The CE Shop Exam Test Questions With
100% Correct Answers 2025 New Update
Compared to working without a buyer agency agreement, a buyer who works under a
buyer agency - Answers -✔✔ Receives a higher level of service
Switches that are warm to the touch, damaged panels, and lights that dim or flicker
when other appliances are in use can be signs of a(n) ______ problem. - Answers -✔✔
Electrical
In which of the following situations would an agent be representing a customer in a real
estate purchase? - Answers -✔✔ Never (A real estate agent may only represent a
client, not a customer. Agency involves an agency agreement. Customers are owed
certain duties, but agency is not one of them.)
Given all of the laws prohibiting discrimination in housing, why does it still occur? -
Answers -✔✔ It often happens outside of the public eye.
Jerome, a real estate licensee, works independently instead of under a sponsoring
broker. This means that he is licensed as ________. - Answers -✔✔ A broker
What is the purpose of the Consent for Dual Agency form? - Answers -✔✔ To obtain the
clients' consent or not for a broker/licensee to represent them as a dual agent/intra-
company agent should a dual agency situation arise
What's the definition of a land contract? - Answers -✔✔ Sellers provide funds or credit
to buyers in order to close the transaction.
What's a subordination agreement? - Answers -✔✔ It's an agreement that a previous
lender signed allowing a later lender to take over the primary, or first, loan position.
In real estate contracts, which are required: legal descriptions or street addresses? -
Answers -✔✔ Legal descriptions are required, because they provide less ambiguous
and more complete descriptions of properties than street addresses provide.
Kris made an offer on Lincoln's townhouse. However, Kris offered no earnest money. If
Lincoln accepted her offer, would it be binding? - Answers -✔✔ Yes, because the offer
to buy is the consideration.
What types of leases must be recorded? - Answers -✔✔ Leases that are longer than
seven years
, Which of these is an example of a rectangular survey system description? - Answers -
✔✔ S ½ SE ¼ NW ¼ Section 2, Township Clarkson
Jorge is a dual agent in a single-license dual agency situation. He owes his clients all of
the following fiduciary duties EXCEPT ___________. - Answers -✔✔ undivided loyalty
Shelly buys Mark's house, which is still in an option period with Monique. Monique
decides to exercise her option after Shelly moves in. What will happen? - Answers -✔✔
Shelly will have to sell the house to Monique. (If the optionor/seller sells land that's
under an option contract within the option period, the new owner is bound by that
contract, and the optionee may enforce the option against the new property owner.)
Your client exchanged one property for a similar property and did not have to pay
capital gains taxes that year. How did he do this? - Answers -✔✔ He did a tax-deferred
exchange.
Soundproofing and decorative material, shingles, and siding may contain what
hazardous material? - Answers -✔✔ Asbestos
Wayne conveys a property to Robbie until Robbie's death, when the property is
conveyed to Tiffany. What is this scenario an example of? - Answers -✔✔ Life estate
Life Estate - Answers -✔✔ A freehold estate granted for someone's lifetime
Ex. Emma wrote her will out to include possession of her home to her nephew for the
term of his life, after which it would pass to her favorite charity, Cats and Canaries.
Which agency enforces federal fair housing laws? - Answers -✔✔ FHEO
FHA - Answers -✔✔ The Federal Housing Administration
(FHA) is an agency of the U.S. Department of Housing and Urban Development. It sets
underwriting standards for loans it insures, but it doesn't make loans.
Ex. Rita obtained an FHA loan, allowing her to put just 3.5% down, and she also
appreciated that her loan's credit score requirements weren't as strict as for
conventional loans.
SFHAs - Answers -✔✔ special flood hazard areas (SFHAs)
Areas designated as prone to flooding; used to determine cost of flood insurance
Ex. Brady lived in a special flood hazard area and was required to carry flood insurance
by his lender.
