FBLA Real Estate Practice Exam

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• In an Exclusive Agency listing, what privilege does the seller retain?
• What is a key characteristic of residential real estate?
• What term refers to a false or misleading statement about a property's condition or features?
• Which term refers to the most profitable and legal use of a property?
• What is a key benefit of being a member of NAR?
• In the context of zoning laws, what does "setback" refer to?
• What is it called when a tenant remains in a property after the lease expiration without consent?
• In real estate valuation, what is the Income Approach primarily based on?
• What is the term for the process of buying or selling real property?
• What does an adjustable-rate mortgage mainly rely upon to determine interest changes?
• What do agents need to know regarding fair housing regulations?
• Which of the following actions would likely breach the fiduciary duty of an agent?
• An item that remains part of the real estate when attached is referred to as what?
• What does the term Dual Agent refer to?
• What is the proposal made by a buyer to purchase property called?
• What day of the week is often considered ideal for hosting an Open House?
• Which type of fixture can be removed by a tenant before the lease ends?
• Which approach to valuation considers the cost to build a new property minus depreciation?
• Which of the following is typically associated with an Open House event?
• What does the term "commingling" refer to in real estate practice?
• What situation occurs when an agent's interests may conflict with those of the client?
• What is the primary purpose of zoning regulations?
• Who represents the seller's interests in a real estate transaction?
• Which of the following is a key benefit of hosting an Open House?
• What is the term for the funds held in an account separate from the agent's personal funds?
• What is the term for movable items that are not permanently attached to land?
• Which type of real estate includes single-family homes and condos?
• Which of the following is NOT considered a protected class under the Fair Housing Act?
• What is the primary role of a buyer's agent in a real estate transaction?
• What is the main function of a seller's agent?
• During the appraising process, which method would be used to enhance accuracy when evaluating property?
• What type of listing allows multiple brokers to list a property simultaneously?
• What must sellers disclose regarding flood risk?
• What document is used to transfer title from seller to buyer?
• What is a significant implication of dual agency for REALTORS®?
• Which term refers to legal entities that oversee real estate education and regulate professional conduct?
• What is a common task of a real estate entrepreneur?
• What legal process is used to remove a tenant from a property?
• What type of agency is created by the actions or conduct of parties?
• How can feedback from an Open House be maximally beneficial?
• Which type of listing is banned in many states as it allows agents to keep any amount above a set net price?
• Which act requires lenders to disclose any kickbacks associated with settlement services?
• Which type of deed provides full guarantees of clear title?
• Which law requires reasonable accommodations for individuals with disabilities in housing?
• Which term is used for a financial obligation against a property that may limit ownership rights?
• Which of the following best describes 'personal property'?
• What defines 'real property'?
• What is the primary role of a real estate agent?
• What responsibility requires an agent to follow their client's lawful instructions?
• In real estate, what is the term for the value of a property divided by the loan amount?
• How can real estate agents effectively promote an Open House event?
• What role does a mortgage banker play in real estate?
• Which of the following terms best describes a policy that unfairly targets neighborhoods based on race for loan denials?
• What is the role of Fannie Mae in the mortgage market?
• Which term best describes the process of adjusting land-use regulations to fit new circumstances?
• Which type of insurance protects the buyer or lender from losses due to title defects?
• What is it called when property is used in a way that does not conform to zoning laws but has been allowed to continue?
• The Sales Comparison Approach estimates property value based on what criterion?
• Which type of deed transfers ownership without any title guarantees?
• What is the definition of Agency by Ratification?
• Who is considered the client in an agency relationship?
• What is the legal duty of an agent to inform parties about who they legally represent called?
• What term describes an agent whose actions directly lead to the completion of a sale?
• What type of brokerage is more oriented towards home buying and selling?
• What is the legal obligation of an agent to act in their client's best interest called?
• What type of property includes both tangible and intangible aspects?
• What type of material can be useful to provide to visitors at an Open House?
• What is the primary responsibility of a property manager?
