Real Estate Broker Licensing Exam Practice Questions

Hundreds of practice questions covering the National Portion of the real estate broker licensing exam, including brokerage management, trust accounts, agency relationships, contracts, property valuation, fair housing, and settlement procedures. Questions include worked explanations with full solution steps.

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Sample Questions

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Question 1 of 3

A broker receives a $5,000 earnest money deposit from a buyer. Under most state laws and national standards, where must the broker deposit these funds?

A The broker's personal checking account
B A designated trust or escrow account
C The brokerage's general operating account
D A money market account in the buyer's name
Question 2 of 3

A listing agent discovers that the property she listed has a major foundation defect. The seller instructs her not to disclose it to buyers. What is the agent's legal obligation?

A Follow the seller's instructions since the seller is the client
B Disclose the defect to prospective buyers as a known material fact
C Withdraw the listing without explanation
D Disclose the defect only if a buyer asks directly about foundation issues
Question 3 of 3

A managing broker wants to ensure compliance with the Real Estate Settlement Procedures Act (RESPA). Which of the following practices would violate RESPA?

A Providing buyers with a list of three recommended title companies
B Accepting a referral fee from a mortgage lender for directing buyers to that lender
C Requiring the buyer to use a specific home inspection company
D Charging the buyer for preparing a comparative market analysis

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Real Estate Broker exam format

Real Estate Broker Licensing Exam is a CBT exam of Varies by state (roughly 75–200) questions over Varies by state (1.5–4 hours).

Questions
Varies by state (roughly 75–200)
Sitting time
Varies by state (1.5–4 hours)
Format
CBT
Sections
8

Knowledge areas covered

8 practice areas in the Real Estate Broker question bank, each with its own questions and analytics.

Question types you'll practise

Every question in the bank is written in one of these formats.

KnowledgeApplicationAnalysis

How to pass the Real Estate Broker exam on the first try

  1. Front-load what is new on the real estate broker exam: brokerage operations, trust and escrow accounting, supervision of licensees, and office record-keeping. None of it was on the salesperson exam you passed.
  2. Experience does not substitute for study on the real estate broker exam. It tests the general rule and the statute, so read your state's actual trust-account regulation instead of a summary of it.
  3. Investment math is heavily tested on the real estate broker exam: net operating income, cap rates, gross rent multipliers, cash-on-cash return, debt coverage ratio. Work 15 to 20 a day until each takes under two minutes.
  4. Pull the numbers from your state's candidate bulletin. The commonly used cut score on the real estate broker exam is in the region of 70% to 75% on each portion, and some states set it above the salesperson mark.
  5. Wrong options on the real estate broker exam use management framing. They ask what the office must do instead of what a term means. Trace each miss to that framing, and let your content-area score report pick the next topic.

About the Real Estate Broker exam

The real estate broker exam is the second-level license exam in every state. It is taken by licensed salespersons who want to open or manage their own brokerage, or who want the broker or associate broker credential so they can supervise other licensees. As with the salesperson exam, there is no single national broker exam. Each state's real estate commission sets eligibility and publishes its own content outline, and most contract a vendor (PSI or Pearson VUE, usually) to deliver the test. The common structure is again a national portion on general real estate principles and a state portion on that state's license law, scored separately.

What changes at broker level is depth and responsibility. The national portion covers the same eight content areas as the salesperson exam but asks harder questions inside each, and it adds material a salesperson is never tested on: brokerage operations, trust and escrow account management, supervision and liability for the acts of affiliated licensees, office policies and record-keeping, and more demanding finance and investment calculations such as capitalization rates, cash-on-cash return, debt coverage ratio, and income-approach valuation. Candidates who passed the salesperson exam years ago often underestimate how much of that legal vocabulary has faded. The practice bank on this page is organized by content area so the diagnostic is quick.

What each broker exam content area tests

Source: Composite of the PSI and Pearson VUE national broker content outlines. Confirm the exact outline and question counts in your state's candidate handbook

