National Real Estate Exam Preparation
Questions with Correct Answers.
Unilateral Contract - Correct Answer-Contract containing ONE promise given in exchange
for completing an act. NO obligation to act.
Bilateral Contract - Correct Answer-Contract containing TWO promises. Example: A
listing agreement is a bilateral contract
Client/Principal - Correct Answer-A person who has entered into an agency relationship
w/ a licensee & with whom there is a written contract
Customer - Correct Answer-Any 3rd party w/ whom a licensee works
In-Company Transaction - Correct Answer-Transaction in which the buyer and seller are
both represented by the same brokerage.
Management-Level License - Correct 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: - Correct 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.
Novation - Correct 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? - Correct
Answer-No
Mailbox Rule - Correct 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 - Correct Answer-Owner
, Grantee is the - Correct Answer-Buyer
Optionor is the - Correct Answer-Seller
Optionee is the - Correct Answer-Buyer
Lessor is the - Correct Answer-Landlord
Lessee is the - Correct Answer-Tenant
Vendor is the - Correct Answer-Seller
Vendee is the - Correct Answer-Buyer
Mortgagor is the - Correct Answer-Buyer
Mortgagee is the - Correct Answer-Lender
Trustor is the - Correct Answer-Buyer
Trustee is the - Correct Answer-3rd Party to the transaction
Regulation Z dictates - Correct Answer-Disclosure Requirements in Credit Transactions,
including the disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: - Correct Answer-ALL REAL ESTATE credit transactions except
for commercial loans. For non-real estate transactions, it covers up to $25,000.
The Cooling Off Period is a condition of: - Correct Answer-Regulation Z. It gives the
customer the right to rescind the transaction for up to 3 business days following the
transaction for liens placed on a principal residence.
RESPA stands for - Correct Answer-Real Estate Settlement Procedures Act
Questions with Correct Answers.
Unilateral Contract - Correct Answer-Contract containing ONE promise given in exchange
for completing an act. NO obligation to act.
Bilateral Contract - Correct Answer-Contract containing TWO promises. Example: A
listing agreement is a bilateral contract
Client/Principal - Correct Answer-A person who has entered into an agency relationship
w/ a licensee & with whom there is a written contract
Customer - Correct Answer-Any 3rd party w/ whom a licensee works
In-Company Transaction - Correct Answer-Transaction in which the buyer and seller are
both represented by the same brokerage.
Management-Level License - Correct 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: - Correct 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.
Novation - Correct 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? - Correct
Answer-No
Mailbox Rule - Correct 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 - Correct Answer-Owner
, Grantee is the - Correct Answer-Buyer
Optionor is the - Correct Answer-Seller
Optionee is the - Correct Answer-Buyer
Lessor is the - Correct Answer-Landlord
Lessee is the - Correct Answer-Tenant
Vendor is the - Correct Answer-Seller
Vendee is the - Correct Answer-Buyer
Mortgagor is the - Correct Answer-Buyer
Mortgagee is the - Correct Answer-Lender
Trustor is the - Correct Answer-Buyer
Trustee is the - Correct Answer-3rd Party to the transaction
Regulation Z dictates - Correct Answer-Disclosure Requirements in Credit Transactions,
including the disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: - Correct Answer-ALL REAL ESTATE credit transactions except
for commercial loans. For non-real estate transactions, it covers up to $25,000.
The Cooling Off Period is a condition of: - Correct Answer-Regulation Z. It gives the
customer the right to rescind the transaction for up to 3 business days following the
transaction for liens placed on a principal residence.
RESPA stands for - Correct Answer-Real Estate Settlement Procedures Act
