Ready to conquer the real estate license exam questions and answers standing between you and your dream career? Our free Real Estate License Exam Q&A Quiz is designed to test your knowledge and prepare you for the real estate final exam practice test, complete with a florida realtor practice test module to hone local skills. Choose a focused Florida real estate practice quiz or explore other real estate quizzes covering contracts, finance, and property management. Tailored for aspiring agents, this interactive quiz speaks directly to your goals - spark curiosity, assess readiness, and start the challenge today!
What best defines real property?
Land and anything permanently attached to it
Movable trade fixtures
Personal belongings
Furniture and equipment
Real property includes land and anything permanently attached, such as buildings and fixtures. Personal items that can be moved are not considered real property. This distinction is fundamental in real estate law. More info.
Which type of ownership allows two or more people to own property with right of survivorship?
Joint tenancy
Tenancy at sufferance
Tenancy for years
Tenancy in common
Joint tenancy features right of survivorship, so when one owner dies, their share passes to the surviving owners. Tenancy in common does not include survivorship rights. This is key for estate planning. More info.
Which document outlines the terms of a real estate sale?
Purchase agreement
Mortgage
Title report
Deed
A purchase agreement (or sales contract) details the terms and conditions of the sale. The deed actually transfers ownership once conditions are met. Mortgages secure the loan. More info.
What does MLS stand for in real estate?
Major Lease Schedule
Market Land Survey
Mortgage Lending System
Multiple Listing Service
MLS stands for Multiple Listing Service, a database that real estate brokers use to share listings. It improves property exposure. This tool is critical for cooperation among brokers. More info.
Which party in a real estate transaction is the buyer's representative?
Mortgage broker
Escrow officer
Buyer's agent
Listing agent
The buyer's agent represents and advises the buyer in a transaction. The listing agent works for the seller. Escrow officers are neutral third parties. More info.
What is earnest money?
Deposit made by buyer to show good faith
Fee paid to the title company
Down payment required by the lender
Seller's net proceeds
Earnest money is a deposit from the buyer that shows intent to complete the purchase. It is applied toward closing costs or down payment. It protects the seller if the buyer defaults. More info.
Which agency enforces federal fair housing laws?
Consumer Financial Protection Bureau
Department of Housing and Urban Development
Federal Trade Commission
Securities and Exchange Commission
HUD enforces the Fair Housing Act, which prohibits discrimination in housing. Other agencies handle different regulatory areas. Understanding HUD's role is essential for compliance. More info.
What is a mortgage lien?
Voluntary encumbrance securing a loan
Ownership document
Contract to sell property
Transfer of title
A mortgage lien is a voluntary lien placed on the property as security for the loan. It must be satisfied before clear title transfers. Liens ensure lenders can recover debt. More info.
In real estate, what is a fixture?
A mortgage endorsement
A personal item the seller removes
An item permanently attached to the property
A lease agreement
Fixtures are items attached to the property that become real estate, such as built-in appliances. They transfer with the property unless excluded. Distinguishing fixtures from personal property is key. More info.
Which of the following is a physical characteristic of land?
Immobility
Durability
Scarcity
Modifiability
Immobility is a physical characteristic: land cannot be moved. Scarcity is economic. Durability describes longevity of improvements. More info.
What does 'fee simple' ownership mean?
Cooperative share
Complete ownership with unlimited duration
Time-limited lease
Ownership by a condominium association
Fee simple is the highest form of ownership, unlimited in duration and freely transferable. It includes full rights to possess, use, and dispose of property. This is the most common estate in land. More info.
Which term describes the uniting of two or more land parcels under one owner?
Partition
Consolidation
Easement
Subdivision
Consolidation combines parcels under single ownership. Subdivision divides land into smaller lots. Partition splits ownership interests. More info.
An agent's duty to keep client information confidential is known as what?
Confidentiality
Obedience
Accounting
Loyalty
Confidentiality is the duty to protect client information. Loyalty requires putting the client's interests first. Obedience means following lawful instructions. More info.
What instrument conveys title from seller to buyer?
Note
Mortgage
Deed
Contract
A deed is the legal document that transfers ownership of real property. The note and mortgage secure the loan. The contract outlines terms of sale but doesn't convey title. More info.
What is the primary purpose of a home inspection?
