Free Study Guide

Real Estate License Exam Study Guide: How to Pass

Q: A seller's agent who discovers a material defect in the property has a fiduciary duty to:

Real estate agents have a duty to disclose known material defects to potential buyers regardless of which party they represent. While a seller's agent owes fiduciary duties to the seller, the duty to disclose material defects to buyers overrides the duty of confidentiality. A material defect is one that would significantly affect the property's value or the buyer's decision to purchase.

Q: Under the federal Fair Housing Act, which of the following is NOT a protected class?

The seven protected classes under the federal Fair Housing Act are: race, color, religion, sex, national origin, disability, and familial status. Source of income is NOT a federal protected class, although some states (including New Jersey and New York) have added it as a protected class under their state laws. This is a frequently tested distinction.

Q: A property is purchased for $200,000 with a 20% down payment. The buyer obtains a mortgage for the remaining amount. What is the loan-to-value (LTV) ratio?

LTV = Loan amount / Property value. Down payment = 20% x $200,000 = $40,000. Loan amount = $200,000 - $40,000 = $160,000. LTV = $160,000 / $200,000 = 80%. Lenders use LTV to assess risk — higher LTV means more lender risk. LTV above 80% typically requires private mortgage insurance (PMI).

Complete real estate license exam study guide covering national topics, agency law, contracts, fair housing, and state-specific content. Free practice questions included.

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What Is the Real Estate Salesperson Exam?

Real estate salesperson licensing exams are required in all 50 US states before you can legally represent buyers or sellers in real estate transactions. Each state administers its own exam, but virtually all state exams test a combination of national real estate principles and state-specific law. The national content is consistent across states, making preparation transferable regardless of which state license you are pursuing.

Most states require completion of a pre-license education course (ranging from 40 to 180 hours depending on the state) before you can sit for the exam. The exam is administered by third-party providers including Pearson VUE, PSI, and Prometrics.

80-150

Questions (varies by state)

70-75%

Passing Score

~55%

First-Time Pass Rate

60-80%

National Content

What the Real Estate Exam Covers

The national portion of every state exam covers the same core topics:

Property Ownership and Land Use

~15%

Agency Law and Fiduciary Duties

~20%

Contracts (Listing, Purchase, Lease)

~17%

Fair Housing Laws

~10%

Real Estate Finance and Mortgages

~15%

Appraisal and Valuation

~10%

Closing Procedures

~8%

Property Management

~5%

Real Estate Exam Study Tips

Agency law is the most tested and most misunderstood topic. Understand the difference between seller agency, buyer agency, dual agency, and transaction brokerage. Know the fiduciary duties (COALD — Confidentiality, Obedience, Accounting, Loyalty, Disclosure) owed under each relationship type.

Memorize the seven federal Fair Housing Act protected classes. Race, color, religion, national origin, sex, disability, and familial status. Know the exemptions (owner-occupied buildings with four or fewer units, religious organizations, private clubs) and the additional classes your state may add.

Practice closing cost calculations. Prorated property taxes, mortgage interest, and title insurance premiums appear as math questions. Practice calculating proration using the 30-day month method and the 365-day method — know which one your state uses.

Know the difference between types of deeds. General warranty deed (broadest protection), special warranty deed (limited to grantor period), quitclaim deed (no warranties), and bargain and sale deed. Deed questions appear on virtually every state exam.

Study your state-specific content separately. The national content and state content require different study approaches. State questions test knowledge of your state licensing authority, disclosure requirements, agency forms, and local regulations. Practice with state-specific questions after mastering the national content.

Real Estate Exam by State

Each state has specific requirements for pre-license education hours, exam format, and passing score. Here are the key details for the most-tested states:

California: 135 hours pre-license, 150 questions, 70% passing, administered by DRE
Florida: 63 hours (FREC Course I), 100 questions, 75% passing, administered by Pearson VUE
Texas: 180 hours across 6 courses, dual National/State sections, 70% each section, administered by Pearson VUE
New York: 77 hours, 75 questions, 70% passing, administered by eAccessNY
New Jersey: 75 hours, 110 questions, 70% passing, administered by PSI
Pennsylvania: 75 hours, 110 questions, 75% passing (higher than most states), administered by PSI

Sample Questions

Real Estate Exam Practice Questions

Test your real estate knowledge with these sample questions covering the most frequently tested national topics.

Q1A seller's agent who discovers a material defect in the property has a fiduciary duty to:

A.Keep the information confidential to protect the seller's interests

B.Disclose the defect only if the buyer directly asks about it

C.Disclose the material defect to potential buyers

D.Disclose only after the offer has been accepted

Q2Under the federal Fair Housing Act, which of the following is NOT a protected class?

A.Religion

B.National origin

C.Source of income

D.Familial status

Q3A property is purchased for $200,000 with a 20% down payment. The buyer obtains a mortgage for the remaining amount. What is the loan-to-value (LTV) ratio?

A.20%

B.25%

C.80%

D.125%

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