CEN EXAM @x
Exam Solution @x
Real Estate Final Exam (150 Questions ) #1 2026 A+ G
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RADE ASSURED COMPLETE SOLUTIONS AND VERIFIED
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ANSWERS (5DE16) @x
QUESTION 1 @x
A real estate licensee has a buyer agency agreement. What is the seller in this situati
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on?
ANSWER
A customer.
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QUESTION 2 @x
An optionor and an optionee make a contract for an option on a commercial piece of
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property. If the optionee decides to exercise his option, when must he perform?
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ANSWER
He must exercise his option under the terms of the option contract.
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QUESTION 3 @x
When can a landlord evict a disabled blind or disabled tenant from the premises?
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ANSWER
If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
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QUESTION 4 @x
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Brok
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er Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he w
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as a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the pro
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,perty. What, if any, is the relationship between the buyer's broker, the seller and the
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listing broker?
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ANSWER
There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smit
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h represents the Buyer.
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QUESTION 5 @x
A buyer bought a property without telling the seller of his intended purpose for the
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property. The contract contains no contingency clauses and it is a properly executed
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contract. After the closing, the buyer is unable to obtain the zoning he needs for his
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commercial project. What is the contract at this stage?
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ANSWER
Enforceable
QUESTION 6 @x
A seller listed his home for six months on February 26. On April 29, a buyer made a
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n offer on the property. The listing broker presented the offer to the seller on April
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30. The seller accepted the offer on May 1, with the closing to occur on June 15. Ass
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uming the closing took place on June 15, when did the listing expire?
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ANSWER
6/15
QUESTION 7 @x
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
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occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
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with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
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What was the loan balance the day of closing, and how much interest did the seller o
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we the bank?
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ANSWER
Loan balance $170,000; interest due $425
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QUESTION 8 @x
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
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80% loan. How much was the buyer's loan and how did it appear on the settlement s
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tatement?
,ANSWER
$ 248,400. Credit the buyer only.
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QUESTION 9 @x
The seller under a land contract is called
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ANSWER
The vendor @x
QUESTION 10 @x
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. H
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ow long did he have the loan?
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ANSWER
42 months
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QUESTION 11 @x
Are recording fees and title insurance premiums part of the Truth in Lending statem
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ent?
ANSWER
No, These are considered legal, not financing fees and therefore are not part of the Truth in Lendi
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ng statement.
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QUESTION 12 @x
A mortgage broker
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ANSWER
arranges loans between borrowers and investors.
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QUESTION 13 @x
The Smiths' purchased a residence for $750,000. They made a down payment of $15
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0,000 and agreed to assume the seller's existing mortgage, which had a current balan
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ce of $230,000. The Smiths' financed the remaining $370,000 of the purchase price b
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y executing a second mortgage whereby the seller became a mortgagee. This type of l
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oan is called a
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ANSWER
, part purchase mortgage
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QUESTION 14 @x
On a $500,000 loan the borrower is required to pay two points. How much does the
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borrower have to pay the lender? @x @x @x @x @x
ANSWER
$510,000.00
QUESTION 15 @x
The discount points charged by a lender on a federal VA or FHA loan are a percentag
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e of the
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ANSWER
loan amount.@x
QUESTION 16 @x
An increase in the availability of money would lead to which effect?
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ANSWER
Interest rates would go down.
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QUESTION 17 @x
When the amortized payment of a mortgage remains constant over the period of the
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loan but leaves an outstanding balance to be paid at the end, this payment is called
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ANSWER
a balloon payment.
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QUESTION 18 @x
In an installment land contract, what type of title did the seller retain?
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ANSWER
Legal
QUESTION 19 @x
Exam Solution @x
Real Estate Final Exam (150 Questions ) #1 2026 A+ G
@x @x @x @x @x @x @x @x @x @x
RADE ASSURED COMPLETE SOLUTIONS AND VERIFIED
@x @x @x @x @x @x
ANSWERS (5DE16) @x
QUESTION 1 @x
A real estate licensee has a buyer agency agreement. What is the seller in this situati
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
on?
ANSWER
A customer.
