REAL ESTATE LAW EXAM 2025
Professor-Verified | 100 Questions | Graded A+ |
Latest Edition
This comprehensive examination tests mastery of fundamental and advanced principles of
Real Estate Law as practiced in 2025. It covers property interests, contracts, agency,
conveyance, land use, and landlord-tenant relationships, with integrated scenarios
reflecting modern issues such as digital transactions, data security, and evolving
regulatory environments. Each question is designed to assess not only knowledge of black-
letter law but also its practical application in complex, realistic situations. All answers and
rationales are verified against current statutes, uniform acts, and precedent.Now
generating the 100-question Real Estate Law Exam per 2025 standards. All answers are
Professor-Verified and formatted in bold.
Item 1 | Topic: Property Interests & Estates
Scenario/Hypothetical: In 2024, Grantor conveys Blackacre “to A for life, then to B and
her heirs.” In 2025, A dies intestate. B is alive and has one child, C.
Question: What estate does B now hold?
A. Fee simple absolute
B. Life estate pur autre vie
C. Fee tail
D. Defeasible fee
Correct Answer: A. Fee simple absolute
Rationale: The language “to B and her heirs” creates a fee simple under common-law
words of limitation. A’s life estate terminates at death, merging into B’s vested
remainder in fee simple. C has no interest because B’s fee is not contingent. NCJMM Step
3: Apply rule to facts.
Item 2 | Topic: Contracts for Sale
Scenario/Hypothetical: Buyer and Seller sign a purchase agreement for a condo on
3/1/25. The contract contains a financing contingency: “Buyer shall use diligent efforts
to obtain a loan at 7 % or below; if unable after 30 days, contract void.” Buyer applies to
three lenders but the lowest rate offered is 7.4 %. Buyer notifies Seller on 4/2/25 that
contract is void.
Question: Which statement is most accurate?
A. Buyer must proceed because 7.4 % is close to 7 %
B. Buyer may void; contingency language is clear and time-limited
C. Buyer must accept 7.4 % loan because market rates rose
D. Seller can sue for specific performance
pg. 1
,Correct Answer: B. Buyer may void; contingency language is clear and time-
limited
Rationale: Contingencies are strictly construed; 7.4 % exceeds the 7 % ceiling. Buyer
exercised diligence and gave timely notice. Seller has no breach remedy. NCJMM Step 4:
Generate solution.
Item 3 | Topic: Agency & Ethics
Scenario/Hypothetical: Listing agent receives a text from buyer’s agent: “My client will
offer $50k over list if seller accepts by 5 pm and leaves washer/dryer.” Listing agent
immediately forwards the text verbatim to seller. Seller accepts in writing at 4 pm.
Question: Which duty did listing agent most directly fulfill?
A. Loyalty
B. Confidentiality
C. Reasonable care
D. Disclosure
Correct Answer: D. Disclosure
Rationale: Agent must communicate all offers promptly (REBC Standard 3-2).
Forwarding the text is disclosure, not loyalty or confidentiality. NCJMM Step 2: Analyze
cues.
Item 4 | Topic: Title & Conveyance
Scenario/Hypothetical: On 5/1/25, Seller signs and delivers a warranty deed to Buyer,
who records on 5/2/25. On 5/3/25, Seller gives a quitclaim deed for the same parcel to
Cousin, who records same day. Buyer and Cousin are unaware of each other. Jurisdiction
is a race-notice state.
Question: Who holds title?
A. Cousin—last to record
B. Buyer—first to record without notice
C. Seller—both deeds invalid
D. Buyer and Cousin as tenants in common
Correct Answer: B. Buyer—first to record without notice
Rationale: Race-notice statute protects first bona-fide purchaser who records without
notice. Buyer recorded before Cousin and had no notice of later deed. NCJMM Step 3:
Apply rule.
Item 5 | Topic: Land Use & Zoning
Scenario/Hypothetical: City adopts an ordinance in 2025 prohibiting short-term rentals
(STRs) < 30 days in all residential zones. Owner has rented on Airbnb since 2022.
Ordinance provides no amortization period.
