A use right that benefits an adjacent parcel and runs with the land

A use right that benefits a person or company (e.g., a utility), not a parcel

A monetary claim securing a debt — can force a sale if unpaid

An improvement intruding onto a neighbor's land; found by survey

Deed restriction (CC&Rs)

Private limits on use, often stricter than zoning

A buyer pays no more than the cost of an equally desirable substitute

Value reflects the most profitable legal, possible, feasible use

Value is maximized when a property fits its surroundings

Progression / regression

A modest home gains value near larger ones; a fine home loses value near lesser ones

Value rises when demand exceeds supply, and falls when supply exceeds demand

Exclusive right-to-sell

The listing broker — no matter who finds the buyer

The broker, unless the owner sells it themselves

Only the broker who actually finds the buyer

Broker keeps the amount above the seller's set price — illegal in many states

Guiding buyers toward or away from areas by protected class

Inducing panic selling by claiming a protected class is moving in

A lender refusing to lend or insure in an area by its makeup

Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window

Odorless radioactive gas from soil; second-leading cause of lung cancer

Old insulation/flooring; remove or encapsulate to control fibers

Grows in damp areas; may require disclosure and remediation

Underground storage tank

Can leak and contaminate soil and groundwater

Lets the lender demand the full balance on default

Due-on-sale (alienation)

Loan must be paid in full when the property is sold

Fee for paying the loan off early

Releases the lien when the debt is fully paid

What is the difference between the national and state portions?

The national portion tests the general real estate principles used across the country — agency, contracts, financing, appraisal, fair housing, and ownership. The state portion tests the laws and license rules unique to one state. This guide covers the national/general portion; state law is studied separately.

What score do I need to pass the real estate exam?

Passing the national portion usually requires about 70 to 75 percent correct — commonly 60 of 80 scored questions. The exact passing score and whether each portion is graded separately are set by your state's licensing authority, so confirm the cut score with your state.

How long is the national real estate exam?

Test-takers generally have around 90 to 150 minutes for the national portion, depending on the state and testing provider (often PSI or Pearson VUE). When the national and state portions are taken together, the combined session can run up to about four hours.

What topics are on the national real estate exam?

The national portion covers real property and land use, ownership and transfer of title, property value and appraisal, contracts and agency, real estate practice (including fair housing), property disclosures and environmental issues, financing and settlement, and real estate math. This guide is organized around those eight content areas.

Is there math on the real estate exam?

Yes. Expect a handful of calculation questions — commissions and splits, seller net, loan-to-value, property taxes and mill rates, proration at closing, and area or acreage. A basic calculator is usually allowed. The math module in this guide works through each formula with examples.

How should I use this real estate study guide?

Work through the eight content areas in order, take the checkpoint quiz after each to find gaps, then drill that area with our free practice questions and flashcards. Spend extra time on contracts and agency and on fair housing, which carry heavy weight and are frequently tested.

Is this real estate study guide free?

Yes — the full guide, the checkpoints, the glossary, the practice questions, and the flashcards are 100% free, with no account required.

What is fee simple ownership?

Fee simple (or fee simple absolute) is the most complete form of real-property ownership: it is absolute, of unlimited duration, and freely transferable by deed or will. The owner holds the full bundle of rights — possession, use, exclusion, and disposition — subject only to government powers and any private restrictions. This is a Real Property Characteristics concept. Fee simple is contrasted on the exam with a life estate (which ends at a person's death) and with leasehold estates (a tenant's right to use without owning). Even fee simple is still subject to the four government powers — police power, eminent domain, taxation, and escheat (remembered as PETE).

What is the difference between real property and personal property?

Real property is land plus everything permanently attached to it and the legal rights of ownership. Personal property (chattel) is everything else — movable items not affixed to the land. An item can change category: a fixture is personal property that becomes real property when permanently attached. This is a Real Property Characteristics concept. Whether an item is a fixture is decided by the tests remembered as MARIA: Method of attachment, Adaptability, Relationship of the parties, Intention, and Agreement. Trade fixtures attached by a business tenant stay personal property and may be removed before the lease ends.

How does the rectangular (government) survey system describe land?

The rectangular, or Public Land Survey, system describes land using principal meridians (north–south lines) and base lines (east–west lines) to form a grid of 6-mile-square townships. Each township holds 36 sections, and each section is one square mile, or 640 acres. This is a Legal Descriptions concept. The other two main methods are metes and bounds (distances and compass bearings traced back to a point of beginning) and lot-and-block (a reference to a recorded subdivision plat). Useful conversions: a section = 640 acres, and one acre = 43,560 square feet.