@x
QUESTION 2 @x
An optionor and an optionee make a contract for an option on a commercial piece of
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
property. If the optionee decides to exercise his option, when must he perform?
@x @x @x @x @x @x @x @x @x @x @x @x @x
ANSWER
He must exercise his option under the terms of the option contract.
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QUESTION 3 @x
When can a landlord evict a disabled blind or disabled tenant from the premises?
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ANSWER
If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
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QUESTION 4 @x
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Brok
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er Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he w
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
as a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the pro
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
,perty. What, if any, is the relationship between the buyer's broker, the seller and the
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @
listing broker?
x @x
ANSWER
There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smit
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h represents the Buyer.
@x @x @x
QUESTION 5 @x
A buyer bought a property without telling the seller of his intended purpose for the
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
property. The contract contains no contingency clauses and it is a properly executed
@x @x @x @x @x @x @x @x @x @x @x @x @x
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
commercial project. What is the contract at this stage?
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ANSWER
Enforceable
QUESTION 6 @x
A seller listed his home for six months on February 26. On April 29, a buyer made a
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
n offer on the property. The listing broker presented the offer to the seller on April
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
30. The seller accepted the offer on May 1, with the closing to occur on June 15. Ass
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uming the closing took place on June 15, when did the listing expire?
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ANSWER
6/15
QUESTION 7 @x
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
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occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
@x @x @x @x @x @x @x @x @x @x @x @x @x
What was the loan balance the day of closing, and how much interest did the seller o
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
we the bank?
@x @x
ANSWER
Loan balance $170,000; interest due $425
@x @x @x @x @x
QUESTION 8 @x
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
80% loan. How much was the buyer's loan and how did it appear on the settlement s
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
tatement?
,ANSWER
$ 248,400. Credit the buyer only.
@x @x @x @x @x
QUESTION 9 @x
The seller under a land contract is called
@x @x @x @x @x @x @x
ANSWER
The vendor @x
QUESTION 10 @x
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. H
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ow long did he have the loan?
@x @x @x @x @x @x
ANSWER
42 months
@x
QUESTION 11 @x
Are recording fees and title insurance premiums part of the Truth in Lending statem
@x @x @x @x @x @x @x @x @x @x @x @x @x
ent?
ANSWER
No, These are considered legal, not financing fees and therefore are not part of the Truth in Lendi
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
ng statement.
@x
QUESTION 12 @x
A mortgage broker
@x @x
ANSWER
arranges loans between borrowers and investors.
@x @x @x @x @x
QUESTION 13 @x
The Smiths' purchased a residence for $750,000. They made a down payment of $15
@x @x @x @x @x @x @x @x @x @x @x @x @x
0,000 and agreed to assume the seller's existing mortgage, which had a current balan
@x @x @x @x @x @x @x @x @x @x @x @x @x
ce of $230,000. The Smiths' financed the remaining $370,000 of the purchase price b
@x @x @x @x @x @x @x @x @x @x @x @x @x
y executing a second mortgage whereby the seller became a mortgagee. This type of l
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
oan is called a
@x @x @x
ANSWER
, part purchase mortgage
@x @x
QUESTION 14 @x
On a $500,000 loan the borrower is required to pay two points. How much does the
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
borrower have to pay the lender? @x @x @x @x @x
ANSWER
$510,000.00
QUESTION 15 @x
The discount points charged by a lender on a federal VA or FHA loan are a percentag
@x @x @x @x @x @x @x @x @x @x @x @x @x @x @x @x
e of the
@x @x
ANSWER
loan amount.@x
QUESTION 16 @x
An increase in the availability of money would lead to which effect?
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ANSWER
Interest rates would go down.
@x @x @x @x
QUESTION 17 @x
When the amortized payment of a mortgage remains constant over the period of the
@x @x @x @x @x @x @x @x @x @x @x @x @x @x
loan but leaves an outstanding balance to be paid at the end, this payment is called
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ANSWER
a balloon payment.
@x @x
QUESTION 18 @x
In an installment land contract, what type of title did the seller retain?
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ANSWER
Legal
QUESTION 19 @x
