Barney Fletcher Real Estate Final Exam
2026/2027 | All Questions with 100%
Correct Verified Answers | Latest
Updated Version | Already Graded A+
SECTION 1: CONTRACTS & AGENCY LAW
1. Which of the following does NOT have to exist for a valid contract to be
enforceable in the sale of real estate?
A. The contract must be in writing
B. An offer and acceptance
C. Performance
D. Consideration
Correct Answer: C
Rationale: For a valid contract in real estate, there must be an offer and
acceptance, consideration, and the contract must be in writing per the Statute of
Frauds. Performance is the execution of the contract, not a requirement for
validity.
2. Bill has a contract in place to purchase Sam's house. Bill later changes his
mind and defaults on the contract. Sam would have which of the following
remedies?
A. Rescind the contract
B. Sue for damages
C. Sue for specific performance
D. Any of these choices
Correct Answer: D
Rationale: When a buyer defaults, the seller may rescind the contract, sue for
monetary damages, or seek specific performance (forcing the buyer to complete
the purchase). The seller can choose the remedy that best suits their situation.
,3. Lloyd Christmas owns a house which he has decided to rent to Harry Dunne.
No written contract exists and there has been no discussion as to lawn care.
Harry takes it upon himself to mow the lawn each week. Lloyd appreciates that
and so reduces the bill for the rent by $50. This goes on for several months. As
to the discount for the lawn care, what type of contract exists?
A. An express, unilateral contract
B. An express, bilateral contract
C. An implied, unilateral contract
D. An implied, bilateral contract
Correct Answer: D
Rationale: This is an implied, bilateral contract because both parties have
obligations—Harry provides lawn care and Lloyd provides a rent discount. The
contract is implied by the conduct of both parties rather than expressed in
writing.
4. Under common law, acceptance of a unilateral contract takes place:
A. When a written contract is signed by both parties
B. At the completion of the requested act
C. When the offeree communicates a promise to do the requested act
D. When the offeror states a promise
Correct Answer: B
Rationale: A unilateral contract is accepted by performance, not by a promise.
The offeree must complete the requested act for acceptance to occur, unlike
bilateral contracts which are accepted by a promise.
5. John, an adult, entered into a contract with Paul, who is 16 years old. When
John learned that Paul was a minor he decided to terminate the contract. Which
of the following statements is true?
A. Contracts with minors are automatically void
B. Contracts with minors are voidable at the option of the adult
C. The contract is valid and binding on both parties
D. The contract is valid and binding only on John
Correct Answer: D
Rationale: Contracts with minors are voidable at the minor's option, not the
,adult's. The adult (John) is bound to the contract while the minor (Paul) can
disaffirm. This protects minors from entering into unfavorable contracts.
6. A buyer makes an offer to purchase a piece of property. The seller changes
the date of occupancy by one day, and signs the contract. Which of the
following is true?
A. The seller has accepted the buyer's offer
B. The seller has made a counteroffer
C. The original offer becomes null and void
D. Both B and C
Correct Answer: D
Rationale: When the seller changes any term of the offer (even one day), it
constitutes a counteroffer. This rejects the original offer, making it null and void.
The buyer must then accept the counteroffer for a contract to exist.
7. A statute law that sets a time frame within which someone must bring a
lawsuit is called statute of limitations. T/F?
Correct Answer: True
Rationale: The statute of limitations establishes the maximum time after an event
that legal proceedings may be initiated. For real estate contracts, this typically
ranges from 4-6 years depending on the jurisdiction.
8. The loan contingency clause in a valid sales contract will contain all of the
following EXCEPT:
A. The amount of the loan
B. The name of the lender
C. The date of the commitment
D. The interest rate of the loan
Correct Answer: B
Rationale: A loan contingency clause typically specifies the loan amount, interest
rate, and commitment date. The specific lender name is not typically included
since the buyer may obtain financing from various sources.
9. To transfer the rights contained in a note, mortgage or lease from one party
to another, by a written instrument is referred to as _______.
, Correct Answer: An assignment
Rationale: An assignment transfers the rights and obligations of a contract from
one party to another through a written instrument. The assignor transfers rights
to the assignee.
10. Mark is 16 years old and has inherited $50,000 from his grandfather. Mark
contracts with Harold, an adult, to purchase his video game center. One year
later, Mark decides he wants to cancel the contract. Which of the following
statements is true?
A. The contract between Mark and Harold is illegal
B. If Harold learns that Mark is a minor, he (Harold) may declare the contract void
C. Mark can sell the property
D. Mark may declare the contract with Harold void and get his money back
Correct Answer: D
Rationale: Mark, being a minor, has the right to disaffirm the contract at any time
while still a minor or within a reasonable time after reaching the age of majority.
He is entitled to recover his consideration.
11. A real estate broker presents an offer to the seller on a property with the
provision that the seller has 6 days to accept the offer. At the end of the 3rd
day, the buyer withdraws the offer. What should the broker do?
A. Return the earnest money deposit to the buyer
B. Give the earnest money deposit to the seller
C. Split the deposit with the buyer
D. Split the deposit with the seller
Correct Answer: A
Rationale: Since the buyer withdrew the offer before acceptance, no contract was
formed. The earnest money must be returned to the buyer because there was no
meeting of the minds. The seller has no claim to the deposit.
12. A purchaser submits an offer to a seller with the condition that the property
is to be financed by a conventional loan at no more than 10% interest. If the
seller agrees but such financing cannot be obtained, which of the following is
true?
