REE 3043 LATEST 2026 TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
✔✔What act of Congress prohibits blockbusting in housing? - ✔✔Fair Housing Act
✔✔What is the Fair Housing Act? - ✔✔Title VIII of the Civil Rights Act
✔✔What is a fiduciary relationship in real estate? - ✔✔A relationship where the broker
must adhere to special responsibilities for their client.
✔✔What is a designated agent? - ✔✔An appointed agent representing each client in a
dual agency scenario.
✔✔What does the duty of skill and care refer to? - ✔✔A broker's obligation to represent
their principals' interests to the best of their ability.
✔✔What does the duty of accounting refer to? - ✔✔A broker's obligation to keep the
principal informed about financial aspects.
✔✔What is a common misconception about commercial mortgage transactions? -
✔✔The parties are typically less knowledgeable than those in residential transactions.
✔✔When is a broker entitled to a commission? - ✔✔When a contract is not contingent
upon the buyer obtaining financing.
✔✔Who is referred to as the principal in real estate? - ✔✔The individual or entity that
grants authority to the broker.
✔✔When is an individual broker entitled to a commission in an open-listing contract? -
✔✔If she procures the buyer of the property.
✔✔What type of listing contracts does MLS accept? - ✔✔Exclusive right of sale listing.
✔✔What is the role of a real estate broker in the principal-agent relationship? -
✔✔Special agent.
✔✔What is the payment brokers receive for their services called? - ✔✔Commission.
✔✔What is an escrow account? - ✔✔A separate account for earnest money deposits.
✔✔What is earnest money? - ✔✔A monetary deposit of 5 or 10 percent of the purchase
price.
, ✔✔What is equitable title? - ✔✔The right to obtain full, legal title to real estate.
✔✔What defect to mutual assent involves intentional misrepresentation? - ✔✔Fraud.
✔✔What defect to mutual assent involves the threat of force? - ✔✔Menace.
✔✔What defect to mutual assent involves compelling a person to act by force? -
✔✔Duress.
✔✔What defect to mutual assent involves abuse of control over another? - ✔✔Undue
influence.
✔✔Who is responsible for completing the closing in a real estate transaction? - ✔✔The
listing broker.
✔✔Who prepares the best standard form contracts? - ✔✔Local Association of Realtors.
✔✔Who typically drafts contracts for larger, complex properties? - ✔✔Attorney.
✔✔What is constructive notice? - ✔✔Informing potential interests in property through
public records.
✔✔What costs are commonly credited to the buyer at closing? - ✔✔Prorated expenses
for the seller's occupancy.
✔✔What does 'time is of the essence' mean in a contract? - ✔✔Deadlines specified
must be honored.
✔✔What clause is included when a contract depends on prior actions? -
✔✔Contingency clause.
✔✔What items are subject to prorating at closing? - ✔✔Costs associated with the
property, excluding broker commission.
✔✔What are kickbacks in real estate? - ✔✔Unearned fees prohibited by RESPA.
✔✔What is rescission in contract law? - ✔✔Returning both parties to their precontract
status.
✔✔What is specific performance in contract remedies? - ✔✔Appealing to court to
enforce contract performance.
✔✔What remedies can an aggrieved seller pursue? - ✔✔Sue for specific performance
SOLUTIONS GRADED A+
✔✔What act of Congress prohibits blockbusting in housing? - ✔✔Fair Housing Act
✔✔What is the Fair Housing Act? - ✔✔Title VIII of the Civil Rights Act
✔✔What is a fiduciary relationship in real estate? - ✔✔A relationship where the broker
must adhere to special responsibilities for their client.
✔✔What is a designated agent? - ✔✔An appointed agent representing each client in a
dual agency scenario.
✔✔What does the duty of skill and care refer to? - ✔✔A broker's obligation to represent
their principals' interests to the best of their ability.
✔✔What does the duty of accounting refer to? - ✔✔A broker's obligation to keep the
principal informed about financial aspects.
✔✔What is a common misconception about commercial mortgage transactions? -
✔✔The parties are typically less knowledgeable than those in residential transactions.
✔✔When is a broker entitled to a commission? - ✔✔When a contract is not contingent
upon the buyer obtaining financing.
✔✔Who is referred to as the principal in real estate? - ✔✔The individual or entity that
grants authority to the broker.
✔✔When is an individual broker entitled to a commission in an open-listing contract? -
✔✔If she procures the buyer of the property.
✔✔What type of listing contracts does MLS accept? - ✔✔Exclusive right of sale listing.
✔✔What is the role of a real estate broker in the principal-agent relationship? -
✔✔Special agent.
✔✔What is the payment brokers receive for their services called? - ✔✔Commission.
✔✔What is an escrow account? - ✔✔A separate account for earnest money deposits.
✔✔What is earnest money? - ✔✔A monetary deposit of 5 or 10 percent of the purchase
price.
, ✔✔What is equitable title? - ✔✔The right to obtain full, legal title to real estate.
✔✔What defect to mutual assent involves intentional misrepresentation? - ✔✔Fraud.
✔✔What defect to mutual assent involves the threat of force? - ✔✔Menace.
✔✔What defect to mutual assent involves compelling a person to act by force? -
✔✔Duress.
✔✔What defect to mutual assent involves abuse of control over another? - ✔✔Undue
influence.
✔✔Who is responsible for completing the closing in a real estate transaction? - ✔✔The
listing broker.
✔✔Who prepares the best standard form contracts? - ✔✔Local Association of Realtors.
✔✔Who typically drafts contracts for larger, complex properties? - ✔✔Attorney.
✔✔What is constructive notice? - ✔✔Informing potential interests in property through
public records.
✔✔What costs are commonly credited to the buyer at closing? - ✔✔Prorated expenses
for the seller's occupancy.
✔✔What does 'time is of the essence' mean in a contract? - ✔✔Deadlines specified
must be honored.
✔✔What clause is included when a contract depends on prior actions? -
✔✔Contingency clause.
✔✔What items are subject to prorating at closing? - ✔✔Costs associated with the
property, excluding broker commission.
✔✔What are kickbacks in real estate? - ✔✔Unearned fees prohibited by RESPA.
✔✔What is rescission in contract law? - ✔✔Returning both parties to their precontract
status.
✔✔What is specific performance in contract remedies? - ✔✔Appealing to court to
enforce contract performance.
✔✔What remedies can an aggrieved seller pursue? - ✔✔Sue for specific performance
