CE Shop Exam Prep Course 1 Questions with Correct Answers 2026 | Complete Real Estate Study Guide & Practice Test

CESHOPEXAMPREP(COURSE1)QUESTIONS WITH
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b CORRECT ANSWERS 2026. b b




Your client is financing a new home. They submitted their loan application on Monday, August
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3. They are set to close on Thursday, September 21. By what date must her lender provide the Closing
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Disclosure? - CORRECT ANSWER -
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Lenders must provide the Closing Disclosure three days before closing (September 18).
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Associate Broker - CORRECT ANSWER -A broker who chooses to work for another broker
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Brokerage (or "business entity") - CORRECT ANSWER - b b b b b b b




Any business structure, such as a corporation or limited liability company, that holds a real esta te
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broker license
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Buyer's Broker - CORRECT ANSWER - b b b b b




A licensee who represents a buyer under a signed buyer's broker agreement, and owes to the buyer
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fiduciary duties
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Closing agent - CORRECT ANSWER -b b b b b




A person who provides closing services incident to the sale, trade, lease, or loan of residential real
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estate, including drawing or assisting in drawing papers incident to the sale, trade, lease, o r loan, or a
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person who advertises or claims to be engaged in these activities.
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Commissioner - CORRECT ANSWER -The commissioner of commerce or a designee b b b b b b b b b b




Licensee - CORRECT ANSWER -A person duly licensed under chapter 82
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Limited broker - CORRECT ANSWER - b b b b b




A broker authorized to conduct real estate transactions as principal only. May not manage or s ell
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property on behalf of others, employ salespersons or agents, or conduct mortgage activities
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.

,Loan broker - CORRECT ANSWER -
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A person who, for a fee, directly or indirectly, negotiates or offers or attempts to negotiate a lo an
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secured or to be secured by a mortgage or other encumbrance on real estate
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Primary broker - CORRECT ANSWER - b b b b b




The broker on whose behalf salespersons are licensed. In the case of a corporation licensed as a
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broker "primary brokers" means each officer of the corporation who is individually licensed t o act as
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a broker for the corporation. In the case of a partnership, "primary broker" means eac h partner
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licensed to act as a broker for the partnership. In the case of a limited liability compa ny licensed as a
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broker, "primary broker" means each officer of the company who is individuall y licensed to act as a
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broker for the company.
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Real Estate Broker - CORRECT ANSWER -
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A person who, for another and for a fee, or with the intention or expectation of receiving com
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pensation, lists, sells, exchanges, buys or rents, manages, or offers or attempts to negotiate a s ale,
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option, exchange, purchase or rental of an interest or estate in real estate, or claims to be engaged in
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these activities
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Note - CORRECT ANSWER - b b b b




Anyone that works as a principle in five or more transactions within a 12 month period is said t o be
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officially engaged in real estate, unless that persons employs a real estate broker or salesp erson
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Real estate sales person - CORRECT ANSWER -One who acts on behalf of a real- estate
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broker in preforming any act authorized by chapter 82
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Seller's Broker - CORRECT ANSWER - b b b b b




A licensee who represents a seller under a signed seller's broker agreement, and owes to the s eller
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fiduciary duties
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Sponsor - CORRECT ANSWER -A person offering or providing real estate education
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,Trust Account - CORRECT ANSWER -
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A savings account, negotiable order of withdrawal account, demand deposit or checking accou nt
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maintained for the purpose of segregating trust funds from other funds. A trust account mu st be an
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interest-
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bearing account paying the highest current passbook savings account rate of interest and must not
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allow the financial institution a right of set off against money owed it by the licensee.
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Trust funds - CORRECT ANSWER -
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Funds received by a broker, salesperson, or closing agent in a fiduciary capacity as a part of a r eal
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estate or business opportunity transaction, pending the consummation or termination of a
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transaction, and includes all down payments, earnest money deposits, rents for clients, tax and
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insurance escrow payments, damage deposits, and any funds received on behalf of any person
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.



Commingling - CORRECT ANSWER -Mixing the clients money with your own b b b b b b b b b b




Conversion - CORRECT ANSWER -Using escrow funds for your own use b b b b b b b b b b




Automated Valuation Model (AVM) - CORRECT ANSWER - b b b b b b b




Statue: A computerized model used by mortgage originators and secondary market issues to d
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etermine the collateral worth of a mortgage secured or to be secured by a consumers principal
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dwelling
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AmVs are essentially computer programs that calculate a property's approximate value using p ublic
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records data and comparable property data. They don't carry the personal touch or insigh t that a cma
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or appraisal does
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Broker Price Opinion (BPO) - CORRECT ANSWER -
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Statue: As estimate prepared by a real estate broke, real estate salesperson, or licensed real es tate
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appraiser that details the probable selling price of a particular parcel of real property and
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, provides a varying level of detail about the property's condition, market, and neighborhood, an d
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information on comparable sales, but does not include an automated valuation model
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BPOS are opinions of a property's value that are typically less detailed than a compatible mark et
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analysis or appraisal. Lenders will often order them when valuing foreclosed properties
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Business of financial planning - CORRECT ANSWER -
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Providing or offering financial advice, counseling, or planning services to others. Individuals per
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forming or advertising these services may use any of the following titles: financial planner, fina ncial
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counselor, financial adviser, investment counselor, estate planner, investment adviser, fina ncial
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consultant, or similar real-estate
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Dual Agency - CORRECT ANSWER -
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A situation in which a licensee owes a duty to more than one party to the transaction
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Dual agency requires occurs when either one licensee represents both transactions parties or when
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two licensee from the same brokerage each represent one party to a transaction
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Electronic agent - CORRECT ANSWER - b b b b b




A computer program or an electronic or other automated means used independently to initiat e an
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action or respond to electronic records or performances in whole or in part, without revie w or action
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by an individual.
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Examples of electronic agents include: search engines, electronic money transfers or e signatur e
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programs like docusign
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Electronic Record - CORRECT ANSWER - b b b b b




A record that is created, generated, sent, communicated, received, or stored by electronic mea ns.
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