METRO BROKER ACADEMY FINAL – UPDATED
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
1. Which of the following is an essential element of a valid
real estate contract?
A. Notarization
B. Mutual consent
C. Witnesses
D. Recording
Mutual consent, or meeting of the minds, is required for any
contract to be enforceable.
2. What does the term “fiduciary duty” mean in real estate agency?
A. A duty owed to the MLS
B. A duty of trust and loyalty owed to the client
C. A duty to the broker only
D. A financial obligation
A fiduciary duty refers to an agent’s legal obligation to act in the
best interests of their client.
3. When must earnest money be deposited into a trust account?
A. When the offer is signed
B. Within three business days of acceptance
C. Within seven calendar days
D. At closing
State law typically requires deposit of earnest money within three
business days after offer acceptance.
,4. A real estate licensee representing both the buyer and the seller
in the same transaction is acting as:
A. A subagent
B. A dual agent
C. A designated agent
D. A single agent
Dual agency occurs when one agent represents both parties with
full disclosure and consent.
5. Which type of listing provides the greatest protection for
a broker?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
An exclusive right-to-sell listing ensures the broker receives a
commission regardless of who finds the buyer.
6. The purpose of the Fair Housing Act is to:
A. Control mortgage interest rates
B. Prohibit discrimination in housing based on protected classes
C. Set maximum rental rates
D. Regulate construction standards
The Fair Housing Act prohibits discrimination based on race, color,
religion, sex, national origin, disability, and familial status.
7. A broker’s license can be revoked for:
A. Advertising a new listing
B. Commingling client funds with personal funds
C. Hiring an assistant
, D. Paying referral fees to another broker
Commingling violates trust account regulations and can result in
license revocation.
8. Which document conveys ownership of real property?
A. Deed
B. Mortgage
C. Lease
D. Bill of sale
A deed transfers ownership of real estate from grantor to grantee.
9. The process of estimating the value of a property is known as:
A. Surveying
B. Appraisal
C. Depreciation
D. Inspection
An appraisal determines a property’s market value using
professional methods.
10. A buyer who wants to ensure clear title should obtain:
A. A survey
B. A home inspection
C. Title insurance
D. An appraisal
Title insurance protects against defects or claims on title
ownership.
11. Zoning regulations are enforced by:
A. The broker
B. Local government authorities
C. The state legislature
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
1. Which of the following is an essential element of a valid
real estate contract?
A. Notarization
B. Mutual consent
C. Witnesses
D. Recording
Mutual consent, or meeting of the minds, is required for any
contract to be enforceable.
2. What does the term “fiduciary duty” mean in real estate agency?
A. A duty owed to the MLS
B. A duty of trust and loyalty owed to the client
C. A duty to the broker only
D. A financial obligation
A fiduciary duty refers to an agent’s legal obligation to act in the
best interests of their client.
3. When must earnest money be deposited into a trust account?
A. When the offer is signed
B. Within three business days of acceptance
C. Within seven calendar days
D. At closing
State law typically requires deposit of earnest money within three
business days after offer acceptance.
,4. A real estate licensee representing both the buyer and the seller
in the same transaction is acting as:
A. A subagent
B. A dual agent
C. A designated agent
D. A single agent
Dual agency occurs when one agent represents both parties with
full disclosure and consent.
5. Which type of listing provides the greatest protection for
a broker?
A. Open listing
B. Net listing
C. Exclusive right-to-sell listing
D. Exclusive agency listing
An exclusive right-to-sell listing ensures the broker receives a
commission regardless of who finds the buyer.
6. The purpose of the Fair Housing Act is to:
A. Control mortgage interest rates
B. Prohibit discrimination in housing based on protected classes
C. Set maximum rental rates
D. Regulate construction standards
The Fair Housing Act prohibits discrimination based on race, color,
religion, sex, national origin, disability, and familial status.
7. A broker’s license can be revoked for:
A. Advertising a new listing
B. Commingling client funds with personal funds
C. Hiring an assistant
, D. Paying referral fees to another broker
Commingling violates trust account regulations and can result in
license revocation.
8. Which document conveys ownership of real property?
A. Deed
B. Mortgage
C. Lease
D. Bill of sale
A deed transfers ownership of real estate from grantor to grantee.
9. The process of estimating the value of a property is known as:
A. Surveying
B. Appraisal
C. Depreciation
D. Inspection
An appraisal determines a property’s market value using
professional methods.
10. A buyer who wants to ensure clear title should obtain:
A. A survey
B. A home inspection
C. Title insurance
D. An appraisal
Title insurance protects against defects or claims on title
ownership.
11. Zoning regulations are enforced by:
A. The broker
B. Local government authorities
C. The state legislature
