Real Estate Sales Exam Real Estate License Law and Regulations 1 — Questions and Answers
Question 1: In most U.S. states, a real estate salesperson license applicant must work under the supervision of a:
- Licensed real estate broker (Correct answer)
- Another salesperson
- Any licensed contractor
- A property manager
Correct answer: Licensed real estate broker
Salesperson licensees are required by law to operate under the sponsorship and supervision of a licensed real estate broker.
Question 2: Which federal law requires real estate licensees to disclose known material defects in a property?
- RESPA
- FIRPTA
- State disclosure statutes (Correct answer)
- The Sherman Antitrust Act
Correct answer: State disclosure statutes
State disclosure statutes (not federal law) require sellers and their agents to disclose known material defects to buyers.
Question 3: A real estate license is typically suspended or revoked for which of the following actions?
- Advertising aggressively
- Commingling client funds with personal funds (Correct answer)
- Negotiating a lower commission
- Showing properties on weekends
Correct answer: Commingling client funds with personal funds
Commingling — mixing client escrow funds with personal or business funds — is a serious violation that can result in license suspension or revocation.
Question 4: Continuing education (CE) requirements for real estate license renewal are primarily designed to:
- Generate revenue for the state
- Ensure licensees stay current with laws and practices (Correct answer)
- Eliminate part-time agents
- Increase broker supervision hours
Correct answer: Ensure licensees stay current with laws and practices
CE requirements ensure that licensees remain knowledgeable about changes in real estate law, ethics, and industry practices.
Question 5: Which document must a real estate licensee provide to a potential buyer at the first substantive contact?
- Purchase agreement
- Agency disclosure form (Correct answer)
- Property condition report
- Title commitment
Correct answer: Agency disclosure form
Most states require licensees to present an agency disclosure form at first substantive contact to clarify whom they represent.
Question 6: A real estate salesperson who moves to a new broker must:
- Wait 90 days before transferring the license
- Notify the state real estate commission and transfer the license (Correct answer)
- Surrender the license and reapply
- Obtain a broker's license first
Correct answer: Notify the state real estate commission and transfer the license
When changing sponsoring brokers, a salesperson must notify the state commission and complete the license transfer process to remain legally active.
Real Estate Sales Exam Real Estate License Law and Regulations 1
In most U.S. states, a real estate salesperson license applicant must work under the supervision of a: