1
National Real Estate Exam - Guide to Pearson Vue Book Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of the Real Estate Settlement Procedures Act (RESPA)?✔✔ To ensure borrowers receive disclosures about closing costs and to eliminate kickbacks
What is a fiduciary duty owed by an agent to a client?✔✔ Loyalty
What is the term for the value of a property based on the income it generates?✔✔ Income value
Who typically holds the earnest money during a transaction?✔✔ The escrow agent or broker
What is the process of dividing expenses between the buyer and the seller at closing?✔✔ Proration 1 / 3
2
What is the legal document used to transfer ownership of real property?✔✔ Deed
What is the act of mixing client funds with personal funds called?✔✔ Commingling
What is a latent defect?✔✔ A hidden issue not easily discoverable during a normal inspection
What type of estate is created when a tenant remains after a lease expires without the landlord’s permission?✔✔ Tenancy at sufferance
What is the legal test to determine if an item is a fixture?✔✔ The intention of the party who attached the item
What does a mortgage lien do? 2 / 3
3
✔✔ It provides the lender a legal claim to the property as collateral
What is the main difference between freehold and leasehold estates?✔✔ Freehold estates involve ownership, while leasehold estates involve possession only
What is the term for private land use restrictions placed in a deed?✔✔ Deed restrictions
What is an encroachment?✔✔ A physical intrusion onto another person’s property
What is the purpose of a title search?✔✔ To verify legal ownership and discover any encumbrances
What does the principle of substitution mean in appraisal?✔✔ A buyer will not pay more for a property than a comparable substitute
What is the difference between market value and market price?
- / 3