What is the difference between joint tenancy and tenancy in common?

Both are forms of co-ownership. Joint tenancy carries the right of survivorship — a deceased owner's share passes automatically to the surviving joint tenants — and requires the four unities of time, title, interest, and possession. Tenancy in common has no survivorship; each owner holds a divisible share that can be willed to heirs. This is a Forms of Ownership concept. Tenancy by the entirety is a survivorship form reserved for married couples; severalty is sole ownership by one person or entity. Because tenancy in common has no survivorship, a co-owner's interest passes through their will or by intestate succession.

Which deed gives a buyer the most protection?

A general warranty deed gives the most protection. The grantor warrants clear title against all defects — even those arising before the grantor owned the property — and promises to defend the title. A special (limited) warranty deed covers only the grantor's own period of ownership, and a quitclaim deed gives no warranties at all. This is a Transfer of Title concept. A quitclaim deed conveys only whatever interest the grantor has and is often used to clear a cloud on title. A deed must be delivered by the grantor and accepted by the grantee to transfer title; recording it then gives constructive notice to the public.

What is title insurance and why is it needed?

Title insurance protects the insured against financial loss from defects in the title that existed before the policy date — undiscovered liens, recording errors, forgery, or competing claims. Unlike other insurance, it covers past events rather than future ones, and a one-time premium is paid at closing. This is a Recording of Title concept. An owner's policy protects the buyer's equity; a lender's policy protects the mortgage lender and is usually required for a loan. Title insurance follows a title search of the public record, which establishes the chain of title and reveals recorded encumbrances.

How does the income (capitalization) approach estimate value?

The income approach converts a property's income into value using the formula value = net operating income ÷ capitalization rate. Net operating income is effective gross income minus operating expenses, before any mortgage payment. A higher cap rate signals more risk and produces a lower value. This is a Property Value and Appraisal concept. It is the primary approach for income-producing property such as apartments and commercial buildings. The other two approaches are the sales comparison approach (comparable sales) and the cost approach (land value plus replacement cost minus depreciation).

What is highest and best use in an appraisal?

Highest and best use is the use of a property that is legally permissible, physically possible, financially feasible, and maximally productive. An appraiser values land as if put to that use, because the market prices a site according to its most profitable reasonable use, not necessarily its current one. This is a Property Value and Appraisal concept. A vacant lot zoned for commercial use is appraised for that use even if it currently holds an old house. It is closely tied to the principle of substitution: a buyer pays no more than the cost of an equally desirable substitute property.

What is an appraisal, and how is it different from a CMA?

An appraisal is an impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following professional standards (USPAP). A comparative market analysis (CMA) is a licensee's informal estimate of value from recent comparable sales, used to help price a listing — it is not an appraisal. This is a Property Value and Appraisal concept. Lenders order an appraisal to confirm a property supports the loan amount. Market value (the most probable price under fair conditions) is an opinion; market price is the actual price a property sold for.

What fiduciary duties does an agent owe a client?

An agent owes the principal fiduciary duties, remembered as OLD CAR: Obedience to lawful instructions, Loyalty (the client's interests first), Disclosure of material facts, Confidentiality, Accounting for money and property, and Reasonable care and skill. These duties define the trust at the heart of an agency relationship. This is a Laws of Agency concept. Confidentiality survives even after the relationship ends, while honesty and fair dealing are owed to all parties, including customers. Dual agency — representing both buyer and seller — is legal only with the informed written consent of both parties.

What are the essential elements of a valid contract?

A valid contract requires mutual agreement (offer and acceptance), consideration (something of value), legal purpose, and competent parties. A real-estate sales contract must also be in writing under the statute of frauds. Missing an essential element makes a contract void; a defect such as a minor's signature makes it voidable. This is a Contracts concept. A counteroffer rejects the original offer and creates a new one, which the other party may accept or reject. Because land is unique, a buyer may sue for specific performance to compel a defaulting seller to complete the sale.

What is procuring cause?

Procuring cause is the agent whose actions set in motion an unbroken chain of events that leads to a completed sale. That agent has earned the commission. Procuring cause matters most in open listings and in commission disputes, where more than one broker may have worked with a buyer. This is an Agency/Contracts concept. In an exclusive right-to-sell listing the listing broker earns the commission no matter who finds the buyer, so procuring cause is not at issue. A broker generally earns the commission by producing a ready, willing, and able buyer on the seller's terms.

What does the federal Fair Housing Act prohibit?

