GOLD COAST REAL ESTATE FINAL EXAM (2026/2027)
COMPREHENSIVE STUDY GUIDE COMPLETE WITH 100%
VERIFIED ANSWERS
1. Which of the following is considered a fiduciary duty owed by a real
estate agent to their principal?
A. Obedience
B. Loyalty
C. Disclosure
D. Accounting
Correct Answer: B
Rationale: Loyalty requires the agent to place the principal's interests
above all others, including their own, making it the foundation of the
fiduciary relationship.
2. A buyer wants to purchase a home but needs to know the exact
monthly payment including principal, interest, taxes, and insurance.
Which type of loan provides this stability?
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Fixed-rate mortgage
D. Interest-only mortgage
Correct Answer: C
Rationale: A fixed-rate mortgage locks in the interest rate for the life of
the loan, ensuring consistent principal and interest payments.
,**3. A borrower has a $200,000 mortgage at 6% interest. What is the
monthly interest payment on the first month?**
A. $1,000
B. $1,200
C. $1,500
D. $900
Correct Answer: A
Rationale: $200,000 multiplied by 6% equals $12,000 annual interest.
Divided by 12 months equals $1,000 for the first month's interest.
4. Which federal law requires lenders to provide borrowers with a
Loan Estimate within three business days of application?
A. RESPA
B. TILA
C. ECOA
D. HMDA
Correct Answer: B
Rationale: The Truth in Lending Act (TILA), specifically through the TRID
rule, mandates the Loan Estimate to disclose credit terms clearly.
**5. A seller agrees to pay the listing broker 6% commission. If the
property sells for $450,000, how much does the seller owe?**
A. $24,000
B. $27,000
C. $30,000
D. $32,500
Correct Answer: B
Rationale: $450,000 multiplied by 0.06 equals $27,000 total commission
paid by the seller.
,6. What type of listing agreement allows the seller to sell the property
themselves without paying a commission, while still allowing the
broker to market it?
A. Exclusive right-to-sell
B. Exclusive agency
C. Open listing
D. Net listing
Correct Answer: B
Rationale: In an exclusive agency agreement, the seller retains the right
to sell the property independently without owing the broker a
commission.
7. Which of the following is a protected class under the Federal Fair
Housing Act?
A. Occupation
B. Marital status
C. Familial status
D. Sexual orientation
Correct Answer: C
Rationale: The Federal Fair Housing Act explicitly protects race, color,
religion, sex, national origin, familial status, and disability.
**8. A property is valued at $300,000. The assessed value is 80% of the
market value, and the tax rate is $15 per $1,000. What is the annual
property tax?**
A. $3,600
B. $3,200
C. $3,800
D. $4,000
Correct Answer: A
, Rationale: Assessed value is $240,000. $240,000 divided by $1,000
equals 240. 240 multiplied by $15 equals $3,600.
9. Which of the following best describes a "cloud on title"?
A. A physical defect on the property
B. Any claim or encumbrance that impairs the owner's title
C. A zoning violation
D. An unpaid utility bill
Correct Answer: B
Rationale: A cloud on title is any irregularity or claim that could prevent
the property from being transferred with a clear title.
10. An agent represents both the buyer and the seller in the same
transaction. This is known as:
A. Dual agency
B. Subagency
C. Single agency
D. Transaction brokerage
Correct Answer: A
Rationale: Dual agency occurs when a single broker represents both
parties in a transaction, requiring full disclosure and consent from both.
11. What is the primary purpose of the Federal Reserve System?
A. To insure bank deposits
B. To regulate the money supply and interest rates
C. To supervise real estate agents
D. To set property tax rates
Correct Answer: B
Rationale: The Federal Reserve controls monetary policy, including
influencing the money supply and setting the discount rate.
COMPREHENSIVE STUDY GUIDE COMPLETE WITH 100%
VERIFIED ANSWERS
1. Which of the following is considered a fiduciary duty owed by a real
estate agent to their principal?
A. Obedience
B. Loyalty
C. Disclosure
D. Accounting
Correct Answer: B
Rationale: Loyalty requires the agent to place the principal's interests
above all others, including their own, making it the foundation of the
fiduciary relationship.
2. A buyer wants to purchase a home but needs to know the exact
monthly payment including principal, interest, taxes, and insurance.
Which type of loan provides this stability?
A. Adjustable-rate mortgage
B. Balloon mortgage
C. Fixed-rate mortgage
D. Interest-only mortgage
Correct Answer: C
Rationale: A fixed-rate mortgage locks in the interest rate for the life of
the loan, ensuring consistent principal and interest payments.
,**3. A borrower has a $200,000 mortgage at 6% interest. What is the
monthly interest payment on the first month?**
A. $1,000
B. $1,200
C. $1,500
D. $900
Correct Answer: A
Rationale: $200,000 multiplied by 6% equals $12,000 annual interest.
Divided by 12 months equals $1,000 for the first month's interest.
4. Which federal law requires lenders to provide borrowers with a
Loan Estimate within three business days of application?
A. RESPA
B. TILA
C. ECOA
D. HMDA
Correct Answer: B
Rationale: The Truth in Lending Act (TILA), specifically through the TRID
rule, mandates the Loan Estimate to disclose credit terms clearly.
**5. A seller agrees to pay the listing broker 6% commission. If the
property sells for $450,000, how much does the seller owe?**
A. $24,000
B. $27,000
C. $30,000
D. $32,500
Correct Answer: B
Rationale: $450,000 multiplied by 0.06 equals $27,000 total commission
paid by the seller.
,6. What type of listing agreement allows the seller to sell the property
themselves without paying a commission, while still allowing the
broker to market it?
A. Exclusive right-to-sell
B. Exclusive agency
C. Open listing
D. Net listing
Correct Answer: B
Rationale: In an exclusive agency agreement, the seller retains the right
to sell the property independently without owing the broker a
commission.
7. Which of the following is a protected class under the Federal Fair
Housing Act?
A. Occupation
B. Marital status
C. Familial status
D. Sexual orientation
Correct Answer: C
Rationale: The Federal Fair Housing Act explicitly protects race, color,
religion, sex, national origin, familial status, and disability.
**8. A property is valued at $300,000. The assessed value is 80% of the
market value, and the tax rate is $15 per $1,000. What is the annual
property tax?**
A. $3,600
B. $3,200
C. $3,800
D. $4,000
Correct Answer: A
, Rationale: Assessed value is $240,000. $240,000 divided by $1,000
equals 240. 240 multiplied by $15 equals $3,600.
9. Which of the following best describes a "cloud on title"?
A. A physical defect on the property
B. Any claim or encumbrance that impairs the owner's title
C. A zoning violation
D. An unpaid utility bill
Correct Answer: B
Rationale: A cloud on title is any irregularity or claim that could prevent
the property from being transferred with a clear title.
10. An agent represents both the buyer and the seller in the same
transaction. This is known as:
A. Dual agency
B. Subagency
C. Single agency
D. Transaction brokerage
Correct Answer: A
Rationale: Dual agency occurs when a single broker represents both
parties in a transaction, requiring full disclosure and consent from both.
11. What is the primary purpose of the Federal Reserve System?
A. To insure bank deposits
B. To regulate the money supply and interest rates
C. To supervise real estate agents
D. To set property tax rates
Correct Answer: B
Rationale: The Federal Reserve controls monetary policy, including
influencing the money supply and setting the discount rate.
