NATIONAL REAL ESTATE EXAM PREP COMPLETE 2026-2027 EXAM
PAPER- REVISION QUESTIONS & SOLUTIONS
Buyer
Optionor is the
Seller
Optionee is the
Buyer
Lessor is the
Landlord
Lessee is the
Tenant
Vendor is the
Seller
Vendee is the
Buyer
Mortgagor is the
Buyer
Mortgagee is the
Lender
Trustor is the
Buyer
Trustee is the
3rd Party to the transaction
Regulation Z dictates
Disclosure Requirements in Credit Transactions, including the disclosure of the Annual
Percentage Rate (APR)
, Regulation Z applies to:
ALL REAL ESTATE credit transactions except for commercial loans. For non-real estate
transactions, it covers up to $25,000.
Unilateral Contract
Contract containing ONE promise given in exchange for completing an act. NO obligation to act.
Bilateral Contract
Contract containing TWO promises. Example: A listing agreement is a bilateral contract
Client/Principal
A person who has entered into an agency relationship w/ a licensee & with whom there is a
written contract
Customer
Any 3rd party w/ whom a licensee works
In-Company Transaction
Transaction in which the buyer and seller are both represented by the same brokerage.
Management-Level License
A licensee who is employed by or affiliated w/ a brokerage who has supervisory responsibility
over other licensees.
Statute of Frauds requires the following:
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
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?
No
Mailbox Rule
PAPER- REVISION QUESTIONS & SOLUTIONS
Buyer
Optionor is the
Seller
Optionee is the
Buyer
Lessor is the
Landlord
Lessee is the
Tenant
Vendor is the
Seller
Vendee is the
Buyer
Mortgagor is the
Buyer
Mortgagee is the
Lender
Trustor is the
Buyer
Trustee is the
3rd Party to the transaction
Regulation Z dictates
Disclosure Requirements in Credit Transactions, including the disclosure of the Annual
Percentage Rate (APR)
, Regulation Z applies to:
ALL REAL ESTATE credit transactions except for commercial loans. For non-real estate
transactions, it covers up to $25,000.
Unilateral Contract
Contract containing ONE promise given in exchange for completing an act. NO obligation to act.
Bilateral Contract
Contract containing TWO promises. Example: A listing agreement is a bilateral contract
Client/Principal
A person who has entered into an agency relationship w/ a licensee & with whom there is a
written contract
Customer
Any 3rd party w/ whom a licensee works
In-Company Transaction
Transaction in which the buyer and seller are both represented by the same brokerage.
Management-Level License
A licensee who is employed by or affiliated w/ a brokerage who has supervisory responsibility
over other licensees.
Statute of Frauds requires the following:
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
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?
No
Mailbox Rule
