30 Free Real Estate Exam Practice Questions (With Answers Explained)

You can read every textbook in the world and still flunk the real estate exam. The exam doesn't care what you read. It cares whether you can answer the question in front of you in about 60 seconds.

The fastest way to find your weak spots is to take questions. So here are 30 of them, spread across the six topics that show up on every state exam: agency, contracts, finance, fair housing, math, and property law. Each one comes with the answer and a short explanation that tells you the rule behind it.

No fluff. No filler. Pencil ready.

How to Use This Practice Set

Cover the answer. Pick A, B, C, or D. Then read the explanation, even on the ones you got right, because the exam loves to test the same rule from three different angles.

Time yourself at roughly 60 seconds per question. That's the pace you'll need on the real thing.

Agency Questions (1–6)

Question 1: Fiduciary Duties

A licensee representing a seller learns the buyer is willing to pay $20,000 over the asking price. What must the licensee do?

1. Keep the information confidential to protect the buyer
2. Disclose the information to the seller
3. Disclose it only if the seller asks
4. Split the difference between buyer and seller

Answer: B. The licensee represents the seller. Fiduciary duties — often remembered as OLD CAR (Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable care) — require the agent to disclose any material fact that benefits the client. Confidentiality runs to the seller, not the buyer.

Question 2: Dual Agency

A broker represents both the buyer and the seller in the same transaction. This is legal only if:

1. The transaction is over $500,000
2. Both parties give informed written consent
3. The broker waives commission
4. It is never legal under any circumstances

Answer: B. Dual agency is permitted in most states but only with full disclosure and the informed written consent of both parties. Some states ban it outright; many use designated agency instead. Never assume it's automatic.

Question 3: Agency Creation

An agency relationship between a broker and a client is most commonly created by:

1. A handshake at an open house
2. A written listing or buyer representation agreement
3. The first showing of a property
4. The state real estate commission

Answer: B. Express agency is created by a written agreement. While agency can technically arise through conduct (implied agency) or ratification, the exam expects you to know that a written listing agreement is the standard, defensible method.

Question 4: Termination of Agency

Which of the following does NOT terminate an agency relationship?

1. Mutual agreement of the parties
2. Death of the principal
3. The agent taking a vacation
4. Destruction of the subject property

Answer: C. Agency ends by performance, expiration, mutual agreement, revocation, renunciation, death or incapacity of either party, bankruptcy, or destruction of the property. Going on vacation doesn't end the relationship — it just means the broker should arrange coverage.

Question 5: Sub-Agency

A sub-agent owes fiduciary duties to:

1. The buyer only
2. The listing broker only
3. The seller (the original principal)
4. The MLS

Answer: C. A sub-agent works through the listing broker but owes fiduciary duties to the seller, not the buyer the sub-agent may be showing homes to. This is exactly why sub-agency has largely been replaced by buyer agency in most states.

Question 6: Material Facts

A seller's agent discovers the roof leaks during heavy rain. The seller asks the agent not to mention it. The agent must:

1. Honor the seller's request — confidentiality is a fiduciary duty
2. Disclose the defect to any prospective buyer
3. Tell only buyers who ask about the roof
4. Resign from the listing

Answer: B. Confidentiality protects the client's negotiating position, not material defects. Latent defects affecting health, safety, or value must be disclosed to buyers regardless of seller wishes. If the seller refuses, the agent's duty to disclose still wins.

Contracts Questions (7–11)

Question 7: Statute of Frauds

Under the Statute of Frauds, which real estate contract is enforceable even if oral?

1. A 5-year commercial lease
2. A purchase agreement for a $300,000 house
3. A month-to-month residential lease
4. A listing agreement

Answer: C. The Statute of Frauds requires contracts for the sale of real estate, and leases longer than one year, to be in writing. A month-to-month lease falls under one year, so it can be oral — though writing it down is still smart.

Question 8: Consideration

For a real estate contract to be valid, consideration must be:

1. At least 10% of the purchase price
2. Cash only
3. Something of legal value exchanged by the parties
4. Held by the seller's attorney

Answer: C. Consideration is anything of legal value — money, services, a promise. There's no statutory minimum. Earnest money is common but not required to bind the contract; the promises themselves form the consideration.

Question 9: Counteroffers

A seller receives a $400,000 offer and counters at $415,000. The buyer then tries to accept the original $400,000 price. What is the status?

1. The buyer wins — the original offer stands
2. The original offer was destroyed by the counteroffer
3. The seller must accept $400,000
4. Both contracts are now in force

Answer: B. A counteroffer rejects and terminates the original offer. The buyer cannot revive it. The seller's counter is now the only open offer, and the buyer must accept it, reject it, or counter back.

Question 10: Contingencies

A buyer's purchase agreement contains a financing contingency. The buyer cannot get a loan despite a good-faith effort. The buyer is entitled to:

1. Sue the seller for specific performance
2. Recover the earnest money deposit
3. Buy the property in cash instead
4. Demand the seller carry the loan

Answer: B. A financing contingency lets the buyer walk away and recover earnest money if loan approval can't be obtained within the contingency period. The buyer must act in good faith — if they sabotaged the loan, the deposit may be forfeited.

