1
CAS 45-Hour Real Estate Principles
Course| Exam Questions and Verified
Answers| Updated 2025| Licensing
A property is being sold "as-is" after a fire caused extensive damage. Explain the key
considerations a buyer should assess before proceeding with the purchase.
Investigate the property's structural integrity, potential repair costs, and insurance
implications. Also, review disclosures and inspection reports for additional hidden issues.
A buyer has backed out of a transaction after the contingency period ended. Evaluate the
implications for the buyer and seller.
The buyer may forfeit their earnest money deposit, and the seller could seek legal action for
breach of contract.
A seller intentionally omits a known plumbing issue on the disclosure form. Assess the risks
involved if the issue is discovered post-sale.
The seller could face legal consequences for fraud or misrepresentation, including lawsuits
or being required to pay damages.
A homeowner in a homeowners' association (HOA) wants to add solar panels. Propose a way to
navigate potential HOA restrictions.
Review the HOA rules and state laws protecting solar energy systems, then present a
compliant design for approval.
, 2
A client receives multiple offers within hours of listing their home. Analyze the factors
contributing to this market response.
Factors could include competitive pricing, staging, a strong seller's market, or location
desirability.
A buyer discovers zoning regulations prohibit their intended use for a property they just
purchased. Explain how this issue could have been prevented.
Conduct due diligence, including verifying zoning codes and potential variances, before
finalizing the purchase.
An investor is considering a commercial property with a triple-net lease. Evaluate the benefits
and risks associated with this lease type.
Benefits include predictable income and low management duties. Risks include tenant
default or unexpected maintenance expenses not covered in the lease.
A buyer requests an early possession agreement before closing. Identify the potential risks for the
seller.
Risks include damage to the property, liability issues, or the buyer backing out of the deal
after occupancy.
A seller receives a full-price cash offer but wants to wait for additional bids. Assess the pros and
cons of this decision.
, 3
Pros include the chance for higher offers; cons include losing the current offer and prolonged
market time, which could reduce buyer interest.
An agent violates fiduciary duties by not disclosing a conflict of interest. Analyze the potential
consequences for the agent.
Consequences could include license suspension, loss of reputation, fines, or legal liability.
A rental property owner receives a notice from the city requiring compliance with updated
building codes. Propose a strategy to address the situation.
Hire a contractor to assess necessary upgrades, prioritize urgent fixes, and apply for permits
or extensions as needed.
A seller’s agent receives confidential information from the buyer's agent during negotiations.
Explain how the seller’s agent should ethically handle this situation.
The agent must maintain professionalism and only use the information within legal and
ethical boundaries to advise their client.
A buyer is torn between a 15-year fixed-rate mortgage and a 30-year fixed-rate mortgage.
Compare these options to help them decide.
A 15-year loan offers lower interest and faster equity-building but higher monthly payments.
A 30-year loan has lower payments but costs more over time.
, 4
A property has been on the market for over six months without offers. Analyze potential reasons
for the lack of interest.
Issues could include overpricing, poor marketing, unappealing condition, or external factors
like market downturns.
A new agent struggles to find clients in a competitive market. Propose effective strategies to
build their client base.
Focus on networking, leveraging social media, hosting open houses, and building
relationships with local businesses.
A buyer wants to use an FHA loan for a fixer-upper property. Evaluate whether this loan type is
suitable.
FHA loans work for fixer-uppers if the property meets safety standards or the buyer uses an
FHA 203(k) loan for renovations.
A landlord receives complaints about a tenant’s disruptive behavior. Propose steps to resolve the
situation while adhering to landlord-tenant laws.
Document the complaints, communicate with the tenant, and issue a formal warning or
termination notice if behavior persists.
A property inspection reveals asbestos in the ceiling tiles. Explain the options available for
addressing this issue.
CAS 45-Hour Real Estate Principles
Course| Exam Questions and Verified
Answers| Updated 2025| Licensing
A property is being sold "as-is" after a fire caused extensive damage. Explain the key
considerations a buyer should assess before proceeding with the purchase.
Investigate the property's structural integrity, potential repair costs, and insurance
implications. Also, review disclosures and inspection reports for additional hidden issues.
A buyer has backed out of a transaction after the contingency period ended. Evaluate the
implications for the buyer and seller.
The buyer may forfeit their earnest money deposit, and the seller could seek legal action for
breach of contract.
A seller intentionally omits a known plumbing issue on the disclosure form. Assess the risks
involved if the issue is discovered post-sale.
The seller could face legal consequences for fraud or misrepresentation, including lawsuits
or being required to pay damages.
A homeowner in a homeowners' association (HOA) wants to add solar panels. Propose a way to
navigate potential HOA restrictions.
Review the HOA rules and state laws protecting solar energy systems, then present a
compliant design for approval.
, 2
A client receives multiple offers within hours of listing their home. Analyze the factors
contributing to this market response.
Factors could include competitive pricing, staging, a strong seller's market, or location
desirability.
A buyer discovers zoning regulations prohibit their intended use for a property they just
purchased. Explain how this issue could have been prevented.
Conduct due diligence, including verifying zoning codes and potential variances, before
finalizing the purchase.
An investor is considering a commercial property with a triple-net lease. Evaluate the benefits
and risks associated with this lease type.
Benefits include predictable income and low management duties. Risks include tenant
default or unexpected maintenance expenses not covered in the lease.
A buyer requests an early possession agreement before closing. Identify the potential risks for the
seller.
Risks include damage to the property, liability issues, or the buyer backing out of the deal
after occupancy.
A seller receives a full-price cash offer but wants to wait for additional bids. Assess the pros and
cons of this decision.
, 3
Pros include the chance for higher offers; cons include losing the current offer and prolonged
market time, which could reduce buyer interest.
An agent violates fiduciary duties by not disclosing a conflict of interest. Analyze the potential
consequences for the agent.
Consequences could include license suspension, loss of reputation, fines, or legal liability.
A rental property owner receives a notice from the city requiring compliance with updated
building codes. Propose a strategy to address the situation.
Hire a contractor to assess necessary upgrades, prioritize urgent fixes, and apply for permits
or extensions as needed.
A seller’s agent receives confidential information from the buyer's agent during negotiations.
Explain how the seller’s agent should ethically handle this situation.
The agent must maintain professionalism and only use the information within legal and
ethical boundaries to advise their client.
A buyer is torn between a 15-year fixed-rate mortgage and a 30-year fixed-rate mortgage.
Compare these options to help them decide.
A 15-year loan offers lower interest and faster equity-building but higher monthly payments.
A 30-year loan has lower payments but costs more over time.
, 4
A property has been on the market for over six months without offers. Analyze potential reasons
for the lack of interest.
Issues could include overpricing, poor marketing, unappealing condition, or external factors
like market downturns.
A new agent struggles to find clients in a competitive market. Propose effective strategies to
build their client base.
Focus on networking, leveraging social media, hosting open houses, and building
relationships with local businesses.
A buyer wants to use an FHA loan for a fixer-upper property. Evaluate whether this loan type is
suitable.
FHA loans work for fixer-uppers if the property meets safety standards or the buyer uses an
FHA 203(k) loan for renovations.
A landlord receives complaints about a tenant’s disruptive behavior. Propose steps to resolve the
situation while adhering to landlord-tenant laws.
Document the complaints, communicate with the tenant, and issue a formal warning or
termination notice if behavior persists.
A property inspection reveals asbestos in the ceiling tiles. Explain the options available for
addressing this issue.
