CLC EXAM 2026/ CLC EXAM QUESTIONS AND CORRECT
DETAILED ANSWERS A NEW UPDATED VERSION LATEST
2026-2027 ( CORRECT VERIFIED ANSWERS) ALREADY
GRADED A+
1. A buyer’s agent learns that the seller is willing to accept 10% below the asking price. Before
writing an offer, the agent should:
● A) Share this information with the buyer immediately
● B) Keep the information confidential until the offer is written
● C) Disclose the information only to the buyer’s family members
● D) Tell the buyer, as it is material to the buyer’s decision
2. Under the Real Estate Settlement Procedures Act (RESPA), which of the following is
prohibited?
● A) Charging a reasonable fee for actual services rendered
● B) Giving a referral fee to a licensed real estate agent
● C) Accepting a kickback for referring a title company
● D) Providing a good faith estimate of closing costs
3. A property is listed at $250,000. A buyer offers $240,000. The seller counteroffers at
$245,000. The buyer dies before accepting the counteroffer. The counteroffer is:
● A) Still valid if the buyer’s estate accepts within the time limit
● B) Automatically revoked by operation of law
● C) Valid only if the seller is notified of the death
● D) Binding on the buyer’s heirs for 72 hours
4. Which of the following is an example of an institutional lender?
● A) A private individual lending to a family member
● B) A commercial bank
● C) A hard money lender
● D) A real estate investment trust (REIT)
5. A tenant’s lease expires on June 30. The tenant continues paying rent, and the landlord
accepts it without a new lease. This is an example of a:
● A) Periodic tenancy
● B) Tenancy at sufferance
● C) Tenancy for years
, ● D) Tenancy at will
6. Which clause in a mortgage allows the lender to demand full repayment if the property is
sold?
● A) Subordination clause
● B) Prepayment clause
● C) Due-on-sale clause
● D) Acceleration clause
7. A buyer assumes an existing mortgage. If the borrower defaults, the lender can seek a
deficiency judgment against:
● A) The buyer only
● B) The seller only
● C) Both buyer and seller, unless the seller was released in writing
● D) Neither, because assumption extinguishes liability
8. The primary purpose of a Truth in Lending Act (TILA) disclosure is to:
● A) Set maximum interest rates
● B) Allow consumers to compare credit terms
● C) Prohibit redlining
● D) Regulate mortgage servicing
9. An agent tells a prospective buyer that the neighborhood’s schools are “excellent” without
verifying test scores. This could be considered:
● A) Fraudulent misrepresentation only if the buyer has children
● B) Puffing, if it is merely opinion
● C) A violation of fair housing laws
● D) An implied warranty of habitability
10. A homeowner installs a fence 3 feet onto a neighbor’s property. After 15 years, the neighbor
never objected. The homeowner may claim ownership of that strip under:
● A) Adverse possession
● B) Easement by prescription
● C) Eminent domain
● D) Equitable servitude
11. Which document is used to transfer title to real property at closing?
● A) Mortgage
● B) Deed
● C) Promissory note
, ● D) Title insurance policy
12. A broker deposits earnest money into the brokerage’s operating account instead of a trust
account. This is:
● A) Permitted if the broker notifies the buyer within 3 days
● B) Commingling, which is prohibited
● C) Allowed for amounts under $1,000
● D) Legal if the seller consents
13. A property has a gross annual income of $60,000 and operating expenses of $25,000. If the
cap rate is 8%, what is the value?
● A) $750,000
● B) $437,500
● C) $312,500
● D) $468,750
14. Which type of listing gives the seller the right to sell the property themselves without owing
a commission?
● A) Exclusive right-to-sell listing
● B) Exclusive agency listing
● C) Open listing
● D) Net listing
15. A radon test result shows 3.0 pCi/L. The agent should advise the buyer that:
● A) *This is below the EPA action level of 4.0 pCi/L, but mitigation may still be
considered*
● B) The property is unsafe and cannot be occupied
● C) No further action is ever required
● D) Only levels above 10.0 pCi/L matter
16. Under the Americans with Disabilities Act (ADA), which properties must comply?
● A) All single-family homes
● B) Commercial facilities open to the public
● C) Apartment buildings with 3 or fewer units
● D) All residential rentals
17. A buyer fails to secure financing by the date specified in the purchase agreement. The seller
may:
● A) Automatically keep the earnest money
● B) Terminate the contract if the buyer has no financing contingency
DETAILED ANSWERS A NEW UPDATED VERSION LATEST
2026-2027 ( CORRECT VERIFIED ANSWERS) ALREADY
GRADED A+
1. A buyer’s agent learns that the seller is willing to accept 10% below the asking price. Before
writing an offer, the agent should:
● A) Share this information with the buyer immediately
● B) Keep the information confidential until the offer is written
● C) Disclose the information only to the buyer’s family members
● D) Tell the buyer, as it is material to the buyer’s decision
2. Under the Real Estate Settlement Procedures Act (RESPA), which of the following is
prohibited?