The Fair Housing Act (1968) bans discrimination in the sale, rental, and financing of housing based on race, color, religion, national origin, sex, familial status, and disability — the seven federal protected classes. Prohibited practices include steering, blockbusting, and redlining. This is a Real Estate Practice concept and one of the most heavily tested topics. Steering guides buyers toward or away from areas by protected class; blockbusting induces panic selling; redlining is a lender's refusal to lend in certain areas. Housing providers must allow reasonable accommodations and modifications for people with disabilities, such as a service animal.

What is the difference between commingling and conversion of trust funds?

Both are license-law violations involving client money. Commingling is improperly mixing a client's trust funds (such as earnest money) with the broker's own or business funds. Conversion is the more serious offense of actually using a client's trust funds for the broker's own purposes. This is a Real Estate Practice concept. A broker must keep client funds in a separate trust (escrow) account, apart from operating money. Mishandling trust funds is a frequent cause of license suspension or revocation.

Who must comply with the federal lead-based paint disclosure rule?

Sellers and landlords of most housing built before 1978 must disclose any known lead-based paint and hazards, give buyers or renters the EPA pamphlet, and — for sales — allow a 10-day window to test for lead. The rule comes from the 1992 Residential Lead-Based Paint Hazard Reduction Act (Title X). This is a Property Disclosures concept. The 10-day inspection opportunity applies to sales; the parties may agree in writing to a different length. Other commonly disclosed environmental hazards include radon, asbestos, mold, and leaking underground storage tanks.

What is a material fact, and must it be disclosed?

A material fact is a fact that would affect a reasonable buyer's decision to purchase or the price they would pay — for example, a leaking roof or a cracked foundation. Sellers and agents who know of material defects, including hidden (latent) ones, generally must disclose them. The old rule of caveat emptor is now limited by disclosure laws. This is a Property Disclosures concept. A latent defect is a hidden problem not found by ordinary inspection; failing to disclose a known latent defect can create liability. Most states require sellers to complete a property condition disclosure statement listing known defects.

FREE Real Estate Exam Study Guide 2026 + Readiness Score

This free real estate exam study guide teaches the national (general) portion of the real estate salesperson licensing exam — the general principles tested across the country, before any state-specific law.^[1] Most states combine this national portion with a separate state portion in one session, scored by PSI or Pearson VUE; this guide covers the national half.

The national portion is built around eight content areas — property and land use, ownership and title, value and appraisal, contracts and agency, real estate practice, disclosures, financing, and math. It’s interactive, not a wall of text: every area has a built-in checkpoint quiz, hover-able glossary terms, worked math examples, and concept questions, so you learn by doing.

Read the guide area by area, test yourself at each checkpoint, then round out your free prep with our practice questions and flashcards. Two areas reward the most study time: contracts and agency and fair housing.

Real Estate Exam Snapshot (National Portion)

National real estate exam at a glance (2026)
Detail	National (general) portion
Scored questions	About 80 multiple-choice (plus a few unscored pretest items)
Passing score	Commonly about 70–75% (e.g., 60 of 80 scored items)
Time	Roughly 90–150 minutes for the national portion
Format	Computer-based multiple choice, four options
State portion	Taken separately — usually 30–50 state-law questions
Testing providers	PSI or Pearson VUE in most states
Calculator	A basic on-screen or handheld calculator is usually allowed
Content areas	8 — property, title, value, contracts/agency, practice, disclosures, financing, math

The exact question count, passing score, and time are set by each state’s licensing authority and testing provider, so confirm them for your state.^[1] The weighting below reflects a typical national-portion blueprint — contracts and agency is the single largest area, and real estate math, though small, is the most learnable:

National real estate exam content areas (2026 typical weighting)

Contracts & Agency20% · ~20% (≈16 questions)

Property, Legal Descriptions & Use14% · ~14% (≈11 questions)

Property Value & Appraisal14% · ~14% (≈11 questions)

Real Estate Practice12% · ~12% (≈10 questions)

Ownership & Transfer of Title11% · ~11% (≈9 questions)

Disclosures & Environmental11% · ~11% (≈9 questions)

Financing & Settlement9% · ~9% (≈7 questions)

Real Estate Math9% · ~9% (≈7 questions)

Exact weights vary by state and testing provider, so treat these as a planning guide rather than a fixed blueprint.^[1] This guide teaches all eight content areas as eight study modules, each ending in a checkpoint quiz.

1 · Property, Legal Descriptions & Land Use

About 14% of the national portion.What real property is, the estates and rights an owner can hold, the encumbrances that limit them, the government’s powers over land, and how land is legally described.^[7]

The bundle of rights — what fee-simple ownership includes

Real-property ownership is a bundle of separate rights. An owner can sell or lease one “stick” — like leasing the right to possess — while keeping the rest.