Question: Which constitutional claim is strongest?
pg. 2
,A. Takings without just compensation
B. Equal protection violation
C. Contracts clause breach
D. Due process procedural violation
Correct Answer: A. Takings without just compensation
Rationale: Kelo standard: elimination of all economically viable use (or lack of
amortization) can constitute regulatory taking; Owner may seek compensation. NCJMM
Step 3: Apply precedent.
Item 6 | Topic: Landlord-Tenant
Scenario/Hypothetical: Commercial lease clause: “Tenant shall not sublet any portion
without Lessor’s written consent, such consent not to be unreasonably withheld.”
Tenant requests consent to sublet 20 % of space to coffee shop. Landlord refuses, stating
“coffee shops attract loiterers.”
Question: Result under modern lease law?
A. Landlord may refuse—reasonable security concern
B. Landlord may refuse—clause silent on standards
C. Tenant may sublet—refusal is objectively unreasonable
D. Tenant must accept denial
Correct Answer: C. Tenant may sublet—refusal is objectively unreasonable
Rationale: Reasonableness standard is objective; fear alone is insufficient (Restatement
2d Property §15.2). Tenant may proceed or seek declaratory judgment. NCJMM Step 4:
Generate solution.
Item 7 | Topic: Contracts for Sale
Scenario/Hypothetical: Purchase contract signed 2/15/25 includes an e-signature
clause: “Signatures transmitted electronically (PDF or DocuSign) shall be binding;
originals to follow.” Buyer emails signed PDF same day; Seller never mails original. Seller
later refuses to convey, claiming Statute of Frauds defense.
Question: Which outcome under UETA/E-SIGN Acts 2025?
A. Seller wins—original ink required
B. Buyer wins—e-signature satisfies Statute of Frauds
C. Contract void—no consideration
D. Parol evidence needed
Correct Answer: B. Buyer wins—e-signature satisfies Statute of Frauds
Rationale: Federal E-SIGN and state UETA remove Statute of Frauds barrier when parties
agree to electronic records; PDF signature is enforceable. NCJMM Step 3: Apply statute.
Item 8 | Topic: Agency & Ethics
Scenario/Hypothetical: Listing agent stores client contracts on cloud provider with
pg. 3
, multi-factor authentication. Agent’s password is compromised in 2025 phishing attack;
no data encrypted. Contracts are leaked on dark web.
Question: Which ethical duty was breached?
A. Loyalty
B. Confidentiality
C. Obedience
D. Accountability
Correct Answer: B. Confidentiality
Rationale: NAR Code of Ethics Standard of Practice 1-9 (2025) requires “reasonable
efforts” to protect client data; failure to encrypt after phishing breach violates
confidentiality. NCJMM Step 2: Analyze cues.
Item 9 | Topic: Title & Conveyance
Scenario/Hypothetical: Buyer purchases home in 2025; closing statement shows $2,000
charge for “MERS assignment fee.” Buyer refuses to pay, arguing MERS is obsolete.
Question: Is Buyer obligated?
A. Yes—if fee was disclosed in purchase contract
B. No—MERS fees are illegal
C. Yes—MERS is mandatory in all states
D. No—only lenders pay MERS fees
Correct Answer: A. Yes—if fee was disclosed in purchase contract
Rationale: Contract controls; MERS e-recording fees are lawful if expressly agreed.
Buyer’s subjective view of obsolescence irrelevant. NCJMM Step 3: Apply rule.
Item 10 | Topic: Landlord-Tenant
Scenario/Hypothetical: Commercial lease provides: “Landlord may terminate upon 30-
day notice if property is sold.” Property is sold 3/1/25; landlord gives notice 3/15/25.
Tenant vacates 4/14/25 but claims lease term runs to 12/31/25.
Question: Termination effective date?
A. 3/15/25
B. 4/14/25
C. 4/15/25
D. 12/31/25
Correct Answer: C. 4/15/25
Rationale: Clause allows 30-day notice; notice given 3/15 → expires 4/15. Tenant
vacating early does not extend term. NCJMM Step 3: Apply contract terms.
