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RHODE ISLAND REAL ESTATE PRACTICE
EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025
- Which of the following best describes the principle of anticipation in real estate appraisal? A. The increase in value due to improvements B. The effect of past income on value C. The value based on expected future benefits D. The current market conditions only Anticipation refers to the idea that a property's value is influenced by the expected future benefits of ownership.
- An agency relationship is created when a broker: A. and a client enter into a listing agreement B. shows a buyer property C. provides a customer with market data
D. prepares a comparative market analysis An agency relationship is legally formed through a written agreement such as a listing agreement.
- The legal doctrine that gives a tenant the right to refuse rent if the landlord fails to maintain a habitable unit is: A. Constructive notice B. Constructive eviction C. Actual eviction D. Eminent domain Constructive eviction occurs when a landlord's failure to maintain a livable property allows the tenant to leave and stop paying rent.
- A Rhode Island licensee must complete how many hours of continuing education per license cycle? A. 6 hours B. 24 hours C. 18 hours D. 30 hours Rhode Island requires 24 hours of continuing education during each two-year license renewal cycle.
- A broker who mixes client funds with personal funds is guilty of: A. Conversion B. Commingling C. Fraud
D. Percentage lease A graduated lease includes specified rent increases at set intervals.
- The Rhode Island Real Estate Commission has how many members? A. 3 B. 5 C. 7 D. 9 The Rhode Island Real Estate Commission consists of 9 members, per state law.
- What type of ownership includes survivorship rights among co- owners? A. Tenancy in common B. Joint tenancy C. Severalty D. Leasehold estate Joint tenancy includes the right of survivorship, meaning ownership automatically passes to the surviving joint tenant.
- Which of the following types of agency allows an agent to act on behalf of a client in all matters? A. Special agency B. General agency C. Universal agency
D. Dual agency Universal agency gives the agent broad authority to act on behalf of the principal in all matters.
- A Rhode Island licensee must disclose their agency relationship to a prospective buyer or seller: A. At closing B. At the first substantive contact C. When the offer is signed D. When a property is shown Rhode Island law requires disclosure of agency relationships at the first substantive contact to avoid confusion.
- A buyer's earnest money check must be deposited by a broker: A. Immediately upon receipt B. Within 10 business days C. Within 2 business days after acceptance of the offer D. After closing Rhode Island law requires deposit into the escrow account within 2 business days of acceptance.
- A fixture is best described as: A. A personal item B. Personal property that has become real property C. Real property that can be removed D. Intangible property
The cost approach is ideal for properties without many comparables, like churches or schools.
- An example of involuntary alienation is: A. A gift B. Foreclosure C. Sale D. Lease Involuntary alienation occurs without the owner's consent, such as through foreclosure.
- An offer can be withdrawn by the offeror at any time before: A. The earnest money is deposited B. The property is shown C. Acceptance by the offeree D. A counteroffer is made An offer may be withdrawn at any time before it is accepted.
- A real estate broker owes fiduciary duties to: A. Customers B. Clients C. All parties D. The state Fiduciary duties—loyalty, obedience, disclosure, etc.—are owed to clients, not customers.
- What is the effect of a counteroffer? A. It creates a binding agreement B. It terminates the original offer C. It requires no response D. It guarantees closing A counteroffer rejects the original offer and replaces it with a new offer.
- Under Rhode Island law, a real estate license is required to: A. Inspect properties B. Perform appraisals C. Negotiate a real estate transaction for another person for compensation D. Build new residential homes You must be licensed to perform real estate brokerage services for others for compensation.
- An open listing allows: A. The seller to list with multiple brokers and pay only the one who sells it B. Only one broker to list the property C. No commission to be paid D. A buyer to purchase without any agency An open listing is non-exclusive and commission is paid only to the broker who procures the sale.
- Dual agency requires: A. Client approval after closing B. Disclosure to third parties C. Informed written consent from both parties D. Implied consent Dual agency is legal in Rhode Island but only with written informed consent from both buyer and seller.
- The type of deed that offers the least protection to the grantee is the: A. General warranty deed B. Quitclaim deed C. Special warranty deed D. Trustee deed A quitclaim deed conveys any interest the grantor may have, with no warranties.
- What is required to create a valid contract? A. Earnest money B. Notarization C. Mutual assent D. Witness signatures Mutual assent (meeting of the minds) is essential for a valid contract.