PossessionThe right to occupy and hold the property.

Use (Enjoyment)The right to use the property in any legal way.

ExclusionThe right to keep others out.

DispositionThe right to sell, will, lease, or give it away.

ControlThe right to make decisions about the property.

Even fee simple is limited by the four government powers below — and by any private deed restrictions.

Estates & the Bundle of Rights

is land, everything permanently attached to it (including ), and the of ownership. The largest estate is — absolute and inheritable. A lasts only for someone’s lifetime, so it can’t be willed. Leasehold estates give a tenant the right to use property without owning it.

Encumbrances & Easements

An is anything that limits title. An is a nonpossessory right to use another’s land; an is an unauthorized intrusion onto a neighbor’s land. A lien is a money claim against the property.

Common encumbrances on title
Encumbrance	What it is
Easement appurtenant	A use right that benefits an adjacent parcel and runs with the land
Easement in gross	A use right that benefits a person or company (e.g., a utility), not a parcel
Lien	A monetary claim securing a debt — can force a sale if unpaid
Encroachment	An improvement intruding onto a neighbor's land; found by survey
Deed restriction (CC&Rs)	Private limits on use, often stricter than zoning

Government Powers & Land-Use Controls

Even fee simple is limited by four government powers, remembered as PETE. Local governments use for and building codes; takes land for public use with just compensation.

The four government powers — “PETE”

Every owner’s rights are subject to four powers of government. Note the key contrast: only eminent domain requires the government to pay the owner.

PPolice powerRegulate land for public health, safety & welfare — zoning, building codes. No payment to the owner.

EEminent domainTake property for public use through condemnation — but pay just compensation.

TTaxationLevy property taxes; unpaid taxes become a lien with high priority.

EEscheatProperty reverts to the state when an owner dies with no will and no heirs.

Legal Descriptions

Three methods describe land precisely: (distances and bearings from a point of beginning), the rectangular (government) survey system (townships, ranges, and ), and lot-and-block (a recorded plat). Know that one is 640 acres and one is 43,560 square feet.

The rectangular survey system — a township of 36 sections

1 township
6 mi × 6 mi = 36 sections

1 section
1 sq mile = 640 acres

1 acre
43,560 square feet

Checkpoint · Area 1 · Property, Legal Descriptions & Land Use

Question 1 of 10

A state highway authority files to acquire a strip of a private owner's land to widen a public road, paying the owner the fair market value of the strip taken. What governmental power is being exercised?

2 · Ownership, Title Transfer & Recording

About 11% of the national portion. How people co-own property, how a transfers title, and how recording protects an owner’s rights.^[7]

Forms of Co-Ownership

The key difference is the . has it — a deceased owner’s share passes to the survivors — and needs the four unities (time, title, interest, possession). has no survivorship, so each share passes by will. Tenancy by the entirety is a survivorship form for married couples; severalty is sole ownership.

Forms of ownership compared
Form	Survivorship?	Who can hold it
Severalty	N/A — sole owner	One person or entity
Tenancy in common	No — passes by will	Any number of co-owners
Joint tenancy	Yes — to survivors	Co-owners with the four unities
Tenancy by the entirety	Yes — to spouse	A married couple only

Deeds & Transfer of Title

A deed conveys title from the grantor to the grantee. The gives the most protection; a gives none and is used to clear a cloud on title. A deed must be delivered and accepted to transfer title.

How title transfers — from deed to recording

1 · A valid deed is preparedNames the grantor and grantee, identifies the property, states consideration, and includes words of conveyance.
2 · Grantor signs & acknowledgesThe grantor signs before a notary (acknowledgment). The grantee does not sign the deed.
3 · Delivery & acceptanceTitle passes only when the grantor delivers the deed and the grantee accepts it during the grantor's life.
4 · RecordingThe deed is recorded in the public record, giving constructive notice to the world and setting lien priority.

Delivery & acceptance transfers title; recording is not required to pass title but protects the new owner’s priority.

Recording & Title Assurance

Recording a deed in the public record establishes the chain of title and lien priority. then protects the buyer and lender against defects that existed before the policy — undiscovered liens, forgery, or recording errors.

Checkpoint · Area 2 · Ownership, Title Transfer & Recording

Question 1 of 10

Four siblings own a farm as joint tenants. One sibling becomes financially troubled, and a creditor obtains and forces the sale of that sibling's interest at a judicial sale to satisfy a judgment. After the forced sale, how does the buyer at that sale hold title relative to the three remaining siblings?

