Free Real Estate Sales Exam Questions That Helps Candidates Pass

FHA loans are insured by the Federal Housing Administration. They require lower down payments and allow more flexible credit. VA loans (A) are guaranteed by the Department of Veterans Affairs. USDA loans (C) serve rural buyers. Conventional loans (D) are private.

The cost approach is best for unique or special-purpose properties like churches, schools, or government buildings, where comparables are scarce. Sales comparison (A) is best for homes. Income approach (B/D) applies to income properties like apartments and shopping centers.

Agents must disclose all offers promptly to the client, even if the agent believes they are not in the client’s best interest. Failure to present an offer breaches the fiduciary duty of disclosure. Loyalty (B) means acting in the client’s best interest, and obedience (A) means following lawful instructions. Confidentiality (D) relates to private client information.

Dual agency occurs when an agent represents both parties in the same transaction. It is legal only with informed written consent. Transaction brokerage (A) assists both without fiduciary duties. Designated agency (B) assigns separate agents. General agency (D) grants broad authority for one client.

The Fair Housing Act protects classes including race, color, religion, sex, national origin, familial status, and disability. Marital status is not covered federally, though some states add it. Knowing federal vs. state protections is critical for exam success.