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National Real Estate Exam Practice Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the primary purpose of a deed restriction?✔✔ The primary purpose of a deed restriction is to control or limit how a property can be used by the owner.
How does an easement in gross differ from an easement appurtenant?✔✔ An easement in gross benefits a person or entity rather than a property, while an easement appurtenant benefits a neighboring property.
What is the key difference between a general lien and a specific lien?✔✔ A general lien applies to all of a debtor’s assets, while a specific lien attaches only to a particular property.
What type of lease allows the tenant to pay a base rent plus a percentage of their business profits?✔✔ A percentage lease allows the tenant to pay base rent plus a percentage of their business revenue. 1 / 4
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What is the main characteristic of a freehold estate?✔✔ A freehold estate grants ownership interest in real property for an indefinite or potentially infinite duration.
What does the term "alienation" refer to in real estate?✔✔ Alienation refers to the voluntary transfer of property ownership from one party to another.
What is the primary role of the Federal Housing Administration (FHA)?✔✔ The FHA insures mortgages issued by approved lenders to reduce lender risk and promote homeownership.
What is the key feature of a joint tenancy?✔✔ Joint tenancy includes the right of survivorship, meaning a deceased tenant’s share automatically passes to the surviving tenants.
What is the legal term for a tenant’s right to occupy a property after the lease expires but before eviction? 2 / 4
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✔✔ A holdover tenancy occurs when a tenant remains in possession after the lease expires without the landlord’s consent.
What is the primary purpose of a title insurance policy?✔✔ Title insurance protects the policyholder against financial loss due to defects in the property’s title.
What type of listing agreement allows the seller to work with multiple brokers but only pay the one who finds the buyer?✔✔ An open listing allows the seller to work with multiple brokers but only compensates the broker who procures the buyer.
What is the key difference between a mortgage and a deed of trust?✔✔ A mortgage involves two parties (borrower and lender), while a deed of trust involves three (borrower, lender, and trustee).
What is the legal term for a situation where a property owner unknowingly violates a zoning law due to an existing structure? 3 / 4
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✔✔ A legal nonconforming use (or "grandfathered" use) allows the property to remain despite new zoning laws.
What is the main purpose of a property’s appraisal?✔✔ An appraisal provides an unbiased estimate of a property’s market value for lending, sales, or tax purposes.
What does the term "quiet enjoyment" guarantee in a lease agreement?✔✔ Quiet enjoyment ensures the tenant can use the property without interference from the landlord or third-party claims.
What is the key difference between a real property tax and a special assessment?✔✔ Real property taxes fund general public services, while special assessments fund specific local improvements benefiting the property.
What is the primary function of the Equal Credit Opportunity Act (ECOA)?✔✔ The ECOA prohibits lenders from discriminating against borrowers based on race, religion, gender, or other protected characteristics.
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