RMLO CHAMPIONS SCHOOL OF REAL ESTATE
EXAMINATION TEST 2026 QUESTIONS WITH
CORRECT ANSWERS
◉ Leases and "right of first refusal". Answer: Some residential leases
contain a right of first refusal, giving the tenant the right to purchase the
leased property by matching or bettering any offer before the property
will be sold to someone else.
◉ Default remedies and their results. Answer: -Liquidated damages. The
seller can choose to accept the buyer's earnest money as liquidated
damages, releasing all parties from any further obligation under the
contract. Liquidated damages are damages that are established in the
contract.
-Monetary damages. In addition to specific performance, the injured
party may "seek such other relief as may be provided by law." This
would be an award of monetary damages by the court. Because
monetary damages are awarded by the court, one never knows what they
will be until the court rules.
-Specific performance. The injured party files a court action seeking an
order of the court directing the defaulting party to perform according to
the terms of the contract. Specific performance is the only remedy that
would possibly result in the full execution (closing) of the transaction.
,◉ Paragraph 11 - legal vs illegal entries. Answer:
◉ TVLB programs and provisions. Answer: The Texas Veterans Land
Board Housing Assistance Program (VHAP) is a benefit that every
buyer with a military background should consider. To participate in the
program, the Veteran obtains an FHA, VA, or conventional loan from a
participating lender. The qualification process is the same as for any
other FHA, VA, or conventional loan. The difference is that the loan is
sold to the Texas Veterans Land Board (VLB), as opposed to a secondary
market purchaser such as Fannie Mae or Freddie Mac. The primary
benefit to the Veteran is that the rate on the Veterans Land Board loan is
often up to one percent below prevailing market rates.
◉ Economic and physical characteristics of land- physical. Answer: -
Indestructibility or durability refers to the fact that land cannot be
destroyed. It remains, no matter what happens to it. It may go
underwater, become a crater, or be added to. In any case, the land will
still be there; it is permanent.
-Immobility refers to the fact that land cannot be moved. When personal
property is pur- chased, the buyer can move it to a new location. When
land or rights in land are purchased, the owner must go to the land.
-Nonhomogeneity refers to the fact that no two parcels of land are the
same. Even two identi- cal-looking lots in a subdivision at least differ in
their position on the earth. Each parcel of land is unique.
,◉ Economic and physical characteristics of land- Economic. Answer: -
Scarcity comes from the theory of supply and demand. When there is a
shortage of some- thing that individuals want, the price goes up. For
example, in a new golf course commu- nity, only a limited number of
lots can be "on" the golf course. The scarcity will increase the value of
these lots. Another example is property in cities. Because of the higher
demand for this land, it will be more valuable than land in suburban or
rural areas.
-Modification refers to the fact that value is affected by man-made
changes to the land. These changes can be on the land itself or off-site.
Examples of modification include improved transportation, which makes
land more accessible, such as the railroads crossing the United States or
airports. When freeways are extended or widened, land in previously
undeveloped areas becomes attractive for new residential and retail
development. The most well-known case is probably that of the
agricultural land in the Orlando, Florida area that experienced an
enormous increase in value after the construction of Disney World®.
-Fixity refers to the fact that land, and additions to the land, such as
buildings, take long pe- riods to pay for themselves. It may take twenty
years for the owner of a new office building to recover the cost of the
acquisition of the land, construction, and the cost of financing. Because
of this, investors must analyze the long-term nature of owning an
investment property. Fixity is also used to refer to the fact that land
cannot be moved but is fixed in location.
-Situs refers to the location of the property or land from an economic,
not a geographic viewpoint. The familiar phrase "location, location,
location" is based on the preferences people have for specific
characteristics in property and the fact that location dominates those
preferences. Both natural and man-made facto
, ◉ Responsibility of agents when receiving an offer. Answer: The
communication or submission of anoffer should be done promptly
because the license holder'sduty is to keep the principal or client
informed at all timesof material information. In most cases, the
submission ofan offer (or, at least, communication to the principal that
anoffer has been received) can easily be made within a shortperiod. Most
states (including Texas) recognize the legaldoctrine of imputed notice.
Under this concept, an offer ispresumed to have been delivered to the
principal when it isdelivered to the agent. A license holder who fails to
communicate an offer promptly may be subject to a lawsuit by the seller
and may be disciplined by the real estate commission that issued the
license.
◉ Title policy, abstracts, commitments, opinion of title. Answer:
Historically, when an individual was interested in acquiring title, he or
she would ask an attorney or abstractor to do a title search, which is an
investigation of all the documents that have been recorded about a
property. This search would result in an abstract of title. An abstract of
title is a complete history of the title of a piece of property that includes
deeds, easements, liens, foreclosures, wills, marriages, deaths, life
estates, fee simple estates, and anything else that may have ever been
recorded about a property. This abstract was then given to an attorney.
The attorney would read it and write up an attorney's opinion of title,
which is an opinion regarding the state of the title and its ability to be
transferred.
