answer: D

1. A standard section = 640 acres.
2. SW¼ of the section = 640 ÷ 4 = 160 acres.
3. NE¼ of that SW¼ = 160 ÷ 4 = 40 acres.

160 acres: That is only the SW¼; the description takes a quarter of that quarter.

80 acres: That would be a half of a quarter section, not a quarter of a quarter.

10 acres: That divides by 4 one time too many.

40 acres: Correct. A section is 640 acres; ¼ of 640 = 160 acres, and ¼ of 160 = 40 acres.

Start with 640 acres per section and divide by each fraction in the description (multiply the denominators: 640 ÷ (4 × 4) = 40).

Answer: C

Tia and Uma each own one-half as joint tenants: Uma took by a different deed at a different time, so she lacks the unities needed to be a joint tenant.

Tia, Uma and Sam's heirs each own one-third: Sam's share passed to Tia by right of survivorship, not to his heirs.

Tia owns two-thirds and Uma owns one-third, as tenants in common: Correct. Rosa's sale severed only her third, so Uma is a tenant in common. Sam and Tia stayed joint tenants on two-thirds, and Sam's share passed to Tia by survivorship.

Tia owns the entire lot by right of survivorship: Survivorship does not reach Uma's third, which was severed when Rosa sold it.

A joint tenant who conveys severs only that share; the buyer becomes a tenant in common, and the remaining joint tenants keep survivorship among themselves.

Answer: B

1. Vacancy and collection loss: $96,000 × 0.05 = $4,800.
2. Effective gross income: $96,000 − $4,800 = $91,200.
3. NOI: $91,200 − $30,000 operating expenses = $61,200 (the $24,000 of mortgage payments is not an operating expense).
4. Value = NOI ÷ cap rate: $61,200 ÷ 0.08 = $765,000.

$465,000: The mortgage payments were subtracted: ($61,200 − $24,000) ÷ 0.08. Debt service is never deducted to find NOI.

$765,000: Correct. Effective gross income is $91,200, NOI is $61,200, and $61,200 ÷ 0.08 = $765,000. Mortgage payments are not an operating expense.

$825,000: The vacancy loss was ignored: ($96,000 − $30,000) ÷ 0.08.

$1,140,000: Effective gross income was capitalized before operating expenses: $91,200 ÷ 0.08.

Income approach: value = NOI ÷ cap rate. NOI is effective gross income minus operating expenses; debt service is excluded.

Answer: A

1. Rule: the borrowers must receive the Closing Disclosure at least 3 business days before consummation (for this rule, business days are all calendar days except Sundays and federal holidays).
2. Do not count the day of receipt; consummation may occur on the third business day after receipt.
3. Counting back from Friday: Thursday, Wednesday and Tuesday are the three days before consummation, so receipt must be by Tuesday.
4. Check: received Tuesday → Wednesday (1), Thursday (2), Friday (3) → Friday consummation is allowed.

Tuesday of that week: Correct. The borrowers must receive the Closing Disclosure at least 3 business days before consummation. If they receive it Tuesday, Wednesday, Thursday and Friday are days 1–3, so the loan can be consummated Friday.

Wednesday of that week: This counts the day of receipt as one of the 3 days. Receipt on Wednesday would allow consummation no earlier than Saturday.

Monday of that week: Monday would satisfy the rule, but it is not the latest day that works.

Thursday of that week: One day is not enough. The Closing Disclosure must be received at least 3 business days before consummation.

The Closing Disclosure must be received at least 3 business days before consummation; the day of receipt is not counted.

Answer: D

1. Original value = the lesser of the sales price and appraised value = $250,000.
2. Borrower-requested cancellation at 80% LTV: $250,000 × 0.80 = $200,000.
3. For comparison, automatic termination is at 78%: $250,000 × 0.78 = $195,000.

$195,000: This is 78% of the original value, the point at which PMI terminates automatically. The borrower may ask earlier.

$190,000: This is 80% of the loan amount. The test uses the original property value, not the loan amount.

$185,250: This is 78% of the loan amount, which mixes up both the percentage and the base.