To verify zoning compliance
To evaluate the physical condition
To appraise the property value
To secure financing
Home inspections assess the physical condition of a property, identifying defects. They are ordered by buyers to inform purchase decisions. Inspections do not set property value. More info.
Which type of listing gives one broker the exclusive right to sell?
Exclusive agency
Net listing
Open listing
Exclusive right-to-sell
An exclusive right-to-sell listing guarantees commission to the broker regardless of who sells. Exclusive agency lets owner sell without paying. Open listings allow multiple brokers. More info.
Which clause in a mortgage allows the lender to demand full repayment upon default?
Escalation clause
Alienation clause
Acceleration clause
Defeasance clause
The acceleration clause lets lenders call the entire loan due if the borrower defaults. The alienation clause restricts transfers. Defeasance releases lien upon full payment. More info.
What is the primary difference between a mortgage and a deed of trust?
Deeds of trust cannot be foreclosed
Mortgages are only in commercial real estate
A mortgage uses a trustee; a deed of trust does not
A deed of trust involves three parties; a mortgage involves two
Deeds of trust include a trustee, borrower, and lender, creating a trust arrangement. Mortgages involve only borrower and lender. Both secure loans but follow different foreclosure processes. More info.
Under the Statute of Frauds, which real estate contract must be in writing to be enforceable?
Sale of personal property
Listing agreement
Lease of one year
Sale of real property
The Statute of Frauds requires contracts for sale of land to be in writing. Leases under one year can be oral in many states. Listing agreements vary by jurisdiction. More info.
How is adjusted basis calculated for capital gains tax on property sale?
Purchase price minus improvements
Sale price minus closing costs
Purchase price plus improvements and certain costs
Mortgage balance at sale
Adjusted basis equals purchase price plus capital improvements and allowable costs. It reduces taxable gain on sale. Depreciation is subtracted for investment properties. More info.
Which appraisal approach is based on recent sales of similar properties?
Gross rent multiplier
Cost approach
Sales comparison approach
Income approach
The sales comparison approach uses recent sales of comparable properties to estimate value. Cost approach uses replacement cost. Income approach applies to income-producing assets. More info.
What is an easement appurtenant?
Personal right that ends with the grantor
Right to use public property
Mortgage security interest
Benefit runs with the land and involves two properties
An easement appurtenant benefits one parcel (dominant) and burdens another (servient). It transfers with property ownership. Personal easements in gross do not. More info.
Which federal law regulates mortgage lending practices and requires lenders to disclose costs?
Fair Credit Reporting Act
Equal Credit Opportunity Act
Truth in Lending Act
Real Estate Settlement Procedures Act
TILA requires lenders to disclose annual percentage rates and loan terms. RESPA governs settlement procedures and disclosures at closing. ECOA bans credit discrimination. More info.
What is plottage value?
Tax assessment increase
Depreciation of improvements
Value decrease due to subdivision
Combined value of parcels being more than separate
Plottage value arises when combining parcels increases overall worth. Developers often use assemblage for this benefit. Depreciation relates to time and use, not parcel combination. More info.
Which form of depreciation cannot be restored by maintenance or repairs?
Physical deterioration
Economic obsolescence
Functional obsolescence
Curable depreciation
Economic obsolescence results from external factors and is incurable by the owner. Physical and functional obsolescence may be curable. Recognizing this is key in appraisal. More info.
What is the purpose of a quiet title action?
Clear defects in title
Enforce mortgage lien
Modify zoning classification
Initiate foreclosure
A quiet title suit removes clouds on title, clarifying ownership. Lenders or owners may file to resolve disputes. It does not create liens or change zoning. More info.
Which insurance protects against title defects discovered after closing?
Hazard insurance
Flood insurance
Liability insurance
Title insurance
Title insurance covers losses from title defects existing prior to policy issuance. It protects both lenders and buyers. Hazard and flood insurance address physical damages. More info.
What method is used to prorate property taxes at closing?
Fiscal year basis
None; taxes are not prorated
Biannual basis
Calendar year basis
Property taxes are generally prorated on a calendar year basis at closing between buyer and seller. The seller pays up to closing; buyer pays after. Local customs may vary, but calendar year is standard. More info.
Which type of depreciation applies to outdated design or materials?
Economic obsolescence
External obsolescence
Physical deterioration
Functional obsolescence
Functional obsolescence relates to design flaws or outdated features. It can be curable or incurable. Physical deterioration is wear and tear; economic obsolescence is external. More info.
