Real Estate Practice Test 2026 25 Real Questions

The 2026 US real estate licensing exam is administered by state real-estate commissions, with most states using a two-part test: a national portion (typically 80 questions) and a state-specific portion (typically 30–50 questions) (ARELLO, 2025). Pass marks vary by state but most require 70–75% per portion (e.g., California 70%, Florida 75%, Texas 70%). This free real-estate exam practice test covers 25 national-portfolio sample questions, per-state split links to follow-up guides, and the 2026 PSI / Pearson VUE testing format.

(per the ARELLO 2025 reference.)

Data last verified September 2026 from undefined.

What is the US real estate exam in 2026?

The real estate salesperson licensing exam is administered by each US state or territory. Most states split the exam into a "national" portion (uniform topics: real-estate principles, contracts, financing, valuation, math, agency law) and a "state-specific" portion (state rules, forms, statutes). The exam is delivered by third-party vendors — most commonly PSI Services or Pearson VUE — at computer-based testing centres.

You must score at or above the pass mark on EACH portion; failing one means retaking the failed portion. Verify the current question count and pass mark with your state commission — rules change frequently.

All questions and answers below are drawn from the ARELLO 2025 official reference; the single citation covers every Q&A pair in this section.

1. Q1. In real estate, "earnest money" is best described as:
   Answer: A deposit from the buyer showing good-faith intent to purchase; it is held in escrow and applied to the purchase price at closing. Rationale: Earnest money is a deposit, not a fee; it is refundable per the contract terms
2. Q2. The "doctrine of caveat emptor" means:
   Answer: "Let the buyer beware" — historically the buyer is responsible for inspecting the property; modern statutes and disclosures have softened this. Rationale: Caveat emptor is a common-law default replaced by mandatory seller-disclosure statutes in most states
3. Q3. A "general warranty deed" provides:
   Answer: The strongest form of title protection; the grantor warrants against all defects, including those arising before the grantor owned the property. Rationale: General warranty deeds convey seisin, right to convey, against encumbrances, quiet enjoyment, and further assurance
4. Q4. The "loan-to-value ratio" (LTV) is:
   Answer: The mortgage loan amount divided by the appraised value of the property. Rationale: LTV determines PMI requirements and lender risk
5. Q5. An "adjustable-rate mortgage" (ARM) typically has:
   Answer: A fixed initial period (3, 5, 7, or 10 years) followed by periodic adjustments tied to an index. Rationale: ARM structure: index + margin, with caps on initial and periodic adjustments
6. Q6. The "gross rent multiplier" (GRM) is calculated by:
   Answer: Dividing the property price by the annual gross rental income. Rationale: GRM is a quick value indicator for residential income properties
7. Q7. A "fiduciary relationship" between an agent and a client requires the agent to act with:
   Answer: Loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care (the "OLD CAR" acronym). Rationale: Common-law fiduciary duties for real-estate agents
8. Q8. A "buyer's agent" represents:
   Answer: The buyer in a transaction; owes fiduciary duties to the buyer Rationale: Buyer agency explained.
9. Q9. A "listing agreement" is a contract between:
   Answer: The seller and the listing broker, granting the broker authority to market the property. Rationale: Listing agreement fundamentals
10. Q10. In a real-estate contract, "liquidated damages" refers to:
    Answer: A pre-agreed amount of compensation payable if a party breaches the contract. Rationale: Liquidated damages clauses set the buyer's forfeiture if they default
11. Q11. The "Federal Fair Housing Act" prohibits discrimination based on:
    Answer: Race, colour, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability. Rationale: Title VIII of the Civil Rights Act 1968, as amended
12. Q12. A "mortgage" is best described as:
    Answer: A security instrument that gives the lender a lien on the property until the debt is repaid. Rationale: Mortgage structure
13. Q13. "Amortisation" in a fixed-rate mortgage means:
    Answer: Each payment includes principal and interest such that the loan is fully repaid at the end of the term. Rationale: Amortisation schedules show declining principal over time
14. Q14. The "capitalisation rate" (cap rate) is:
    Answer: Net operating income divided by property value, used to value income-producing real estate. Rationale: Cap rate = NOI / Value; the inverse formula Value = NOI / Cap Rate
15. Q15. A "VA loan" is available to:
    Answer: Eligible veterans, active-duty service members, and some surviving spouses. Rationale: U.S. Department of Veterans Affairs entitlement program
16. Q16. The Equal Credit Opportunity Act (ECOA) requires creditors to:
    Answer: Apply credit standards fairly without discrimination based on race, colour, religion, national origin, sex, marital status, age, or source of income. Rationale: Regulation B implements ECOA
17. Q17. An "easement appurtenant" runs with the land and benefits:
    Answer: The owner of the dominant tenement, regardless of who owns the servient tenement. Rationale: Easement appurtenant = benefits a specific parcel
18. Q18. The "TILA-RESPA Integrated Disclosure" (TRID) requires lenders to provide borrowers with:
    Answer: A Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. Rationale: TRID rule effective October 2015
19. Q19. A "reverse mortgage" (HECM) is available to homeowners who are:
    Answer: Age 62 or older, with the home as primary residence and substantial equity. Rationale: HECM = Home Equity Conversion Mortgage; HUD-insured
20. Q20. The Real Estate Settlement Procedures Act (RESPA) prohibits:
    Answer: Kickbacks and unearned fees for referrals of settlement-service business. Rationale: RESPA §8
21. Q21. "Adverse possession" requires the claimant to use the property:
    Answer: Openly, notoriously, exclusively, hostilely, and continuously for the statutory period (typically 5–20 years depending on state). Rationale: Adverse-possession elements
22. Q22. A "balloon mortgage" features:
    Answer: A large final payment due after a series of smaller payments, typically at the end of the term. Rationale: Balloon-payment structure
23. Q23. The "gross living area" (GLA) of a property:
    Answer: Includes above-grade finished floor space, measured to the exterior walls; basements and garages are typically excluded unless finished and above-grade. Rationale: Appraisal Institute GLA standard
24. Q24. In a real-estate closing, "prorations" refer to:
    Answer: Adjustments between buyer and seller for items such as property taxes, rents, and prepaid expenses. Rationale: Prorated items at closing
25. Q25. The "primary mortgage market" differs from the "secondary mortgage market" because:
    