EXAMINATION TEST 2026 QUESTIONS WITH
CORRECT ANSWERS
◉ Leases and "right of first refusal". Answer: Some residential leases
contain a right of first refusal, giving the tenant the right to purchase the
leased property by matching or bettering any offer before the property
will be sold to someone else.
◉ Default remedies and their results. Answer: -Liquidated damages. The
seller can choose to accept the buyer's earnest money as liquidated
damages, releasing all parties from any further obligation under the
contract. Liquidated damages are damages that are established in the
contract.
-Monetary damages. In addition to specific performance, the injured
party may "seek such other relief as may be provided by law." This
would be an award of monetary damages by the court. Because
monetary damages are awarded by the court, one never knows what they
will be until the court rules.
-Specific performance. The injured party files a court action seeking an
order of the court directing the defaulting party to perform according to
the terms of the contract. Specific performance is the only remedy that
would possibly result in the full execution (closing) of the transaction.
,◉ Paragraph 11 - legal vs illegal entries. Answer:
◉ TVLB programs and provisions. Answer: The Texas Veterans Land
Board Housing Assistance Program (VHAP) is a benefit that every
buyer with a military background should consider. To participate in the
program, the Veteran obtains an FHA, VA, or conventional loan from a
participating lender. The qualification process is the same as for any
other FHA, VA, or conventional loan. The difference is that the loan is
sold to the Texas Veterans Land Board (VLB), as opposed to a secondary
market purchaser such as Fannie Mae or Freddie Mac. The primary
benefit to the Veteran is that the rate on the Veterans Land Board loan is
often up to one percent below prevailing market rates.
◉ Economic and physical characteristics of land- physical. Answer: -
Indestructibility or durability refers to the fact that land cannot be
destroyed. It remains, no matter what happens to it. It may go
underwater, become a crater, or be added to. In any case, the land will
still be there; it is permanent.
-Immobility refers to the fact that land cannot be moved. When personal
property is pur- chased, the buyer can move it to a new location. When
land or rights in land are purchased, the owner must go to the land.
-Nonhomogeneity refers to the fact that no two parcels of land are the
same. Even two identi- cal-looking lots in a subdivision at least differ in
their position on the earth. Each parcel of land is unique.
,◉ Economic and physical characteristics of land- Economic. Answer: -
Scarcity comes from the theory of supply and demand. When there is a
shortage of some- thing that individuals want, the price goes up. For
example, in a new golf course commu- nity, only a limited number of
lots can be "on" the golf course. The scarcity will increase the value of
these lots. Another example is property in cities. Because of the higher
demand for this land, it will be more valuable than land in suburban or
rural areas.
-Modification refers to the fact that value is affected by man-made
changes to the land. These changes can be on the land itself or off-site.
Examples of modification include improved transportation, which makes
land more accessible, such as the railroads crossing the United States or
airports. When freeways are extended or widened, land in previously
undeveloped areas becomes attractive for new residential and retail
development. The most well-known case is probably that of the
agricultural land in the Orlando, Florida area that experienced an
enormous increase in value after the construction of Disney World®.
-Fixity refers to the fact that land, and additions to the land, such as
buildings, take long pe- riods to pay for themselves. It may take twenty
years for the owner of a new office building to recover the cost of the
acquisition of the land, construction, and the cost of financing. Because
of this, investors must analyze the long-term nature of owning an
investment property. Fixity is also used to refer to the fact that land
cannot be moved but is fixed in location.
-Situs refers to the location of the property or land from an economic,
not a geographic viewpoint. The familiar phrase "location, location,
location" is based on the preferences people have for specific
characteristics in property and the fact that location dominates those
preferences. Both natural and man-made facto
, ◉ Responsibility of agents when receiving an offer. Answer: The
communication or submission of anoffer should be done promptly
because the license holder'sduty is to keep the principal or client
informed at all timesof material information. In most cases, the
submission ofan offer (or, at least, communication to the principal that
anoffer has been received) can easily be made within a shortperiod. Most
states (including Texas) recognize the legaldoctrine of imputed notice.
Under this concept, an offer ispresumed to have been delivered to the
principal when it isdelivered to the agent. A license holder who fails to
communicate an offer promptly may be subject to a lawsuit by the seller
and may be disciplined by the real estate commission that issued the
license.
◉ Title policy, abstracts, commitments, opinion of title. Answer:
Historically, when an individual was interested in acquiring title, he or
she would ask an attorney or abstractor to do a title search, which is an
investigation of all the documents that have been recorded about a
property. This search would result in an abstract of title. An abstract of
title is a complete history of the title of a piece of property that includes
deeds, easements, liens, foreclosures, wills, marriages, deaths, life
estates, fee simple estates, and anything else that may have ever been
recorded about a property. This abstract was then given to an attorney.
The attorney would read it and write up an attorney's opinion of title,
which is an opinion regarding the state of the title and its ability to be
transferred.