What is a balloon payment in a mortgage?
Penalty for early payoff
Monthly interest-only payments
Biweekly amortized payment
Final lump-sum payment larger than previous ones
A balloon payment is a large final payment due at loan maturity. Earlier payments are smaller, often interest-only or partial amortization. Borrowers must refinance or pay buildup. More info.
Which act requires disclosure of lead-based paint hazards in pre-1978 housing?
Safe Drinking Water Act
Clean Water Act
Residential Lead-Based Paint Disclosure Act
Environmental Protection Act
The Residential Lead-Based Paint Disclosure Act mandates disclosure of known lead hazards in homes built before 1978. Buyers must receive an EPA pamphlet. Compliance protects occupants. More info.
Which zoning change allows for higher-density development?
Reclassification
Variance
Nonconforming use
Conditional use permit
Reclassification (rezoning) changes zoning districts to allow different uses or densities. A variance grants specific relief. Conditional use permits allow specific uses. More info.
What is the formula for calculating gross rent multiplier (GRM)?
Sale price divided by annual gross rent
Net operating income divided by sale price
Sale price plus annual rent
Annual expenses divided by gross rent
GRM = Sale Price / Annual Gross Rent. It's a quick valuation tool for rental properties. It ignores expenses and vacancies, so it's preliminary. More info.
In cost approach, how is depreciation accounted for?
Subtracted from replacement cost
Added to land value
Included in land value
Ignored
Depreciation is subtracted from the replacement or reproduction cost of improvements. Then land value is added to derive total property value. This approach suits new or unique properties. More info.
Which trust deed foreclosure process is typically nonjudicial?
Mortgage foreclosure
Judicial sale
Trust deed foreclosure
Bankruptcy sale
Deed of trust foreclosures often use a nonjudicial process via power of sale clause. Mortgages usually require foreclosure through courts. This makes trust deeds faster. More info.
What is constructive notice?
Actual personal notice
Notice by physical possession
Public record provides notice to the world
Notice by mailing only
Constructive notice is imparted by public recording of documents. It alerts anyone who searches records. Actual notice is direct communication. More info.
Which financial ratio measures loan risk by comparing debt to property value?
Capitalization rate
Gross rent multiplier
Debt service coverage ratio
Loan-to-value ratio
LTV ratio = Loan amount / Appraised value. It indicates lender risk: higher LTV is greater risk. DSCR compares NOI to debt payments. More info.
What is a purchase money mortgage?
Mortgage funded after closing
Government-backed loan
Seller finances part of purchase price
Second mortgage on the property
A purchase money mortgage is seller financing part of the purchase. It gives buyer financing without traditional lenders. It's secured by the property. More info.
Which disclosure is required under RESPA?
Lead-based paint disclosure
Title insurance policy
Easement notice
Good Faith Estimate
RESPA requires a Good Faith Estimate of settlement costs. It must be provided within three days of loan application. Other disclosures are mandated by separate laws. More info.
What is the primary advantage of a 1031 exchange?
Simplified closing process
Lower mortgage interest rate
Deferral of capital gains taxes
Immediate cash benefit
A 1031 exchange defers payment of capital gains taxes when like-kind properties are exchanged. It allows investors to reinvest proceeds fully. Strict timelines apply. More info.
Which deed provides the greatest protection to the buyer?
Special warranty deed
Deed of trust
General warranty deed
Quitclaim deed
A general warranty deed offers full covenants and warranties against title defects. Special warranty covers defects during grantor's ownership. Quitclaim offers no warranties. More info.
What is the essential element of a valid contract?
Witness signatures
Consideration
Notarization
Recording
Consideration - something of value exchanged - is required for contract validity. Mutual agreement and legal purpose are also essential. Notarization and witnesses are not always required. More info.
Which financing instrument secures loan repayment by pledge of real property?
Option contract
Promissory note
Mortgage
Lease
The mortgage is the lien instrument that secures loan repayment using property as collateral. The note is the borrower's promise to repay. Options and leases do not secure loans. More info.
Under CERCLA, who can be held liable for contamination cleanup?
Only lenders
Current and past owners/operators
Only government agencies
Only the original polluter
CERCLA imposes strict liability on current owners, past owners/operators, arrangers, and transporters of hazardous substances. Lenders have limited exceptions. Liability can be joint and several. More info.
Which legal doctrine protects a bona fide purchaser against unrecorded prior interests?