3 · Property Value & Appraisal

About 14% of the national portion.What creates value, the three approaches an appraiser uses, and how a licensee’s CMA differs from a formal appraisal.^[7]

Value Principles

is the most probable price under fair conditions — an opinion, distinct from the actual market price. The basis of value is : the legal, possible, feasible, and most profitable use of a site.

Key appraisal value principles
Principle	What it means
Substitution	A buyer pays no more than the cost of an equally desirable substitute
Highest and best use	Value reflects the most profitable legal, possible, feasible use
Conformity	Value is maximized when a property fits its surroundings
Progression / regression	A modest home gains value near larger ones; a fine home loses value near lesser ones
Supply and demand	Value rises when demand exceeds supply, and falls when supply exceeds demand

The Three Approaches to Value

An appraiser estimates value three ways, then reconciles them — weighing the indications, not averaging — into one final opinion.

The three approaches to estimating value

Sales comparison approachCompare the subject to recently sold similar properties; adjust for differences. Best for homes.Based on the principle of substitution.

Cost approachLand value + cost to rebuild the improvements new − depreciation. Best for new or special-use property.

Income (capitalization) approachValue = net operating income ÷ capitalization rate. Best for income-producing property.

The appraiser then reconciles the three indications into one final opinion of value — weighing them, not averaging.

CMA vs. Appraisal

A licensee prepares a from recent comparable sales to help price a listing. A formal is an impartial, USPAP-compliant opinion by a licensed appraiser — what a lender relies on. in appraisal is any loss in value: physical, functional, or external.

Checkpoint · Area 3 · Property Value & Appraisal

Question 1 of 10

An appraiser is asked to define market value for a lender. Which of the following best describes the conditions assumed in a market value estimate?

4 · Contracts & Agency

About 20% of the national portion — the single largest area. What makes a contract valid, the kinds of listing agreements, and the fiduciary duties at the heart of agency.^[7]

Contract Law & Listings

A valid needs mutual agreement, consideration, legal purpose, and competent parties — and, for real estate, writing under the . A missing essential element makes it void; a defect like a minor’s signature makes it voidable.

Types of listing agreements
Listing type	Who earns the commission
Exclusive right-to-sell	The listing broker — no matter who finds the buyer
Exclusive agency	The broker, unless the owner sells it themselves
Open listing	Only the broker who actually finds the buyer
Net listing	Broker keeps the amount above the seller's set price — illegal in many states

Agency & Fiduciary Duties

is a fiduciary relationship between an agent and a principal. The duties are remembered as OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care.

Agency relationships — who owes fiduciary duties to whom

Seller’s agent (listing agent)Hired by the seller(the principal). Owes the seller the fiduciary duties: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (“OLD CAR”).

Buyer’s agentHired by the buyer (the principal). Owes the buyer those same fiduciary duties.

Dual agentRepresents both buyer and seller in one transaction. Legal only with the informed written consent of both parties; the agent must stay neutral and cannot advance one side over the other.

Transaction (non-agency) brokerAssists the parties without representing either as an agent. Owes honesty and fair dealing, but not the full fiduciary duties.

Honesty and fair dealing are owed to everyone, including a customer who is not your client.

Checkpoint · Area 4 · Contracts & Agency

Question 1 of 10

The acronym OLD CAR is often used to summarize the fiduciary duties a real estate agent owes a principal. The first three letters stand for obedience, loyalty, and which of the following?

5 · Real Estate Practice

About 12% of the national portion. Fair housing, handling client money, and the leasing and management work a licensee does day to day.^[1]

Fair Housing

The (1968) bans discrimination based on race, color, religion, national origin, sex, familial status, and disability — seven federal protected classes.^[1] The big three violations:

Prohibited fair-housing practices
Practice	What it is
Steering	Guiding buyers toward or away from areas by protected class
Blockbusting	Inducing panic selling by claiming a protected class is moving in
Redlining	A lender refusing to lend or insure in an area by its makeup

Trust Funds & Professional Conduct

A broker must keep client funds — like — in a separate trust (escrow) account. (mixing them with the broker’s own funds) is a violation; conversion (spending them) is worse. Commission rates are always negotiable, and brokers may not agree to fix them (an antitrust violation).

Leases & Property Management

A lease conveys the right to use property for a term in exchange for rent (landlord = lessor, tenant = lessee). Know the types: a gross lease (landlord pays expenses), a net lease (tenant pays some expenses), and a percentage lease (retail rent tied to sales).

Checkpoint · Area 5 · Real Estate Practice

Question 1 of 10

Which federal statute was the original 1968 law that first prohibited discrimination in housing based on race, color, religion, and national origin?

