Real Estate Final Exam Guide Latest
Questions 100% Correct Answers 2026
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - answersA customer.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform? -
answersHe must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? -
answersIf the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker
Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property.
What, if any, is the relationship between the buyer's broker, the seller and the listing
broker? - answersThere is not a relationship between the parties. Broker Carr
represents the Seller and Broker Smith represents the Buyer.
A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly executed
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
commercial project. What is the contract at this stage? - answersEnforceable
6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax proration
amount to, and how would it appear on a full settlement statement? Base your answer
on a 365 day year, and the buyer is responsible for the day of settlement. -
answers$1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On April 29, a buyer made an
offer on the property. The listing broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the
closing took place on June 15, when did the listing expire? - answers6/15
The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
price. A buyer made an offer on the property on March 29 for $510,000. The seller
countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
,with the closing to occur on June 15. How much commission did the seller owe the
listing broker, and how would it appear on the settlement statement? - answers$36,225.
Debit the seller.
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
What was the loan balance the day of closing, and how much interest did the seller owe
the bank? - answersLoan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
80% loan. How much was the buyer's loan and how did it appear on the settlement
statement? - answers$ 248,400. Credit the buyer only.
A home improvement company was negotiating with a homeowner to add on two rooms
to a home. The company agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The company and the homeowner
agreed to a price and the company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the following day. Assuming that the
week had five business days, until what time could the homeowner rescind the loan? -
answersFriday, midnight (Three business day period)
The seller under a land contract is called - answersThe vendor
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How
long did he have the loan? - answers42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement?
- answersNo, These are considered legal, not financing fees and therefore are not part
of the Truth in Lending statement.
A mortgage broker - answersarranges loans between borrowers and investors.
The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee. This
type of loan is called a - answerspart purchase mortgage
On a $500,000 loan the borrower is required to pay two points. How much does the
borrower have to pay the lender? - answers$510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage
of the - answersloan amount.
,An increase in the availability of money would lead to which effect? - answersInterest
rates would go down.
When the amortized payment of a mortgage remains constant over the period of the
loan but leaves an outstanding balance to be paid at the end, this payment is called -
answersa balloon payment.
In an installment land contract, what type of title did the seller retain? - answersLegal
Which of the following is true of a second mortgage? - answersIt is usually issued at a
higher rate of interest.
Usury MOST nearly means - answersillegal interest.
A borrower bought a $174,000 house with no down payment. The loan was probably -
answersa VA loan.
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on
the loan was $1,400. What was the interest rate on the loan? - answers• 5%
Which of the following describes a mortgage that requires principal and interest
payments at regular intervals and is called the liquidation of debt by periodic installment
until the debt is satisfied? - answersAmortized loan
Which is the most common form of mortgage? - answersAmortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given -
answersat the time of loan application, or within 3 days of application.
Which of the following is a closing expense paid by the seller? - answersThe broker's
commission
An impound or reserve account MOST benefits whom? - answersThe lender
What are impound or reserve accounts also known as? - answersEscrow accounts
The HUD-1 form is - answersa statement of actual charges and adjustments.
A VA loan may be granted for the purchase of a one-family to four-family property if -
answersthe veteran agrees to live there.
Which of the following would usually occur in a sale-and-leaseback transaction? -
answersThe property is sold on the condition that the new owner lease it back to the
seller at the time title passes.
, A standardized yardstick expressing the true annual cost of borrowing is expressed as
the what? - answersAPR
RESPA would prohibit which of the following acts? - answersA: paying of kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of borrowing
and standardizing lending practices. As such, referral "fees" are prohibited.
In most states, by paying the debt after a foreclosure sale, the mortgagor has the right
to regain the property. What is this right called? - answersStatutory right of redemption
The lender is required, under RESPA, to provide a detailed "Good Faith Estimate
(GFE)" statement at the time of loan application or within three business days to -
answersthe buyer.
In which of the following markets may a lender sell a loan that a mortgage banker has
previously originated? - answersSecondary market
Though 30 year loans are more common, 15 year loans are considered standard,
conventional loans. - answersYes.
Under an FHA graduated payment mortgage, which of the following fluctuates over the
term of the loan? - answersMonthly payments
Who are graduated payment mortgages aimed to> - answersParticularly at young
families who expect to see their earnings rise over the next five to ten years.
The maximum permissible "loan to value ratios" are - answersbased on sale price or
appraised value, whichever is lower.
Are there any state-mandated qualifying requirements for conventional loans? -
answersNo, Not only are guidelines not uniform, qualification standards can vary
enormously from lender to lender.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to -
answersany approved lending institution such as a bank or savings and loan
association.
An owner advertised "beautiful acreage; only $5,000 down; owner will personally
finance down payment." Would this be in violation of the Truth in Lending Act? -
answersNo. Owners are not covered by Regulation Z.
What is Regulation Z? - answersis the part of the Truth in Lending Act of 1968 that
promulgates rules that protect consumers against misleading practices by the lending
industry.
