Free GAREB Practice Questions

Question 1

Before responding to any offer, a seller receives three written proposals: $612,000 with financing and appraisal contingencies, $600,000 cash with no inspection contingency, and $620,000 contingent on the buyer first selling another home. The seller has said that certainty and a closing within 30 days matter more than obtaining the highest price. Which course of action best preserves the seller's decision-making authority?

Accepted Answer

Present all three promptly, explain the material differences, and let the seller choose according to lawful priorities

Answer

Recommend the $620,000 offer because the broker's duty is to maximize price regardless of timing or contingency risk

Answer

Present only the cash offer because it appears to match the seller's priorities and withholding the others will avoid confusion

Answer

Hold all three while asking the buyers for highest and best terms, then present only the revised proposals at one time

Question 2

A listing agreement has expired. A buyer who is now negotiating directly with the former seller-client asks the former listing agent, "The seller told you his bottom line. What was it?" The seller has not authorized disclosure. The agent's proper reply is to:

Accepted Answer

Decline to reveal it because confidentiality generally survives termination of the agency relationship

Answer

Disclose it because every fiduciary obligation, including confidentiality, ended automatically when the listing expired

Answer

Reveal it if the seller has not entered a new listing agreement and the former agent receives no compensation

Answer

Give the buyer a negotiating range derived from the seller's prior statements rather than quoting the exact figure

Question 3

An applicant with an obvious mobility impairment requests a reserved parking space near the accessible entrance of an apartment building that otherwise uses first-come, first-served parking. The disability-related need is apparent, and an appropriate space is available. The housing provider should:

Accepted Answer

Grant it as a reasonable accommodation without demanding medical details unnecessary to establish the need

Answer

Require a physician to provide the diagnosis, treatment history, and prognosis before the request can be evaluated

Answer

Deny the request because applying the same first-come, first-served rule to every resident satisfies fair housing law

Answer

Treat it as a physical modification, charge a recurring parking fee, and require removal of any reserved sign at move-out

Question 4

Two days before a scheduled mortgage consummation, the seller grants the buyer a $1,200 repair credit after the final walkthrough. A corrected Closing Disclosure changes the buyer's cash to close, but the APR remains accurate, the loan product does not change, and no prepayment penalty is added. Which timing rule applies?

Accepted Answer

Deliver the corrected Closing Disclosure at or before consummation; no new three-business-day wait is required

Answer

Postpone consummation for three business days because every change to cash-to-close terms restarts the waiting period

Answer

Replace the Closing Disclosure with a revised Loan Estimate and observe a new four-business-day review period

Answer

Cancel the application and begin a new seven-business-day waiting period because the transaction terms changed

Question 5

A restaurant tenant bolts a commercial range and exhaust hood to the leased premises for use in the tenant's business. The lease is silent about the equipment. Before the lease expires, the tenant can remove the equipment and repair the resulting damage. The equipment is best treated as:

Accepted Answer

A trade fixture that remains the tenant's personal property if removed on time and any damage is repaired

Answer

A fixture that became the landlord's real property upon installation because bolting it to the building conclusively establishes permanent intent

Answer

An emblement that the tenant may remove after the tenancy because the equipment produces business income

Answer

An appurtenance that passes with title to the premises unless the landlord signs a separate bill of sale

Question 6

An income property has potential gross income of $180,000, vacancy and collection loss of $9,000, other income of $6,000, and operating expenses of $51,000. Annual debt service is $40,000, and the asking price is $1,400,000. An investor requires a minimum capitalization rate of 8.5%. Does the property meet the investor's requirement, and why?

Accepted Answer

The cap rate is 9.0%, above the target; debt service is excluded from net operating income

Answer

The cap rate is about 6.1%, below the target, because debt service must be deducted before income is capitalized

Answer

The cap rate is about 8.6%, above the target, because other income must be excluded from effective gross income

Answer

The cap rate is about 12.6%, above the target, because effective gross income is divided directly by price

Question 7

An owner wants to build a permitted single-family home on an unusually narrow lot created before the current zoning ordinance. The proposed use is allowed, but the lot cannot meet one side-yard setback because of its unique shape, and the hardship was not self-created. Which land-use relief fits these facts?

Accepted Answer

A dimensional variance from the side-yard setback

Answer

A rezoning to a district with smaller setback requirements

Answer

A conditional-use permit for the single-family residence

Answer

A certificate of occupancy issued before construction

Question 8

A seller is preparing to contract for the sale of a house built in 1965 and has a prior inspection report identifying lead-based paint. Before the buyer becomes obligated under the contract, which precontract step satisfies the federal lead-disclosure rule?

Accepted Answer

Disclose the known lead condition and report, provide the EPA pamphlet and warning language, and allow a 10-day inspection or risk-assessment opportunity unless modified or waived in writing

Answer

Remediate every known lead hazard and obtain a clearance report before marketing because disclosure alone is insufficient

Answer

Provide the inspection report only if a child under age six will occupy the home as a principal residence

Answer

Wait until after acceptance, then deliver the report and pamphlet during ordinary due diligence because federal law does not require a lead-evaluation opportunity before contract formation

Question 9

At 2:00 a.m., a tenant reports a strong natural-gas odor in an occupied apartment. The management agreement limits ordinary repairs to $500 without owner approval, and the owner cannot be reached. Which action takes priority?

Accepted Answer

Direct occupants to leave, contact emergency services or the gas utility from a safe location, dispatch qualified help, then document and notify the owner

Answer

Wait for express owner authorization because exceeding the repair cap without consent could make the manager personally liable for the vendor's entire charge

Answer

Schedule the regular maintenance technician for the next business morning and instruct the tenant not to use the stove

Answer

Tell the tenant to hire a plumber, preserve the receipt, and deduct the emergency expense from next month's rent

Question 10

A title insurer is willing to issue an owner's policy on a property but will expressly exclude a recorded driveway encroachment. The purchase contract requires marketable title reasonably free from substantial doubt. How should the insurer's willingness to issue the policy be interpreted?

Accepted Answer

Insurability alone does not establish marketability; apply the contract's title-objection and cure provisions to the encroachment

Answer

Because a title company will insure around the encroachment, the buyer must accept title and rely on the policy if a claim later arises

Answer

The buyer must accept the title because marketable title and insurable title are legally identical whenever a policy is available

Answer

Delivery of a quitclaim deed automatically cures the recorded encroachment even if the neighboring owner releases no rights

Free GAREB Practice Questions

Domain 1: Property Ownership 10% of exam

Question 1

Domain 2: Land Use Controls 5% of exam

Question 2

Domain 3: Valuation 8% of exam

Question 3

Domain 4: Financing 9% of exam

Question 4

Domain 5: Contracts 19% of exam

Question 5

Domain 6: Agency 13% of exam

Question 6

Domain 7: Property Disclosures 7% of exam

Question 7

Domain 8: Property Management 5% of exam

Question 8

Domain 9: Transfer of Title 6% of exam

Question 9

Domain 10: Practice of Real Estate 12% of exam

Question 10

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