NATIONAL REAL ESTATE EXAM PREPARATION QUESTIONS WITH FULLY SOLVED ANSWERS

NATIONAL REAL ESTATE EXAM PREPARATION QUESTIONS
WITH FULLY SOLVED ANSWERS


1) Unilateral Contract -- Answer ✔✔ Contract containing ONE promise given in
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exchange for completing an act. NO obligation to act.
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2) Bilateral Contract -- Answer ✔✔ Contract containing TWO promises. Example: A
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listing agreement is a bilateral contract
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3) Client/Principal -- Answer ✔✔ A person who has entered into an agency relationship t t t t t t t t t t t t t




w/ a licensee & with whom there is a written contract
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4) Customer -- Answer ✔✔ Any 3rd party w/ whom a licensee works
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5) In-Company Transaction -- Answer ✔✔ Transaction in which the buyer and seller are
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tboth represented by the same brokerage.
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6) Management-Level License -- Answer ✔✔ A licensee who is employed by or affiliated t t t t t t t t t t t t t




w/ a brokerage who has supervisory responsibility over other licensees.
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7) Statute of Frauds requires the following: -- Answer ✔✔ 1) Certain contracts be in
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writing to be enforceable, 2) All real estate contracts for the sale of LAND & ALL
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LEASES for more than one year, options for more than 6 months, must be in writing
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& signed by all parties.
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8) Novation -- Answer ✔✔ Substituting a new obligation for an old one. Also, a transfer
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of rights and/or duties under contract.
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9) If the original party to an agreement is replaced due to novation, are they liable? --
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Answer ✔✔ No t t

, 10) Mailbox Rule -- Answer ✔✔ Acceptance that becomes effective as soon as it is sent in
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the mail, unless the contract specified a certain means for delivery.
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11) Grantor is the -- Answer ✔✔ Owner
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12) Grantee is the -- Answer ✔✔ Buyer
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13) Optionor is the -- Answer ✔✔ Seller
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14) Optionee is the -- Answer ✔✔ Buyer
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15) Lessor is the -- Answer ✔✔ Landlord
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16) Lessee is the -- Answer ✔✔ Tenant
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17) Vendor is the -- Answer ✔✔ Seller
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18) Vendee is the -- Answer ✔✔ Buyer
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19) Mortgagor is the -- Answer ✔✔ Buyer t t t t t t




20) Mortgagee is the -- Answer ✔✔ Lender t t t t t t




21) Trustor is the -- Answer ✔✔ Buyer
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22) Trustee is the -- Answer ✔✔ 3rd Party to the transaction
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23) Regulation Z dictates -- Answer ✔✔ Disclosure Requirements in Credit
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Transactions, including the disclosure of the Annual Percentage Rate (APR)
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24) Regulation Z applies to: -- Answer ✔✔ ALL REAL ESTATE credit transactions except
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for commercial loans. For non-real estate transactions, it covers up to $25,000.
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