Race-notice statute
Equitable conversion
Doctrine of laches
Caveat emptor
A race-notice statute protects purchasers who record first without notice of prior interests. It combines race and notice elements. Caveat emptor is buyer beware. More info.
How does zone variance differ from nonconforming use?
They are identical concepts
Variance is permitted deviation; nonconforming use is preexisting
Nonconforming use grants new rights; variance preserves old uses
Variance applies only to signage; nonconforming use to structures
A variance permits specific relief from zoning requirements. Nonconforming use refers to lawful existing uses that conflict with new zoning. They are distinct legal remedies. More info.
In an equitable estate, which party holds legal title?
Beneficiary
Grantor
Trustee
Borrower
In a trust deed, the trustee holds legal title while the beneficiary holds equitable title. The borrower (trustor) conveys legal title. Equitable title provides use and benefits. More info.
Which method of calculating depreciation uses economic life rather than actual age?
Double declining balance
Straight-line
Sum-of-the-years'-digits
Age-life method
The age-life method estimates depreciation based on effective age and total economic life. It differs from straight-line, which uses actual cost and life. It's common in appraisal. More info.
What is the effect of equitable conversion on risk of loss?
Risk is shared equally
Remains with seller until closing
Depends on local zoning
Risk shifts to buyer upon contract signing
Equitable conversion doctrine transfers equitable title (and risk) to buyer when contract is signed. Seller retains legal title as escrow holder. Parties should insure accordingly. More info.
0
{"name":"What best defines real property?", "url":"https://www.quiz-maker.com/QPREVIEW","txt":"What best defines real property?, Which type of ownership allows two or more people to own property with right of survivorship?, Which document outlines the terms of a real estate sale?","img":"https://www.quiz-maker.com/3012/images/ogquiz.png"}
Score15/49
Easy6/16
Medium4/15
Hard4/13
Expert1/5
AI Study Notes
Email these to me
You can bookmark this page to review your notes in future, or fill out the email box below to email them to yourself.
Study Outcomes
Analyze Common Question Formats -
Recognize the structure and phrasing of real estate license exam questions and answers to improve accuracy when selecting the best response.
Apply Effective Test-Taking Strategies -
Use targeted techniques that mirror the style of the real estate final exam practice test to manage time, eliminate incorrect options, and boost overall performance.
Assess Readiness with Instant Feedback -
Gauge your proficiency by reviewing instant results on each question, allowing you to measure areas of strength and readiness before exam day.
Identify Knowledge Gaps -
Pinpoint specific topics and concepts that need further review, so you can focus your study on areas that will most improve your score.
Familiarize with Florida-Specific Content -
Gain insight into the key laws and procedures featured on the florida realtor practice test to ensure you're prepared for state-specific questions.
Cheat Sheet
Forms of Property Ownership -
Understanding joint tenancy, tenancy in common, tenancy by the entirety, and sole ownership is vital for real estate license exam questions and answers, as each form dictates rights of survivorship and transfer. Use the "P.I.T.T." mnemonic - Possession, Interest, Time, Title - to recall the four unities required for joint tenancy (Appraisal Institute). Mastery of ownership types helps on both the real estate final exam practice test and florida realtor practice test.
Real Estate Math Fundamentals -
Be fluent in common calculations like commissions (Commission = Sales Price × Commission Rate) and proration of taxes or rents ((Annual amount ÷ 365) × days owed) to quickly solve numeric questions (Florida DBPR Official Curriculum). Practicing sample problems daily boosts speed and accuracy under exam conditions.
Contract Essentials -
Memorize the four key elements - Competent parties, Offer, Acceptance, and Legal purpose (COAL) - to identify enforceable contracts on your exam (American Bar Association). A quick mnemonic "COAL" ensures you don't miss any element when analyzing real estate contract scenarios.
Agency Relationships & Fiduciary Duties -
Know the types of agency (seller's, buyer's, dual) and the "OLD CAR" fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (National Association of Realtors® Code). Clear understanding of these duties will prepare you for scenario-based real estate license exam questions and answers.
Financing Basics & LTV Ratio -
Understand loan-to-value ratio (LTV = Loan Amount ÷ Appraised Value) and how PMI applies when LTV exceeds 80% (HUD guidelines). Mastering LTV calculations and financing concepts is essential for both real estate final exam practice test and florida realtor practice test success.
