REAL ESTATE 2024/2025 FINAL EXAM QUESTIONS
WITH 100% VERIFIED ANSWERS.
1) A buyer is visiting open houses and runs across a nice looking home for sale. Can
the listing agent show the buyer the home? -- Answer ✔✔ Yes, as long as the listing
agent gives the buyer an agency disclosure notice which states he represents the
seller.
2) Which best describes a subagent? -- Answer ✔✔ A seller hires A1 Realty to sell his
property. The broker at A1 lists the property and a broker at Sun Realty brings a
buyer but does NOT represent the buyer.
3) A mortgage in Florida may not contain both a prepayment penalty clause and which
of the following? -- Answer ✔✔ A due-on-sale clause
4) Private home ownership in Florida is subject to which of the following? -- Answer
✔✔ Government interference called P.E.T.E. (Police Power, Eminent Domain,
Taxation, Escheat.)
5) When can a landlord evict a disabled blind or disabled tenant from the premises? --
Answer ✔✔ If the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
6) An impound or reserve account MOST benefits whom? -- Answer ✔✔ The lender
7) What are impound or reserve accounts also known as? -- Answer ✔✔ Escrow
accounts
8) The HUD-1 form is -- Answer ✔✔ a statement of actual charges and adjustments.
,9) A VA loan may be granted for the purchase of a one-family to four-family property if -
t t t t t t t t t t t t t t t t
- Answer ✔✔ the veteran agrees to live there.
t t t t t t t t
10) An increase in the availability of money would lead to which effect? -- Answer ✔✔
t t t t t t t t t t t t t t t
Interest rates would go down. t t t t
11) When the amortized payment of a mortgage remains constant over the period of the
t t t t t t t t t t t t t t
loan but leaves an outstanding balance to be paid at the end, this payment is called --
t t t t t t t t t t t t t t t t t
Answer ✔✔ a balloon payment. t t t t
12) In an installment land contract, what type of title did the seller retain? -- Answer ✔✔
t t t t t t t t t t t t t t t t
Legal
13) 4. Broker Carr, with ABC Real Estate Company, listed the property with a seller.
t t t t t t t t t t t t t t
Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that
t t t t t t t t t t t t t
he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the
t t t t t t t t t t t t t t t t t t
property. What, if any, is the relationship between the buyer's broker, the seller and
t t t t t t t t t t t t t t
the listing broker? -- Answer ✔✔ There is not a relationship between the parties.
t t t t t t t t t t t t t t
Broker Carr represents the Seller and Broker Smith represents the Buyer.
t t t t t t t t t t
14) A buyer bought a property without telling the seller of his intended purpose for the
t t t t t t t t t t t t t t t
property. The contract contains no contingency clauses and it is a properly executed
t t t t t t t t t t t t t
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
t t t t t t t t t t t t t t t t
commercial project. What is the contract at this stage? -- Answer ✔✔ Enforceable t t t t t t t t t t t t
15) 6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
t t t t t t t t t t t t t t t t
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
t t t t t t t t t t t t t t t t t t
been paid by the seller. (Taxes are paid in arrears). How much would the tax
t t t t t t t t t t t t t t t
proration amount to, and how would it appear on a full settlement statement? Base
t t t t t t t t t t t t t t
your answer on a 365 day year, and the buyer is responsible for the day of settlement.
t t t t t t t t t t t t t t t t t
-- Answer ✔✔ $1,130.14 debit the seller and credit the buyer
t t t t t t t t t t
16) A seller listed his home for six months on February 26. On April 29, a buyer made an
t t t t t t t t t t t t t t t t t t
offer on the property. The listing broker presented the offer to the seller on April 30.
t t t t t t t t t t t t t t t t
The seller accepted the offer on May 1, with the closing to occur on June 15.