• Which of the following terms refers to the proper handling of client funds by an agent?
• What disclosure is required for homes built before 1978?
• What is a local law that controls land use and building standards?
• How is the Loan-to-Value (LTV) ratio calculated?
• What is the primary objective of conducting an Open House?
• What is the term for a decrease in property value due to wear, age, or obsolescence?
• What does the term 'encumbrance' refer to?
• What type of deposit shows a buyer's good faith in a transaction?
• What defines a real estate entrepreneur?
• Which of the following is an example of a protected class?
• What advantage does a VA Loan provide to eligible veterans?
• What is the role of an agent in a real estate transaction?
• What does redlining refer to in housing practices?
• In the context of agency, what does it mean to have a conflict of interest?
• Which term describes an agent's responsibility to remain faithful and committed to the client's objectives?
• What is the process of entering documents into public record to provide notice of ownership?
• Which type of real estate listing allows the seller to retain the right to sell the property independently without paying a commission?
• What legal agreement outlines the responsibilities of both a buyer and seller in a real estate transaction?
• What legal document assures the buyer that they have ownership rights free of liens or claims?
• What is the primary focus of residential brokerage?
• What is the term for directing buyers toward or away from areas based on their protected class?
• What does an escrow account ensure during the buying process?
• Which of the following listings allows a seller to market the property independently without paying the agent?
• What term refers to local laws setting construction and safety standards?
• Freddie Mac primarily assists which of the following?
• Which document shows the change in ownership of a property?
• What describes a tenant occupying a property with permission but without a fixed term?
• What term refers to permission to deviate from established zoning rules?
• Which type of lease allows either party to terminate the agreement at any time?
• Which type of agency prevents denial of agency due to prior behavior?
• What is the term for the market where loans are sold to investors?
• What type of account is held by a neutral third party for funds until closing?
• What is the suggested duration for an Open House event?
• What must an agent avoid in order to maintain ethical standards?
• What benefit does a property manager provide to property owners?
• What is the objective of advertising regulations in real estate?
• What type of property is specifically used for manufacturing, production, or storage purposes?
• Which agreement defines the marketing strategy for the seller's property by the broker?
• What is a key characteristic of a net listing?
• Which type of agreement represents a seller but does not guarantee commission to the broker?
• Which professional is responsible for originating and selling real estate loans?
• Which government-sponsored enterprise is known for buying mortgages from lenders?
• What does the term 'hereditament' refer to?
• What kind of agency is created through a written or verbal agreement?
• What does Cash Flow represent in real estate?
• What practice involves encouraging people to sell their homes by suggesting a neighborhood's racial composition is changing?
• Which of the following must ads adhere to in order to avoid discriminatory language?
• Which term describes property consisting of land and buildings, along with the rights associated with ownership?
• Which of the following is an important follow-up after an Open House?
• Which mortgage type features an interest rate that periodically changes based on an index?
• What does the Equal Credit Opportunity Act (ECOA) prohibit?
• What do we call a personal property item that becomes part of real estate when permanently attached?
• What is an easement?
• What does it mean for an agent to have a fiduciary duty of loyalty?
• When can an agency be terminated?
• What is a contributor to property depreciation?
• What is a loan called that is guaranteed by the U.S. Department of Veterans Affairs?
• What is the principle behind Truth in Advertising in real estate?
• Which of the following is NOT one of the fiduciary duties of an agent?
• What principle requires an agent to prioritize their client's interests above all others?
• What is essential regarding the handling of earnest money in a real estate transaction?
• Which term describes raw, undeveloped property that does not have any improvements?
• What is a legal term that refers to compensatory payment made to secure a deal in real estate?
• What is the term for the legal relationship where one party (agent) acts on behalf of another (principal)?
• What term refers to government regulation of how land can be used?
• What does REIT stand for in real estate terminology?
• What must be disclosed if known asbestos is present in a property?
• How is the Capitalization Rate (Cap Rate) calculated?
