Why Practice Questions Are Essential for the Real Estate Exam
The real estate exam has a national pass rate of only 50-60% on the first attempt. The difference between candidates who pass and those who fail often comes down to one thing: quality practice questions.
Our free real estate practice questions help you:
- Master the national portion that applies in all states
- Understand PSI and Pearson VUE question formats
- Build confidence before exam day
- Identify weak areas that need more study
Real Estate Exam Format (2026)
| Component | Details |
|---|---|
| National Portion | 80-100 questions |
| State Portion | 30-50 questions (varies by state) |
| Time Limit | 2-3.5 hours total |
| Passing Score | 70-75% (varies by state) |
| Test Provider | PSI or Pearson VUE |
Sample Practice Questions by Topic
Property Ownership (20% of exam)
Question 1: A tenant installs a walk-in freezer bolted to the floor for their grocery store. This is classified as:
A) A fixture that automatically transfers with the property B) A trade fixture that remains personal property if removed properly C) An emblement because it is business-related D) Personal property that can never be removed
Answer: B - A walk-in freezer installed by a tenant for business use is a trade fixture, which stays personal property if removed before lease end and damage is repaired.
Question 2: Which type of ownership automatically passes a deceased owner's share to surviving owners?
A) Tenancy in common B) Joint tenancy with right of survivorship C) Tenancy by the entirety D) Both B and C
Answer: D - Both joint tenancy with right of survivorship (JTWROS) and tenancy by the entirety include the right of survivorship, meaning a deceased owner's share passes directly to surviving owners.
Question 3: Appurtenant easements:
A) Benefit a specific person B) Run with the land C) Must be renewed every 10 years D) Can only be created by court order
Answer: B - Appurtenant easements are attached to the land and transfer with it when sold. They "run with the land" rather than benefiting a specific individual.
Contracts (20% of exam)
Question 4: For a real estate contract to be enforceable, it must include all of the following EXCEPT:
A) Competent parties B) Legal purpose C) Attorney approval D) Consideration
Answer: C - A valid contract requires competent parties, legal purpose, consideration, offer and acceptance, and a written agreement (for real estate). Attorney approval is not required.
Question 5: In a listing agreement, the broker's compensation is typically:
A) Set by state law B) Set by the local MLS C) Negotiable between broker and seller D) Determined by the buyer's agent
Answer: C - Commission rates are always negotiable between the broker and seller. Any claim that rates are "standard" or "fixed" may violate antitrust laws.
Question 6: An option contract gives the optionee:
A) The obligation to purchase the property B) The right to purchase the property C) Ownership of the property D) A lease on the property
Answer: B - An option gives the optionee the right but not the obligation to purchase property at a specified price within a specified time.
Financing (20% of exam)
Question 7: Which loan program typically requires a mortgage insurance premium (MIP)?
A) Conventional B) FHA C) VA D) USDA
Answer: B - FHA loans require mortgage insurance premiums (MIP). Conventional loans use PMI, VA loans use a funding fee, and USDA loans use a guarantee fee.
Question 8: Which loan program is designed for eligible rural buyers?
A) FHA B) VA C) USDA D) Conventional
Answer: C - USDA loans are specifically designed for eligible rural buyers with income and location requirements.
Question 9: Which loan type often requires a funding fee instead of monthly PMI?
A) FHA B) VA C) USDA D) Conventional
Answer: B - VA loans require a funding fee (typically 2-3% of loan amount) instead of monthly mortgage insurance premiums.
Question 10: A loan-to-value (LTV) ratio is calculated as:
A) Loan amount divided by property value B) Property value divided by loan amount C) Down payment divided by loan amount D) Loan amount divided by down payment
Answer: A - LTV = Loan Amount ÷ Property Value. A higher LTV means more risk for the lender and typically triggers mortgage insurance requirements.
Valuation & Appraisal (20% of exam)
Question 11: The cost approach to value is most appropriate for:
A) Vacant land B) Income-producing properties C) New or unique properties D) Condominiums
Answer: C - The cost approach works best for new or unique properties where comparable sales are limited. It estimates the cost to rebuild minus depreciation.
Question 12: In the sales comparison approach, an adjustment is made:
A) To the subject property B) To the comparable properties C) To both properties equally D) Only for major differences
Answer: B - Adjustments are always made to the comparable properties, never to the subject property. If the comp is better, subtract; if the comp is worse, add.
Fair Housing (15% of exam)
Question 13: The Fair Housing Act prohibits discrimination based on all EXCEPT:
A) Race B) Religion C) Sexual orientation (at federal level) D) National origin
Answer: C - The federal Fair Housing Act covers race, color, religion, sex, national origin, familial status, and disability. Sexual orientation is protected in many states but not by federal law.
Question 14: Which of the following practices is prohibited under fair housing laws?
A) Steering B) Blockbusting C) Redlining D) All of the above
Answer: D - All three are prohibited: Steering (directing buyers based on protected class), blockbusting (inducing panic selling), and redlining (refusing loans in certain areas).
Math Calculations Practice
Question 15: A property sells for $350,000 with a 6% commission. The listing broker receives 60% and splits equally with the agent. What does the listing agent receive?
A) $6,300 B) $10,500 C) $12,600 D) $21,000
Answer: A - Total commission: $350,000 × 6% = $21,000. Listing broker share: $21,000 × 60% = $12,600. Agent share (half): $12,600 ÷ 2 = $6,300.
Question 16: A buyer puts 20% down on a $400,000 home. What is the loan amount?
A) $80,000 B) $320,000 C) $380,000 D) $400,000
Answer: B - Down payment: $400,000 × 20% = $80,000. Loan amount: $400,000 - $80,000 = $320,000.
Want more practice? Access our full question bank with 100+ free real estate practice questions →
Study Tips for the Real Estate Exam
- Complete 500+ practice questions before your exam date
- Master the math - commission, proration, and area calculations
- Know fair housing cold - it's heavily tested and critical
- Understand agency relationships - who represents whom
- Learn the three appraisal approaches and when to use each
- Review state-specific content for your state portion
Start Practicing Today
Our free real estate practice question bank includes 100+ questions covering all national exam topics. Each question includes detailed explanations to help you understand not just the correct answer, but why other options are wrong.
Ready to Pass Your Real Estate Exam?
| Resource | Description |
|---|---|
| Free Practice Questions → | 100+ exam-style questions with detailed explanations |
| Complete Study Guide → | Full exam content covering all topics |
| Real Estate Category → | All real estate exam resources in one place |
Start with our free practice questions, then dive deep into our comprehensive study guide. With the right preparation, you can pass your real estate exam on the first try!