Item 11 | Topic: Property Interests
Scenario/Hypothetical: Grantor conveys “to A for life, remainder to B, but if B divorces,
then to C.” B is currently married.
pg. 4
Professor-Verified | 100 Questions | Graded A+ |
Latest Edition
This comprehensive examination tests mastery of fundamental and advanced principles of
Real Estate Law as practiced in 2025. It covers property interests, contracts, agency,
conveyance, land use, and landlord-tenant relationships, with integrated scenarios
reflecting modern issues such as digital transactions, data security, and evolving
regulatory environments. Each question is designed to assess not only knowledge of black-
letter law but also its practical application in complex, realistic situations. All answers and
rationales are verified against current statutes, uniform acts, and precedent.Now
generating the 100-question Real Estate Law Exam per 2025 standards. All answers are
Professor-Verified and formatted in bold.
Item 1 | Topic: Property Interests & Estates
Scenario/Hypothetical: In 2024, Grantor conveys Blackacre “to A for life, then to B and
her heirs.” In 2025, A dies intestate. B is alive and has one child, C.
Question: What estate does B now hold?
A. Fee simple absolute
B. Life estate pur autre vie
C. Fee tail
D. Defeasible fee
Correct Answer: A. Fee simple absolute
Rationale: The language “to B and her heirs” creates a fee simple under common-law
words of limitation. A’s life estate terminates at death, merging into B’s vested
remainder in fee simple. C has no interest because B’s fee is not contingent. NCJMM Step
3: Apply rule to facts.
Item 2 | Topic: Contracts for Sale
Scenario/Hypothetical: Buyer and Seller sign a purchase agreement for a condo on
3/1/25. The contract contains a financing contingency: “Buyer shall use diligent efforts
to obtain a loan at 7 % or below; if unable after 30 days, contract void.” Buyer applies to
three lenders but the lowest rate offered is 7.4 %. Buyer notifies Seller on 4/2/25 that
contract is void.
Question: Which statement is most accurate?
A. Buyer must proceed because 7.4 % is close to 7 %
B. Buyer may void; contingency language is clear and time-limited
C. Buyer must accept 7.4 % loan because market rates rose
D. Seller can sue for specific performance
pg. 1
,Correct Answer: B. Buyer may void; contingency language is clear and time-
limited
Rationale: Contingencies are strictly construed; 7.4 % exceeds the 7 % ceiling. Buyer
exercised diligence and gave timely notice. Seller has no breach remedy. NCJMM Step 4:
Generate solution.
Item 3 | Topic: Agency & Ethics
Scenario/Hypothetical: Listing agent receives a text from buyer’s agent: “My client will
offer $50k over list if seller accepts by 5 pm and leaves washer/dryer.” Listing agent
immediately forwards the text verbatim to seller. Seller accepts in writing at 4 pm.
Question: Which duty did listing agent most directly fulfill?
A. Loyalty
B. Confidentiality
C. Reasonable care
D. Disclosure
Correct Answer: D. Disclosure
Rationale: Agent must communicate all offers promptly (REBC Standard 3-2).
Forwarding the text is disclosure, not loyalty or confidentiality. NCJMM Step 2: Analyze
cues.
Item 4 | Topic: Title & Conveyance
Scenario/Hypothetical: On 5/1/25, Seller signs and delivers a warranty deed to Buyer,
who records on 5/2/25. On 5/3/25, Seller gives a quitclaim deed for the same parcel to
Cousin, who records same day. Buyer and Cousin are unaware of each other. Jurisdiction
is a race-notice state.
Question: Who holds title?
A. Cousin—last to record
B. Buyer—first to record without notice
C. Seller—both deeds invalid
D. Buyer and Cousin as tenants in common
Correct Answer: B. Buyer—first to record without notice
Rationale: Race-notice statute protects first bona-fide purchaser who records without
notice. Buyer recorded before Cousin and had no notice of later deed. NCJMM Step 3:
Apply rule.
Item 5 | Topic: Land Use & Zoning
Scenario/Hypothetical: City adopts an ordinance in 2025 prohibiting short-term rentals
(STRs) < 30 days in all residential zones. Owner has rented on Airbnb since 2022.
Ordinance provides no amortization period.
