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FINN Real Estate Principles| Final Exam
Questions and Verified Answers|
Certified 2025/2026 Examination
A seller breaches a listing agreement by refusing to sell after accepting an offer. Explain the
likely consequences and the possible remedies available to the broker.
The broker may sue for the commission promised in the listing agreement, as they fulfilled
their duty by procuring a ready, willing, and able buyer.
A buyer purchases a home "as-is" and later discovers significant foundation issues that were not
disclosed. Evaluate whether the seller is still liable.
The seller may be liable if they knowingly failed to disclose material defects, as required
under California disclosure laws, even in an "as-is" sale.
A landlord refuses to return a tenant’s security deposit without explanation after the lease ends.
Analyze the steps the tenant can take to recover it.
The tenant can demand a written itemization of deductions, file a claim in small claims court,
or seek statutory penalties if the landlord fails to comply with California's 21-day rule.
A property manager rents a unit to a tenant without ensuring it meets local habitability standards.
Propose a course of action the tenant could take.
The tenant can report the issue to local housing authorities, withhold rent, or make repairs
and deduct costs, following California's habitability statutes.
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A real estate agent discloses confidential information about a client to another party. Assess the
potential legal and ethical implications.
The agent could face disciplinary action, loss of license, or a lawsuit for breaching fiduciary
duty and violating client confidentiality.
A buyer wants to cancel a purchase contract after the inspection reveals significant issues.
Explain the conditions under which this cancellation might be valid.
If the contract included a contingency for inspection results, the buyer can cancel without
penalty by following the agreed process.
A real estate agent receives multiple offers on a property and discloses one buyer’s offer to
another. Analyze whether this practice is permissible.
This violates ethical rules unless the seller explicitly authorizes such disclosure, as agents
must act in the client’s best interest and maintain fairness.
A homeowner unknowingly builds a fence encroaching on a neighbor’s property. Propose a
solution for resolving this boundary dispute.
Options include negotiating a boundary agreement, granting an easement, or pursuing legal
action to establish ownership through adverse possession.
A commercial tenant stops paying rent, claiming the leased property is unusable due to
unforeseen zoning restrictions. Evaluate the tenant’s legal standing.
FINN Real Estate Principles| Final Exam
Questions and Verified Answers|
Certified 2025/2026 Examination
A seller breaches a listing agreement by refusing to sell after accepting an offer. Explain the
likely consequences and the possible remedies available to the broker.
The broker may sue for the commission promised in the listing agreement, as they fulfilled
their duty by procuring a ready, willing, and able buyer.
A buyer purchases a home "as-is" and later discovers significant foundation issues that were not
disclosed. Evaluate whether the seller is still liable.
The seller may be liable if they knowingly failed to disclose material defects, as required
under California disclosure laws, even in an "as-is" sale.
A landlord refuses to return a tenant’s security deposit without explanation after the lease ends.
Analyze the steps the tenant can take to recover it.
The tenant can demand a written itemization of deductions, file a claim in small claims court,
or seek statutory penalties if the landlord fails to comply with California's 21-day rule.
A property manager rents a unit to a tenant without ensuring it meets local habitability standards.
Propose a course of action the tenant could take.
The tenant can report the issue to local housing authorities, withhold rent, or make repairs
and deduct costs, following California's habitability statutes.
, 2
A real estate agent discloses confidential information about a client to another party. Assess the
potential legal and ethical implications.
The agent could face disciplinary action, loss of license, or a lawsuit for breaching fiduciary
duty and violating client confidentiality.
A buyer wants to cancel a purchase contract after the inspection reveals significant issues.
Explain the conditions under which this cancellation might be valid.
If the contract included a contingency for inspection results, the buyer can cancel without
penalty by following the agreed process.
A real estate agent receives multiple offers on a property and discloses one buyer’s offer to
another. Analyze whether this practice is permissible.
This violates ethical rules unless the seller explicitly authorizes such disclosure, as agents
must act in the client’s best interest and maintain fairness.
A homeowner unknowingly builds a fence encroaching on a neighbor’s property. Propose a
solution for resolving this boundary dispute.
Options include negotiating a boundary agreement, granting an easement, or pursuing legal
action to establish ownership through adverse possession.
A commercial tenant stops paying rent, claiming the leased property is unusable due to
unforeseen zoning restrictions. Evaluate the tenant’s legal standing.
