100+ Free BREA Broker Exam Practice Questions

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Sample BREA Broker Exam Practice Questions

Try these sample questions to test your BREA Broker Exam exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which statute incorporated the Bahamas Real Estate Association (BREA) and empowers it to regulate the licensing of real estate brokers and salesmen in The Bahamas?

A.The International Persons Landholding Act, 1993

B.The Real Estate (Brokers and Salesmen) Act, 1995

C.The Financial Transactions Reporting Act, 2018

D.The Conveyancing and Law of Property Act

Explanation: The Real Estate (Brokers and Salesmen) Act, 1995 (CH.171) incorporated BREA and empowered it as the statutory regulator for the registration, licensing and membership of brokers and salesmen, and to control the practice of real estate in The Bahamas.

2A salesman who has held a salesman's licence wishes to upgrade to a broker's licence. What is the principal distinction in scope between a broker and a salesman under the Act?

A.A broker may operate an independent real estate business and supervise salesmen, whereas a salesman must work under a licensed broker

B.A broker may only conduct rentals while a salesman may conduct sales

C.A broker is exempt from the Code of Ethics while a salesman is bound by it

D.A broker need not be a member of BREA while a salesman must be

Explanation: A broker is licensed to carry on real estate business in their own right, hold client funds, and supervise salesmen. A salesman may only act in real estate transactions under the authority and supervision of a licensed broker.

3A non-Bahamian client wishes to purchase a single-family residence of two acres in Abaco for personal use. Under the International Persons Landholding Act, 1993, what is required?

A.A permit from the Bahamas Investment Authority before completion

B.Cabinet approval because the buyer is foreign

C.Only registration of the acquisition with the Investments Board after closing

D.No filing of any kind is required

Explanation: A non-Bahamian buying a condominium or land of five acres or less for use as a single private dwelling does not need a permit; the acquisition must simply be registered with the Investments Board (Bahamas Investment Authority) using the prescribed certificate of registration.

4Under the International Persons Landholding Act, in which situation must a non-Bahamian obtain a permit (rather than merely register the acquisition)?

A.Purchasing a single condominium unit for personal use

B.Purchasing a one-acre lot to build one private home

C.Purchasing eight acres or property intended for commercial development

D.Inheriting property under a Bahamian will

Explanation: A permit from the Bahamas Investment Authority is required where a non-Bahamian acquires more than five acres, or acquires property for development for commercial purposes, or for any acquisition that does not fall within the single-dwelling registration exemption.

5A broker is acting as the seller's agent. The buyer asks the broker for advice on lowering the price. What does the broker's fiduciary duty of loyalty require?

A.The broker must give the buyer the best negotiating advice available

B.The broker must act in the seller's best interests and must not undermine the seller's negotiating position

C.The broker owes equal loyalty to both parties at all times

D.The broker may switch loyalty to whichever party offers a higher commission

Explanation: An agent owes undivided loyalty to the principal. As the seller's agent, the broker must promote the seller's interests and must not advise the buyer in a way that damages the seller's position, while still dealing honestly and fairly with the buyer.

6A managing broker receives an earnest-money deposit from a buyer pending completion of a sale. How must these client funds be handled?

A.Deposited into the broker's general operating account for convenience

B.Held in a designated client trust or escrow account, separate from the broker's own funds

C.Paid immediately to the seller as a goodwill gesture

D.Retained by the salesman who negotiated the deal until closing

Explanation: Client money such as deposits must be kept in a designated trust/escrow account, segregated from the broker's operating funds, and disbursed only in accordance with the contract. Commingling client funds with business funds is a serious breach of a broker's obligations.

7The practice of placing client deposit money into the same bank account a broker uses to pay office rent and salaries is best described as:

A.Conversion

B.Commingling

C.Subrogation

D.Novation

Explanation: Commingling is the improper mixing of client trust funds with the broker's own operating funds. It is prohibited because it endangers client money and obscures the audit trail, even if the broker never spends the client's money.

8Under the Financial Transactions Reporting Act regime, how is a Bahamian real estate broker classified for anti-money-laundering purposes?

A.Exempt from AML obligations because real estate is not a financial service

B.A Designated Non-Financial Business and Profession (DNFBP) subject to AML/CFT supervision

C.A licensed bank regulated by the Central Bank

D.A money services business regulated only when handling cash

Explanation: Real estate brokers are treated as financial institutions / Designated Non-Financial Businesses and Professions (DNFBPs) under Bahamian AML law and are supervised by the Compliance Commission of The Bahamas. They must conduct customer due diligence and report suspicious transactions.

9A managing broker is onboarding a new overseas buyer. Which AML step must be completed as part of customer due diligence (CDD)?

A.Verify the client's identity and establish the source of funds before the transaction proceeds

B.Wait until after closing to collect any identification

C.Rely solely on the seller's attorney to perform all checks

D.Skip due diligence if the buyer pays by bank wire

Explanation: CDD requires verifying the customer's identity and understanding the source of funds before proceeding. As a DNFBP, the broker representing the buyer is responsible for obtaining CDD on the buyer prior to the agreement for sale; identity and source-of-funds checks cannot be deferred.

10On a Bahamian conveyance, who customarily bears the Value Added Tax (VAT) charged on the transfer of real property, absent contrary agreement?

