NATIONAL REAL ESTATE EXAM WITH
CORRECT ANSWERS 2026/2027
1. Unilateral Contract - ANSWER-Contract containing ONE promise
given in exchange for completing an act. NO obligation to act.
2. Bilateral Contract - ANSWER-Contract containing TWO
promises. Example: A listing agreement is a bilateral contract
3. Client/Principal - ANSWER-A person who has entered into an
agency relationship w/ a licensee & with whom there is a
written contract
4. Customer - ANSWER-Any 3rd party w/ whom a licensee works
5. In-Company Transaction - ANSWER-Transaction in which the
buyer and seller are both represented by the same brokerage.
6. Management-Level License - ANSWER-A licensee who is
employed by or affiliated w/ a brokerage who has supervisory
responsibility over other licensees.
7. Statute of Frauds requires the following: - ANSWER-1) Certain
contracts be in writing to be enforceable, 2) All real estate
contracts for the sale of LAND & ALL LEASES for more than one
year, options for more than 6 months, must be in writing &
signed by all parties.
8. Novation - ANSWER-Substituting a new obligation for an old
one. Also, a transfer of rights and/or duties under contract.
, 9. If the original party to an agreement is replaced due to
novation, are they liable? - ANSWER-No
10. Mailbox Rule - ANSWER-Acceptance that becomes effective as
soon as it is sent in the mail, unless the contract specified a
certain means for delivery.
11. Grantor is the - ANSWER-Owner
12. Grantee is the - ANSWER-Buyer
13. Optionor is the - ANSWER-Seller
14. Optionee is the - ANSWER-Buyer
15. Lessor is the - ANSWER-Landlord
16. Lessee is the - ANSWER-Tenant
17. Vendor is the - ANSWER-Seller
18. Vendee is the - ANSWER-Buyer
19. Mortgagor is the - ANSWER-Buyer
20. Mortgagee is the - ANSWER-Lender
CORRECT ANSWERS 2026/2027
1. Unilateral Contract - ANSWER-Contract containing ONE promise
given in exchange for completing an act. NO obligation to act.
2. Bilateral Contract - ANSWER-Contract containing TWO
promises. Example: A listing agreement is a bilateral contract
3. Client/Principal - ANSWER-A person who has entered into an
agency relationship w/ a licensee & with whom there is a
written contract
4. Customer - ANSWER-Any 3rd party w/ whom a licensee works
5. In-Company Transaction - ANSWER-Transaction in which the
buyer and seller are both represented by the same brokerage.
6. Management-Level License - ANSWER-A licensee who is
employed by or affiliated w/ a brokerage who has supervisory
responsibility over other licensees.
7. Statute of Frauds requires the following: - ANSWER-1) Certain
contracts be in writing to be enforceable, 2) All real estate
contracts for the sale of LAND & ALL LEASES for more than one
year, options for more than 6 months, must be in writing &
signed by all parties.
8. Novation - ANSWER-Substituting a new obligation for an old
one. Also, a transfer of rights and/or duties under contract.
, 9. If the original party to an agreement is replaced due to
novation, are they liable? - ANSWER-No
10. Mailbox Rule - ANSWER-Acceptance that becomes effective as
soon as it is sent in the mail, unless the contract specified a
certain means for delivery.
11. Grantor is the - ANSWER-Owner
12. Grantee is the - ANSWER-Buyer
13. Optionor is the - ANSWER-Seller
14. Optionee is the - ANSWER-Buyer
15. Lessor is the - ANSWER-Landlord
16. Lessee is the - ANSWER-Tenant
17. Vendor is the - ANSWER-Seller
18. Vendee is the - ANSWER-Buyer
19. Mortgagor is the - ANSWER-Buyer
20. Mortgagee is the - ANSWER-Lender