$200,000: Correct. The borrower may request cancellation when the balance reaches 80% of the original value: $250,000 × 0.80 = $200,000.

Homeowners Protection Act: PMI can be cancelled on request at 80% of original value and ends automatically at 78% on the original amortization schedule.

Answer: A

1. Brokerage commission: $412,000 × 0.03 = $12,360.
2. Salesperson share: $12,360 × 0.70 = $8,652.

$8,652: The listing brokerage earns 3% of $412,000 = $12,360, and the salesperson receives 70% of that, or $8,652.

$3,708: This is the brokerage's 30% share, not the salesperson's 70% share.

$12,360: This is the brokerage's full commission; the salesperson's 70% share was not applied.

$17,304: This uses 6% instead of the 3% stated in the listing agreement.

Find the total commission first (price × rate), then apply each split in order. Commission rates are negotiable and set in the listing agreement.

Answer: B

The buyer must be preapproved by a lender: Preapproval is a good practice but is not what the NAR policy requires before a tour.

A written buyer agreement stating the compensation: NAR/MLS policy requires a written agreement with the buyer before touring a home, in person or virtually. It must state the compensation objectively and that commissions are negotiable.

The MLS must show the offered buyer-broker fee: Offers of compensation to buyer brokers are no longer allowed on the MLS under the NAR policy.

Nothing; a written agreement is needed only at offer: The policy requires the written agreement before touring, not just before writing an offer.

Since August 17, 2024, NAR policy requires a written buyer agreement before touring; compensation must be stated, is negotiable and is not set by law. This is industry policy, not federal law.

Answer: A

No; the counteroffer ended the original offer: A counteroffer is a rejection of the original offer plus a new offer. Once the seller countered, the $310,000 offer was dead and could not be accepted later.

Yes; the seller accepted the buyer's terms: The seller cannot revive an offer that the seller's own counteroffer already rejected.

Yes; offers stay open for a reasonable time: Rejection, including a counteroffer, ends an offer immediately, regardless of any reasonable-time rule.

No; only a broker may present acceptances: Who delivers the acceptance is not the issue; the original offer no longer existed.

A counteroffer kills the original offer. Only the most recent offer on the table can be accepted, and acceptance must match it exactly (mirror image rule).

Answer: D

Only before in-person tours: The policy applies to live virtual tours as well as in-person tours.

Before the buyer makes an offer: The required point is earlier than the offer: it is before the first tour.

Before closing the purchase: Waiting until closing would defeat the purpose of setting terms up front.

Before the buyer tours a home: The policy requires a written agreement before touring a home, whether the tour is in person or virtual.

NAR/MLS policy since Aug 17, 2024: a written buyer agreement before touring, stating compensation objectively, and stating that compensation is negotiable.

Answer: A

Decline, since obedience covers only lawful instructions: The duty of obedience extends only to lawful instructions. Concealing a known material defect is misrepresentation, so the agent must refuse and disclose.

Follow it unless a buyer asks directly: Known material defects must be disclosed whether or not a buyer asks.

Follow it, because obedience is a fiduciary duty: Obedience never requires an illegal or fraudulent act such as hiding a known defect.

Follow it but note the crack in the file: A private file note does not inform buyers; the concealment is still misrepresentation.

OLDCAR duties (obedience, loyalty, disclosure, confidentiality, accounting, reasonable care) never require a licensee to act illegally or deceive a third party.

Answer: A

Disclose the crack to prospective buyers.: Correct. The crack is a known latent material defect: it is hidden from ordinary inspection, and it is material. Known material defects must be disclosed, and concealing one is misrepresentation.

Stay silent, since buyers can hire their own inspector.: A buyer's right to inspect does not excuse concealing a known hidden defect.

Disclose the crack only if a buyer asks about it directly.: Known material defects must be disclosed whether or not a buyer asks.

Disclose it only after the inspection contingency expires.: Delaying disclosure past the buyer's inspection period defeats its purpose.

A latent defect cannot be found by ordinary inspection; when a licensee knows of one that is material, it must be disclosed.

