National Real Estate Exam Prep With
Detailed Questions And Correct
Answers||Latest Exam ||Graded A+
Unilateral Contract -ANSWER Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
Bilateral Contract -ANSWER Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
Client/Principal -ANSWER A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
Customer -ANSWER Any 3rd party w/ whom a licensee works
In-Company Transaction -ANSWER Transaction in which the buyer and seller are both
represented by the same brokerage.
Management-Level License -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: -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 -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? -
ANSWER No
Mailbox Rule -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 -ANSWER Owner
Grantee is the -ANSWER Buyer
Optionor is the -ANSWER Seller
Optionee is the -ANSWER Buyer
, Lessor is the -ANSWER Landlord
Lessee is the -ANSWER Tenant
Vendor is the -ANSWER Seller
Vendee is the -ANSWER Buyer
Mortgagor is the -ANSWER Buyer
Mortgagee is the -ANSWER Lender
Trustor is the -ANSWER Buyer
Trustee is the -ANSWER 3rd Party to the transaction
Regulation Z dictates -ANSWER Disclosure Requirements in Credit Transactions,
including the disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: -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: -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 -ANSWER Real Estate Settlement Procedures Act
RESPA requirements include: -ANSWER 1) Lenders must give borrowers a good faith
estimate of closing costs.
2) Lenders must give borrowers a HUD booklet describing closing costs, settlement
procedures & borrowers rights.
3) Closing agent must prepare a HUD stmt detailing how much was paid to what
companies for what services
4) Borrower must be given right to inspect HUD stmt 1 day before close.
5) Lenders & other parties must give full disclosure of all business relationships.
6) Lender must disclose to borrower if the loan is likely to be sold to another investor.
RESPA prohibits: -ANSWER 1) Kickbacks & fees for services not performed in
connection w/ the closing
2) It limits the amount of escrow reserves a lender can hold
3) The sale may not be on the condition on the use of a certain title co or escrow co.
chosen by the seller.
Detailed Questions And Correct
Answers||Latest Exam ||Graded A+
Unilateral Contract -ANSWER Contract containing ONE promise given in exchange for
completing an act. NO obligation to act.
Bilateral Contract -ANSWER Contract containing TWO promises. Example: A listing
agreement is a bilateral contract
Client/Principal -ANSWER A person who has entered into an agency relationship w/ a
licensee & with whom there is a written contract
Customer -ANSWER Any 3rd party w/ whom a licensee works
In-Company Transaction -ANSWER Transaction in which the buyer and seller are both
represented by the same brokerage.
Management-Level License -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: -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 -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? -
ANSWER No
Mailbox Rule -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 -ANSWER Owner
Grantee is the -ANSWER Buyer
Optionor is the -ANSWER Seller
Optionee is the -ANSWER Buyer
, Lessor is the -ANSWER Landlord
Lessee is the -ANSWER Tenant
Vendor is the -ANSWER Seller
Vendee is the -ANSWER Buyer
Mortgagor is the -ANSWER Buyer
Mortgagee is the -ANSWER Lender
Trustor is the -ANSWER Buyer
Trustee is the -ANSWER 3rd Party to the transaction
Regulation Z dictates -ANSWER Disclosure Requirements in Credit Transactions,
including the disclosure of the Annual Percentage Rate (APR)
Regulation Z applies to: -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: -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 -ANSWER Real Estate Settlement Procedures Act
RESPA requirements include: -ANSWER 1) Lenders must give borrowers a good faith
estimate of closing costs.
2) Lenders must give borrowers a HUD booklet describing closing costs, settlement
procedures & borrowers rights.
3) Closing agent must prepare a HUD stmt detailing how much was paid to what
companies for what services
4) Borrower must be given right to inspect HUD stmt 1 day before close.
5) Lenders & other parties must give full disclosure of all business relationships.
6) Lender must disclose to borrower if the loan is likely to be sold to another investor.
RESPA prohibits: -ANSWER 1) Kickbacks & fees for services not performed in
connection w/ the closing
2) It limits the amount of escrow reserves a lender can hold
3) The sale may not be on the condition on the use of a certain title co or escrow co.
chosen by the seller.
