NATIONAL REAL ESTATE 2026/2027 FINAL EXAM
QUESTIONS AND ANSWERS RATED A+
✔✔If a contract specifies a legal land description, it is most likely a(n): - ✔✔listing
agreement
✔✔A debit to the buyer has what effect on charges made to the parties involved in the
transaction? - ✔✔increases the amount due from the buyer at closing
✔✔Burt is buying a house for $100,000 and is making a 20% down payment. He is
paying a 1-point origination fee to a mortgage lender, $500 for a new survey, and $800
for an environmental report. Based on this, before any prorations, how much cash will
Burt have to bring to the closing? - ✔✔$22,100
✔✔Which appraisal method would an appraiser be most likely to use on an owner-
occupied residential home? - ✔✔sales comparison approach
✔✔A property manager's PRIMARY responsibility to the owner is to: - ✔✔realize the
highest return possible and maximize the owner's return on that investment
✔✔A credit to the seller has what effect on charges made to the parties involved in the
transaction? - ✔✔increases the amount the seller receives at closing
✔✔The EPA requires that a lead-based paint disclosure be presented to buyers of all
residential property built prior to: - ✔✔1978
✔✔Which of these is an example of a legally competent party who can enter an
enforceable contract? - ✔✔adult who did not finish high school
✔✔Which of these will most lenders require homeowners to obtain before closing? -
✔✔homeowners insurance
✔✔On Kandy Dr., many older homes have been upgraded or torn down, with high-value
homes built in their place. 201 Kandy Dr. is now the smallest, shabbiest home on the
block, but it recently appraised for more than a similar home in a less-upgraded
neighborhood. What principle of value explains this? - ✔✔principle of progression
✔✔To determine the value of a highly specialized building, like a museum, an appraiser
would most likely use and heavily weight which of the following appraisal methods? -
✔✔cost approach
, ✔✔Tareq represented the seller in the sale of a house for $427,000. The commission
agreed upon was 7% and Tareq gave half to the buyer's representative. What will he
take home if the split with his brokerage is 80% Tareq - 20% broker? - ✔✔$11,956
✔✔A new contract substituting the obligations of an original contract is a(n): -
✔✔novation
✔✔Which of these is an easement that is attached to a piece of land, regardless of
owner? - ✔✔easement appurtenant
✔✔A bank refuses to issue mortgages to a historically Black part of town. This practice
is: - ✔✔redlining, and it's illegal
✔✔If two parties to a contract both promise to perform the actions specified in the
contract, we describe the contract as: - ✔✔bilateral
✔✔Which law requires a lender to give a buyer an estimate of closing costs? -
✔✔RESPA
✔✔What does it mean when a contract says that time is of the essence? - ✔✔Parties
must perform their contractual duties by a specific date and time in order to avoid a
breach of contract.
✔✔What type of permission allows an individual property to deviate from a specific
provision of a zoning ordinance? - ✔✔variance
✔✔How does errors and omissions insurance (E&O) affect the defendants in fair
housing cases?* - ✔✔E&O may not cover any defense for a fair housing violation.
✔✔An agent should present all offers to their client UNLESS:* - ✔✔the client explicitly
instructs the agent not to present any offers below a certain amount in writing
✔✔TILA does NOT apply to which of the following kinds of loans? - ✔✔business loans
✔✔Allie cannot depreciate her investment property for a tax deduction. What kind of
property is it? - ✔✔undeveloped land
✔✔An appraisal is required for all: - ✔✔federally related loan programs
✔✔Erin pays a flat fee every month to rent her apartment. Her landlord pays for the
property's maintenance, security, taxes, utilities, and all other operating expenses. What
kind of lease is this? - ✔✔gross lease
QUESTIONS AND ANSWERS RATED A+
✔✔If a contract specifies a legal land description, it is most likely a(n): - ✔✔listing
agreement
✔✔A debit to the buyer has what effect on charges made to the parties involved in the
transaction? - ✔✔increases the amount due from the buyer at closing
✔✔Burt is buying a house for $100,000 and is making a 20% down payment. He is
paying a 1-point origination fee to a mortgage lender, $500 for a new survey, and $800
for an environmental report. Based on this, before any prorations, how much cash will
Burt have to bring to the closing? - ✔✔$22,100
✔✔Which appraisal method would an appraiser be most likely to use on an owner-
occupied residential home? - ✔✔sales comparison approach
✔✔A property manager's PRIMARY responsibility to the owner is to: - ✔✔realize the
highest return possible and maximize the owner's return on that investment
✔✔A credit to the seller has what effect on charges made to the parties involved in the
transaction? - ✔✔increases the amount the seller receives at closing
✔✔The EPA requires that a lead-based paint disclosure be presented to buyers of all
residential property built prior to: - ✔✔1978
✔✔Which of these is an example of a legally competent party who can enter an
enforceable contract? - ✔✔adult who did not finish high school
✔✔Which of these will most lenders require homeowners to obtain before closing? -
✔✔homeowners insurance
✔✔On Kandy Dr., many older homes have been upgraded or torn down, with high-value
homes built in their place. 201 Kandy Dr. is now the smallest, shabbiest home on the
block, but it recently appraised for more than a similar home in a less-upgraded
neighborhood. What principle of value explains this? - ✔✔principle of progression
✔✔To determine the value of a highly specialized building, like a museum, an appraiser
would most likely use and heavily weight which of the following appraisal methods? -
✔✔cost approach
, ✔✔Tareq represented the seller in the sale of a house for $427,000. The commission
agreed upon was 7% and Tareq gave half to the buyer's representative. What will he
take home if the split with his brokerage is 80% Tareq - 20% broker? - ✔✔$11,956
✔✔A new contract substituting the obligations of an original contract is a(n): -
✔✔novation
✔✔Which of these is an easement that is attached to a piece of land, regardless of
owner? - ✔✔easement appurtenant
✔✔A bank refuses to issue mortgages to a historically Black part of town. This practice
is: - ✔✔redlining, and it's illegal
✔✔If two parties to a contract both promise to perform the actions specified in the
contract, we describe the contract as: - ✔✔bilateral
✔✔Which law requires a lender to give a buyer an estimate of closing costs? -
✔✔RESPA
✔✔What does it mean when a contract says that time is of the essence? - ✔✔Parties
must perform their contractual duties by a specific date and time in order to avoid a
breach of contract.
✔✔What type of permission allows an individual property to deviate from a specific
provision of a zoning ordinance? - ✔✔variance
✔✔How does errors and omissions insurance (E&O) affect the defendants in fair
housing cases?* - ✔✔E&O may not cover any defense for a fair housing violation.
✔✔An agent should present all offers to their client UNLESS:* - ✔✔the client explicitly
instructs the agent not to present any offers below a certain amount in writing
✔✔TILA does NOT apply to which of the following kinds of loans? - ✔✔business loans
✔✔Allie cannot depreciate her investment property for a tax deduction. What kind of
property is it? - ✔✔undeveloped land
✔✔An appraisal is required for all: - ✔✔federally related loan programs
✔✔Erin pays a flat fee every month to rent her apartment. Her landlord pays for the
property's maintenance, security, taxes, utilities, and all other operating expenses. What
kind of lease is this? - ✔✔gross lease
