Free Rhode Island Property Practice Test — LicenseIQ

Question 1

On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

Accepted Answer

Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.

Question 2

Which person needs a Rhode Island real estate license?

Accepted Answer

Preparing an opinion of value for a fee is listed broker activity in §5-20.5-1. Executors, Rhode Island attorneys, and owners dealing with their own property are exempt under §5-20.5-2.

Question 3

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 4

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 5

A home was the site of a suicide five years ago. A buyer has not asked. Under Rhode Island law, must the seller's agent disclose it?

Accepted Answer

Section 5-20.8-6 says suicide, homicide, or another felony at the property is not a material fact, and no suit lies for nondisclosure, but the statute does not permit misrepresentation.

Question 6

Which item would most likely be considered personal property rather than a fixture?

Accepted Answer

Items easily removed without damage, like a plug-in refrigerator, are usually personal property. Carpeting cut to fit, built-ins and HVAC are adapted or attached fixtures.

Question 7

Which property falls within Chapter 5-20.6's definition of real estate?

Accepted Answer

The chapter covers land intended for one or two dwellings, or land with a structure of four or fewer residential units.

Question 8

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 9

A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

Accepted Answer

Gaps in the chain or unreleased liens are clouds that must be cleared (e.g., by quitclaim deed or quiet title action) before title is marketable.

Question 10

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 11

A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

Accepted Answer

1 mill = $1 per $1,000. $280,000 / 1,000 = 280; 280 x 22 = $6,160.

Question 12

Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

Accepted Answer

When taxes are paid in arrears, the buyer will pay the full bill later, so the seller is charged (debit) and the buyer credited for the seller's portion.

Question 13

Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

Accepted Answer

Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.

Question 14

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 15

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 16

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 17

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 18

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 19

Which transfer is exempt from the Real Estate Sales Disclosure Act?

Accepted Answer

The first transfer of a new, unoccupied dwelling by its builder is exempt. The other transfers are ordinary sales requiring disclosure.

Question 20

A licensee's sister wants to buy a property the licensee is listing. When must the licensee disclose the family relationship in writing?

Accepted Answer

Rule 2.21 requires written disclosure of family, household, ownership, or business interests at first personal contact and no later than making an offer.

Question 21

A buyer pays $100,000 cash and takes title subject to the seller's existing $200,000 mortgage. What consideration is used to compute the conveyance tax?

Accepted Answer

The taxable consideration includes the value of any lien or encumbrance remaining at transfer: $100,000 + $200,000 = $300,000.

Question 22

Before placing a 'For Sale' sign on a property, a licensee must have what?

Accepted Answer

Placing a for-sale or for-rent sign without the owner's or authorized agent's written consent is a ground for discipline.

Question 23

A nonresident individual sells Rhode Island property and receives $250,000 in net proceeds. How much must the buyer withhold?

Accepted Answer

Nonresident individuals are subject to 6% withholding on net proceeds: 6% × $250,000 = $15,000. $17,500 is the 7% corporate rate.

Question 24

How many members does the Governor appoint to the Rhode Island Real Estate Commission?

Accepted Answer

Section 5-20.5-12 calls for nine appointed members, with at least one from each county. Eleven is tempting because the attorney general and DBR director also sit as ex officio voting members, but they are not appointees.

Question 25

What is the most the Real Estate Recovery Account will pay for claims involving any one licensee?

Accepted Answer

The cap is $50,000 per licensee. $200,000 is the account balance that triggers an extra $25 renewal assessment.

Rhode Island real estate property practice test

1. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:

2. Which person needs a Rhode Island real estate license?

3. In a lease, the tenant holds a estate and the landlord holds a .

4. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

5. A home was the site of a suicide five years ago. A buyer has not asked. Under Rhode Island law, must the seller's agent disclose it?

6. Which item would most likely be considered personal property rather than a fixture?

7. Which property falls within Chapter 5-20.6's definition of real estate?

8. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

9. A title search shows owner A conveyed to B, but the next record shows C as owner with no deed from B. This is an example of:

10. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

11. A property is assessed at $280,000 and the tax rate is 22 mills. What is the annual tax?

12. Property taxes are paid in arrears (after the tax period). At a mid-year closing, the seller's share of unpaid taxes appears as:

13. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:

14. In a mortgage, the borrower who pledges the property as security is the:

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

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

17. In a life estate, the person who receives the property when the life tenant dies is the:

18. For a deed to be valid it must be:

19. Which transfer is exempt from the Real Estate Sales Disclosure Act?

20. A licensee's sister wants to buy a property the licensee is listing. When must the licensee disclose the family relationship in writing?

21. A buyer pays $100,000 cash and takes title subject to the seller's existing $200,000 mortgage. What consideration is used to compute the conveyance tax?

22. Before placing a 'For Sale' sign on a property, a licensee must have what?

23. A nonresident individual sells Rhode Island property and receives $250,000 in net proceeds. How much must the buyer withhold?

24. How many members does the Governor appoint to the Rhode Island Real Estate Commission?

25. What is the most the Real Estate Recovery Account will pay for claims involving any one licensee?

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