Jay's new loan to purchase a property includes the seller's existing mortgage. This type
of loan is called a ______ loan. - Answers -✔✔ Wrap-around
100% Correct Answers 2025 New Update
Compared to working without a buyer agency agreement, a buyer who works under a
buyer agency - Answers -✔✔ Receives a higher level of service
Switches that are warm to the touch, damaged panels, and lights that dim or flicker
when other appliances are in use can be signs of a(n) ______ problem. - Answers -✔✔
Electrical
In which of the following situations would an agent be representing a customer in a real
estate purchase? - Answers -✔✔ Never (A real estate agent may only represent a
client, not a customer. Agency involves an agency agreement. Customers are owed
certain duties, but agency is not one of them.)
Given all of the laws prohibiting discrimination in housing, why does it still occur? -
Answers -✔✔ It often happens outside of the public eye.
Jerome, a real estate licensee, works independently instead of under a sponsoring
broker. This means that he is licensed as ________. - Answers -✔✔ A broker
What is the purpose of the Consent for Dual Agency form? - Answers -✔✔ To obtain the
clients' consent or not for a broker/licensee to represent them as a dual agent/intra-
company agent should a dual agency situation arise
What's the definition of a land contract? - Answers -✔✔ Sellers provide funds or credit
to buyers in order to close the transaction.
What's a subordination agreement? - Answers -✔✔ It's an agreement that a previous
lender signed allowing a later lender to take over the primary, or first, loan position.
In real estate contracts, which are required: legal descriptions or street addresses? -
Answers -✔✔ Legal descriptions are required, because they provide less ambiguous
and more complete descriptions of properties than street addresses provide.
Kris made an offer on Lincoln's townhouse. However, Kris offered no earnest money. If
Lincoln accepted her offer, would it be binding? - Answers -✔✔ Yes, because the offer
to buy is the consideration.
What types of leases must be recorded? - Answers -✔✔ Leases that are longer than
seven years
, Which of these is an example of a rectangular survey system description? - Answers -
✔✔ S ½ SE ¼ NW ¼ Section 2, Township Clarkson
Jorge is a dual agent in a single-license dual agency situation. He owes his clients all of
the following fiduciary duties EXCEPT ___________. - Answers -✔✔ undivided loyalty
Shelly buys Mark's house, which is still in an option period with Monique. Monique
decides to exercise her option after Shelly moves in. What will happen? - Answers -✔✔
Shelly will have to sell the house to Monique. (If the optionor/seller sells land that's
under an option contract within the option period, the new owner is bound by that
contract, and the optionee may enforce the option against the new property owner.)
Your client exchanged one property for a similar property and did not have to pay
capital gains taxes that year. How did he do this? - Answers -✔✔ He did a tax-deferred
exchange.
Soundproofing and decorative material, shingles, and siding may contain what
hazardous material? - Answers -✔✔ Asbestos
Wayne conveys a property to Robbie until Robbie's death, when the property is
conveyed to Tiffany. What is this scenario an example of? - Answers -✔✔ Life estate
Life Estate - Answers -✔✔ A freehold estate granted for someone's lifetime
Ex. Emma wrote her will out to include possession of her home to her nephew for the
term of his life, after which it would pass to her favorite charity, Cats and Canaries.
Which agency enforces federal fair housing laws? - Answers -✔✔ FHEO
FHA - Answers -✔✔ The Federal Housing Administration
(FHA) is an agency of the U.S. Department of Housing and Urban Development. It sets
underwriting standards for loans it insures, but it doesn't make loans.
Ex. Rita obtained an FHA loan, allowing her to put just 3.5% down, and she also
appreciated that her loan's credit score requirements weren't as strict as for
conventional loans.
SFHAs - Answers -✔✔ special flood hazard areas (SFHAs)
Areas designated as prone to flooding; used to determine cost of flood insurance
Ex. Brady lived in a special flood hazard area and was required to carry flood insurance
by his lender.
Jay's new loan to purchase a property includes the seller's existing mortgage. This type
of loan is called a ______ loan. - Answers -✔✔ Wrap-around
