REAL ESTATE FINAL EXAM (150 QUESTIONS ) WITH VERIFIED AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+

REAL ESTATE FINAL EXAM (150 QUESTIONS )
WITH VERIFIED AND 100% CORRECT


A real estate licensee has a buyer agency agreement. What is the seller in this situation? -
B B B B B B B B B B B B B B B B



B ANSWER A customer. B




An optionor and an optionee make a contract for an option on a commercial piece of property.
B B B B B B B B B B B B B B B B



If the optionee decides to exercise his option, when must he perform? -
B B B B B B B B B B B B B



B ANSWER He must exercise his option under the terms of the option contract.
B B B B B B B B B B B




When can a landlord evict a disabled blind or disabled tenant from the premises? -
B B B B B B B B B B B B B B



BANSWER If the tenant has loud parties, makes too much noise, and is constantly disturb B B B B B B B B B B B B B



ing other tenants
B B




4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, w
B B B B B B B B B B B B B B B B



ith XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Brok
B B B B B B B B B B B B B B B B



er Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relation
B B B B B B B B B B B B B B B B B B B



ship between the buyer's broker, the seller and the listing broker? -
B B B B B B B B B B B



BANSWER There is not a relationship between the parties. Broker Carr represents the Sel B B B B B B B B B B B B



ler and Broker Smith represents the Buyer.
B B B B B B




A buyer bought a property without telling the seller of his intended purpose for the property.
B B B B B B B B B B B B B B B B



The contract contains no contingency clauses and it is a properly executed contract. After the
B B B B B B B B B B B B B B B



closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is t
B B B B B B B B B B B B B B B B B



he contract at this stage? - ANSWER
B B B B B B Enforceable



6. The seller and the buyer finally agreed to a purchase price of $203,500 with the closing to o
B B B B B B B B B B B B B B B B B B



ccur on June 15. The taxes for the year in the amount of $2,500 have not been paid by the sell
B B B B B B B B B B B B B B B B B B B B



er. (Taxes are paid in arrears). How much would the tax proration amount to, and how would it
B B B B B B B B B B B B B B B B B



appear on a full settlement statement? Base your answer on a 365 day year, and the buyer is r
B B B B B B B B B B B B B B B B B B B



esponsible for the day of settlement. - B B B B B B



B ANSWER $1,130.14 debit the seller and credit the buyer B B B B B B B




1
Wicky

,A seller listed his home for six months on February 26. On April 29, a buyer made an offer on t
B B B B B B B B B B B B B B B B B B B B



he property. The listing broker presented the offer to the seller on April 30. The seller accepte
B B B B B B B B B B B B B B B B



d the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on
B B B B B B B B B B B B B B B B B B B B



June 15, when did the listing expire? - ANSWER
B B B B B B B B 6/15



The sellers listed their property for six months on February 26 for $522,500. They agreed to pa
B B B B B B B B B B B B B B B B



y the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made a
B B B B B B B B B B B B B B B B B B



n offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at
B B B B B B B B B B B B B B B B B B B



$517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How
B B B B B B B B B B B B B B B B B



much commission did the seller owe the listing broker, and how would it appear on the settle
B B B B B B B B B B B B B B B B



ment statement? - ANSWER B B B $36,225. Debit the seller. B B B




The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on J
B B B B B B B B B B B B B B B B B B



une 15. The seller's loan balance after the June 1 payment was $170,000. with an interest rate
B B B B B B B B B B B B B B B B B



of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the
B B B B B B B B B B B B B B



day of closing, and how much interest did the seller owe the bank? -
B B B B B B B B B B B B B B



B ANSWER Loan balance $170,000; interest due $425
B B B B B




The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan.
B B B B B B B B B B B B B B B B B



How much was the buyer's loan and how did it appear on the settlement statement? -
B B B B B B B B B B B B B B B



B ANSWER $ 248,400. Credit the buyer only.
B B B B B




A home improvement company was negotiating with a homeowner to add on two rooms to a
B B B B B B B B B B B B B B B B



home. The company agreed to take a second mortgage as long as the homeowner also include
B B B B B B B B B B B B B B B



d the rest of the property in the loan. The company and the homeowner agreed to a price and
B B B B B B B B B B B B B B B B B B B



the company provided the necessary disclosure form on Monday and the homeowner signed
B B B B B B B B B B B B B



the agreement at noon the following day. Assuming that the week had five business days, until
B B B B B B B B B B B B B B B



Bwhat time could the homeowner rescind the loan? -
B B B B B B B B



B ANSWER Friday, midnight (Three business day period)
B B B B B




The seller under a land contract is called - ANSWER
B B B B B B B B B The vendor B




2
Wicky

, On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long di
B B B B B B B B B B B B B B B B B



d he have the loan? - ANSWER
B B B B B B 42 months B




Are recording fees and title insurance premiums part of the Truth in Lending statement? -
B B B B B B B B B B B B B B



ANSWER
B No, These are considered legal, not financing fees and therefore are not part
B B B B B B B B B B B B B



of the Truth in Lending statement.
B B B B B




A mortgage broker - ANSWER
B B B B arranges loans between borrowers and investors.
B B B B B




The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 an
B B B B B B B B B B B B B B



d agreed to assume the seller's existing mortgage, which had a current balance of $230,000. T
B B B B B B B B B B B B B B B



he Smiths' financed the remaining $370,000 of the purchase price by executing a second mort
B B B B B B B B B B B B B B



gage whereby the seller became a mortgagee. This type of loan is called a -
B B B B B B B B B B B B B B



B ANSWER part purchase mortgage
B B




On a $500,000 loan the borrower is required to pay two points. How much does the borrower
B B B B B B B B B B B B B B B B B



have to pay the lender? - ANSWER
B B B B B B $510,000.00



The discount points charged by a lender on a federal VA or FHA loan are a percentage of the -
B B B B B B B B B B B B B B B B B B B



B ANSWER loan amount. B




An increase in the availability of money would lead to which effect? -
B B B B B B B B B B B B



B ANSWER Interest rates would go down. B B B B




When the amortized payment of a mortgage remains constant over the period of the loan but
B B B B B B B B B B B B B B B B



leaves an outstanding balance to be paid at the end, this payment is called -
B B B B B B B B B B B B B B



B ANSWER a balloon payment.
B B




In an installment land contract, what type of title did the seller retain? - ANSWER
B B B B B B B B B B B B B B Legal




3
Wicky