Questions 100% Correct Answers 2026
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - answersA customer.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform? -
answersHe must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? -
answersIf the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker
Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property.
What, if any, is the relationship between the buyer's broker, the seller and the listing
broker? - answersThere is not a relationship between the parties. Broker Carr
represents the Seller and Broker Smith represents the Buyer.
A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly executed
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
commercial project. What is the contract at this stage? - answersEnforceable
6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax proration
amount to, and how would it appear on a full settlement statement? Base your answer
on a 365 day year, and the buyer is responsible for the day of settlement. -
answers$1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On April 29, a buyer made an
offer on the property. The listing broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the
closing took place on June 15, when did the listing expire? - answers6/15
The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
price. A buyer made an offer on the property on March 29 for $510,000. The seller
countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
,with the closing to occur on June 15. How much commission did the seller owe the
listing broker, and how would it appear on the settlement statement? - answers$36,225.
Debit the seller.
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
What was the loan balance the day of closing, and how much interest did the seller owe
the bank? - answersLoan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
80% loan. How much was the buyer's loan and how did it appear on the settlement
statement? - answers$ 248,400. Credit the buyer only.
A home improvement company was negotiating with a homeowner to add on two rooms
to a home. The company agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The company and the homeowner
agreed to a price and the company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the following day. Assuming that the
week had five business days, until what time could the homeowner rescind the loan? -
answersFriday, midnight (Three business day period)
The seller under a land contract is called - answersThe vendor
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How
long did he have the loan? - answers42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement?
- answersNo, These are considered legal, not financing fees and therefore are not part
of the Truth in Lending statement.
A mortgage broker - answersarranges loans between borrowers and investors.
The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee. This
type of loan is called a - answerspart purchase mortgage
On a $500,000 loan the borrower is required to pay two points. How much does the
borrower have to pay the lender? - answers$510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage
of the - answersloan amount.
,An increase in the availability of money would lead to which effect? - answersInterest
rates would go down.
When the amortized payment of a mortgage remains constant over the period of the
loan but leaves an outstanding balance to be paid at the end, this payment is called -
answersa balloon payment.
In an installment land contract, what type of title did the seller retain? - answersLegal
Which of the following is true of a second mortgage? - answersIt is usually issued at a
higher rate of interest.
Usury MOST nearly means - answersillegal interest.
A borrower bought a $174,000 house with no down payment. The loan was probably -
answersa VA loan.
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on
the loan was $1,400. What was the interest rate on the loan? - answers• 5%
Which of the following describes a mortgage that requires principal and interest
payments at regular intervals and is called the liquidation of debt by periodic installment
until the debt is satisfied? - answersAmortized loan
Which is the most common form of mortgage? - answersAmortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given -
answersat the time of loan application, or within 3 days of application.
Which of the following is a closing expense paid by the seller? - answersThe broker's
commission
An impound or reserve account MOST benefits whom? - answersThe lender
What are impound or reserve accounts also known as? - answersEscrow accounts
The HUD-1 form is - answersa statement of actual charges and adjustments.
A VA loan may be granted for the purchase of a one-family to four-family property if -
answersthe veteran agrees to live there.
Which of the following would usually occur in a sale-and-leaseback transaction? -
answersThe property is sold on the condition that the new owner lease it back to the
seller at the time title passes.
, A standardized yardstick expressing the true annual cost of borrowing is expressed as
the what? - answersAPR
RESPA would prohibit which of the following acts? - answersA: paying of kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of borrowing
and standardizing lending practices. As such, referral "fees" are prohibited.
In most states, by paying the debt after a foreclosure sale, the mortgagor has the right
to regain the property. What is this right called? - answersStatutory right of redemption
The lender is required, under RESPA, to provide a detailed "Good Faith Estimate
(GFE)" statement at the time of loan application or within three business days to -
answersthe buyer.
In which of the following markets may a lender sell a loan that a mortgage banker has
previously originated? - answersSecondary market
Though 30 year loans are more common, 15 year loans are considered standard,
conventional loans. - answersYes.
Under an FHA graduated payment mortgage, which of the following fluctuates over the
term of the loan? - answersMonthly payments
Who are graduated payment mortgages aimed to> - answersParticularly at young
families who expect to see their earnings rise over the next five to ten years.
The maximum permissible "loan to value ratios" are - answersbased on sale price or
appraised value, whichever is lower.
Are there any state-mandated qualifying requirements for conventional loans? -
answersNo, Not only are guidelines not uniform, qualification standards can vary
enormously from lender to lender.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to -
answersany approved lending institution such as a bank or savings and loan
association.
An owner advertised "beautiful acreage; only $5,000 down; owner will personally
finance down payment." Would this be in violation of the Truth in Lending Act? -
answersNo. Owners are not covered by Regulation Z.
What is Regulation Z? - answersis the part of the Truth in Lending Act of 1968 that
promulgates rules that protect consumers against misleading practices by the lending
industry.
