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100+ Free NIESV FEM Practice Questions
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2026 Statistics
Key Facts: NIESV FEM Exam
6
Exam subjects tested
NIESV Syllabus
₦39,150
Standard examination fee
NIESV Board
50%
Passing score per paper
NIESV Guidelines
The NIESV Foundation in Estate Management (FEM) exam is the essential starting point for a professional real estate career in Nigeria. Administered by NIESV and ESVARBON, it requires a passing score of 50% in each of the six subjects: agency, math, communication, surveying, economics, and construction. Successful candidates advance to PQE 1, moving closer to state licensing as registered Estate Surveyors and Valuers.
Sample NIESV FEM Practice Questions
Try these sample questions to test your NIESV FEM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Which of the following is a key characteristic of the real estate market that distinguishes it from highly organized financial markets like the stock exchange?
A.High level of product homogeneity and standardization
B.Immobility of the asset and high degree of heterogeneity
C.Instantaneous transaction speed and minimal transaction costs
D.Perfect price transparency and centralized trading floors
Explanation: Real estate is unique due to its physical immobility and heterogeneity (each parcel is unique). These features create a decentralized, imperfect market with high search and transaction costs, unlike standardized stock markets.
2In estate agency practice, what type of agency relationship is created when an agent is appointed to represent the principal for a single, specific transaction?
A.General agency
B.Universal agency
C.Special agency
D.Agency by estoppel
Explanation: A special agency is created when an agent is authorized to perform a specific act or conduct a single transaction, such as selling a specific property. A general agency represents the principal in a range of matters, and universal agency covers all affairs.
3When an agent acts without prior authority from a principal, but the principal subsequently approves and adopts the agent's actions, the agency is created by:
A.Necessity
B.Ratification
C.Implied agreement
D.Estoppel
Explanation: Agency by ratification occurs when a principal consents to or adopts an act performed by someone who had no authority to act on their behalf at the time, establishing the relationship retrospectively.
4Which fiduciary duty requires an estate surveyor and valuer to disclose any personal interest in a property they are instructed to sell and to avoid making secret profits?
A.Duty of care and skill
B.Duty to act in good faith and loyalty
C.Duty to obey instructions
D.Duty of confidentiality
Explanation: The duty of good faith and loyalty requires agents to prioritize the principal's interests. This includes disclosing personal interests, avoiding conflicts of interest, and returning any secret commissions or profits.
5Under Nigerian law, which of the following events automatically terminates an estate agency relationship by operation of law?
A.Unilateral revocation of authority by the principal
B.The death or legal insanity of either the principal or the agent
C.The expiration of a standard 30-day marketing window
D.A disagreement regarding the commission rate after a buyer is found
Explanation: Agency relationships are personal and rely on capacity. The death, bankruptcy, or legal insanity of either party automatically dissolves the agency contract by operation of law.
6What is the legal effect of a property owner signing a 'sole selling rights' agreement with an estate agency?
A.The owner can sell the property independently without paying commission to the agent.
B.The owner is obligated to pay the agent commission regardless of who introduces the buyer, including the owner.
C.The agent is entitled to commission only if they are the direct effective cause of the transaction.
D.The owner is prohibited from using any legal practitioner to draft the deed of assignment.
Explanation: Under 'sole selling rights', the agency is entitled to commission if a contract is signed during the agency period, even if the buyer was introduced or found directly by the seller.
7To successfully claim commission in a standard estate agency dispute, the agent must prove their introduction was the 'effective cause' of the sale. What does this mean?
A.The agent was the first person to advertise the property online.
B.The agent's efforts directly initiated a chain of events that resulted in the sale contract.
C.The agent accompanied the buyer on at least three physical property inspections.
D.The agent registered the buyer with the State Ministry of Lands before negotiations.
Explanation: An agent is the 'effective cause' if their active intervention directly brought about the relationship of buyer and seller, leading to the completion of the sale, even if negotiations were completed by another party.
8Which of the following best describes the 'yield' on a property investment?
A.The total gross rental income accumulated over the lifespan of a leasehold
B.The net annual income of a property expressed as a percentage of its capital value
C.The annual cost of structural repairs and maintenance borne by the landlord
D.The percentage increase in property values due to inflation
Explanation: Property yield represents the relationship between the income generated by the property and its capital value, expressed as a percentage. It reflects the rate of return on the investment.
9Why does real estate generally carry higher liquidity risk compared to public stocks or government bonds?
A.Landed property is divisible into small units that can be sold incrementally.
B.Landed property cannot be quickly converted into cash without substantial delays and transaction costs.
C.The government regulates the pricing of all private property transactions in Nigeria.
D.Real estate values are immune to economic cycles and market volatility.
Explanation: Landed property is indivisible, high in value, and requires legal and administrative procedures to transfer ownership. This prevents rapid conversion to cash at market value, resulting in high liquidity risk.
10An investor expects a net annual income of ₦6,000,000 in perpetuity from a commercial property in Lagos. If the target market yield (capitalization rate) is 12%, what is the capitalized value of the property using the Years' Purchase (YP) single rate method?
A.₦50,000,000
B.₦72,000,000
C.₦5,000,000
D.₦12,000,000
Explanation: Using the YP single rate in perpetuity: YP = 1 / yield = 1 / 0.12 = 8.333. Capitalized Value = Net Income * YP = ₦6,000,000 * 8.3333 = ₦50,000,000 (or Value = Income / Yield = ₦6,000,000 / 0.12 = ₦50,000,000).
About the NIESV FEM Practice Questions
Verified exam format metadata for NIESV Foundation in Estate Management, Nigeria is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.