A. The purchaser loses his deposit but is relieved of further liability
B. The seller is obligated to return the deposit plus interest
2026/2027 | All Questions with 100%
Correct Verified Answers | Latest
Updated Version | Already Graded A+
SECTION 1: CONTRACTS & AGENCY LAW
1. Which of the following does NOT have to exist for a valid contract to be
enforceable in the sale of real estate?
A. The contract must be in writing
B. An offer and acceptance
C. Performance
D. Consideration
Correct Answer: C
Rationale: For a valid contract in real estate, there must be an offer and
acceptance, consideration, and the contract must be in writing per the Statute of
Frauds. Performance is the execution of the contract, not a requirement for
validity.
2. Bill has a contract in place to purchase Sam's house. Bill later changes his
mind and defaults on the contract. Sam would have which of the following
remedies?
A. Rescind the contract
B. Sue for damages
C. Sue for specific performance
D. Any of these choices
Correct Answer: D
Rationale: When a buyer defaults, the seller may rescind the contract, sue for
monetary damages, or seek specific performance (forcing the buyer to complete
the purchase). The seller can choose the remedy that best suits their situation.
,3. Lloyd Christmas owns a house which he has decided to rent to Harry Dunne.
No written contract exists and there has been no discussion as to lawn care.
Harry takes it upon himself to mow the lawn each week. Lloyd appreciates that
and so reduces the bill for the rent by $50. This goes on for several months. As
to the discount for the lawn care, what type of contract exists?
A. An express, unilateral contract
B. An express, bilateral contract
C. An implied, unilateral contract
D. An implied, bilateral contract
Correct Answer: D
Rationale: This is an implied, bilateral contract because both parties have
obligations—Harry provides lawn care and Lloyd provides a rent discount. The
contract is implied by the conduct of both parties rather than expressed in
writing.
4. Under common law, acceptance of a unilateral contract takes place:
A. When a written contract is signed by both parties
B. At the completion of the requested act
C. When the offeree communicates a promise to do the requested act
D. When the offeror states a promise
Correct Answer: B
Rationale: A unilateral contract is accepted by performance, not by a promise.
The offeree must complete the requested act for acceptance to occur, unlike
bilateral contracts which are accepted by a promise.
5. John, an adult, entered into a contract with Paul, who is 16 years old. When
John learned that Paul was a minor he decided to terminate the contract. Which
of the following statements is true?
A. Contracts with minors are automatically void
B. Contracts with minors are voidable at the option of the adult
C. The contract is valid and binding on both parties
D. The contract is valid and binding only on John
Correct Answer: D
Rationale: Contracts with minors are voidable at the minor's option, not the
,adult's. The adult (John) is bound to the contract while the minor (Paul) can
disaffirm. This protects minors from entering into unfavorable contracts.
6. A buyer makes an offer to purchase a piece of property. The seller changes
the date of occupancy by one day, and signs the contract. Which of the
following is true?
A. The seller has accepted the buyer's offer
B. The seller has made a counteroffer
C. The original offer becomes null and void
D. Both B and C
Correct Answer: D
Rationale: When the seller changes any term of the offer (even one day), it
constitutes a counteroffer. This rejects the original offer, making it null and void.
The buyer must then accept the counteroffer for a contract to exist.
7. A statute law that sets a time frame within which someone must bring a
lawsuit is called statute of limitations. T/F?
Correct Answer: True
Rationale: The statute of limitations establishes the maximum time after an event
that legal proceedings may be initiated. For real estate contracts, this typically
ranges from 4-6 years depending on the jurisdiction.
8. The loan contingency clause in a valid sales contract will contain all of the
following EXCEPT:
A. The amount of the loan
B. The name of the lender
C. The date of the commitment
D. The interest rate of the loan
Correct Answer: B
Rationale: A loan contingency clause typically specifies the loan amount, interest
rate, and commitment date. The specific lender name is not typically included
since the buyer may obtain financing from various sources.
9. To transfer the rights contained in a note, mortgage or lease from one party
to another, by a written instrument is referred to as _______.
, Correct Answer: An assignment
Rationale: An assignment transfers the rights and obligations of a contract from
one party to another through a written instrument. The assignor transfers rights
to the assignee.
10. Mark is 16 years old and has inherited $50,000 from his grandfather. Mark
contracts with Harold, an adult, to purchase his video game center. One year
later, Mark decides he wants to cancel the contract. Which of the following
statements is true?
A. The contract between Mark and Harold is illegal
B. If Harold learns that Mark is a minor, he (Harold) may declare the contract void
C. Mark can sell the property
D. Mark may declare the contract with Harold void and get his money back
Correct Answer: D
Rationale: Mark, being a minor, has the right to disaffirm the contract at any time
while still a minor or within a reasonable time after reaching the age of majority.
He is entitled to recover his consideration.
11. A real estate broker presents an offer to the seller on a property with the
provision that the seller has 6 days to accept the offer. At the end of the 3rd
day, the buyer withdraws the offer. What should the broker do?
A. Return the earnest money deposit to the buyer
B. Give the earnest money deposit to the seller
C. Split the deposit with the buyer
D. Split the deposit with the seller
Correct Answer: A
Rationale: Since the buyer withdrew the offer before acceptance, no contract was
formed. The earnest money must be returned to the buyer because there was no
meeting of the minds. The seller has no claim to the deposit.
12. A purchaser submits an offer to a seller with the condition that the property
is to be financed by a conventional loan at no more than 10% interest. If the
seller agrees but such financing cannot be obtained, which of the following is
true?
A. The purchaser loses his deposit but is relieved of further liability
B. The seller is obligated to return the deposit plus interest