Content areaWhat it covers
Real Estate Contracts and AgencyEverything on the salesperson exam plus the broker's side: drafting and reviewing listing and buyer-agency agreements, company agency policy (single, dual, designated, transaction brokerage), the broker's vicarious liability for affiliated licensees, and contract disputes and remedies from the brokerage's perspective.
Real Estate PracticeBrokerage management: opening and operating an office, supervision and training of licensees, independent-contractor vs. employee status, commission agreements and splits, advertising compliance, fair housing and antitrust compliance programs, record retention, and handling of complaints and disciplinary exposure.
Real Property Characteristics Legal Descriptions and Property UseLegal descriptions and surveys, land-use controls, subdivision regulation, and the broker's role in due diligence on zoning, easements, encroachments, and title defects. Questions test these at the level of advising a client instead of identifying a term.
Property Value and AppraisalIncome-approach valuation in depth: net operating income, capitalization rates, gross rent and gross income multipliers, and the relationship between value, income, and rate; reconciliation across the three approaches; appraisal regulation and the broker's limits when giving opinions of value.
Forms of Ownership Transfer and Recording of TitleEstates, concurrent ownership, and transfer as on the salesperson exam, extended to business ownership vehicles for investors (LLCs, partnerships, trusts), 1031 exchanges at an overview level, and closing and title issues the broker is responsible for catching.
Property Disclosures and Environmental IssuesMaterial-fact and property-condition disclosure duties, environmental hazards (lead-based paint, radon, asbestos, mold, storage tanks, wetlands, flood zones), and the broker's responsibility for ensuring affiliated licensees comply.
Financing and SettlementLoan types and qualification, secondary market, creative financing (seller carry-back, wraparound, assumption), TRID and RESPA compliance, and closing statement preparation. The broker is expected to compute and check debits, credits, and prorations as well as recognize them.
Real Estate Math CalculationsSalesperson-level math plus investment analysis: NOI and cap rate, cash flow and cash-on-cash return, debt coverage ratio, depreciation for tax purposes, commission splits across a brokerage, and trust-account reconciliation.

Question counts and content-area weights are set by each state and published in its candidate information bulletin. The national portion is typically around 80 questions and the state portion typically 30 to 50, with the state portion focused on the state's license law: trust-account and record-keeping rules, and the broker's duties under the commission's regulations. Brokerage management and trust accounting appear in both portions in most states.

How the Real Estate Broker exam is scored

The broker exam is scored by the testing vendor and reported as pass or fail, usually on screen before you leave the test center. Most states score the national and state portions separately and require a pass on each. The commonly used cut score is in the region of 70% to 75% correct, and some states set the broker pass mark higher than the salesperson mark. In most states, if you pass one portion and fail the other, you retake only the failed portion within a period the state specifies.

Questions are four-option multiple choice with no penalty for wrong answers. Calculators are typically permitted (a basic, non-programmable model, or an on-screen calculator supplied by the vendor). Expect a larger share of multi-step calculation questions than on the salesperson exam, particularly in finance and closing statements.

Registration and exam rules

Administered by
Your state's real estate commission or licensing board through a contracted vendor (PSI or Pearson VUE in most states). You apply to the state, are approved to test, then schedule with the vendor.
Eligibility
Set by each state, and stricter than for the salesperson license. Most states require a period of active licensed experience as a salesperson (typically 2 to 3 years) plus additional state-approved broker pre-licensing education, whose hour requirement varies widely by state. Some states substitute a law degree or a set number of transactions for part of the experience requirement.
Exam length
Varies by state. Where a vendor delivers a national portion plus a state portion, totals usually fall between 100 and 140 questions over 3 to 4 hours. States that write their own single exam differ. California's broker exam is 200 questions in 4 hours. Your candidate bulletin gives the exact count and time limit for each portion.
Reference
Closed-book. No notes, outlines, forms, or reference material is permitted.
Calculator
Usually a basic, silent, non-programmable calculator is allowed, or the vendor supplies an on-screen calculator. Financial calculators and phones are not. Confirm the rule for your state and vendor before exam day.
After passing
You apply to the state for the broker license within the period it allows (often 6 to 12 months of the exam date). Depending on the state you may be issued a broker license permitting you to operate independently, or an associate broker license that still requires affiliation with a managing broker. Opening a brokerage generally involves separate registration of the firm and its trust account.

The 6-week real estate broker study plan

Broker candidates are working licensees, so the plan below assumes 8 to 12 hours a week and relies on timed practice questions instead of re-reading a textbook. It front-loads the material that is new at broker level, then refreshes the salesperson-level content that has faded since you last sat an exam.

