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Real Estate Salesperson practice questions and answers

20 free questions from our 300-question Real Estate Salesperson bank, each with the correct answer and a cited explanation. The real exam: 150 MCQs (national + CA state) · 70% to pass · 3-hour limit.

Questions last updated September 18, 2026 · Questions written from the Pearson VUE National Real Estate Outline (Jan 2025) and CA DRE RE-425 exam description.

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  1. Contracts agency

    1. A buyer submits an offer on a home with a home-inspection contingency. Before the seller accepts, the buyer learns the seller has already accepted a competing offer. What is the status of the first offer?

    1. AIt is automatically terminated because of the competing offer.
    2. BIt becomes a counteroffer by operation of law.
    3. CIt remains a valid, pending offer until revoked or accepted.
    4. DIt is void ab initio because the buyer added a contingency.

    Answer: C. An offer stays open and valid until the offeree rejects it, revokes it, or it expires. A competing offer does not extinguish the first one; only the seller can revoke or accept. The contingency does not void the offer, and a counteroffer requires affirmative action by the offeree.

    Source: National Outline — Contracts & Agency, 20%

  2. Contracts agency

    2. A listing broker represents the seller and procures a ready, willing, and able buyer. The seller then refuses to close. Under an open listing, is the seller obligated to pay a commission?

    1. AYes, a commission is owed once the broker procures a ready, willing, and able buyer.
    2. BNo, because the seller found another buyer through a different channel.
    3. CNo, an open listing never results in a commission obligation.
    4. DYes, but only if the listing agreement was exclusive right to sell.

    Answer: A. Under most open listings, a commission is earned when the broker is the procuring cause of a ready, willing, and able buyer, even if the seller later breaches. Option D is incorrect because an open listing is not exclusive. Option C misstates the law — open listings can pay commissions.

    Source: National Outline — Contracts & Agency, 20%

  3. Contracts agency

    3. A real estate agent who holds a valid power of attorney from the buyer signs the purchase contract on the buyer's behalf. Which element of a valid contract is demonstrated by this scenario?

    1. ALawful consideration
    2. BMutual assent
    3. CLegal purpose
    4. DCompetent parties

    Answer: D. The agent with a power of attorney acts on behalf of the buyer, demonstrating that the signing party has the legal capacity (competence) to enter the contract. Consideration is the bargained-for exchange, mutual assent is offer and acceptance, and legal purpose relates to lawful subject matter.

    Source: National Outline — Contracts & Agency, 20%

  4. Contracts agency

    4. A seller lists a property with Broker A on an exclusive right to sell. The seller later contacts Broker B about the same property. What type of agency relationship exists between the seller and Broker B?

    1. ABroker B is the seller's agent under a dual agency arrangement.
    2. BBroker B is the seller's agent only if a new listing agreement is signed.
    3. CBroker B is automatically appointed as a subagent of Broker A.
    4. DBroker B cannot interact with the seller without Broker A's consent.

    Answer: B. An exclusive right to sell gives Broker A the right to earn a commission, but it does not prevent the seller from engaging another broker if a separate agreement is signed. No automatic agency arises between the seller and Broker B without a contract. The seller is free to contact other brokers, though Broker A may still earn the commission.

    Source: National Outline — Contracts & Agency, 20%

  5. Contracts agency

    5. A buyer and seller sign a purchase agreement with a financing contingency. The buyer applies for a loan but is denied. The buyer then seeks to rescind the contract. Is the buyer entitled to the return of earnest money?

    1. AYes, the financing contingency allows the buyer to rescind and recover earnest money.
    2. BNo, earnest money is forfeited when the buyer fails to obtain financing.
    3. CNo, financing contingencies apply only to FHA loans.
    4. DYes, but only if the seller also signed a separate rescission agreement.

    Answer: A. A financing contingency permits the buyer to rescind the contract and receive a return of earnest money if financing is not obtained through no fault of the buyer. The contingency is not limited to FHA loans, and no separate rescission agreement from the seller is required for the contingency to apply.

    Source: National Outline — Contracts & Agency, 20%

  6. Contracts agency

    6. A licensed salesperson is employed by Broker A. The salesperson assists a friend in buying a property without disclosing the employment relationship to the buyer. Which agency duty has been violated?

