REAL ESTATE EXAM LATEST UPDATE 2025|ACTUAL EXAM QUESTIONS AND 100% CORRECT ANSWERS|2025/2026|GRADED A+

Which two documents are necessary to establish a legally binding mortgage loan? - ANSWER-
B B B B B B B B B B B B B



Promissory note and deed of trust B B B B B




The promissory note outlines the borrower's promise to repay the loan, while the deed of trus
B B B B B B B B B B B B B B B



t secures the property as collateral for the loan
B B B B B B B B




If a buyer defaults on a sales contract after providing $10,000 as earnest money for a $200,000
B B B B B B B B B B B B B B B B



Bproperty, what can the seller do with the $10,000? - ANSWER-
B B B B B B B B B B



Keep the entire amount as compensation.
B B B B B B




Earnest money serves as a form of security deposit and is typically forfeited by the buyer in th
B B B B B B B B B B B B B B B B B



e event of default as a way to compensate the seller for any losses or damages
B B B B B B B B B B B B B B B




Surface rights, air rights and subsurface rights are all rights that can be sold by a property own
B B B B B B B B B B B B B B B B B



er while still retaining the property itself. These rights are known as: - ANSWER-
B B B B B B B B B B B B B



Severable rights B




Surface rights, air rights, and subsurface rights can be sold separately and are called severable
B B B B B B B B B B B B B B B



rights.



When an easement allows the use of a neighboring property which automatically transfers up
B B B B B B B B B B B B B



on the sale of either dominant or servient property, it is called what type of easement? -
B B B B B B B B B B B B B B B B



B ANSWER- Easement Appurtenant B




Appurtenant means "runs with the land". An easement Appurtenant is an easement allowing
B B B B B B B B B B B B B



the use of a neighboring property which automatically transfers upon the sale of either domin
B B B B B B B B B B B B B B



ant or servient property.
B B B




1
Wicky

, In real estate, what is the closest meaning to the term "quieting a title?" - ANSWER-
B B B B B B B B B B B B B B B



Clearing any liens or encumbrances on a property.
B B B B B B B B




Refers to legal process of resolving any claims, deflects, or disputes that could cloud or challen
B B B B B B B B B B B B B B B



ge ownership rights of a property, ensuring a clear and marketable title.
B B B B B B B B B B B




What is the highest form of land ownership which includes the full and complete bundle of pr
B B B B B B B B B B B B B B B B



operty rights? - ANSWER- B B B Fee Simple Absolute B B




It is the highest level of property ownership giving the owner(s) the right of possession, contro
B B B B B B B B B B B B B B B



l, exclusion, enjoyment, & disposition.
B B B B




If your broker sells a triangular parcel of land for $750 an acre, and your commission rate is 8%
B B B B B B B B B B B B B B B B B B



, what will be your commission if the land has a base length of 1,200 feet and a height of 700 f
B B B B B B B B B B B B B B B B B B B B B



eet? - ANSWER- B B $578.71



The triangular parcel's area is (1/2) x 1,200 ft x 700 ft = 420,000 square feet. There is 43,560 Sq
B B B B B B B B B B B B B B B B B B B



ft in an acre 420,000/43,560=9.65 acres x 750= $7,231.40 x 8% = $578.51
B B B B B B B B B B B B




Tom is constructing a new house valued at $100,000. Given that the average property value of
B B B B B B B B B B B B B B B B



his surrounding neighbors is $225,000, which principle suggests that Tom will experience a po
B B B B B B B B B B B B B



sitive effect on his property value? - ANSWER-
B B B B B B B Principle of progression B B




States that a property's value tends to increase when surrounded by higher-
B B B B B B B B B B B



valued properties. Tom's property values may benefit from the higher average property value
B B B B B B B B B B B B B



of his neighbors.
B B




Bob Jones, who lacks a real estate license, hires Sally Salesperson to sell his property. During S
B B B B B B B B B B B B B B B B



ally's absence, Bob shows the property, provides price quotations, and accepts deposits. What
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are the implications of Bob's actions? - ANSWER-
B B B B B B B B



Bob's actions are illegal and can lead to legal consequences
B B B B B B B B B




2
Wicky