Real Estate License Practice Test

Answer choices

1. A. They eliminate all closing costs
2. B. Truth in Lending disclosures help borrowers compare finance charges and APR
3. C. They replace underwriting with self-certification
4. D. They set the same interest rate for all loans

Wrong-answer review

• A. They eliminate all closing costs: They eliminate all closing costs belongs to a separate real-estate topic. The facts need truth in lending disclosures, so this answer would send the analysis to the wrong part of the exam outline.
• C. They replace underwriting with self-certification: A student choosing They replace underwriting with self-certification is using mortgage finance or underwriting. Here, the decisive facts are about truth in lending disclosures, not that area.
• D. They set the same interest rate for all loans: They set the same interest rate for all loans could matter in a question about mortgage finance or underwriting. This one turns on truth in lending disclosures, which is a separate real-estate rule.

Answer choices

1. A. Land and attached buildings
2. B. Money and movable goods
3. C. An appurtenant easement
4. D. Built-in plumbing fixtures

Answer choices

1. A. Resolving a boundary dispute
2. B. Adjusting an escrow proration
3. C. Classifying a fixture
4. D. Steering a buyer based on national origin

Answer choices

1. A. It eliminates the need for contracts
2. B. It converts real property into personal property
3. C. One brokerage may owe fiduciary duties to both sides, creating conflict risk
4. D. It automatically changes the purchase price

Answer choices

1. A. The classification of movable goods
2. B. The obligations between principal and agent
3. C. The finance charge on a loan
4. D. The location of a fixture

Answer choices

1. A. When initial offers are made
2. B. When unqualified acceptance is communicated
3. C. After contingencies are removed
4. D. Once escrow instructions are finalized

Answer choices

1. A. The color of the house
2. B. Whether the borrower wants a larger yard
3. C. The seller's preferred moving date
4. D. Capacity and willingness to repay the loan

Answer choices

1. A. Permanently installed built-in cabinets
2. B. A freestanding lamp
3. C. A box of dishes
4. D. A movable desk

Answer choices

1. A. Familial status
2. B. Marital status
3. C. Debt-to-income ratio
4. D. Earnest money deposit

Answer choices

1. A. A verbal promise alone proves every fee
2. B. A signed written agreement makes a commission claim easier to enforce
3. C. A title policy sets the broker's fee
4. D. Escrow can create the listing after closing