Free Rhode Island Real Estate Practice Exam

Q1.Under Rhode Island law, a licensed real estate salesperson may legally receive a commission or compensation from which of the following parties?

• A.Directly from the seller, if both parties agree in writing
• B.Directly from the buyer, provided the salesperson discloses the arrangement
• C.Only through the salesperson's supervising broker
• D.From any party to the transaction, as long as the amount is disclosed at closing

Q2.Under Rhode Island General Laws § 5-20.5-11, what is the license renewal period for a Rhode Island real estate salesperson license?

• A.Every year on the salesperson's birthday
• B.Every two years, by the licensee's birthday in even or odd years based on the birth year
• C.Every three years on a fixed calendar date
• D.Every four years aligned with the national election cycle

Q3.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)

Q4.Which of the following is an example of proper harassment documentation?

• A.'He was clearly harassing her — it was obvious to everyone present.'
• B.'There seemed to be an inappropriate interaction at the open house.'
• C.'I believe a fair housing violation may have occurred based on what I observed.'
• D.'He told her she had a great smile and asked if she was single while standing close enough that she stepped back.'

Q5.A buyer and seller enter into a bilateral executory contract for the purchase of a single-family residence. Before closing, the property is destroyed by a fire with no insurance proceeds available. Under the majority rule (equitable conversion doctrine), who bears the risk of loss?

• A.The buyer, because under equitable conversion the buyer holds equitable title to the property once the contract is executed.
• B.The seller, because legal title has not yet been transferred to the buyer at the time of the loss.
• C.Neither party bears risk; the contract is automatically voided by the doctrine of impossibility.
• D.The loss is shared equally between buyer and seller regardless of equitable title.

Q6.Under the Truth in Lending Act (TILA), which document must a lender provide to a borrower that discloses the annual percentage rate (APR) and total cost of a loan?

• A.Loan Estimate
• B.Closing Disclosure
• C.HUD-1 Settlement Statement
• D.Mortgage Commitment Letter

Q7.Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a borrower differs from the stated interest rate because the APR:

• A.Includes the interest rate plus certain fees and costs of the loan, reflecting the true cost of borrowing
• B.Represents the maximum interest rate the lender can charge over the life of the loan
• C.Is always lower than the stated interest rate to reflect prepaid interest
• D.Applies only to adjustable-rate mortgages and not fixed-rate loans

Q8.A seller's agent discovers during a listing that the property's soil is contaminated with petroleum hydrocarbons from an underground storage tank removed years ago. The seller instructs the agent to keep this information confidential. Under federal environmental law and general agency principles, the agent's MOST appropriate course of action is:

• A.Honor the seller's instruction, as client confidentiality is the agent's paramount duty
• B.Disclose the contamination to prospective buyers, because material facts affecting health and safety override client confidentiality duties
• C.Withdraw from the listing only if state law specifically requires disclosure of UST contamination
• D.Disclose the contamination only to the buyer's lender so the lender can conduct its own environmental assessment

Q9.An appraiser is valuing a rental property that generates $48,000 in annual net operating income. If the capitalization rate for similar properties in the area is 8%, what is the estimated value using the income approach?

• A.$600,000
• B.$384,000
• C.$480,000
• D.$640,000

Q10.A lender denies a mortgage application from a married couple, citing that the wife's part-time income cannot be considered because she recently had a child. Which federal law does this lender most likely violate?

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

Q11.Under the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B, a lender must provide an adverse action notice to a credit applicant within how many days of taking adverse action on a completed credit application?

• A.30 days
• B.3 business days
• C.10 business days
• D.60 days

Q12.When reviewing a title insurance policy, which of the following risks would typically NOT be covered by a standard owner's title insurance policy?

• A.A previously undisclosed easement that affects the property's use
• B.Forged signatures on a deed in the chain of title
• C.An outstanding mortgage that was not properly satisfied of record
• D.Environmental contamination from a prior owner's activities

Q13.A property's annual real estate taxes of $3,600 are paid in advance on January 1st. If the property closes on September 15th and the buyer is responsible for taxes from the closing date forward, what amount will the seller owe the buyer at closing? (Use a 365-day year.)

• A.$1,065
• B.$1,055
• C.$2,535
• D.$1,350

Q14.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

Q15.A developer advertises a new condominium community with the phrase 'perfect for young professionals and couples starting their families' in a national publication. Under the Fair Housing Act, this advertisement is most accurately described as:

• A.Lawful, because it does not explicitly exclude any protected class
• B.Unlawful, because it uses language that signals a preference based on familial status and age
• C.Lawful, because familial status is not a protected class under federal law
• D.Unlawful only if the developer also refuses to sell to single individuals