6 · Disclosures & Environmental Issues

About 11% of the national portion. What a seller and agent must reveal, and the environmental hazards the exam expects you to recognize.^[4]

Material Facts & Property Disclosure

A — anything that would affect a buyer’s decision or price — must be disclosed, including known (hidden problems). The old rule of caveat emptor(“let the buyer beware”) is now limited by state disclosure laws, and most states require a property condition disclosure statement.

Environmental Hazards

The most heavily tested federal rule is the : for housing built before 1978, the seller or landlord must disclose known lead paint, give the EPA pamphlet, and (for sales) allow a 10-day inspection window.^[4]

Environmental hazards to recognize
Hazard	What to know
Lead-based paint	Pre-1978 housing; federal disclosure + EPA pamphlet + 10-day test window
Radon	Odorless radioactive gas from soil; second-leading cause of lung cancer
Asbestos	Old insulation/flooring; remove or encapsulate to control fibers
Mold	Grows in damp areas; may require disclosure and remediation
Underground storage tank	Can leak and contaminate soil and groundwater

Checkpoint · Area 6 · Disclosures & Environmental Issues

Question 1 of 10

A landlord is renting out a single-family house constructed in 1981. Before signing the lease, must the landlord provide the tenant with the federal lead-based paint disclosure form and EPA pamphlet?

7 · Financing & Settlement

About 9% of the national portion. The instruments that secure a loan, the main loan types, the federal lending laws, and what happens at closing.^[2]

Notes, Mortgages & Clauses

A (or deed of trust) pledges the property as collateral; the is the borrower’s promise to repay. repays principal and interest so the balance reaches zero by the end of the term. Watch the key clauses:

Loan clauses to know
Clause	What it does
Acceleration	Lets the lender demand the full balance on default
Due-on-sale (alienation)	Loan must be paid in full when the property is sold
Prepayment penalty	Fee for paying the loan off early
Defeasance	Releases the lien when the debt is fully paid

Loan Types & Lending Laws

Three loan types anchor the exam — conventional, FHA, and VA — and the measures lender risk.

Main loan types — conventional, FHA, and VA

ConventionalNot government-backed. PMI usually required when the down payment is under 20% (LTV over 80%).

FHAInsured by the Federal Housing Administration. Low down payments; borrower pays mortgage insurance premiums.

VAGuaranteed by the Department of Veterans Affairs for eligible veterans. Often no down payment (up to 100% LTV).

A mortgage or deed of trust pledges the property as collateral; the promissory note is the borrower’s promise to repay.

Two federal laws govern disclosure: requires settlement-cost disclosures and bans kickbacks, and requires disclosing the cost of credit, including the APR.^[2]^[3] Together they produce the Loan Estimate and Closing Disclosure forms.

Closing & Settlement

At closing, an escrow holder disburses funds when all conditions are met. The Loan Estimate is due within three business days of application, and the Closing Disclosure must reach the borrower at least three business days before closing.^[2] If a borrower defaults, forces a sale to repay the debt.

Checkpoint · Area 7 · Financing & Settlement

Question 1 of 10

A clause in a mortgage gives the lender the right to declare the entire remaining balance immediately due and payable if the borrower stops making payments. What is this provision called?

8 · Real Estate Math

About 9% of the national portion — and the most learnable points on the test. A handful of formulas cover almost every calculation: area, commission, seller net, loan-to-value, taxes, and proration.^[7]

Area & Land Measurement

Area of a rectangle is length × width. To convert square feet to acres, divide by 43,560. A is 640 acres.

Commission, Net & Profit

Commission = sale price × rate. To find the price for a target seller net, divide the net by (1 − rate). Percent of profit or loss divides the gain or loss by the original cost.

Core real estate formulas
To find	Formula
Commission	Sale price × commission rate
Price for a target net	Net ÷ (1 − commission rate)
Loan-to-value (LTV)	Loan amount ÷ value (or price)
Value (income approach)	Net operating income ÷ capitalization rate
Annual property tax	Assessed value × tax rate (or mills × 0.001)

Loans, Taxes & Proration

is loan ÷ value. A is $0.001 of tax per dollar of assessed value, so 18 mills is a tax of 1.8%. splits taxes, rent, and interest by the days each party owns the property — the seller is usually charged through the closing date.

Checkpoint · Area 8 · Real Estate Math

Question 1 of 10

A surveyed tract is rectangular and contains exactly one half of an acre. If the tract has a uniform depth of 145 feet, approximately how wide is it, using 43,560 square feet per acre?

How to Use This Study Guide

A study guide is a map, not the whole territory — pair it with our free practice questions and flashcards and, where it applies, your state’s own materials for the state portion. Because the national portion rewards recognizing principles fast, spaced, mixed practice beats one long cram. Lead with the heaviest areas — and contracts, and — then lock in the math.