    1. AObedience
    2. BLoyalty
    3. CDisclosure
    4. DAccounting

    Answer: C. The disclosure duty requires the licensee to reveal all material facts about the agency relationship. Failing to disclose the employment with Broker A violates the duty to inform the buyer of the agency relationship. Obedience relates to lawful instructions, loyalty to placing the client's interests first, and accounting to proper handling of funds.

    Source: National Outline — Contracts & Agency, 20%

  7. Contracts agency

    7. Under the Statute of Frauds, which real estate contract must be in writing to be enforceable?

    1. AA listing agreement for a single-family home
    2. BA three-month lease of a commercial storefront
    3. CA contract to mow the lawn of a residential property
    4. DAn oral agreement to show a property to prospective buyers

    Answer: A. Contracts for the sale of real property and listing agreements must generally be in writing under the Statute of Frauds. A three-month lease is typically exempt because it is less than one year. Lawn-mowing and property showings are service contracts, not interest-in-land contracts.

    Source: National Outline — Contracts & Agency, 20%

  8. Contracts agency

    8. A property manager enters into a management agreement with the owner of a 20-unit apartment building. The agreement is for a term of two years. What type of contract is this?

    1. AUnilateral contract
    2. BAleatory contract
    3. CAdhesion contract
    4. DExpress contract

    Answer: D. The management agreement is an express contract because its terms are explicitly stated in writing or orally. A unilateral contract involves a promise for an act, an aleatory contract depends on a chance event, and an adhesion contract is a take-it-or-leave-it agreement imposed by one party.

    Source: National Outline — Contracts & Agency, 20%

  9. Contracts agency

    9. A listing broker learns that the seller has a termite infestation but instructs the broker not to disclose it. If the broker remains silent, which fiduciary duty to the buyer is primarily at issue?

    1. AConfidentiality of the seller's information
    2. BObedience to the seller's instructions
    3. CFull disclosure of material facts
    4. DReasonable care and skill

    Answer: C. A licensee owes a duty of full disclosure of material facts to all parties. The broker cannot obey the seller's instruction to conceal a material fact because doing so would violate the duty to disclose material facts to the buyer. Confidentiality does not extend to concealing known material defects.

    Source: National Outline — Contracts & Agency, 20%

  10. Contracts agency

    10. A buyer submits a written offer with earnest money. Before the seller accepts, the buyer wants to withdraw the offer. Can the buyer legally revoke the offer?

    1. AYes, the buyer may revoke the offer at any time before acceptance.
    2. BNo, because the earnest money makes the offer irrevocable.
    3. CNo, because the buyer signed a binding option agreement.
    4. DYes, but only with the seller's written consent.

    Answer: A. An offeror generally may revoke an offer at any time before it is accepted by the offeree. The payment of earnest money does not create an option contract; it merely demonstrates the buyer's seriousness. Unless an option contract was separately signed, the buyer can revoke before acceptance.

    Source: National Outline — Contracts & Agency, 20%

  11. Property characteristics

    11. A tenant installs a commercial-grade oven in a rented bakery. Upon lease termination, the tenant removes the oven, leaving minor wall damage. How is the oven classified?

    1. AReal property because it is permanently attached.
    2. BA fixture that must remain with the property.
    3. CA trade fixture removable by the tenant.
    4. DEmblements that the tenant may harvest.

    Answer: C. A trade fixture is personal property installed by a tenant for business purposes and is removable by the tenant at lease termination. It does not become real property despite attachment. Emblements are cultivated crops, and a standard fixture would remain with the property.

    Source: National Outline — Property Characteristics, 13.75%

  12. Property characteristics

    12. Which of the following is an example of an economic characteristic of real property?

    1. AImmobility
    2. BUniqueness
    3. CIndestructibility
    4. DScarcity

    Answer: D. Scarcity is an economic characteristic of real property, meaning land is limited in supply. Immobility, uniqueness, and indestructibility are physical characteristics of real property.

    Source: National Outline — Property Characteristics, 13.75%

  13. Property characteristics

    13. A homeowners association has recorded CC&Rs that restrict exterior paint colors. A new buyer was not told about the restriction before closing. Can the CC&Rs be enforced against the new buyer?

    1. ANo, because the buyer was not notified of the restriction.
    2. BYes, CC&Rs that are properly recorded run with the land.
    3. CNo, CC&Rs must be signed by every buyer to be enforceable.
    4. DYes, but only if the HOA sends a written notice after closing.