Question 11: Specific Performance

A seller refuses to close on a valid signed contract. The buyer sues for specific performance, asking the court to:

1. Award triple damages
2. Force the seller to actually convey the property
3. Cancel the listing agreement
4. Issue a temporary restraining order

Answer: B. Specific performance is an equitable remedy ordering the breaching party to perform the contract as written. Real estate qualifies because every parcel is considered unique — money damages alone can't replace it.

Finance Questions (12–16)

Question 12: RESPA and Kickbacks

Under the Real Estate Settlement Procedures Act (RESPA), a lender pays a real estate agent $500 each time the agent refers a buyer for a mortgage. This is:

1. Legal if disclosed at closing
2. Legal if under $1,000
3. A federal violation — kickbacks for referrals are prohibited
4. Legal only in non-judicial foreclosure states

Answer: C. RESPA (12 U.S.C. §§ 2601–2617) prohibits giving or receiving any fee, kickback, or thing of value for the referral of settlement service business on federally related mortgage loans. Penalties include fines and imprisonment. Disclosure does not cure it.

Question 13: Right of Rescission

Under the Truth in Lending Act (TILA), a borrower refinancing their primary residence with a new lender has the right to rescind the loan within:

1. 24 hours of signing
2. 3 business days after consummation
3. 10 calendar days
4. 30 days after first payment

Answer: B. TILA grants a three-business-day right of rescission on certain loans secured by the borrower's principal dwelling. The clock starts at the later of consummation, delivery of material disclosures, or delivery of the rescission notice. It does not apply to purchase money loans.

Question 14: ECOA Protected Classes

The Equal Credit Opportunity Act (ECOA) prohibits a lender from denying credit based on all of the following EXCEPT:

1. Marital status
2. Receipt of public assistance
3. Credit score
4. Age (provided the applicant can legally contract)

Answer: C. ECOA (15 U.S.C. § 1691) prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Credit score is a legitimate underwriting factor — that's exactly what lenders are supposed to evaluate.

Question 15: APR vs Interest Rate

A buyer is offered a 30-year fixed loan with a 6.5% interest rate and a 6.83% APR. The APR is higher because it includes:

1. Future property tax increases
2. Finance charges like origination fees and points
3. The lender's profit margin
4. State transfer taxes

Answer: B. Under TILA's Regulation Z, APR reflects the cost of credit as a yearly rate, including the interest rate plus most lender fees, points, and mortgage insurance. That's why the APR exists — so borrowers can compare apples to apples.

Question 16: Loan-to-Value

A home appraises at $320,000 and sells for $300,000. The buyer puts $30,000 down. What is the LTV ratio?

1. 90% based on appraised value
2. 90% based on purchase price
3. 84.375%
4. 110%

Answer: B. Lenders calculate LTV on the lesser of purchase price or appraised value. $300,000 − $30,000 = $270,000 loan. $270,000 ÷ $300,000 = 90%. Most conventional loans require private mortgage insurance (PMI) when LTV exceeds 80%.

Fair Housing Questions (17–20)

Question 17: Federally Protected Classes

Under the federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended), which of the following is NOT a protected class?

1. Familial status
2. National origin
3. Sexual orientation (federally, by statute)
4. Disability

Answer: C. The federal Fair Housing Act protects race, color, religion, national origin, sex, familial status, and disability. Sexual orientation and gender identity are now protected through HUD interpretation of "sex" following Bostock, but the statutory list itself doesn't name them. Many state and local laws add them explicitly.

Question 18: Reasonable Accommodations

A tenant with a visual impairment requests permission to keep a guide dog in a no-pets building. The landlord must:

1. Charge a pet deposit
2. Approve the request as a reasonable accommodation
3. Move the tenant to a pet-friendly building
4. Deny — no-pets policies are absolute

Answer: B. The Fair Housing Act requires landlords to make reasonable accommodations in rules, policies, and services when needed to give a person with a disability equal opportunity to use the dwelling. Service and assistance animals are not "pets," and no pet deposit may be charged.

Question 19: Steering

A buyer's agent only shows a Hispanic family homes in predominantly Hispanic neighborhoods, despite the family's stated openness to other areas. This practice is:

1. Permissible market research
2. Steering — a Fair Housing Act violation
3. Acceptable if the family seemed comfortable
4. Required by NAR rules

Answer: B. Steering is the illegal practice of directing buyers toward or away from neighborhoods based on protected class. It's a clear Fair Housing Act violation. Buyers choose neighborhoods; agents provide objective information.

Question 20: Familial Status

A landlord refuses to rent a two-bedroom apartment to a single mother with two young children, citing "noise concerns." This is:

1. Legal — landlords can set occupancy standards
2. A violation of the familial status protection added in 1988
3. Legal only in buildings with fewer than four units
4. Permitted in senior housing

Answer: B. The 1988 amendments to the Fair Housing Act added familial status (households with children under 18, pregnant women, those securing custody). Refusing to rent based on the presence of children is illegal except in qualified senior housing.

