Free Rhode Island State Law Practice Test — LicenseIQ

Question 1

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 2

Under DBR rules, a salesperson license first issued in March 2023 renews on what schedule?

Accepted Answer

Rule 2.9 sets a two-year cycle, with licenses issued after January 1, 2020 renewing on the issue-date anniversary. May 1 of even years applies to older licenses.

Question 3

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 4

How many hours of approved prelicensing education does Rhode Island require for a salesperson?

Accepted Answer

Salesperson applicants need 45 hours. The 90-hour figure is the broker requirement.

Question 5

A candidate passes the national portion but fails the state portion. Under DBR rules, what happens if the state portion is not passed within one year?

Accepted Answer

Rule 2.6 sets a one-year limit to pass a failed section; after it expires, the whole exam must be retaken. The other choices are not in the rule.

Question 6

A salesperson renews a two-year license. Under the statute's per-year fee, what is the license fee for the term?

Accepted Answer

The salesperson fee is $65 per year, paid for the whole term: 2 × $65 = $130. $85 per year is the broker fee, and $170 would be a two-year broker fee.

Question 7

Under DBR rules, a person who manages residential rental property for other owners as a regular part of business must hold which license?

Accepted Answer

Rule 2.12 requires a broker license for anyone regularly managing others' property. The form of payment does not matter, because the broker definition covers any fee, commission, or other valuable consideration.

Question 8

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 9

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 10

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 11

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 12

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 13

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 14

The Recovery Account pays $30,000 on a judgment against a salesperson. What is the effect on the salesperson's license?

Accepted Answer

Payment from the account automatically revokes the license, and repayment with 12% annual interest is required before relicensure. Bankruptcy does not excuse it.

Question 15

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 16

Of a Rhode Island licensee's required continuing education, how many hours must be in fair housing?

Accepted Answer

At least three hours must cover fair housing. Nine is the total CORE requirement, which includes the three fair housing hours.

Question 17

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 18

A licensee pleads nolo contendere in federal court to felony wire fraud. Is this a ground for discipline?

Accepted Answer

The statute lists conviction, or a guilty or nolo contendere plea, in state or federal court to a felony involving dishonesty.

Question 19

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 20

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 21

When may a broker apply escrowed earnest money to the commission?

Accepted Answer

Rule 2.18 allows the commission to be taken only at or after closing.

Question 22

A licensee may disclose a client's confidential information without consent when:

Accepted Answer

Exceptions are common knowledge or public record, defending the licensee against a client's claim, and disclosure required by law.

Question 23

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 24

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 25

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Rhode Island real estate state law practice test

1. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

2. Under DBR rules, a salesperson license first issued in March 2023 renews on what schedule?

3. Which statement about FHA-insured loans is correct?

4. How many hours of approved prelicensing education does Rhode Island require for a salesperson?

5. A candidate passes the national portion but fails the state portion. Under DBR rules, what happens if the state portion is not passed within one year?

6. A salesperson renews a two-year license. Under the statute's per-year fee, what is the license fee for the term?

7. Under DBR rules, a person who manages residential rental property for other owners as a regular part of business must hold which license?

8. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

9. A licensee representing the seller who learns the buyer will pay more than the offer must:

10. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

11. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

12. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

13. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

14. The Recovery Account pays $30,000 on a judgment against a salesperson. What is the effect on the salesperson's license?

15. Which is the most common and desirable way a real estate sales contract terminates?

16. Of a Rhode Island licensee's required continuing education, how many hours must be in fair housing?

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

18. A licensee pleads nolo contendere in federal court to felony wire fraud. Is this a ground for discipline?

19. When an owner dies with no will and no heirs, the property passes to the state through:

20. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

21. When may a broker apply escrowed earnest money to the commission?

22. A licensee may disclose a client's confidential information without consent when:

23. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

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

25. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Sources