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The real estate exam is a mandatory aspect of licensing that covers state-specific and national real estate subjects. Students should prepare thoroughly for this exam by taking sample examinations, taking prep classes, and acquiring expert tips and best practices to boost their confidence.
Preparation Questions for the Real Estate Exam
Answering practice real estate exam questions is undoubtedly the most effective approach to preparing since these questions closely resemble those that will appear on the real test. While there are just a few free exam questions available—and these are frequently not state-specific—they may assist you to fine-tune your test-taking tactics and identifying areas that need to be studied. We suggest enrolling in a prep course like Real Estate Exam Scholar for state-specific practice exam questions.
Here are some example real estate test questions and answers to help you prepare:
1. Possession of real estate
All of the following are included in the legal rights bundle EXCEPT
- Control of the property
- Right to have fun
- Exclusionary right
- Survivorship right
Answer: D. The Survivorship right is a right found in joint tenancy and tenancy by the entirety, but it is not a part of the bundle of legal rights. The bundle of legal rights includes the right of possession, control, enjoyment, transfer, exclusion, and disposition (lease, sell, leave to someone in a will, gift, and so on).
2. A description of the land
A metes-and-bounds legal description is
- Can only be used in locations that are not covered by the rectangular survey methodology.
- In most areas, it is not admissible in court.
- It must start and end at the same identified location.
- Is only utilized in severe instances when no subdivision plat has been filed.
Answer: C. A metes-and-bounds legal description starts at a well-defined point (POB) and follows the limits of a parcel of land, employing directions and distances around the track, until it returns to the POB.
It is admissible and enforceable in all judicial jurisdictions when correctly prepared, and it may be formed for any piece of land. A deed will often include two kinds of property descriptions: a metes-and-bounds description and a rectangle survey (or government survey) description, or a lot, block, and tract description.
3. Real Estate Math & Finance
Question: A building’s expected remaining economic life is 25 years. Using the straight-line technique, what is the yearly recapture rate?
- 25%
- 4%
- 40%
- 400%
Answer: B. 100% (total depreciation) divided by 25 years is 4% annual depreciation.
4. Zoning
Which of the following does not qualify as a mixed-use property?
- On the first level of a building, there is a steakhouse, and on the second story, there are offices.
- A shipping warehouse and an office suite facility are located next to each other.
- A religious worship center that is surrounded by residential dwellings.
- Clothing and furnishings businesses are included in this outlet mall.
Answer: D. Clothing and furniture stores are similar commercial uses, so no mixed-use exists in the outlet example. A building with a steakhouse on the first floor and offices on the second floor combines two separate uses: a restaurant and office space. A shipping warehouse and an office suite facility are located next to each other. combines a warehouse and office space. A religious worship center that is surrounded by residential dwellings. combines a religious use with residential use.
5. Agency
Except for _____________, all of the following are agency partnerships.
- The client-attorney relationship
- The buyer-salesperson connection in real estate
- The buyer-agent connection in real estate
- The connection between the listing broker and the seller
- None of the above; they’re all connected via an agency.
Answer: B. A salesman is not an agent, despite the fact that he or she may refer to himself or herself as one. The agent is the broker. The salesperson, like the agent, owes the client (principal) full fiduciary obligations, although the majority of the agent’s real estate-related actions must be overseen by a broker.
What You Should Know Before Taking the Real Estate Exam
Every real estate test has questions that address both federal and state-specific real estate law. The national section of the exam covers the same topics in all states, while the state portion covers information that is unique to each state’s exam. The test will, in general, include subjects such as agency law, the fundamentals of property ownership, real estate math and finance, and contracts.
General skill questions and knowledge essential to working as a real estate agent, such as property appraisal and finance, are included in the national section of the real estate test. The state section of the test contains questions concerning state-specific rules, regulations, and subject that is particular to real estate practice in that state.
The following are some of the most common topics covered in the real estate exam:
- Agency laws and fiduciary duties: The test may include topics such as how to establish and end an agency relationship, the responsibility an agent has to a buyer or seller and required disclosures.
- Property valuation and financial analysis: Most exam centers include a rudimentary calculator to help with questions on estimating house value and doing financial assessments.
- Financing: Test takers should be familiar with different forms of loans, credit and financing legislation, and financing agreements such as mortgages and notes.
- Contracts: Documents such as listing agreements, offers and purchase contracts, promissory notes, and buy and lease options are among the contract law topics covered in the real estate test.
10 Tips & Tricks to Help You Pass the Real Estate Exam
Every test taker has unique test-taking tactics, however, there are some common suggestions that will assist students in passing the real estate license exam. Distracting yourself from distractions, creating study routines and disciplines, studying cooperatively, and employing tools to help you remember knowledge are just a few of them.