  1. Week 1Diagnostic and brokerage management. Take a timed 60-question mixed set to see which salesperson-level areas have faded, then work brokerage operations: supervision, licensee classification, office policy, record retention, and advertising compliance. Read your state's trust-account and record-keeping rules in the statute instead of a summary.
  2. Week 2Investment and income valuation. NOI, cap rate, gross rent multiplier, cash-on-cash return, and debt coverage ratio. These are formulaic and heavily tested. Work 15 to 20 problems a day until you can do each in under two minutes.
  3. Week 3Financing, settlement, and closing statements. Loan qualification, creative financing, TRID timing, and full closing-statement problems with debits, credits, and prorations. Practise both buyer-side and seller-side statements.
  4. Week 4Contracts, agency, and ownership at broker depth. Company agency policy, vicarious liability, contract remedies, and investor ownership vehicles. This is where the diagnostic from week 1 usually shows the most decay from your salesperson days.
  5. Week 5Property characteristics, land use, disclosures, environmental issues, and fair housing compliance. Shorter areas, but the broker exam frames them as management questions (what the broker must ensure the office does) instead of definitions.
  6. Week 6Two full timed mock exams at your state's question count and time limit, one at the start of the week and one near the end. Review every miss by content area. Finish the state license-law track in parallel. Cover the commission's broker-specific regulations and trust-account audit requirements.

Where Real Estate Broker candidates lose points

Learn the Real Estate Broker the way its item writers think

Broker distractors are written for someone who already knows the business. The writer takes the correct answer and adds the response that is right for the salesperson in the transaction and wrong for the broker responsible for the office, the trust-account handling that is ordinary practice in some firms and a commingling violation under the rule, the closing figure that comes out when a proration is credited to the wrong side, and the investment number that follows when debt service is taken out of net operating income too early. PassExams explains on every question and on every plan why the option you chose looked right, which matters most on the material that is new to you at broker level.

On Pro each wrong option is tagged with its trap type (reading trick, rule swap, wrong party, calculation slip, partial answer), and the analytics sort those by content area. Brokers usually surface two separate problems. Trust-account questions that need the exact regulation and investment questions that need the arithmetic to be automatic. The variant engine rewrites a missed problem with a new rent roll or a new set of closing figures, so the retry tests whether the method stuck. Hints remove the most tempting option first and send you back to the rule or the formula. The exam frames the shorter areas as management questions about what the office must do, and thinking like the writer of those questions is what turns your experience into a passing score.

Real Estate Broker exam FAQ

How do I pass the Real Estate Broker exam on the first try?

Start with the responsibilities that are new to you, since brokerage operations, trust accounting, supervision and record-keeping never appeared on your salesperson exam. Make the investment formulas automatic, because the broker exam carries more multi-step calculation and those points are the most predictable available. Read your own state's trust-account regulation in full, and take the question count, the time limit, the calculator policy and the pass mark from its candidate bulletin. Close with full timed mocks at your state's question count, then rebuild the next week around the weakest content area.

How many questions are on the real estate broker exam?

It depends on the state. In states that use a national-plus-state format, totals are usually 100 to 140 questions (roughly 80 national and 30 to 50 state). States with their own single exam differ. California's broker exam is 200 questions. Your state's candidate bulletin gives the exact numbers and time limits.

What score do you need to pass the broker exam?

Each state sets its own passing score, most in the region of 70% to 75% correct, scored separately on the national and state portions. Some states set a higher pass mark for brokers than for salespersons. If you fail one portion, most states let you retake only that portion.

What are the requirements to take the real estate broker exam?

They vary by state but almost always include a period of active licensed experience as a salesperson (typically 2 to 3 years) and completion of state-approved broker pre-licensing education. Some states accept a law degree or a documented number of transactions in place of part of the experience requirement.

Is the broker exam harder than the salesperson exam?

It covers the same content areas at greater depth and adds brokerage management, trust accounting, supervision, and investment analysis. The questions involve more multi-step calculation and more situational judgement, and some states set a higher pass mark. Most candidates find it harder mainly because they study less for it.

What is the difference between a broker and an associate broker?

The broker (sometimes called a "managing" or "principal" broker) may operate a brokerage independently and supervise licensees. Associate brokers have passed the broker exam and hold the broker credential but choose to work under another broker. Whether both licenses exist, and what each is called, depends on the state.

Can I use a calculator on the broker exam?

Usually yes, with a basic, silent, non-programmable calculator, or an on-screen calculator supplied by the vendor. Financial calculators and phones are generally prohibited. Confirm the rule for your state and vendor in the candidate bulletin.

How long should I study for the real estate broker exam?

Most working licensees prepare over 4 to 8 weeks at 8 to 12 hours a week, with the bulk of that time on timed practice questions and closing-statement and investment problems. Plan extra time if it has been several years since your salesperson exam.

What happens after I pass the broker exam?

You apply to the state for the broker license within the period it allows, often 6 to 12 months. If you intend to open your own office, the state will also require registration of the firm and its trust account. Passing the exam alone does not authorize you to operate as a broker.

Further reading

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