National Real Estate Exam Prep 2025
Questions and Answers
Unilateral Contract - ANSWER✔✔-Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
Bilateral Contract - ANSWER✔✔-Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
Client/Principal - ANSWER✔✔-A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
Customer - ANSWER✔✔-Any 3rd party w/ whom a licensee works
In-Company Transaction - ANSWER✔✔-Transaction in which the buyer and seller are both
represented by the same brokerage.
Management-Level License - ANSWER✔✔-A licensee who is employed by or affiliated w/ a
brokerage who has supervisory responsibility over other licensees.
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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Novation - ANSWER✔✔-Substituting a new obligation for an old one. Also, a transfer of rights
and/or duties under contract.
If the original party to an agreement is replaced due to novation, are they liable? - ANSWER✔✔-No
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.
Grantor is the - ANSWER✔✔-Owner
Grantee is the - ANSWER✔✔-Buyer
Optionor is the - ANSWER✔✔-Seller
Optionee is the - ANSWER✔✔-Buyer
Lessor is the - ANSWER✔✔-Landlord
Lessee is the - ANSWER✔✔-Tenant
Vendor is the - ANSWER✔✔-Seller
Vendee is the - ANSWER✔✔-Buyer
Mortgagor is the - ANSWER✔✔-Buyer
Mortgagee is the - ANSWER✔✔-Lender
Trustor is the - ANSWER✔✔-Buyer
Trustee is the - ANSWER✔✔-3rd Party to the transaction
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Questions and Answers
Unilateral Contract - ANSWER✔✔-Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
Bilateral Contract - ANSWER✔✔-Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
Client/Principal - ANSWER✔✔-A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
Customer - ANSWER✔✔-Any 3rd party w/ whom a licensee works
In-Company Transaction - ANSWER✔✔-Transaction in which the buyer and seller are both
represented by the same brokerage.
Management-Level License - ANSWER✔✔-A licensee who is employed by or affiliated w/ a
brokerage who has supervisory responsibility over other licensees.
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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Novation - ANSWER✔✔-Substituting a new obligation for an old one. Also, a transfer of rights
and/or duties under contract.
If the original party to an agreement is replaced due to novation, are they liable? - ANSWER✔✔-No
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.
Grantor is the - ANSWER✔✔-Owner
Grantee is the - ANSWER✔✔-Buyer
Optionor is the - ANSWER✔✔-Seller
Optionee is the - ANSWER✔✔-Buyer
Lessor is the - ANSWER✔✔-Landlord
Lessee is the - ANSWER✔✔-Tenant
Vendor is the - ANSWER✔✔-Seller
Vendee is the - ANSWER✔✔-Buyer
Mortgagor is the - ANSWER✔✔-Buyer
Mortgagee is the - ANSWER✔✔-Lender
Trustor is the - ANSWER✔✔-Buyer
Trustee is the - ANSWER✔✔-3rd Party to the transaction
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
