NATIONAL REAL ESTATE ACTUAL TEST
PAPER QUESTIONS AND ANSWERS
GRADED A+
●● Bilateral Contract
Answer: Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
●● Client/Principal
Answer: A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
●● Customer
Answer: Any 3rd party w/ whom a licensee works
●● In-Company Transaction
Answer: Transaction in which the buyer and seller are both represented
by the same brokerage.
●● Management-Level License
Answer: A licensee who is employed by or affiliated w/ a brokerage who
has supervisory responsibility over other licensees.
,●● Statute of Frauds requires the following:
Answer: 1) Certain contracts be in writing to be enforceable, 2) All real
estate contracts for the sale of LAND & ALL LEASES for more than
one year, options for more than 6 months, must be in writing & signed
by all parties.
●● Novation
Answer: Substituting a new obligation for an old one. Also, a transfer of
rights and/or duties under contract.
●● If the original party to an agreement is replaced due to novation, are
they liable?
Answer: No
●● Mailbox Rule
Answer: Acceptance that becomes effective as soon as it is sent in the
mail, unless the contract specified a certain means for delivery.
●● Grantor is the
Answer: Owner
●● Grantee is the
Answer: Buyer
, ●● Optionor is the
Answer: Seller
●● Optionee is the
Answer: Buyer
●● Lessor is the
Answer: Landlord
●● Lessee is the
Answer: Tenant
●● Vendor is the
Answer: Seller
●● Vendee is the
Answer: Buyer
●● Mortgagor is the
Answer: Buyer
●● Mortgagee is the
PAPER QUESTIONS AND ANSWERS
GRADED A+
●● Bilateral Contract
Answer: Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
●● Client/Principal
Answer: A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
●● Customer
Answer: Any 3rd party w/ whom a licensee works
●● In-Company Transaction
Answer: Transaction in which the buyer and seller are both represented
by the same brokerage.
●● Management-Level License
Answer: A licensee who is employed by or affiliated w/ a brokerage who
has supervisory responsibility over other licensees.
,●● Statute of Frauds requires the following:
Answer: 1) Certain contracts be in writing to be enforceable, 2) All real
estate contracts for the sale of LAND & ALL LEASES for more than
one year, options for more than 6 months, must be in writing & signed
by all parties.
●● Novation
Answer: Substituting a new obligation for an old one. Also, a transfer of
rights and/or duties under contract.
●● If the original party to an agreement is replaced due to novation, are
they liable?
Answer: No
●● Mailbox Rule
Answer: Acceptance that becomes effective as soon as it is sent in the
mail, unless the contract specified a certain means for delivery.
●● Grantor is the
Answer: Owner
●● Grantee is the
Answer: Buyer
, ●● Optionor is the
Answer: Seller
●● Optionee is the
Answer: Buyer
●● Lessor is the
Answer: Landlord
●● Lessee is the
Answer: Tenant
●● Vendor is the
Answer: Seller
●● Vendee is the
Answer: Buyer
●● Mortgagor is the
Answer: Buyer
●● Mortgagee is the
