Real Estate Agent Practice Exam

Take our free real estate agent practice exam below and test your knowledge.

Author: Joe Stephenson
joe stephenson kc real estate agent

By: Joe Stephenson


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Real Estate Practice Exam Section 1

1. In a scenario where Robert secures a loan from a local bank for the purpose of buying an apartment complex, what role does Robert play?

2. Karen agrees to take care of Frank's lawn every week during the summer season. However, Karen decides to change her line of work. Vic is interested in taking over Karen's responsibilities and forms a new contract with Frank. The previous agreement between Frank and Karen is terminated. This process is referred to as:

3. According to the disclosure regulations of the Consumer Financial Protection Bureau, what must the lender provide to the buyer?

4. Larry transfers the title of his building into a trust, with himself as the beneficiary. After Larry's death, his will instructs the trustee to sell the building and distribute the sale proceeds to Larry's heirs. What type of deed was issued at the closing of this sale?

5. What kind of tasks usually require a real estate license when performed for a fee?

6. As a homeowner preparing her tax return, what expenses can she subtract from her income?

7. The apartment manager opts to reduce the risk of criminal activity on the premises by installing security cameras and electronic locks with passkeys on all entrance doors. What type of risk management strategy is this?

8. If a parcel of land described as the SW4 of the SE of the NW4 of the S1⁄2 of a section is valued at $3,000 per acre, what would be the total value of the property?

9. A broker receives earnest money from a buyer on a Friday and deposits it into his personal account over the weekend. What potential charge could the broker face as a result of this action?

10. If Henry wants to calculate the return on his real estate investment, what would he most likely use?

11. A veteran is interested in refinancing her home with a VA-guaranteed loan. The lender agrees but insists on charging 31⁄2 discount points. In this case, what happens to the veteran?

12. Thelma buys a house and secures a loan that only partially amortizes the principal. What must this type of loan include?

13. Under which of the following land or property lending circumstances would a lender likely allow a higher loan-to-value ratio?

14. In a lease agreement, who is responsible for the rent payments if the lease is assigned by the lessee?

15. A lender requires the buyer to secure mortgagee title insurance before agreeing to the loan. When will the premium for the title insurance policy be paid?

16. In a real estate transaction, the buyer is given a deed that includes the phrase "to have and to hold." Which part of the deed would contain this phrase?

17. As a sponsored licensee, from whom can Jack legally receive commissions?

18. Which of the following is a common thing received among independent contractor real estate licensees?

19. Louise is applying for a real estate loan and needs to obtain a certificate of reasonable value. What type of loan is she applying for?

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Get Our Free Study Guide for Real Estate Exam Prep

Download Free Study Guide

Preparing for the real estate agent license exam can be a daunting task, but with the right resources and a strategic study plan, you can navigate your way to success.

Real Estate Agent Essentials - Understand the roles and responsibilities of both real estate agents and brokers. Real estate salespersons are typically responsible for helping clients buy or sell real estate, while brokers have additional responsibilities, such as managing transactions and overseeing agents.

Property Basics - Familiarize yourself with various types of property, including real property and personal property. Know how property ownership works, including the rights and responsibilities of the property owner. Learn about property management, property lines, and property taxes.

Real Estate Transactions - Get a good grasp of real estate transactions, which includes understanding the listing agreement, the selling price, and the role of a neutral third party. Learn how an agent represents both the buyer and the seller in different scenarios.

Real Estate Law - Understand the legal aspects of real estate, including real estate law, agency relationships, and probate court. Be aware of state laws that may affect property transactions.

Real Estate Exam Preparation - Use real estate test prep materials and take real estate practice tests to familiarize yourself with the exam format. The exam generally has two parts: the national portion and the state-specific portion, so make sure to prepare for both.

Mortgage Loans - Understand different types of mortgage loans, like conventional loans and adjustable-rate mortgages. Know how to calculate a monthly payment and understand what makes it tax-deductible.

Market Data Approach - Learn about the market data approach, a common method used to estimate the value of a property based on comparable sales.

Title and Ownership - Learn about property title, which is the legal document that proves ownership. Understand the process of transferring title during a sale.

Remember, the key to passing the exam is consistent studying and taking advantage of free practice tests.