t t t t t t t t t t t t t t t t
, Assuming the closing took place on June 15, when did the listing expire? -- Answer
t t t t t t t t t t t t t t t
✔✔ 6/15 t
17) The sellers listed their property for six months on February 26 for $522,500. They
t t t t t t t t t t t t t t
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
t t t t t t t t t t t t t t t t
price. A buyer made an offer on the property on March 29 for $510,000. The seller
t t t t t t t t t t t t t t t t
countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
t t t t t t t t t t t t t t t
with the closing to occur on June 15. How much commission did the seller owe the
t t t t t t t t t t t t t t t t
listing broker, and how would it appear on the settlement statement? -- Answer ✔✔
t t t t t t t t t t t t t t
$36,225. Debit the seller. t t t
18) The seller and the buyer agreed to a purchase price of $270,000 with the closing to
t t t t t t t t t t t t t t t t
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
t t t t t t t t t t t t t t t
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
t t t t t t t t t t t t t
What was the loan balance the day of closing, and how much interest did the seller
t t t t t t t t t t t t t t t t
owe the bank? -- Answer ✔✔ Loan balance $170,000; interest due $425
t t t t t t t t t t t
19) The buyer and seller agreed to a purchase price of $310,500. The buyer received an
t t t t t t t t t t t t t t t
80% loan. How much was the buyer's loan and how did it appear on the settlement
t t t t t t t t t t t t t t t t
statement? -- Answer ✔✔ $ 248,400. Credit the buyer only. t t t t t t t t t
20) A home improvement company was negotiating with a homeowner to add on two
t t t t t t t t t t t t t
rooms to a home. The company agreed to take a second mortgage as long as the
t t t t t t t t t t t t t t t t
homeowner also included the rest of the property in the loan. The company and thet t t t t t t t t t t t t t t
homeowner agreed to a price and the company provided the necessary disclosure t t t t t t t t t t t t
form on Monday and the homeowner signed the agreement at noon the following
t t t t t t t t t t t t t
day. Assuming that the week had five business days, until what time could the
t t t t t t t t t t t t t t
homeowner rescind the loan? -- Answer ✔✔ Friday, midnight (Three business day t t t t t t t t t t t t
period)
21) The seller under a land contract is called -- Answer ✔✔ The vendor
t t t t t t t t t t t t
22) On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700.
t t t t t t t t t t t t t t t
How long did he have the loan? -- Answer ✔✔ 42 months
t t t t t t t t t t t
WITH 100% VERIFIED ANSWERS.
1) A buyer is visiting open houses and runs across a nice looking home for sale. Can
the listing agent show the buyer the home? -- Answer ✔✔ Yes, as long as the listing
agent gives the buyer an agency disclosure notice which states he represents the
seller.
2) Which best describes a subagent? -- Answer ✔✔ A seller hires A1 Realty to sell his
property. The broker at A1 lists the property and a broker at Sun Realty brings a
buyer but does NOT represent the buyer.
3) A mortgage in Florida may not contain both a prepayment penalty clause and which
of the following? -- Answer ✔✔ A due-on-sale clause
4) Private home ownership in Florida is subject to which of the following? -- Answer
✔✔ Government interference called P.E.T.E. (Police Power, Eminent Domain,
Taxation, Escheat.)
5) When can a landlord evict a disabled blind or disabled tenant from the premises? --
Answer ✔✔ If the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
6) An impound or reserve account MOST benefits whom? -- Answer ✔✔ The lender
7) What are impound or reserve accounts also known as? -- Answer ✔✔ Escrow
accounts
8) The HUD-1 form is -- Answer ✔✔ a statement of actual charges and adjustments.
,9) A VA loan may be granted for the purchase of a one-family to four-family property if -
t t t t t t t t t t t t t t t t
- Answer ✔✔ the veteran agrees to live there.
t t t t t t t t
10) An increase in the availability of money would lead to which effect? -- Answer ✔✔
t t t t t t t t t t t t t t t
Interest rates would go down. t t t t
11) When the amortized payment of a mortgage remains constant over the period of the
t t t t t t t t t t t t t t
loan but leaves an outstanding balance to be paid at the end, this payment is called --
t t t t t t t t t t t t t t t t t
Answer ✔✔ a balloon payment. t t t t
12) In an installment land contract, what type of title did the seller retain? -- Answer ✔✔
t t t t t t t t t t t t t t t t
Legal
13) 4. Broker Carr, with ABC Real Estate Company, listed the property with a seller.