Question: Which constitutional claim is strongest?
pg. 2
,A. Takings without just compensation
B. Equal protection violation
C. Contracts clause breach
D. Due process procedural violation
Correct Answer: A. Takings without just compensation
Rationale: Kelo standard: elimination of all economically viable use (or lack of
amortization) can constitute regulatory taking; Owner may seek compensation. NCJMM
Step 3: Apply precedent.
Item 6 | Topic: Landlord-Tenant
Scenario/Hypothetical: Commercial lease clause: “Tenant shall not sublet any portion
without Lessor’s written consent, such consent not to be unreasonably withheld.”
Tenant requests consent to sublet 20 % of space to coffee shop. Landlord refuses, stating
“coffee shops attract loiterers.”
Question: Result under modern lease law?
A. Landlord may refuse—reasonable security concern
B. Landlord may refuse—clause silent on standards
C. Tenant may sublet—refusal is objectively unreasonable
D. Tenant must accept denial
Correct Answer: C. Tenant may sublet—refusal is objectively unreasonable
Rationale: Reasonableness standard is objective; fear alone is insufficient (Restatement
2d Property §15.2). Tenant may proceed or seek declaratory judgment. NCJMM Step 4:
Generate solution.
Item 7 | Topic: Contracts for Sale
Scenario/Hypothetical: Purchase contract signed 2/15/25 includes an e-signature
clause: “Signatures transmitted electronically (PDF or DocuSign) shall be binding;
originals to follow.” Buyer emails signed PDF same day; Seller never mails original. Seller
later refuses to convey, claiming Statute of Frauds defense.
Question: Which outcome under UETA/E-SIGN Acts 2025?
A. Seller wins—original ink required
B. Buyer wins—e-signature satisfies Statute of Frauds
C. Contract void—no consideration
D. Parol evidence needed
Correct Answer: B. Buyer wins—e-signature satisfies Statute of Frauds
Rationale: Federal E-SIGN and state UETA remove Statute of Frauds barrier when parties
agree to electronic records; PDF signature is enforceable. NCJMM Step 3: Apply statute.
Item 8 | Topic: Agency & Ethics
Scenario/Hypothetical: Listing agent stores client contracts on cloud provider with
pg. 3
, multi-factor authentication. Agent’s password is compromised in 2025 phishing attack;
no data encrypted. Contracts are leaked on dark web.
Question: Which ethical duty was breached?
A. Loyalty
B. Confidentiality
C. Obedience
D. Accountability
Correct Answer: B. Confidentiality
Rationale: NAR Code of Ethics Standard of Practice 1-9 (2025) requires “reasonable
efforts” to protect client data; failure to encrypt after phishing breach violates
confidentiality. NCJMM Step 2: Analyze cues.
Item 9 | Topic: Title & Conveyance
Scenario/Hypothetical: Buyer purchases home in 2025; closing statement shows $2,000
charge for “MERS assignment fee.” Buyer refuses to pay, arguing MERS is obsolete.
Question: Is Buyer obligated?
A. Yes—if fee was disclosed in purchase contract
B. No—MERS fees are illegal
C. Yes—MERS is mandatory in all states
D. No—only lenders pay MERS fees
Correct Answer: A. Yes—if fee was disclosed in purchase contract
Rationale: Contract controls; MERS e-recording fees are lawful if expressly agreed.
Buyer’s subjective view of obsolescence irrelevant. NCJMM Step 3: Apply rule.
Item 10 | Topic: Landlord-Tenant
Scenario/Hypothetical: Commercial lease provides: “Landlord may terminate upon 30-
day notice if property is sold.” Property is sold 3/1/25; landlord gives notice 3/15/25.
Tenant vacates 4/14/25 but claims lease term runs to 12/31/25.
Question: Termination effective date?
A. 3/15/25
B. 4/14/25
C. 4/15/25
D. 12/31/25
Correct Answer: C. 4/15/25
Rationale: Clause allows 30-day notice; notice given 3/15 → expires 4/15. Tenant
vacating early does not extend term. NCJMM Step 3: Apply contract terms.
Item 11 | Topic: Property Interests
Scenario/Hypothetical: Grantor conveys “to A for life, remainder to B, but if B divorces,
then to C.” B is currently married.
pg. 4
