NATIONAL REAL ESTATE EXAM
PREP QUESTIONS COMPLETE
WITH 100% CORRECT ANSWERS
\.Unilateral Contract - ANSWERS-Contract containing ONE promise
given in exchange for completing an act. NO obligation to act.
\.Bilateral Contract - ANSWERS-Contract containing TWO promises.
Example: A listing agreement is a bilateral contract
\.Client/Principal - ANSWERS-A person who has entered into an agency
relationship w/ a licensee & with whom there is a written contract
\.Customer - ANSWERS-Any 3rd party w/ whom a licensee works
\.In-Company Transaction - ANSWERS-Transaction in which the buyer
and seller are both represented by the same brokerage.
\.Management-Level License - ANSWERS-A licensee who is employed by
or affiliated w/ a brokerage who has supervisory responsibility over
other licensees.
,\.Statute of Frauds requires the following: - ANSWERS-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.
\.Novation - ANSWERS-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? - ANSWERS-No
\.Mailbox Rule - ANSWERS-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 - ANSWERS-Owner
\.Grantee is the - ANSWERS-Buyer
\.Optionor is the - ANSWERS-Seller
\.Optionee is the - ANSWERS-Buyer
, \.Lessor is the - ANSWERS-Landlord
\.Lessee is the - ANSWERS-Tenant
\.Vendor is the - ANSWERS-Seller
\.Vendee is the - ANSWERS-Buyer
\.Mortgagor is the - ANSWERS-Buyer
\.Mortgagee is the - ANSWERS-Lender
\.Trustor is the - ANSWERS-Buyer
\.Trustee is the - ANSWERS-3rd Party to the transaction
\.Regulation Z dictates - ANSWERS-Disclosure Requirements in Credit
Transactions, including the disclosure of the Annual Percentage Rate
(APR)
PREP QUESTIONS COMPLETE
WITH 100% CORRECT ANSWERS
\.Unilateral Contract - ANSWERS-Contract containing ONE promise
given in exchange for completing an act. NO obligation to act.
\.Bilateral Contract - ANSWERS-Contract containing TWO promises.
Example: A listing agreement is a bilateral contract
\.Client/Principal - ANSWERS-A person who has entered into an agency
relationship w/ a licensee & with whom there is a written contract
\.Customer - ANSWERS-Any 3rd party w/ whom a licensee works
\.In-Company Transaction - ANSWERS-Transaction in which the buyer
and seller are both represented by the same brokerage.
\.Management-Level License - ANSWERS-A licensee who is employed by
or affiliated w/ a brokerage who has supervisory responsibility over
other licensees.
,\.Statute of Frauds requires the following: - ANSWERS-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.
\.Novation - ANSWERS-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? - ANSWERS-No
\.Mailbox Rule - ANSWERS-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 - ANSWERS-Owner
\.Grantee is the - ANSWERS-Buyer
\.Optionor is the - ANSWERS-Seller
\.Optionee is the - ANSWERS-Buyer
, \.Lessor is the - ANSWERS-Landlord
\.Lessee is the - ANSWERS-Tenant
\.Vendor is the - ANSWERS-Seller
\.Vendee is the - ANSWERS-Buyer
\.Mortgagor is the - ANSWERS-Buyer
\.Mortgagee is the - ANSWERS-Lender
\.Trustor is the - ANSWERS-Buyer
\.Trustee is the - ANSWERS-3rd Party to the transaction
\.Regulation Z dictates - ANSWERS-Disclosure Requirements in Credit
Transactions, including the disclosure of the Annual Percentage Rate
(APR)
