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Question 1
Which act prohibits discrimination in housing based on race, color, religion, sex, or national origin?
Correct Answer:
Federal Fair Housing Act of 1968
Explanation:
Discrimination in housing is addressed by a law that prohibits treating people differently when they try to buy, rent, or obtain financing for a home because of protected characteristics like race, color, religion, sex, or national origin. The Federal Fair Housing Act of 1968 makes it unlawful to refuse or limit housing opportunities, impose different terms, conditions, or services, or use discriminatory advertising or brokerage practices based on those categories. It covers most housing transactions and applies to real estate brokers and lenders in many circumstances, ensuring equal opportunity for qualified buyers and renters. Other acts serve different purposes. The Civil Rights Act of 1866 deals with property rights and prohibits racial discrimination in contracts for the sale of real estate, but it is not the main statute used for housing discrimination today. The Americans with Disabilities Act protects against discrimination based on disability in employment and public accommodations, with some housing implications, but it does not center on race, color, or national origin in housing. The Truth-in-Lending Act focuses on clear disclosure of loan terms and does not address anti-discrimination in housing transactions.
Question 2
Which party typically pays the conveyance tax when title is transferred?
Correct Answer:
Seller
Explanation:
Conveyance tax, or transfer tax, is a tax assessed on the transfer of title from seller to buyer. The party that typically bears this tax is the seller, since the transfer of property rights originates with the seller and closing practices usually list this cost as a seller’s responsibility. The tax is calculated based on the sale price and is paid when the deed is recorded, usually funded from the seller’s proceeds or as negotiated in the contract. The lender and escrow agent don’t pay this tax—the lender provides financing, and the escrow agent handles closing funds and disbursements as directed.
Question 3
Which expenses are subtracted from gross operating income to compute net operating income (NOI) for an income property?
Correct Answer:
Operating expenses such as property management, maintenance, repairs, taxes, insurance, and utilities paid by owner; exclude debt service and depreciation
Explanation:
Net operating income shows how much income a property generates from its normal operations after the costs to operate it. To arrive at NOI, you subtract only the operating expenses from gross operating income. Those operating expenses are the costs necessary to keep the property running on a day‑to‑day basis—things like property management, maintenance and repairs, property taxes, insurance, and utilities paid by the owner. Financing costs (debt service or mortgage payments) and non‑cash accounting items (depreciation) are not part of NOI. They affect cash flow after NOI and taxes, but not the operating performance captured by NOI.
Question 4
In a net lease, who typically pays some or all operating expenses?
Correct Answer:
In a net lease, tenant pays some or all operating expenses
Explanation:
In a net lease, the tenant takes on the responsibility for some or all operating expenses in addition to paying rent. This arrangement shifts costs like property taxes, building insurance, maintenance, and sometimes common area maintenance to the tenant, with the exact responsibilities depending on whether it’s a single-net, double-net, or triple-net lease. That’s why the correct idea is that the tenant pays some or all operating expenses. A landlord paying all expenses would describe a gross lease, and saying expenses aren’t allocated or the tenant pays only rent doesn’t fit the net-lease structure where those pass-through costs exist.
Question 5
Which concept is not dependent on a specific buyer-seller agreement?
Correct Answer:
Market value
Explanation:
Market value represents what a property would reasonably bring in an active, open market under normal conditions, with a willing buyer and seller and without any undue pressure. It is driven by market forces—location, condition, recent comparable sales, and current demand—rather than the terms of any single agreement. Because of that, market value stands independent of a specific buyer-seller contract. In contrast, the contract price or purchase price are the actual numbers agreed upon in a particular transaction, and liquidation value depends on the specifics of a distressed or forced sale situation, both of which are tied to a specific deal or scenario.
Question 1
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Prepare with the Practice of Real Estate and Real Estate Calculations Practice Test practice quiz. This question bank includes 10 questions covering operating, income, typically, pays, and expenses. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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Practice of Real Estate and Real Estate Calculations Practice Test

This practice set contains 10 questions from the matching question bank and focuses on operating, income, typically, pays, and expenses. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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