Free National Real Estate Practice Exam

Q1.Under federal fair housing laws, which of the following advertising practices would be considered discriminatory?

• A.Stating 'no pets allowed' in rental advertisement
• B.Advertising 'walk to Catholic church' in property description
• C.Including 'senior discount available' for buyers over 55
• D.Mentioning 'excellent schools nearby' in listing description

Q2.When conducting a Comparative Market Analysis (CMA), which approach to value is primarily being utilized?

• A.Cost approach
• B.Income approach
• C.Sales comparison approach
• D.Replacement cost approach

Q3.Under federal law, sellers of residential property built before 1978 must:

• A.Disclose known lead-based paint and hazards and provide an EPA pamphlet; buyers get a 10-day inspection period
• B.Test for lead paint before listing
• C.Remediate all lead paint before closing
• D.Obtain a lead clearance certificate from a licensed contractor

Q4.At closing, which party typically pays for the owner's title insurance policy in most standard real estate transactions?

• A.The buyer
• B.The listing agent
• C.The mortgage lender
• D.The seller

Q5.RESPA (Real Estate Settlement Procedures Act) primarily regulates which aspect of real estate transactions?

• A.Closing costs and settlement procedures
• B.Property inspections
• C.Real estate licensing requirements
• D.Property tax assessments

Q6.Aisha witnesses a listing agent making remarks that cause a buyer to visibly back away. The listing agent says 'I was just being friendly.' Aisha should:

• A.Accept the agent's explanation since intent matters in harassment analysis
• B.Do nothing since the incident at another agent's open house is not her responsibility
• C.Recognize that the buyer's visible discomfort is the relevant fact — the harasser's dismissal does not change what she observed
• D.Immediately file a criminal complaint under A.R.S. § 13-1428

Q7.Under the FHA, an assistance animal is:

• A.Only a service dog trained under the ADA
• B.A pet, subject to all pet rules and pet fees
• C.A service animal OR an emotional support animal that does work or provides emotional support related to a disability — not a pet under the FHA
• D.Only an animal certified by a federal registry

Q8.A recorded easement that allows the electric company to run power lines across a property is an example of which type of encumbrance?

• A.An encumbrance that affects possession but not title
• B.A monetary lien against the property
• C.A covenant that restricts property use
• D.An encumbrance that affects title but not possession

Q9.Which of the following would make a real estate contract voidable?

• A.The contract involves an illegal purpose
• B.One party was a minor when the contract was signed
• C.The contract lacks consideration
• D.The property description is completely missing

Q10.In states that allow attorney review periods, what typically happens during this timeframe?

• A.Either party's attorney can disapprove the contract for any reason
• B.The attorneys must approve the property's title
• C.Only the buyer's attorney can review the contract
• D.The contract automatically becomes binding

Q11.A property owner wants to build a commercial structure in a residential zone. What must they obtain from the local zoning authority?

• A.A building permit
• B.A conditional use permit
• C.A certificate of occupancy
• D.A variance

Q12.Which of the following IS a federal protected class under the Fair Housing Act?

• A.Familial status (presence of children under 18 or pregnant occupants)
• B.Marital status
• C.Sexual orientation (under federal FHA)
• D.Source of income

Q13.Under RESPA, which of the following would constitute an illegal kickback arrangement between a real estate agent and a mortgage lender?

• A.The agent receives a $500 payment for each client who closes a loan with the lender
• B.The lender provides free educational seminars to the agent's clients
• C.The lender offers competitive interest rates to the agent's referred clients
• D.The agent provides the lender's contact information to interested buyers

Q14.A buyer with a disability wants to install grab bars in a condo bathroom. The HOA prohibits all modifications. What right does the buyer have under the Fair Housing Act?

• A.None — a blanket no-modification rule applies equally and is therefore lawful
• B.The right to make reasonable modifications at their own expense; the HOA may require restoration upon move-out
• C.The HOA must pay for the modifications as a required reasonable accommodation
• D.This right applies only in properties built after 1991

Q15.The Equal Credit Opportunity Act (ECOA) prohibits discrimination in credit transactions based on which of the following?

• A.Credit history
• B.Age (unless minor)
• C.Income level
• D.Employment status