● A) Charging a reasonable fee for actual services rendered
● B) Giving a referral fee to a licensed real estate agent
● C) Accepting a kickback for referring a title company
● D) Providing a good faith estimate of closing costs
3. A property is listed at $250,000. A buyer offers $240,000. The seller counteroffers at
$245,000. The buyer dies before accepting the counteroffer. The counteroffer is:
● A) Still valid if the buyer’s estate accepts within the time limit
● B) Automatically revoked by operation of law
● C) Valid only if the seller is notified of the death
● D) Binding on the buyer’s heirs for 72 hours
4. Which of the following is an example of an institutional lender?
● A) A private individual lending to a family member
● B) A commercial bank
● C) A hard money lender
● D) A real estate investment trust (REIT)
5. A tenant’s lease expires on June 30. The tenant continues paying rent, and the landlord
accepts it without a new lease. This is an example of a:
● A) Periodic tenancy
● B) Tenancy at sufferance
● C) Tenancy for years
, ● D) Tenancy at will
6. Which clause in a mortgage allows the lender to demand full repayment if the property is
sold?
● A) Subordination clause
● B) Prepayment clause
● C) Due-on-sale clause
● D) Acceleration clause
7. A buyer assumes an existing mortgage. If the borrower defaults, the lender can seek a
deficiency judgment against:
● A) The buyer only
● B) The seller only
● C) Both buyer and seller, unless the seller was released in writing
● D) Neither, because assumption extinguishes liability
8. The primary purpose of a Truth in Lending Act (TILA) disclosure is to:
● A) Set maximum interest rates
● B) Allow consumers to compare credit terms
● C) Prohibit redlining
● D) Regulate mortgage servicing
9. An agent tells a prospective buyer that the neighborhood’s schools are “excellent” without
verifying test scores. This could be considered:
● A) Fraudulent misrepresentation only if the buyer has children
● B) Puffing, if it is merely opinion
● C) A violation of fair housing laws
● D) An implied warranty of habitability
10. A homeowner installs a fence 3 feet onto a neighbor’s property. After 15 years, the neighbor
never objected. The homeowner may claim ownership of that strip under:
● A) Adverse possession
● B) Easement by prescription
● C) Eminent domain
● D) Equitable servitude
11. Which document is used to transfer title to real property at closing?
● A) Mortgage
● B) Deed
● C) Promissory note
, ● D) Title insurance policy
12. A broker deposits earnest money into the brokerage’s operating account instead of a trust
account. This is:
● A) Permitted if the broker notifies the buyer within 3 days
● B) Commingling, which is prohibited
● C) Allowed for amounts under $1,000
● D) Legal if the seller consents
13. A property has a gross annual income of $60,000 and operating expenses of $25,000. If the
cap rate is 8%, what is the value?
● A) $750,000
● B) $437,500
● C) $312,500
● D) $468,750
14. Which type of listing gives the seller the right to sell the property themselves without owing
a commission?
● A) Exclusive right-to-sell listing
● B) Exclusive agency listing
● C) Open listing
● D) Net listing
15. A radon test result shows 3.0 pCi/L. The agent should advise the buyer that:
● A) *This is below the EPA action level of 4.0 pCi/L, but mitigation may still be
considered*
● B) The property is unsafe and cannot be occupied
● C) No further action is ever required
● D) Only levels above 10.0 pCi/L matter
16. Under the Americans with Disabilities Act (ADA), which properties must comply?
● A) All single-family homes
● B) Commercial facilities open to the public
● C) Apartment buildings with 3 or fewer units
● D) All residential rentals
17. A buyer fails to secure financing by the date specified in the purchase agreement. The seller
may:
● A) Automatically keep the earnest money
● B) Terminate the contract if the buyer has no financing contingency