Good luck with your real estate agent exam preparation.

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Test Taking Advice

Most state licensing agencies use examinations as one of the methods for deter- mining a candidate's qualifications for licensing. The purpose of an exam is to measure a candidate's knowledge of various real estate topics as part of the evaluation for licensing. Most states use professional testing services to help develop and administer the licensing examinations, but some have developed their own tests.

The format of most state licensing examinations consists of questions in a four-option, multiple-choice format with one correct answer for each question. The test is usually divided into two parts. One part (generally 80 to 100 questions) covers general real estate topics, and the second (30 to 50 questions) covers laws and practices specific to the state. The rest of this section includes information and tips to help you successfully complete the licensing examination.

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Preparation for the Real Estate Agent Test

  • Learn all you can about the test administered in your state. Examination information can usually be obtained from either the testing service used by the state or the state agency that administers licensing.
  • Register for the test date and site location as early as possible because your fill up quickly. preferred test date and site may
  • Visit the test site before the test date to locate parking, and determine how long the commute will be to the test site.
  • The night before, assemble all items needed for the test. These might
  • include identification for access to the site; a watch; any fees required to be paid at the test site; a calculator (test to be sure it is working); extra batteries for the calculator; and pens, pencils, and erasers.
  • The evening before the test, quickly review topics you feel are critical or have given you the most trouble and then get to bed early. Do not stay up all night trying to study. You will probably answer more questions wrong if you are sleepy and not mentally alert.
a person writing on a sheet of paper


There is no substitute for commitment and hard work. Plan ahead to invest adequate time in reading, studying, and practicing your testing skills.

Spend adequate time studying the definition of key real estate terms. Each unit in this book starts with a list of key terms covered in the unit and highlights them in bold in the text. The glossary is a good place to study the vocabulary of real estate.

Practice test-taking by using the Part Diagnostic Tests in this book, as well as the practice tests in this section. Remember that practice tests are not a substitute for studying. Do not try to memorize the answers because subtle changes in the question you may encounter on the licensing test may change the correct answer.

Practice taking tests under conditions similar to those you will be operating under at the licensing exam.

a group of computers on a table

Taking the Test

Arrive at the test site early to avoid rushing and putting extra pressure on yourself. Use the extra time to relax, use the bathroom, and mentally prepare yourself.

Listen to the test proctor's instructions carefully, review the test material given to you, and note if anything is missing.

Budget your time and pace yourself in working through the questions. should work as quickly as you can, do not rush through the questions because this increases the risk of careless errors such as hitting a wrong key on your calculator.

Although you questions may be Do not spend too much time on a question the first time through the test. You will not know the answer to every question, and some long or confusing to you. Skip these and return to them after answering the other questions.

Take mental breaks to avoid fatigue. Mental fatigue may cause careless mistakes, so if necessary, stop and close your eyes for a minute or two, and then resume the test.

Carefully mark your answers. Whether you use a paper answer sheet or a computer, make sure the answers you are entering match the number of the question.

Do not change an answer unless you are very sure it is incorrect, because your first answer is usually the best.

Read carefully. You must read each question carefully and completely. Do not skim through the question. Read all the possible choices before making a selection.

Watch for key words. Words such as not, must, always, except, and so forth are usually critical to selecting the best answer. When you encounter these terms, circle or highlight them in case you need to return to the question so you won't miss them.

Find the best answer. Some answers may be at least partially correct, but only one can be the best answer.

Eliminate obviously incorrect answers. When reading all the answer choices, cross out those that you are sure are wrong. If you return to the question, you will not waste time considering these answers again.

Mark up the test. Usually only the answer sheet is used for grading. Next to the questions write notes, calculations, or question marks for unsure answers; circle or highlight key words or phrases or anything else that will help you analyze the question.

Use all the necessary information given but only the information given. Remember to use all the relevant facts in selecting the answer, but do not start reading facts that are not there into the question. (Some tests may have questions with extraneous facts that are not necessary in selecting the correct answer.)

If you finish answering the no other reason than to be in recording your answers, in your questions early, review the questions, sure you did not make careless mistakes computations, and so forth.

Very often applicants fail the test by only a few points, and there is no extra credit for finishing early.

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