A.The buyer alone

B.The seller alone

C.It is shared equally between buyer and seller

D.The real estate broker

Explanation: By long-standing market practice, VAT on a Bahamian real property conveyance is shared equally between buyer and seller unless the parties agree otherwise. The split is a matter of contract and can be negotiated.

About the BREA Broker Exam Exam

The Bahamas Real Estate Broker Licensing Examination is administered by the Bahamas Real Estate Association (BREA), the statutory regulator created by the Real Estate (Brokers and Salesmen) Act 1995. The broker-level examination tests the higher responsibilities of running a brokerage: supervising salesmen, operating client trust and escrow accounts, applying agency and fiduciary law, complying with the International Persons Landholding Act and AML rules, and upholding BREA's Code of Ethics and Standards of Practice.

Assessment

Multiple-choice professional licensing examination at broker level, covering Bahamian real estate law, brokerage management, trust accounting, agency, AML and professional ethics.

Time Limit

Set by BREA; expect a multi-hour sitting typical of a professional licensing examination. Confirm the exact duration with BREA.

Passing Score

BREA sets the qualifying standard; a pass mark around 70% is commonly expected for professional licensing exams. Confirm the official requirement with BREA.

Exam Fee

Set by BREA; typically an application/registration fee plus the broker examination fee and annual membership dues. Fees are reviewed periodically, so confirm current amounts with BREA. (Bahamas Real Estate Association (BREA))

BREA Broker Exam Exam Content Outline

Licensing and Regulation

The Real Estate (Brokers and Salesmen) Act 1995, BREA's role, broker versus salesman scope, renewal, good standing and discipline.

Agency and Fiduciary Duties

Single and dual agency, loyalty, confidentiality, obedience, disclosure, accounting and care owed to principals.

16%

Trust Accounts and Brokerage Management

Client escrow handling, commingling and conversion, three-way reconciliation, interest, shortfalls and record-keeping.

16%

Brokerage Management and Supervision

Supervising salesmen, broker-salesman agreements, commission policy, complaint handling, advertising oversight and liability.

12%

Property Law and Conveyancing

Estates in land, joint tenancy, the conveyance/deed, abstract of title, Quieting Titles Act, foreshore and probate sales.

Foreign Investment (IPLA)

International Persons Landholding Act registration versus permits, single-dwelling exemption, commercial development and change of use.

Listing and Sale Process

Listing types, net listings, the agreement for sale, deposits, ready-willing-able buyers, co-brokerage and protection periods.

AML and Compliance

DNFBP status, the Compliance Commission, customer due diligence, PEPs, suspicious transaction reports and record retention.

Taxation and Closing Costs

Conveyance VAT, stamp duty, real property tax, owner-occupied relief, first-time-buyer relief and professional fees.

Valuation and Financing

Sales comparison, income and cost approaches, CMAs, highest and best use, mortgages and exchange control.

How to Pass the BREA Broker Exam Exam

What You Need to Know

Passing score: BREA sets the qualifying standard; a pass mark around 70% is commonly expected for professional licensing exams. Confirm the official requirement with BREA.
Assessment: Multiple-choice professional licensing examination at broker level, covering Bahamian real estate law, brokerage management, trust accounting, agency, AML and professional ethics.
Time limit: Set by BREA; expect a multi-hour sitting typical of a professional licensing examination. Confirm the exact duration with BREA.
Exam fee: Set by BREA; typically an application/registration fee plus the broker examination fee and annual membership dues. Fees are reviewed periodically, so confirm current amounts with BREA.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

BREA Broker Exam Study Tips from Top Performers

1Prioritise client trust accounting and brokerage supervision: master commingling versus conversion, three-way reconciliation, escrow dispute handling and the broker's responsibility for salesmen, because these broker-level topics carry the most weight.

2Learn the International Persons Landholding Act distinctions cold, especially when a non-Bahamian needs only to register a single-dwelling acquisition versus when a permit is required for larger or commercial purchases.

3Do not neglect AML duties as a DNFBP, the Compliance Commission's role, and core Bahamian conveyancing and tax facts such as the Quieting Titles Act, conveyance VAT and owner-occupied real property tax relief.

Frequently Asked Questions

Who administers the Bahamas real estate broker licensing exam?

The Bahamas Real Estate Association (BREA) administers it. BREA was created by the Real Estate (Brokers and Salesmen) Act 1995 as the statutory body that registers, licenses and disciplines brokers and salesmen and enforces a Code of Ethics and Standards of Practice.

How is the broker exam different from the salesman exam?

The broker exam tests the higher responsibilities of running a brokerage independently: supervising salesmen, operating client trust and escrow accounts, brokerage management, agency and fiduciary law, and AML compliance. A salesman may only act under the authority of a licensed broker.

What topics are most heavily weighted on the broker exam?

Broker-level topics dominate, especially client trust accounting (commingling, reconciliation, escrow disputes), supervision of salesmen and brokerage management, plus agency law, the International Persons Landholding Act, AML obligations, conveyancing, taxation and ethics.

Do brokers in The Bahamas have anti-money-laundering obligations?

Yes. Real estate brokers are Designated Non-Financial Businesses and Professions (DNFBPs) supervised by the Compliance Commission of The Bahamas. They must perform customer due diligence, apply enhanced checks to higher-risk clients, file suspicious transaction reports and retain records.