Math Questions (21–25)

Question 21: Commission Split

A home sells for $385,000 with a 6% total commission. The listing brokerage and selling brokerage split it 50/50, and each agent gets 60% of their brokerage's share. How much does the buyer's agent earn?

1. $5,775
2. $6,930
3. $11,550
4. $13,860

Answer: B. Total commission: $385,000 × 0.06 = $23,100. Each brokerage gets $11,550. Buyer's agent: $11,550 × 0.60 = $6,930. Always read carefully — they'll often give you commission AFTER the brokerage split, which trips students up.

Question 22: Property Tax

A property is assessed at $240,000 with a tax rate of 22 mills. What is the annual property tax?

1. $528
2. $5,280
3. $52,800
4. $2,400

Answer: B. One mill = $1 per $1,000 of assessed value, or 0.001. $240,000 × 0.022 = $5,280. Memorize: mills × assessed value ÷ 1,000 = tax.

Question 23: Acreage

A rectangular lot measures 435.6 feet by 200 feet. How many acres is it?

1. 1 acre
2. 2 acres
3. 2.5 acres
4. 5 acres

Answer: B. One acre = 43,560 square feet. Lot size: 435.6 × 200 = 87,120 sq ft. 87,120 ÷ 43,560 = 2 acres. The 43,560 number is a guaranteed exam appearance — write it on your scratch paper the second the exam starts.

Question 24: Tax Proration

Annual taxes of $3,650 are paid in arrears. The seller closes on June 30 (day 181 of the year). Using a 365-day year and the day of closing charged to the seller, what is the seller's share?

1. $1,810
2. $1,820
3. $1,825
4. $1,840

Answer: A. Daily tax: $3,650 ÷ 365 = $10/day. Seller's share: $10 × 181 days = $1,810. This becomes a debit to the seller and credit to the buyer at closing because the buyer will pay the full bill later.

Question 25: Net to Seller

A seller wants to net $250,000 after paying a 6% commission and $4,000 in closing costs. What is the minimum sale price?

1. $270,213
2. $269,000
3. $269,148
4. $265,500

Answer: A. Set up: (Net + costs) ÷ (1 − commission rate). ($250,000 + $4,000) ÷ 0.94 = $254,000 ÷ 0.94 = $270,212.77, round up to $270,213. Don't add 6% to $254,000 — commission is calculated on the sale price, not the net.

Property Law Questions (26–30)

Question 26: Estates in Land

The highest and most complete form of ownership is:

1. Life estate
2. Fee simple absolute
3. Leasehold estate
4. Defeasible fee

Answer: B. Fee simple absolute gives the owner the maximum bundle of rights: possess, use, enjoy, exclude, encumber, and transfer, with no conditions. It lasts forever and passes to heirs. All other estates carve out something less.

Question 27: Easements

A landowner allows a neighbor to drive across her property to reach the lake. This is an example of:

1. An easement in gross
2. An easement appurtenant
3. A license
4. Adverse possession

Answer: B. An easement appurtenant benefits a neighboring parcel (the dominant estate) and burdens another (the servient estate). It runs with the land. An easement in gross benefits a person or company (think utility lines), not a parcel.

Question 28: Co-Ownership

Two siblings hold title as joint tenants with right of survivorship. One sibling dies. The deceased's share passes to:

1. The deceased's heirs by will
2. The state by escheat
3. The surviving joint tenant automatically
4. Probate court for distribution

Answer: C. Right of survivorship is the defining feature of joint tenancy — when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s) outside of probate. A will cannot override it. Tenancy in common works the opposite way.

Question 29: Adverse Possession

Adverse possession requires possession that is open, notorious, hostile, exclusive, and:

1. Friendly
2. Continuous for the statutory period
3. With the owner's permission
4. Recorded at the county

Answer: B. The classic test is OCEAN or similar mnemonics: Open, Continuous, Exclusive, Adverse (hostile), and Notorious for the statutory period (varies by state, often 7–20 years). Permission destroys the "hostile" element — if the owner says yes, it's a license, not adverse.

Question 30: Liens

Which of the following is a specific lien rather than a general lien?

1. IRS income tax lien
2. Judgment lien
3. Property tax lien
4. Estate tax lien

Answer: C. A property tax lien attaches only to the specific property taxed — that's a specific lien. General liens attach to all property of the debtor (judgments, IRS income tax, estate taxes). Specific liens generally take priority over general liens on the same property.

Where to Go From Here

If you missed more than six of these, you're not exam-ready yet, but you're not far off either. The pattern matters more than the percentage: if all your misses were in math, drill math. If they were in agency, you've got a reading-the-question problem more than a knowledge problem — slow down on words like "must," "except," and "not."

Federal law shows up on every exam. RESPA, TILA, ECOA, the Fair Housing Act, the Sherman Antitrust Act, and the Lead-Based Paint Disclosure Rule — know what each one does in one sentence, and you'll catch points other test-takers leave on the table.

Ready for the full workout? The National Real Estate Master Guide at studystack.org includes a 200-question full-length practice exam with the same answer explanations you got here, plus state-specific add-ons, federal law cheat sheets, and the math formulas in one place. Pass on the first try. Stop paying to retake.