• The Real Estate Settlement Procedures Act (RESPA) requires what kind of disclosure?
• What is the job of a leasing agent?
• What is the purpose of a reasonable accommodation in housing for individuals with disabilities?
• What is one key element to think about when showing a home during an Open House?
• Which strategy is least effective for attracting visitors to an Open House?
• What practice involves generating fear in homeowners that prices will drop due to racial integration?
• Which of these concepts is NOT included under the Code of Ethics?
• What is a primary ethical duty of real estate agents when dealing with clients?
• What is the name of the contract between a seller and a broker to market property?
• Which of the following is included in the 'bundle of rights'?
• What term refers to the legal right of ownership of property?
• What term describes the increase in property value over time?
• What should sellers do to prepare their home for an Open House?
• Who assists landlords in finding and signing tenants for rental properties?
• What aspect does the amortization process primarily focus on during a loan?
• What does dual agency involve in a real estate transaction?
• Agents are required to inform their clients of all material facts concerning a property. What is this called?
• Who provides an independent valuation of property while adhering to USPAP standards?
• Which of the following best describes the responsibility of a principal in an agency relationship?
• Which sequence describes the typical steps in the licensing process for real estate professionals?
• What is a property use that existed before a zoning change and is allowed to continue called?
• Which of the following can help ensure an Open House is successful?
• What type of disclosure would inform buyers about the presence of lead paint?
• Which of the following represents a legal claim on property used as security for a debt?
• In real estate, what does NOI stand for?
• What type of mortgage has a constant interest rate and payment amount throughout the loan term?
• What is the process of estimating the worth of a property conducted by an appraiser called?
• What document details all financial transactions at closing?
• Which act requires the disclosure of loan costs and Annual Percentage Rate (APR) to borrowers?
• Which type of loan is typically government-insured and requires a low down payment?
• The Cost Approach to property valuation is most useful in what context?
• What state agency is responsible for regulating licensing and practice in real estate?
• What type of loan is secured by real property?
• What is the term for an agent's responsibility not to reveal their client's private information?
• Which agent represents the buyer’s interests in a transaction?
• Which term describes the binding agreement between a buyer and seller?
• What type of properties are considered commercial real estate?
• Which valuation approach is often considered the most objective method of estimating property value?
• What is a key requirement for an agent when managing funds?
• What is the term for a person with whom the agent interacts but does not represent?
• What is typically included on a Settlement Statement?
• What is generally advised to enhance the appeal of a property during an Open House?
• Which term describes the act of using client funds for personal use?
• Under the Fair Housing Act, which group is afforded protection from discrimination?
• What concept emphasizes honesty and integrity in dealings by REALTORS®?
• How does an agent typically establish their authority?
• What is the purpose of the MLS (Multiple Listing Service) in real estate?
• Which of the following is NOT a type of listing agreement?
• What type of listing gives the broker a commission regardless of who sells the property?
• What term describes a promise that the title of a property is good and clear?
• Which of the following best defines appreciation in real estate?
• Which agency enforces Fair Housing laws?
• What is the name given to a right or privilege that transfers with property ownership, like an easement?
• Which agency relationship includes duties like reasonable care and disclosure?
• What is the obligation called when agents must act in good faith toward clients?
• Which brokerage type primarily focuses on investment returns and complex leases?
• What term describes the scheduled loan repayment that reduces both principal and interest?
• What must advertisements in real estate ensure?
• What does the Fair Housing Act primarily prohibit?
• What distinguishes a real estate broker from an agent?
• Which of the following deeds only guarantees the title for the time the grantor owned the property?
• What is the final stage of a real estate transaction that transfers ownership?
• Which of the following best defines Net Operating Income?
• What kind of agent works under another agent or broker?
• What term describes the corporation that purchases mortgages in the secondary market?
• What is the name of the regulations that govern land use classifications like residential, commercial, and industrial?
• Which of the following describes a REALTOR®?
• What does proration at closing refer to?
• What term describes the obligation of an agent to act with skill and diligence?