A study loop that actually works

1
Read a content area here
Work through one area at a time, in the order the exam is built.
2
Take the checkpoint
The quick check at the end of each area exposes what didn't stick.
3
Drill the gaps
Send your weak area straight into the free practice questions and flashcards.
4
Take full, timed practice
Sit a full-length practice test to build stamina, then review every miss.

Real Estate Study Guides by State

The national portion above is the same everywhere, but each state adds its own license law, agency rules, and state-portion topics. Pick your state’s guide to study that state-specific material alongside the national content:

Real Estate Concept Questions

Common real estate principles the national exam actually tests — at least one per content area. Tap any card for a short, exam-ready answer backed by an official source (HUD, CFPB, EPA, USGS, or IRS), then test yourself on them as flashcards.

Real Estate Glossary

Quick definitions for the terms you’ll see most across the national real estate exam:

Acre: A unit of land area equal to 43,560 square feet.
Agency: A fiduciary relationship in which an agent represents a principal in dealings with third parties.
Amortization: Repaying a loan through regular payments of interest and principal so the balance reaches zero by the end of the term.
Appraisal: An impartial, supported opinion of value prepared by a licensed appraiser as of a specific date, following USPAP.
Blockbusting: Inducing owners to sell by claiming members of a protected class are moving in, to profit from turnover — illegal.
Bundle of rights: The rights that come with ownership: possession, use (enjoyment), exclusion, disposition (transfer), and control.
Capitalization rate: The rate of return on an income property: net operating income ÷ value. A higher cap rate implies more risk and lower value.
Commingling: Improperly mixing a client's trust funds with the broker's own or business funds — a license-law violation.
Comparative market analysis (CMA): A licensee's estimate of value from recent comparable sales, used to help price a listing — not a formal appraisal.
Constructive notice: Notice the law presumes everyone has because a document is recorded in the public record or possession is visible.
Contingency: A condition that must be met for a contract to become binding, such as financing, inspection, or appraisal contingencies.
Contract: A legally enforceable agreement between competent parties to do or refrain from doing a lawful act.
Deed: The written instrument that conveys title to real property from the grantor (seller) to the grantee (buyer).
Depreciation (appraisal): A loss in value from physical deterioration, functional obsolescence, or external (economic) obsolescence.
Discount points: Prepaid interest paid at closing to lower the loan's rate; one point equals 1% of the loan amount.
Dual agency: Representing both buyer and seller in one transaction; legal only with the informed written consent of both parties.
Earnest money: A buyer's good-faith deposit showing serious intent; held in trust and usually applied to the price at closing.
Easement: A nonpossessory right to use another's land for a specific purpose, such as a driveway or utility line.
Eminent domain: Government's power to take private property for public use through condemnation, paying the owner just compensation.
Encroachment: An unauthorized intrusion of an improvement (a fence, building, or driveway) onto a neighbor's land; usually revealed by a survey.
Encumbrance: Any claim, lien, charge, or right that limits an owner's title — liens, easements, encroachments, and deed restrictions.
Escheat: The reversion of property to the state when an owner dies with no will and no legal heirs.
Fair Housing Act: The 1968 federal law prohibiting housing discrimination based on race, color, religion, national origin, sex, familial status, and disability.
Fee simple: The most complete form of ownership — absolute, of unlimited duration, and freely transferable by deed or will. Also called fee simple absolute.
Fiduciary duties: The duties an agent owes the principal — Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable care (OLD CAR).
Fixture: An item of personal property attached to real property so as to become part of it and transfer with the land. The MARIA tests decide whether an item is a fixture.
Foreclosure: The legal process by which a lender forces the sale of property to recover an unpaid debt.
General warranty deed: The deed giving the most protection; the grantor warrants clear title against all defects, even those arising before the grantor's ownership.
Highest and best use: The legally permissible, physically possible, financially feasible, and most profitable use of a site — the basis of value.
Joint tenancy: Co-ownership with the right of survivorship; requires the four unities of time, title, interest, and possession.
Latent defect: A hidden physical defect not discoverable by ordinary inspection; a known latent defect must be disclosed.
Lead-based paint disclosure: The federal requirement that sellers and landlords of pre-1978 housing disclose known lead paint and give a 10-day inspection window for sales.
Life estate: A freehold estate that lasts for the lifetime of a named person; it cannot be willed because it ends at death.
Listing agreement: A contract employing a broker to find a buyer for the owner's property in exchange for compensation.
Loan-to-value ratio (LTV): The loan amount divided by the property's value or price; a higher LTV means a smaller down payment and more lender risk.
Market value: The most probable price a property should bring in a competitive, open market under fair-sale conditions; an opinion of value.
Material fact: A fact that would affect a reasonable buyer's decision to buy or the price they would pay; it must be disclosed.
Metes and bounds: A legal description using distances (metes) and compass directions (bounds) traced back to a point of beginning.
Mill rate: A property-tax rate expressed in thousandths: 1 mill equals $1 of tax per$ 1,000 of assessed value.
Mortgage: A loan secured by real property; the borrower (mortgagor) pledges the property as collateral to the lender (mortgagee).
Net operating income (NOI): Effective gross income minus operating expenses, before any mortgage payment; the income figure used in the income approach.
Police power: Government's authority to regulate land for public health, safety, and welfare — the basis for zoning and building codes, with no payment to the owner.
Procuring cause: The agent whose actions set in motion an unbroken chain of events leading to the sale, earning the commission.
Promissory note: The borrower's written promise to repay a debt; the evidence of the debt that the mortgage or deed of trust secures.
Proration: Dividing prepaid or accrued expenses such as taxes, rent, and interest fairly between buyer and seller as of the closing date.
Quitclaim deed: A deed conveying only whatever interest the grantor has, with no warranties; often used to clear a cloud on title.
Real property: Land plus everything permanently attached to it (improvements and fixtures) and the bundle of legal rights of ownership.
Redlining: A lender's illegal refusal to lend or insure in certain areas based on the racial or ethnic makeup of the neighborhood.
RESPA: The Real Estate Settlement Procedures Act — a federal law requiring loan-cost disclosures and prohibiting kickbacks at closing.
Right of survivorship: The feature of joint tenancy and tenancy by the entirety by which a deceased co-owner's share passes to the survivors, not to heirs.
Section (survey): One square mile of land — 640 acres — and one thirty-sixth of a 6-mile-square township in the rectangular survey system.
Specific performance: A court remedy compelling a defaulting party to carry out the contract because real estate is unique.
Statute of frauds: The law requiring contracts for the sale of real estate (and most leases over a year) to be in writing to be enforceable.
Steering: Illegally guiding buyers toward or away from neighborhoods based on a protected class — a fair-housing violation.
Tenancy in common: Co-ownership in which each owner holds an undivided, willable share; there is no right of survivorship.
TILA: The Truth in Lending Act — a federal law requiring lenders to disclose the cost of credit, including the annual percentage rate (APR).
Title insurance: A policy protecting the insured against loss from title defects that existed before the policy date, such as liens or recording errors.
Zoning: Local police-power regulation dividing land into districts and controlling use and density. A variance permits a hardship deviation.

