1. A property sells for $350,000. The listing and buyer’s brokerages split a 6% commission 50/50, and the listing agent receives 60% of the listing brokerage’s share. How much does the listing agent receive?
$350,000 × 6% = $21,000 total commission. Split 50/50 = $10,500 to the listing brokerage. 60% of $10,500 = $6,300 to the listing agent.
2. A rectangular lot measures 363 feet by 360 feet. How many acres is the lot?
363 × 360 = 130,680 square feet. One acre = 43,560 square feet. 130,680 / 43,560 = 3 acres.
3. Annual property taxes of $3,600 are unpaid at closing (in arrears). Closing is July 1. Use a 360-day year, and assume the seller owns through June 30. What does the seller owe the buyer?
$3,600 / 360 = $10 per day. Seller owned January 1 through June 30, 180 days. 180 × $10 = $1,800 credited to the buyer, since the buyer will later pay the full year’s tax bill.
4. What’s the difference between a lien and an encumbrance?
A lien is a specific type of encumbrance, a financial claim against a property for unpaid debt. Encumbrance is the broader category, covering anything that limits an owner’s rights, including liens, easements and restrictions. Every lien is an encumbrance; not every encumbrance is a lien.
5. What’s the difference between an easement and a license?
An easement runs with the land and stays attached even when ownership changes. A license is personal permission granted to a specific individual, and it ends when that person’s relationship to the property ends.
6. What happens to a property when the owner dies with no will and no heirs?
It reverts to the state through escheat.
7. What’s the difference between novation and assignment?
Novation replaces one party in a contract with another and fully releases the original party from liability. Assignment transfers rights to a new party, but the original party can remain liable if the new party defaults.
8. A city denies a building permit because a proposed structure exceeds the zoning height limit. What government power does this represent?
Police power. It’s the government’s authority to regulate property for public health, safety and welfare, and it doesn’t require compensating the owner.
9. A tenant installs custom shelving in a rented commercial space. Under what circumstances does the shelving become a fixture rather than personal property?
When it’s been attached to the property in a way that shows intent for it to stay, judged by factors like method of attachment, adaptability to the property’s use, and any agreement between landlord and tenant.
10. What’s the difference between riparian and littoral rights?
Riparian rights apply to land bordering flowing water, like rivers and streams. Littoral rights apply to land bordering non-flowing water, like lakes and oceans.
11. What’s the difference between assemblage and plottage?
Assemblage is the act of combining two or more adjoining parcels into one larger property. Plottage is the increase in value that results from that combination.
12. What are the seven classes protected under the federal Fair Housing Act?
Race, color, religion, sex, national origin, familial status and disability.
13. An agent shows a buyer homes only in neighborhoods matching the buyer’s race, without being asked to. What’s this practice called?
Steering.
14. Someone encourages homeowners to sell quickly by suggesting that a protected class moving into the neighborhood will hurt property values. What’s this practice called?
Blockbusting.
15. What does the acronym OLDCAR stand for in real estate agency law?
Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable Care, the six fiduciary duties an agent owes a client.
Real Estate Exam Practice: Quick Answers
How many practice questions should I do before the real estate exam? Enough to consistently score 85% or higher on full, timed practice exams, not just a handful of untimed questions.
Are real estate exam practice questions the same style as the real exam? They should be if they’re built well. Expect qualifying words like “except,” “not” or “all but,” and scenario-based questions that ask you to apply a rule, not just recall it.
What topics come up most in real estate exam practice questions? Property ownership, contracts and agency, financing and math, and practice of real estate including fair housing, since these make up most of the national portion.