    Answer: B. CC&Rs that are properly recorded run with the land and are enforceable against subsequent purchasers, regardless of actual notice. The buyer is charged with constructive notice of recorded restrictions. The CC&Rs do not require the buyer's signature for enforceability.

    Source: National Outline — Property Characteristics, 13.75%

  14. Property characteristics

    14. A property owner grants a neighbor the right to cross a portion of the driveway to reach a garage. This right is best described as:

    1. AAn easement appurtenant
    2. BA license
    3. CAn encroachment
    4. DAn easement in gross

    Answer: A. An easement appurtenant benefits a particular parcel of land and runs with the land. The neighbor's right to use the driveway benefits the neighbor's property specifically. An easement in gross benefits a person, not land; a license is revocable permission; an encroachment is a physical intrusion.

    Source: National Outline — Property Characteristics, 13.75%

  15. Property characteristics

    15. Which method is most commonly used to describe land in urban areas with rectangular lots?

    1. AMetes and bounds
    2. BLot and block (recorded plat)
    3. CGovernment survey (section, township, range)
    4. DMonuments and natural landmarks

    Answer: B. The lot and block system references a recorded subdivision plat and is the most common method for describing urban and suburban lots. Metes and bounds uses landmarks and measurements, the government survey is used in western states, and natural landmarks are part of metes and bounds.

    Source: National Outline — Property Characteristics, 13.75%

  16. Property characteristics

    16. The government's power to regulate land use for the health, safety, and welfare of the public is an exercise of:

    1. AEminent domain
    2. BEscheat
    3. CPolice power
    4. DTaxation

    Answer: C. Police power is the government's authority to regulate land use, zoning, and building codes for the public welfare. Eminent domain is the power to take private property for public use with compensation. Escheat is the reversion of property to the state when there is no heir. Taxation is the power to levy property taxes.

    Source: National Outline — Property Characteristics, 13.75%

  17. Property characteristics

    17. A buyer's inspector discovers an encroachment where a neighbor's fence extends two feet onto the subject property. What is the most likely legal remedy?

    1. AThe buyer must accept the encroachment as a permanent condition.
    2. BThe seller must remove the encroachment or the buyer may seek an injunction.
    3. CThe encroachment automatically creates an easement by prescription.
    4. DThe buyer may reduce the purchase price by the value of the two feet.

    Answer: B. An encroachment is a physical intrusion onto another's property. The property owner may seek an injunction requiring removal. The encroachment does not automatically create an easement, and the buyer is not required to accept it. A price reduction may be negotiated but is not the primary legal remedy.

    Source: National Outline — Property Characteristics, 13.75%

  18. Valuation appraisal

    18. An appraiser is preparing a report on a single-family home and selects three comparable sales from the same neighborhood within the past six months. Which valuation method is the appraiser primarily using?

    1. ACost approach
    2. BSales comparison approach
    3. CIncome capitalization approach
    4. DGross rent multiplier method

    Answer: B. The sales comparison approach estimates value by comparing the subject property to recently sold comparable properties. This is the most common approach for residential properties. The cost approach estimates replacement cost, the income approach is used for income-producing properties, and GRM is a variant of the income approach.

    Source: National Outline — Valuation & Appraisal, 13.75%

  19. Valuation appraisal

    19. An appraiser determines that a property's land value is $250,000 and the replacement cost of the improvements is $180,000 with accrued depreciation of $30,000. What is the estimated value using the cost approach?

    1. A$400,000
    2. B$430,000
    3. C$460,000
    4. D$480,000

    Answer: A. Cost approach: land value plus replacement cost minus depreciation. $250,000 + $180,000 − $30,000 = $400,000. The other answers result from adding rather than subtracting depreciation or omitting a step.

    Source: National Outline — Valuation & Appraisal, 13.75%

  20. Valuation appraisal

    20. A broker prepares a comparative market analysis and adjusts the comparable's sale price upward by $5,000 because the comparable has a two-car garage while the subject has only one. This adjustment reflects:

    1. AA market condition adjustment
    2. BA physical characteristic adjustment
    3. CA financing concession adjustment
    4. DA time adjustment

    Answer: B. Adjusting for differences in physical features such as garage size is a physical characteristic adjustment. Market condition adjustments address changes in the overall market over time, financing concessions address differences in sale terms, and time adjustments account for market movement between sale date and valuation date.

    Source: National Outline — Valuation & Appraisal, 13.75%

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