Free Nebraska Property Practice Test — LicenseIQ

Question 1

The government's power to take private property for public use with just compensation is:

Accepted Answer

Eminent domain (exercised through condemnation) allows taking for public use with just compensation. Escheat applies when an owner dies without a will or heirs.

Question 2

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 3

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 4

A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

Accepted Answer

Article 11 requires competence; if lacking expertise, the REALTOR must get qualified help (disclosed to the client) or decline.

Question 5

Recording a deed in the county records primarily serves to:

Accepted Answer

Recording provides public (constructive) notice, protecting the owner's interest against later claims.

Question 6

How many members serve on the Nebraska State Real Estate Commission?

Accepted Answer

81-885.07 creates a seven-member Commission: the Secretary of State plus six gubernatorial appointees. Six is the number of appointed members only, a common slip.

Question 7

A built-in dishwasher attached to the cabinetry is best classified as:

Accepted Answer

Once personal property is permanently attached to real estate it becomes a fixture and is treated as real property. A trade fixture is installed by a tenant for business use, which is not the case here.

Question 8

An owner's title insurance policy protects against:

Accepted Answer

Title insurance covers title defects existing before the policy date, such as forged deeds or undisclosed liens - not physical damage or future events.

Question 9

A neighbor's new garage extends two feet over the property line. This is an:

Accepted Answer

An encroachment is an improvement that intrudes onto another's land; a survey establishes the boundary.

Question 10

Adverse possession allows someone to acquire title by:

Accepted Answer

Adverse possession requires open, notorious, exclusive, continuous and hostile use for the statutory period. A tenant's possession is permissive, not hostile. (Reclassified to section 1 / CORE.)

Question 11

A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

Accepted Answer

A legal nonconforming ('grandfathered') use predates the ordinance and may continue, usually with limits on expansion. A variance is permission to deviate from a current requirement.

Question 12

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 13

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 14

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 15

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 16

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 17

Acting as a real estate broker in Nebraska without a license is classified as what?

Accepted Answer

81-885.45 makes unlicensed activity, or acting while suspended, a Class II misdemeanor.

Question 18

Which transfer requires a Seller Property Condition Disclosure Statement?

Accepted Answer

Transfers to lineal relatives, foreclosures and transfers between co-owners are exempt. An ordinary arm's-length owner sale is not.

Question 19

Since July 1, 2025, before a designated broker acts as a single agent for a buyer of a one-to-four-unit residential property, what is required?

Accepted Answer

LB 187 (2025) changed 76-2422(3) from "may" to "shall" for one-to-four-unit residential buyers. The pamphlet alone no longer suffices for that property type.

Question 20

Which property purchase does NOT require a written buyer agency agreement under 76-2422(3)(a)?

Accepted Answer

The mandatory rule covers residential property with one to four dwelling units. For other property, a written buyer agreement is optional.

Question 21

A listing states it "continues until the property is sold." What is the problem?

Accepted Answer

"Until sold" is not a fixed date of expiration as 81-885.24(19) requires.

Question 22

What must every Nebraska real estate advertisement prominently display?

Accepted Answer

81-885.24(33) makes it an unfair trade practice to advertise without prominently displaying the broker's registered name. License numbers and commission rates are not the required element.

Question 23

Which statement about the Seller Property Condition Disclosure Statement is correct?

Accepted Answer

The statutory form states it is not a warranty by the seller or agent, is not a substitute for inspections, is not part of the contract, and may be relied upon.

Question 24

Agent A, appointed to the seller, also personally writes the offer for the buyer on the same property as the buyer's agent. What is Agent A?

Accepted Answer

76-2427 says any licensee who personally represents both seller and buyer is a dual agent and must follow the dual agency provisions.

Question 25

An appointed member of the Nebraska Real Estate Commission serves a term of how long?

Accepted Answer

Appointees serve six-year terms and may serve only one six-year term plus any partial term. Four-year renewable terms are common in other states and are the trap here.

Nebraska real estate property practice test

1. The government's power to take private property for public use with just compensation is:

2. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

3. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

4. A REALTOR is asked to value a type of property she has never handled. Under the Code of Ethics she should:

5. Recording a deed in the county records primarily serves to:

6. How many members serve on the Nebraska State Real Estate Commission?

7. A built-in dishwasher attached to the cabinetry is best classified as:

8. An owner's title insurance policy protects against:

9. A neighbor's new garage extends two feet over the property line. This is an:

10. Adverse possession allows someone to acquire title by:

11. A property use that legally existed before a new zoning ordinance and is allowed to continue is a:

12. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

13. Under a land contract (contract for deed), during the payment period the buyer holds:

14. Under the statute of frauds, a real estate sales contract must be:

15. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

16. A real estate licensee who is not an attorney may:

17. Acting as a real estate broker in Nebraska without a license is classified as what?

18. Which transfer requires a Seller Property Condition Disclosure Statement?

19. Since July 1, 2025, before a designated broker acts as a single agent for a buyer of a one-to-four-unit residential property, what is required?

20. Which property purchase does NOT require a written buyer agency agreement under 76-2422(3)(a)?

21. A listing states it "continues until the property is sold." What is the problem?

22. What must every Nebraska real estate advertisement prominently display?

23. Which statement about the Seller Property Condition Disclosure Statement is correct?

24. Agent A, appointed to the seller, also personally writes the offer for the buyer on the same property as the buyer's agent. What is Agent A?

25. An appointed member of the Nebraska Real Estate Commission serves a term of how long?

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