- What is "steering" in real estate? A. Raising prices in a neighborhood
B. Directing buyers toward or away from neighborhoods based on protected classes C. Encouraging investors to buy rentals D. Underpricing homes Steering is a fair housing violation where buyers are guided toward or away from areas based on race, religion, etc.
- A buyer signs a contract to purchase a home, but the seller dies before closing. The contract is: A. Terminated B. Still enforceable C. Illegal D. Converted into a lease Real estate contracts generally remain enforceable even if the seller dies, as long as no contingencies are unmet.
- An exclusive right-to-sell listing means the broker: A. Gets paid only if they find the buyer B. Gets paid no matter who finds the buyer C. Must split commission D. Shares with all cooperating brokers This type of listing guarantees commission to the broker regardless of who sells the property.
- The purpose of title insurance is to: A. Provide a home warranty B. Protect against title defects C. Guarantee value D. Provide flood insurance Title insurance protects buyers and lenders from title defects or ownership claims.
- A metes and bounds legal description uses: A. Distances and directions from a point of beginning B. Recorded lot and block numbers C. Government rectangular survey D. Street addresses This method describes boundaries using measurements from a specific starting point.
- The primary function of a property manager is to: A. Sell properties B. Maximize the owner’s return C. Appraise properties D. Survey land A property manager’s job is to protect and enhance the owner's investment.
- A licensee advertising a property must: A. Use only generic photos
B. Identify their brokerage C. List the seller’s contact information D. Post a disclaimer All advertising must clearly identify the brokerage to avoid misleading the public.
- An encumbrance on a property affects: A. Market value B. Real estate taxes C. The title D. Air rights An encumbrance such as a lien or easement limits or burdens the title.
- Which of the following is not typically considered real property? A. Trees B. Minerals C. Farm equipment D. Air rights Farm equipment is personal property, not real property.
- An easement appurtenant: A. Belongs to the government B. Runs with the land C. Is temporary
In an exclusive agency, the seller retains the right to sell without paying the broker if they find the buyer.
- A broker’s commission is usually: A. Set by the state B. Negotiated between the broker and client C. Based on tax rate D. Determined by appraisal Commissions are always negotiable and agreed upon by contract.
- Blockbusting is the illegal act of: A. Encouraging owners to sell by implying neighborhood changes B. Showing homes only during the day C. Refusing service to clients D. Asking for a higher commission Blockbusting involves scare tactics to induce sales and is a violation of fair housing laws.
- A valid deed must contain: A. A survey B. The grantor's signature C. The buyer's mortgage D. A purchase agreement To be valid, a deed must be signed by the grantor (seller).
- A buyer making a down payment and signing a purchase agreement is exercising:
A. Equitable title rights B. Legal title C. Warranty of title D. Actual notice Equitable title gives the buyer the right to obtain legal title upon fulfilling the contract.
- The purpose of the Real Estate Settlement Procedures Act (RESPA) is to: A. Eliminate appraisals B. Ensure full disclosure of settlement costs C. Remove title insurance D. Eliminate earnest money RESPA requires lenders to disclose all settlement costs to protect buyers from hidden fees.
- What is the role of a mortgagee? A. The borrower B. The lender C. The escrow agent D. The appraiser The mortgagee is the lender who receives the mortgage from the borrower.
- In a net lease, the tenant pays: A. Rent only B. Rent plus expenses C. Rent and insurance only D. Only property taxes In a net lease, the tenant pays rent along with property expenses like taxes, insurance, or maintenance.
- A Rhode Island real estate salesperson may accept compensation from: A. A previous client B. A referral agency C. Their employing broker only D. A buyer directly Only the sponsoring broker can pay a salesperson their commission.
- A lien is: A. A claim against a property to secure a debt B. A form of co-ownership C. A leasehold estate D. A deed Liens are legal claims used to secure debts, such as mortgages or tax obligations.
- A tenancy at sufferance occurs when: A. A tenant signs a new lease
B. A tenant stays after lease expiration without the landlord’s consent C. Rent is not paid D. Rent is prepaid Tenancy at sufferance is created when a tenant remains without permission after the lease ends.
- What document is used to convey ownership of real estate? A. Lease B. Mortgage C. Deed D. Title report A deed is the instrument that legally transfers ownership.
- The law that requires real estate contracts to be in writing is: A. RESPA B. ADA C. Statute of Frauds D. Truth in Lending The Statute of Frauds requires contracts involving the sale of real estate to be in writing to be enforceable.
- A salesperson wants to change brokerage firms. They must: A. Wait until their license expires B. Notify the Department of Business Regulation (DBR) and update
