Free Rhode Island Real Estate Salesperson Practice Exam 2025

LTV = loan ÷ value = $360,000 ÷ $450,000 = 80%. So the loan-to-value (LTV) ratio is 80%, meaning the buyer is financing 80% of the property’s purchase price and contributing the remaining 20% as a down payment.

The total commission earned from the sale is $42,500. The formula: Sale Price × Commission = Commission Rate means that $850,000 × 5% = $42,500

Under an exclusive right to sell, the listing broker is entitled to commission no matter who sells the property.

Market value is the most probable price a property would bring under typical conditions, not influenced by special financing or distress.

FHA loans are made by approved lenders and insured by the Federal Housing Administration to reduce lender risk.

The Rhode Island Real Estate Commission enforces the licensing laws and ensures ethical practices are followed.

All advertising must include the name of the brokerage to ensure the public knows the responsible party.

Property managers must maintain accurate and separate accounting records for each client to ensure accountability.

Escrow accounts are essential to protect client funds and must be clearly designated and used only for client money.

Licensees must disclose their status when acting on their own behalf in any real estate transaction to ensure transparency.

A dual agency situation requires full disclosure and informed written consent from both parties involved in the transaction.

All licensees must complete mandatory continuing education courses to renew their licenses and stay informed on current regulations.

Licensees must report any criminal convictions to the licensing authority to maintain transparency and ethical standards.

Brokers are required to maintain accurate and updated records for a specified number of years as determined by Rhode Island law.

Trust funds must be deposited into an escrow account within a specific timeframe to protect client interests and comply with state law.

Continuing education is mandatory for license renewal to ensure that agents stay updated on current laws and practices.

Real estate offices must prominently display the licenses of all active licensees in the principal place of business.

The broker of record is responsible for overseeing the firm's license compliance and operations.

Salespersons must work under a licensed broker and cannot operate independently in Rhode Island.

Advertising must include the brokerage name to comply with Rhode Island laws and avoid misleading the public.

Real estate license applicants must pass the examination and meet state-specific education and background check requirements.

In Rhode Island, the commission's role is to enforce regulations and ensure compliance among real estate professionals.

Real estate licenses are issued and regulated at the state level, not by national or international organizations.

The license of a deceased or incapacitated broker can be temporarily managed by a responsible party for a limited period.

Any individual acting as a real estate broker without a license may be subject to multiple penalties including fine and jail time.

The minimum penalty for unlicensed practice is a fine of $500, as specified by Rhode Island law.

This is a repeated question. All mentioned penalties may apply depending on the severity of the violation.

Engaging in real estate activities without a license may be considered a misdemeanor, subject to fines, or imprisonment.

According to the law, an agent must disclose their license status to the listing agent at the first substantial contact.

According to Rhode Island law, members of the Real Estate Commission are appointed by the Governor.

An exclusive buyer representation agreement must be in writing and signed by the buyer to be enforceable in Rhode Island.

The DBR oversees licensing, enforcement, and regulation of real estate professionals in Rhode Island.

Commingling—mixing client funds with personal or business funds—is a violation of license law.

To reactivate an inactive license in Rhode Island, a licensee must complete continuing education and submit a written reactivation request.

Dual agency occurs when an agent represents both sides with informed and written consent from both parties involved.

Designated agency assigns a specific licensee to represent a client, even if they work for a brokerage representing both sides.

Transaction records must be kept for at least 3 years by brokers under Rhode Island regulations.

Accounting is one of the recognized fiduciary duties that agents owe to their clients.

Rhode Island requires real estate salesperson applicants to be at least 18 years old.

Licensees must complete continuing education before license expiration to maintain an active license.

The Recovery Fund compensates clients who suffered losses due to a licensee’s dishonest or fraudulent acts.

Real estate licenses in Rhode Island must be renewed annually to remain active and valid.

Rhode Island mandates that buyers receive a property condition disclosure form before signing a purchase agreement.

Writing advertisements for another person's property is considered engaging in real estate activity and requires a license.

Rhode Island requires written listing agreements to include specific elements like a termination date to be valid.

While seller’s agents do not owe fiduciary duties to the buyer, they must still deal honestly and fairly with all parties.

A felony conviction must be reported to the Department of Business Regulation to maintain transparency and compliance.

Licensees must disclose in writing their status when selling their own property before any offer is made.

Material defects like a foundation crack must be disclosed as they affect the property's value and safety, unlike non-material events like a murder.

Federal and state law require discrimination complaints to be filed within one year of the alleged act to be considered.