National Real Estate Exam Prep
Comprehensive Questions and
Solutions Graded A+
Unilateral Contract - Answer: Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
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 - Answer: Lender
Comprehensive Questions and
Solutions Graded A+
Unilateral Contract - Answer: Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
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 - Answer: Lender
