Real Estate Broker Exam — National Portion
Real estate practice: practice questions
Our Real Estate Broker (National) bank has 44 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
A property manager must handle tenants' security deposits by:
- Holding them in a trust account
- Paying them to the owner as rent
- Spending them on repairs at will
- Adding them to the manager's salary
Show the answer
A. Holding them in a trust account — Security deposits are client/tenant funds and must not be commingled.
Question 2
Errors and omissions (E&O) insurance protects a broker against:
- Fire damage to the office
- Negligence claims from professional services
- Employee health costs and workers' compensation
- Intentional fraud by the broker
Show the answer
B. Negligence claims from professional services — E&O covers professional negligence claims; it typically excludes intentional or criminal acts.
Question 3
The best risk management practice for disputes over what was promised is to:
- Keep agreements and disclosures in writing
- Rely on handshake deals
- Delete emails and texts after closing
- Avoid giving any disclosures
Show the answer
A. Keep agreements and disclosures in writing — Documentation reduces misunderstandings and liability.
Question 4
Brokers who agree to refuse to cooperate with a discount brokerage are engaged in:
- A group boycott
- Steering
- Blockbusting
- Tie-in arrangement
Show the answer
A. A group boycott — Concerted refusals to deal with a competitor violate antitrust laws.
Question 5
A managing broker's main responsibility for affiliated licensees is to:
- Pay their personal taxes
- Guarantee every transaction closes
- Set their political views
- Supervise them and the firm's compliance
Show the answer
D. Supervise them and the firm's compliance — Brokers are responsible for supervising salespersons and can be vicariously liable for their acts.