Practice of Real Estate Exam Questions
Practice of Real Estate covers the operational and regulatory aspects of working as a licensed real estate professional, including fair housing laws, advertising regulations, trust account management, anti-trust compliance, and the broker-salesperson relationship. At 10% of the exam, this topic tests your knowledge of the rules governing day-to-day real estate business. The Federal Fair Housing Act and its seven protected classes (race, color, religion, sex, national origin, familial status, disability) are the most heavily tested subtopic, along with prohibited practices like steering, blockbusting, and redlining. Anti-trust violations — including price fixing, market allocation, and boycotting — are also frequently tested as per se violations that require no proof of actual harm.
What You Need to Know About Practice of Real Estate
Practice of Real Estate covers the operational and regulatory aspects of working as a licensed real estate professional. This topic bridges theory and practice, testing your knowledge of fair housing, advertising, trust accounts, and professional responsibilities.
Fair Housing is the most heavily tested subtopic within Practice of Real Estate. The Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, amended in 1988) prohibits discrimination based on seven protected classes: race, color, religion, sex (including sexual orientation and gender identity per 2021 Supreme Court ruling), national origin, familial status, and disability. Know the specific prohibited practices: steering, blockbusting, redlining, and discriminatory advertising. Many states add additional protected classes.
Trust account management is another critical area. Know the rules about commingling (mixing client funds with personal or business funds — prohibited) and conversion (using client funds for personal use — illegal). Understand anti-trust violations: price fixing (agreeing on commission rates), market allocation (dividing territories), boycotting (refusing to work with certain businesses), and tie-in agreements. These are per se violations — no justification is accepted.
- Memorize ALL 7 federal protected classes: Race, Color, Religion, Sex, National Origin, Familial Status, Disability
- Know prohibited practices: Steering, Blockbusting, Redlining, Discriminatory advertising
- Commingling = mixing funds; Conversion = using client funds (both prohibited)
- Anti-trust per se violations: Price fixing, Market allocation, Boycotting, Tie-in agreements
Sample Practice Questions
200+ in bankA firm owner in New Bern is auditing the firm's approach to licensure scope, definitions, and exemptions. Which statement is NOT accurate under current North Carolina law?
How many hours of continuing education are required for NC licensees?
Nevada law requires purchase agreement copies be kept for at least:
A transaction coordinator in Cary is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
How many members serve on the New Mexico Real Estate Commission (NMREC)?
A closing-file reviewer in Raleigh is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A firm owner in Chapel Hill is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A compliance reviewer in High Point is sorting out a file issue involving prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A buyer representative in Huntersville is updating the policy manual on prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A provisional broker in Raleigh is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
Choose the North Carolina concept that fits this description about prelicensing, Postlicensing, and the 18-month deadline. Description: The North Carolina course sequence totaling ninety hours after initial licensure
A firm owner in Greenville is updating the policy manual on prelicensing, Postlicensing, and the 18-month deadline. Which statement best applies under current North Carolina law?
A Charlotte broker is answering a client question about advertising, supervision, and representation disclosures. Which statement best applies under current North Carolina law?
Under Georgia license law, what is the primary purpose of the Georgia Real Estate Commission?
Who issues real estate licenses in North Carolina?
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