Answer: A

1. Annual base rent: $3,000 × 12 = $36,000.
2. Sales above the breakpoint: $740,000 − $500,000 = $240,000.
3. Percentage rent: $240,000 × 0.04 = $9,600.
4. Total rent: $36,000 + $9,600 = $45,600.

$45,600: Base rent of $36,000 plus 4% of the $240,000 in sales above $500,000 ($9,600) equals $45,600.

$12,600: This adds only one month of base rent to the percentage rent.

$65,600: This applies 4% to all $740,000 in sales ($29,600) instead of only the excess over $500,000.

$29,600: This is 4% of total sales with no base rent and no breakpoint.

In a percentage lease, the tenant pays base rent plus a percentage of gross sales, usually only on sales above a stated breakpoint.

Answer: D

Buyer 1, because the first deed delivered always controls: Delivery is valid between the parties, but the unrecorded deed does not protect Buyer 1 against a good-faith later buyer.

Buyer 1 and Buyer 2 together, as tenants in common: Recording acts decide which buyer wins; they do not split ownership.

The owner, because the second sale makes both deeds void: A double sale does not void the deeds; the owner may face fraud claims from Buyer 1.

Buyer 2, because Buyer 2 recorded first without notice: Correct. Buyer 2 paid value in good faith, had no actual or constructive notice of the first sale, and recorded first. Under notice and race-notice recording statutes, that later buyer prevails.

Recording gives constructive notice; a buyer who fails to record (or occupy) risks losing to a later good-faith purchaser who records.

Answer: D

The ad is lawful, because owner-occupied 2–4 unit buildings are fully exempt.: The exemption is not total; the ban on discriminatory advertising still applies.

The ad is lawful, because familial status protects only pregnant women.: Familial status protects households with children under 18 as well as pregnant women.

The ad is lawful as long as she rents to a family if one applies.: The discriminatory statement itself violates the law, regardless of later conduct.

The ad violates the Act, because no exemption covers discriminatory ads.: Correct. The owner-occupied 2–4 unit exemption does not cover the advertising ban, so a "no children" ad is a familial-status violation.

Federal exemptions (owner-occupied 2–4 units, single-family by owner) are lost if a broker or discriminatory advertising is used.

Answer: A

1. Add the fixed costs to the desired net: $282,000 + $3,000 = $285,000.
2. Seller keeps 100% − 5% = 95% of the price.
3. Price: $285,000 ÷ 0.95 = $300,000.
4. Check: $300,000 − $15,000 commission − $3,000 = $282,000.

$300,000: Correct. ($282,000 + $3,000) ÷ 0.95 = $300,000. Check: $300,000 − $15,000 − $3,000 = $282,000.

$296,100: Ignored the $3,000 and multiplied the net by 1.05.

$299,250: Multiplied $285,000 by 1.05; the commission is 5% of the sales price, not of the net.

$296,842: Divided the net by 0.95 but left out the $3,000 in closing costs.

Sales price = (desired net + fixed costs) ÷ (1 − commission rate). Divide by the complement; do not add the percentage.

Answer: A

1. Daily rate: $3,600 ÷ 360 = $10 per day.
2. Seller's days (Jan 1 through June 15, 30-day months): 5 months × 30 + 15 = 165 days.
3. Seller's share: 165 × $10 = $1,650.
4. The taxes are unpaid (in arrears), so debit the seller $1,650 and credit the buyer $1,650.

$1,650 debit to seller, credit to buyer: Correct. The seller owes 165 days × $10 = $1,650, which is credited to the buyer, who will pay the full bill later.

$1,650 credit to seller, debit to buyer: Right amount, wrong direction. Taxes paid in arrears are a seller debit.

$1,950 debit to seller, credit to buyer: $1,950 is the buyer's own 195 days, not the seller's share.

$1,950 credit to seller, debit to buyer: Wrong amount and wrong direction. This treats the taxes as prepaid.

For taxes paid in arrears, the seller has not paid for the days owned. Debit the seller and credit the buyer for those days.