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National Real Estate Exam Practice Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the term for an illegal structure that crosses property lines?✔✔Encroachment
Who determines the assessed value of property for taxation?✔✔County or local assessor
What does the term "equity" refer to in real estate?✔✔The difference between property value and debt owed
What is a unilateral contract?✔✔A contract in which only one party makes a promise
What is earnest money?✔✔A deposit showing the buyer’s serious intent to purchase
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What is a leasehold estate?✔✔The right to occupy real property under a lease agreement
What is a “quiet title action”?✔✔A lawsuit to establish clear ownership of a property
What is the opposite of appreciation in property value?✔✔Depreciation
What is the name of the act that regulates interstate land sales?✔✔Interstate Land Sales Full Disclosure Act
What does RESPA stand for?✔✔Real Estate Settlement Procedures Act
What does the due-on-sale clause in a mortgage do?✔✔Requires full repayment if the property is sold
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What type of ownership gives each owner equal rights and includes the right of survivorship?✔✔Joint tenancy
What document is used to transfer title of real property from seller to buyer?✔✔Deed
What is the name of the final legal process of transferring property ownership?✔✔Closing
What do we call the estimated value of a property based on comparable sales?✔✔Market value
Who typically pays the commission to the listing and buyer’s agent?✔✔The seller
What is the government’s power to take private property for public use with compensation?✔✔Eminent domain
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What is a lien?✔✔A legal claim against a property to secure a debt
What type of listing allows a seller to work with multiple brokers but only pay the one who sells it?✔✔Open listing
What is the legal relationship called between a broker and a client?✔✔Agency
Who is the principal in a real estate transaction?✔✔The client
What is the legal term for a promise made in a contract?✔✔Covenant
What is it called when a borrower fails to make mortgage payments?✔✔Default
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