The following are the top ten recommendations for passing the real estate exam:
1. Put an end to procrastination
Use the Pomodoro method to quit procrastinating: set a timer for 25 minutes of study time, then take a five-minute break. Concentrate only on learning during study time. Reward yourself with ice cream, a YouTube movie, or a quick stroll during the five-minute break. After working for more than a few hours, you should take a significant rest.
2. Take notes.
According to research conducted by Princeton University, students who took notes on laptops performed much lower on examinations than those who took notes longhand. The explanation for this is simple: when individuals type their notes, they prefer to put down exactly what the speaker says. People who take notes from their real estate education classes by hand, on the other hand, must first consider the information and only jot down what is most relevant.
Consider retyping your notes in outline form after the lecture if you prefer to study notes on a computer. Then go through your notes and make flashcards to assist you to remember everything.
3. Study for a Few Minutes Every Day
Cramming is far less successful than studying a little every day, according to studies. As a result, it’s essential to study gradually—and consistently—in order to allow oneself enough time to prepare for the test and avoid pulling an all-nighter. Set aside an hour of study time each day for test practice and review materials as you proceed through your real estate exam prep course.
4. Create flashcards for the real estate exam
Students who utilize flashcards do better on tests, according to studies. Part of the reason flashcards work so effectively is because they push you to recall material outside of the context of a multiple-choice question and without the chance to delete apparent wrong responses. Furthermore, since flashcards are portable, you may study whenever and anywhere you choose.
If you prefer to study online, Quizlet allows you to create and store your own free flashcards, which you can access from any computer with an internet connection. Even better, you may utilize flashcards created by other students that have been preserved. Take a look at these 500 sets of flashcards for the California real estate test, for example. You may also use GoConqr to help you study for the real estate test by creating free flashcards, personalized quizzes, and mind maps.
5. Improve your memory by reading aloud
According to new research published in Psychology Today, reading something aloud helps people remember it because it produces a “distinct” memory that is simpler to recall. To avoid overloading your brain with superfluous memories, just utilize this approach on the phrases or ideas you’re having trouble recalling. Recruit a friend or family member to assist you to study phrases and ideas aloud for your real estate test if you’re having trouble recalling them.
6. Before your real estate exam, go for a walk.
Dr. Chuck Hillman, a psychology professor at Northeastern University, discovered that 20 minutes of moderate exercise may improve memory and brain function. Make time for breaks while studying for the test by going for a walk or going to the gym. Take a brisk walk to clear your thoughts, enhance attention, and improve your performance if you have time before the test.
7. Make Memorizing Easier by Using Mnemonic Devices
A mnemonic device is a memory method that recalls difficult material by using shortcuts. H.E.A.R.S., which covers the field of Implied Agreements, is one of many popular mnemonic schemes for material on the real estate test. Making your own mnemonic devices, on the other hand, may help you recall study information.
Here are some interesting mnemonics to help you study for the real estate exam:
Implied Agreements
An implied covenant is an agreement between a lessee and lessor that is not explicitly stated in the lease agreement. Instead, there are certain Implied Agreements, like habitability, that are built into every lease.
Mnemonic device: Even if a lease is silent on the topic, the landlord H.E.A.R.S. these five Implied Agreements:
- H is for habitability.
- E: Relaxed pleasure
- A: The lease’s assignability
- R: Excellent repair (commercial landlords make this agreement)
- S: Security safeguards are kept to a bare minimum.
Putting an Easement to Rest
An easement is a legal document that grants non-possessory rights to land. It may be positive or negative. An affirmative easement, for example, allows the holder to use or access a certain property for a defined purpose. Easements are generally permanent until they are terminated by one of five processes, including abandonment or condemnation.
Mnemonic device: To remember the necessary steps to Putting an Easement to Rest, use A.C.R.A.M.:
- A: is the first word that comes to me when I think about abandonment.
- C: The use of eminent domain by the state is condemned.
- R: A written document signed by both parties releasing the easement.
- A: Taking hostile ownership of a servient estate in order to prevent the easement from being used.
- M: All (100%) dominating and servient estates are merged by common ownership, so no one may hold an easement, covenant, or profit on their own land.
Negative Easement
In contrast to an affirmative easement, a Negative Easement is a term that refers to a situation that prevents the owner of specific land from using that land in a specified manner. These easements are categorized based on what they limit, such as light, air, and water.
Mnemonic device: Remember L.A.W.S. to memorize four types of Negative Easement is a term that refers to a situation in which:
- L: Easements of light
- A: Air easement.
- W: Water-related requirements
- S: Support Easements (S)
8. Turn off the television.
Distractions such as mobile phones, TVs, and other technologies make studying more difficult since they induce poor retention, frustration, and brain drain. In reality, research indicates that “multitasking” is scientifically impossible. Instead, devote some time to studying without interruptions, and then reward yourself with a viewing of your favorite television program.
