NATIONAL REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS 2025
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
, NATIONAL REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS 2025
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
Trustor is the - (ANSWER)Buyer
Trustee is the - (ANSWER)3rd Party to the transaction
Regulation Z dictates - (ANSWER)Disclosure Requirements in Credit Transactions, including the
disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: - (ANSWER)ALL REAL ESTATE credit transactions except for commercial loans.
For non-real estate transactions, it covers up to $25,000.
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
, NATIONAL REAL ESTATE EXAM PREP QUESTIONS AND ANSWERS 2025
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
Trustor is the - (ANSWER)Buyer
Trustee is the - (ANSWER)3rd Party to the transaction
Regulation Z dictates - (ANSWER)Disclosure Requirements in Credit Transactions, including the
disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: - (ANSWER)ALL REAL ESTATE credit transactions except for commercial loans.
For non-real estate transactions, it covers up to $25,000.