Free Real Estate Exam Study Materials & Resources

Everything you need to prepare for the national real estate exam is free here — no paywall, no sign-up. This guide is the foundation; pair it with the rest of our free real estate study materials for active recall, timed practice, and last-minute review:

Real Estate Exam Practice Test — exam-style questions across all eight content areas, with explanations.
Real Estate Exam Flashcards — active-recall decks for the high-yield terms, fiduciary duties, and math formulas.

Real Estate Exam Study Guide FAQ

The national (general) portion of a real estate salesperson exam typically has about 80 scored multiple-choice questions, plus a smaller number of unscored pretest items. Most states pair this national portion with a separate state-specific portion of roughly 30 to 50 questions in one testing session.

References

1.U.S. Department of Housing and Urban Development. “Fair Housing Act Overview.” HUD. ↑
2.Consumer Financial Protection Bureau. “Real Estate Settlement Procedures Act (Regulation X).” CFPB. ↑
3.Consumer Financial Protection Bureau. “Truth in Lending Act (Regulation Z).” CFPB. ↑
4.U.S. Environmental Protection Agency. “Real Estate Disclosure (Lead-Based Paint).” EPA. ↑
5.U.S. Geological Survey. “How is the Public Land Survey System organized?.” USGS. ↑
6.Consumer Financial Protection Bureau. “What is owner's title insurance?.” CFPB. ↑
7.Internal Revenue Service. “Sales and Other Dispositions of Assets (Publication 544).” IRS. ↑
8.U.S. Environmental Protection Agency. “A Citizen's Guide to Radon.” EPA. ↑

Sources for the concept answers

Every answer in the real estate concept questions above is drawn from an authoritative primary source:

Consumer Financial Protection Bureau. “What is an appraisal?.” CFPB.
Consumer Financial Protection Bureau. “Mortgages key terms.” CFPB.
Consumer Financial Protection Bureau. “Loan-to-value ratio.” CFPB.

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