9. Study with a Group
Form a study group with friends or coworkers who are taking the test at the same time so you can exchange notes, swap mnemonic devices, and assist each other with difficult ideas. Consider participating in online forums, where you may ask questions and get comments from other exam takers.
10. Best Exam Day Practices
You should be in good condition to pass the real estate test if you master practice questions and get a good night’s sleep. The majority of the questions will seem to be fairly familiar and shouldn’t be too tough. Taking a test, on the other hand, maybe incredibly stressful, so mastering relaxation methods, learning how to remove incorrect answers, and taking other efforts to quiet your mind throughout the exam are all vital.
Follow these tips to remain in the appropriate state of mind throughout the test:
- Working backwards to the right answer: Cross out any responses you know are incorrect. If you have to guess, it’s better to have a 50/50 chance than to choose one answer at random from four.
- Don’t alter your answers: Don’t modify your answers after you’ve answered a question. According to studies, you’re significantly more likely to convert a correct response to an erroneous one than the other way around.
- Take a deep breath or a drink of water to settle your nerves if you start to feel worried throughout the exam. It won’t take long until you’re a licensed real estate agent.
Options for Real Estate Exam Preparation
Exam takers have a wide range of learning styles, necessitating a variety of exam preparation resources. As a result, a mix of the prep tools listed below, including subject-specific lectures, prep courses, practice examinations, and online forums and communities, should be considered.
Exam preparation often includes the use of materials such as:
- Many real estate exam preparation alternatives incorporate instructional lectures on commonly examined topic areas. These differ by state, so be sure you select a provider that caters to your region.
- Choose a prep course that provides study materials in a manner that is most convenient for you. Real estate flashcards, review videos, and games like crossword puzzles are all common study resources.
- Practice questions and exams: You should answer as many practice questions as possible to prepare for the real estate test. Select a test preparation course that contains national and state-specific practice questions and examinations.
- Online community: Because studying for the real estate exam may be stressful and complex, some courses provide access to online forums, private Facebook groups, and other exam prep communities where you can obtain feedback from previous test-takers.
Exam Preparation Real Estate Schools
If you haven’t completed your pre-licensing real estate courses, an all-inclusive package that includes test prep courses and resources may be the best option for you. These packages are usually more expensive upfront than individual prelicensing or test preparation, but the time and work saved may be worth it.
Prelicensing with test preparation is available at the following schools:
- Kaplan Real Estate: Kaplan has the most diverse range of course formats and package options. They are also the only real estate school that offers a weekend intensive to help you get started in the field.
- Real Estate Express: Real Estate Express has a variety of packages available in each state, including weekly question and answer sessions with an instructor, boot camps, and a professional development membership with a social networking tool.
- The CE Shop: Prelicensing, test prep, and business-building courses are all available at The CE Shop. In a vast number of states, The CE Shop regularly has the highest pass rates.
Most Commonly Asked Questions (FAQs)
What is the most effective method for studying for the real estate exam?
Because everyone has a distinct learning style, it’s tough to pinpoint the study methods that are most effective for you. Fortunately, a range of test preparation organizations provides study materials ranging from online lectures and conventional flashcards to games such as crossword puzzles.
How much time should I devote to studying for the real estate exam?
You should prepare for the real estate test while completing your real estate prelicensing classes, which might take many weeks or months. To refresh your memory, study every night of your class and then for many hours the night before the test. Build additional time into your study plan for practice questions and tests if you believe your prelicensing courses were not detailed enough.
What is the number of questions on the real estate exam?
The amount of questions on the real estate test varies by state; for the most up-to-date information, contact your state’s licensing board. The real estate test typically has 100 to 150 questions. Real estate test questions are often multiple choice and cover a wide variety of subjects, including federal and state-specific real estate law.
What is the percentage of people that pass the real estate exam?
The passing rate for the real estate test varies by state. Between July 2018 and June 2020, the total pass percentage for the Texas broker’s test was 58 percent, and 61 percent for the salesperson’s exam. For further information on pass rates, go to your state’s real estate license page.
How much does it cost to study for the real estate exam?
Real estate test preparation classes often cost between $29 and $200. Exam prep costs vary depending on package selections, the availability of a money-back guarantee, the scope of study resources, and other considerations.
Conclusion
Real estate test preparation aids prospective agents and brokers in learning knowledge efficiently and passing the exam with confidence. Flashcards, video lessons, and online forums are excellent resources for learning both national and state-specific information. To study more effectively, minimize distractions, create personal objectives, and make use of resources such as real estate test prep classes and mentorship from coworkers who have successfully passed the exam.