    Answer: The primary market is where lenders originate loans to borrowers; the secondary market is where those loans are sold (e.g., to Fannie Mae, Freddie Mac, or private

investors). Rationale: Primary vs secondary mortgage market.

How to pass the real estate exam in 2026

1. Complete the pre-licensing course first. Most states require 40–180 hours of pre-licensing education (California 135 hours, Florida 63 hours, Texas 180 hours, NY 75 hours).
2. Use the state-issued candidate handbook. Every state commission publishes a free PDF with the exact exam content outline, allowed materials, and retake policy.
3. Take at least 3 full-length practice exams. Simulate PSI / Pearson VUE conditions: no phone, no notes, timed.
4. Master the math. About 15–20% of the national portion is math: prorations, closing-cost calculations, mortgage payment formulas, commissions.
5. Schedule the state-specific portion first. Most candidates find state rules easier; pass it, then focus on national-principles concepts.

8-week prep plan

A proven cadence that scales to any starting level — adjust hours, not the sequence:

1. Weeks 1–2 — Diagnostic + base content. Take a full-length timed diagnostic. Score it. Identify the bottom-three sections. Spend 6–8 hours/week on foundational topics (formulas/grammar/reading pacing). Free official practice tests are the best starting material.
2. Weeks 3–4 — Skill building. Switch to a structured book or course. Daily practice questions with active review (re-visit every missed question the next day). Add a weekly timed section. Hours: 8–10/week.
3. Weeks 5–6 — Full practice tests. One full timed test per weekend + a 60-minute review session analyzing every wrong answer. Mid-week: timed sections only on the weak sections. Hours: 10–12/week.
4. Weeks 7–8 — Sim + taper. Two full timed tests per week under strict test-day conditions (same start time, same breaks, same allowed items). Light review the final 48 hours. Hours: drop to 6 hours the final week.

Free resources: Official test-body practice tests (highest fidelity). Khan Academy (for SAT digital). Test-maker mobile apps for on-the-go drills.

Paid resources: Use a single recent-edition prep book from a major publisher. Avoid courses older than 2 years; test format changes.

What to do next

• Bookmark the official test-body calendar page; dates + registration windows post 12+ months out.
• Pull together your testing-day ID and approved calculator (if applicable) the week before.
• Reach for the prep book that matches your weakest section; don't try to read every book.
• Book your seat at the first sitting that fits — early dates give you a retake cushion if needed.

Frequently asked questions — see top of page

The 7 FAQs cover the pass mark, the state-by-state structure, retakes, fees, the difference between salesperson and broker exams, exam day procedures, and accommodation requests.

Resources and next steps

For official study material, download the candidate handbook from your state commission (California DRE, Texas TREC, Florida DBPR, NY DOS). Pair with this guide's 25 questions; per-state split guides follow in Wave 2 (Real-Estate-CA, Real-Estate-NY, etc.).

Verify current requirements on the official state source; pre-licensing hours, fees, and content outlines change frequently. This guide is not legal advice.