Free National Real Estate Practice Exam

Q1.Which federal law requires lenders to provide borrowers with a Good Faith Estimate of settlement costs within three business days of receiving a loan application?

• A.Truth in Lending Act (TILA)
• B.Fair Housing Act
• C.Real Estate Settlement Procedures Act (RESPA)
• D.Equal Credit Opportunity Act (ECOA)

Q2.A metes and bounds legal description reads: 'Beginning at the iron pin at the southeast corner of Lot 12, thence N 45°30'15" E for 150.75 feet to an iron pin, thence N 30°15'45" W for 200.50 feet to a concrete monument...' What does the notation 'N 45°30'15" E' specifically indicate?

• A.45 degrees, 30 minutes, 15 seconds north of due east
• B.A bearing that runs northeast at exactly 45.5 degrees from north
• C.45.30 degrees northeast from the starting point
• D.45 degrees, 30 minutes, 15 seconds east of due north

Q3.Under the Fair Housing Act, which of the following is NOT considered a protected class in rental housing discrimination?

• A.National origin
• B.Familial status
• C.Marital status
• D.Disability

Q4.Which federal law prohibits lenders from discriminating against loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?

• A.Equal Credit Opportunity Act (ECOA)
• B.Fair Housing Act
• C.Truth-in-Lending Act
• D.Real Estate Settlement Procedures Act (RESPA)

Q5.A real estate agent represents the seller in a transaction but also shows properties to potential buyers. What type of agency situation does this create?

• A.Single agency
• B.Dual agency
• C.Designated agency
• D.No agency relationship exists with buyers

Q6.Under most Arizona listing agreements, when is the real estate commission considered 'earned'?

• A.When the listing agreement is signed by both parties
• B.When the seller accepts a ready, willing, and able buyer by executing the purchase contract
• C.When the transaction closes and the deed is recorded
• D.When the buyer submits an offer at full list price

Q7.Under federal fair housing law, which statement about reasonable accommodations for disabled tenants is correct?

• A.Landlords must make all requested modifications at their own expense
• B.Landlords must allow reasonable modifications to be made at the tenant's expense
• C.Landlords can charge additional rent for disabled tenants
• D.Landlords are not required to make any accommodations

Q8.A buyer's agent is asked by the listing agent what the buyer's 'highest and best' number is. The buyer's agent should:

• A.Share the number — buyer's agents should be transparent to facilitate transactions
• B.Share it only if the seller's agent discloses the seller's minimum acceptable price first
• C.Share it only if the listing agent requests it in writing
• D.Refuse — the duty of confidentiality prohibits sharing the buyer's negotiating position with the opposing party

Q9.In the income approach to valuation, what does the capitalization rate represent?

• A.The rate of return an investor expects on the investment
• B.The percentage of income retained after expenses
• C.The percentage of the property's value that is financed
• D.The annual appreciation rate of the property

Q10.In real estate contracts, what typically happens during an attorney review period?

• A.The attorney determines the property's market value
• B.The attorney reviews and may request modifications to the contract terms
• C.The attorney arranges for the property inspection
• D.The attorney orders the title search

Q11.Which combination of protective steps most effectively reduces both wire fraud risk and FinCEN compliance exposure in a high-value all-cash transaction?

• A.Verbally confirming wiring instructions and verifying the buyer entity's beneficial ownership through the title company
• B.Using a cashier's check and filing a 1099-S
• C.Requiring the buyer to appear in person at closing and paying in certified funds
• D.Submitting a SAR (Suspicious Activity Report) to FinCEN before closing

Q12.The most important thing a listing agent can ask a buyer's agent when reviewing a financed offer is:

• A.Whether the buyer has a pre-qualification, pre-approval, or loan commitment — and from what type of lender
• B.Whether the buyer has made offers before
• C.Whether the buyer's agent will reduce their commission
• D.Whether the buyer will waive the inspection contingency

Q13.A landlord receives a rental application from a person who uses a service dog due to blindness. Under the Fair Housing Act, the landlord may:

• A.Charge a pet deposit for the service dog
• B.Allow the service dog even if the property has a no-pets policy
• C.Require documentation of the person's disability
• D.Refuse the application if other tenants are afraid of dogs

Q14.In an all-cash transaction, what is the most important verification the seller should require from the buyer?

• A.Confirmation that no financing is involved, in a signed addendum
• B.Verifiable proof of funds — such as a bank or investment account statement — by a specified deadline
• C.An independent appraisal, since cash buyers must still meet value requirements
• D.Only the earnest money amount — no other verification is needed in cash transactions

Q15.A real estate agent is working with a buyer to purchase a home with a $300,000 purchase price. Under RESPA requirements, when must the Loan Estimate be provided to the borrower?

• A.Within 1 business day of loan application
• B.Within 3 business days of loan application
• C.Within 5 business days of loan application
• D.At least 7 business days before closing