t t t t t t t t t t t t t t
Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that
t t t t t t t t t t t t t
he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the
t t t t t t t t t t t t t t t t t t
property. What, if any, is the relationship between the buyer's broker, the seller and
t t t t t t t t t t t t t t
the listing broker? -- Answer ✔✔ There is not a relationship between the parties.
t t t t t t t t t t t t t t
Broker Carr represents the Seller and Broker Smith represents the Buyer.
t t t t t t t t t t
14) A buyer bought a property without telling the seller of his intended purpose for the
t t t t t t t t t t t t t t t
property. The contract contains no contingency clauses and it is a properly executed
t t t t t t t t t t t t t
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
t t t t t t t t t t t t t t t t
commercial project. What is the contract at this stage? -- Answer ✔✔ Enforceable t t t t t t t t t t t t
15) 6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
t t t t t t t t t t t t t t t t
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
t t t t t t t t t t t t t t t t t t
been paid by the seller. (Taxes are paid in arrears). How much would the tax
t t t t t t t t t t t t t t t
proration amount to, and how would it appear on a full settlement statement? Base
t t t t t t t t t t t t t t
your answer on a 365 day year, and the buyer is responsible for the day of settlement.
t t t t t t t t t t t t t t t t t
-- Answer ✔✔ $1,130.14 debit the seller and credit the buyer
t t t t t t t t t t
16) A seller listed his home for six months on February 26. On April 29, a buyer made an
t t t t t t t t t t t t t t t t t t
offer on the property. The listing broker presented the offer to the seller on April 30.
t t t t t t t t t t t t t t t t
The seller accepted the offer on May 1, with the closing to occur on June 15.
t t t t t t t t t t t t t t t t
, Assuming the closing took place on June 15, when did the listing expire? -- Answer
t t t t t t t t t t t t t t t
✔✔ 6/15 t
17) The sellers listed their property for six months on February 26 for $522,500. They
t t t t t t t t t t t t t t
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
t t t t t t t t t t t t t t t t
price. A buyer made an offer on the property on March 29 for $510,000. The seller
t t t t t t t t t t t t t t t t
countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
t t t t t t t t t t t t t t t
with the closing to occur on June 15. How much commission did the seller owe the
t t t t t t t t t t t t t t t t
listing broker, and how would it appear on the settlement statement? -- Answer ✔✔
t t t t t t t t t t t t t t
$36,225. Debit the seller. t t t
18) The seller and the buyer agreed to a purchase price of $270,000 with the closing to
t t t t t t t t t t t t t t t t
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
t t t t t t t t t t t t t t t
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
t t t t t t t t t t t t t
What was the loan balance the day of closing, and how much interest did the seller
t t t t t t t t t t t t t t t t
owe the bank? -- Answer ✔✔ Loan balance $170,000; interest due $425
t t t t t t t t t t t
19) The buyer and seller agreed to a purchase price of $310,500. The buyer received an
t t t t t t t t t t t t t t t
80% loan. How much was the buyer's loan and how did it appear on the settlement
t t t t t t t t t t t t t t t t
statement? -- Answer ✔✔ $ 248,400. Credit the buyer only. t t t t t t t t t
20) A home improvement company was negotiating with a homeowner to add on two
t t t t t t t t t t t t t
rooms to a home. The company agreed to take a second mortgage as long as the
t t t t t t t t t t t t t t t t
homeowner also included the rest of the property in the loan. The company and thet t t t t t t t t t t t t t t
homeowner agreed to a price and the company provided the necessary disclosure t t t t t t t t t t t t
form on Monday and the homeowner signed the agreement at noon the following
t t t t t t t t t t t t t
day. Assuming that the week had five business days, until what time could the
t t t t t t t t t t t t t t
homeowner rescind the loan? -- Answer ✔✔ Friday, midnight (Three business day t t t t t t t t t t t t
period)
21) The seller under a land contract is called -- Answer ✔✔ The vendor
t t t t t t t t t t t t
22) On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700.
t t t t t t t t t t t t t t t
How long did he have the loan? -- Answer ✔✔ 42 months
t t t t t t t t t t t
