CHAMPIONS REAL ESTATE ADVANCED
PREP PACK 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉Void Contract. Answer: A contract having no legal force or binding
effect.
◉Special Provisions. Answer: this space is where terms can be
addressed that are not covered in standard contracts or addenda
forms
◉Proration. Answer: Dividing property taxes, hazard insurance and
other expenses or income between the buyer and seller, as of date of
settlement.
◉PETE. Answer: Police Power, Eminent Domain, Taxation, Escheat
◉Police Power. Answer: Right of the government to regulate and
control the way land is used
,◉Eminent Domain. Answer: Power of a government to take private
property for public use.
◉Taxation. Answer: the government retains the right to tax real
property
◉Escheat. Answer: The state takes property upon an owners death
if there is no will & no heirs exist.
◉Offers. Answer: The person making the offer is called the Offeror
and the person to whom the offer is made id the offeree.
◉Counteroffer. Answer: An offeree's response to an offer in which
the offeree rejects the original offer and at the same time makes a
new offer.
◉Rejection. Answer: refusal to accept
◉Acceptance. Answer: A second party's unqualified willingness to
go along with the first party's proposal.
◉Bill of Sale. Answer: A document used to transfer ownership of
personal property.
, ◉Origination. Answer: The process of creating a new mortgage loan.
◉Processing. Answer: the loan processor will "build a file" that will
be used to make an underwriting decision
◉Underwriting. Answer: The detailed process of evaluating a
borrower's loan application to determine the risk involved for the
lender.
◉Closing. Answer: a meeting of the seller, the buyer, and the lender
of funds, or representatives of each party, to complete the
transaction
◉Funding. Answer: The process of transferring funds to a title or
escrow company for disbursement
◉Servicing. Answer: Sending monthly payment statements and
collecting monthly payments, maintaining payment records and
following up on delinquencies.
◉RESPA. Answer: Real Estate Settlement Procedures Act - prohibits
kickbacks and unearned fees. No referral fees, no split of charges
except for actual services performed.
PREP PACK 2026 FULL QUESTIONS AND
CORRECT ANSWERS
◉Void Contract. Answer: A contract having no legal force or binding
effect.
◉Special Provisions. Answer: this space is where terms can be
addressed that are not covered in standard contracts or addenda
forms
◉Proration. Answer: Dividing property taxes, hazard insurance and
other expenses or income between the buyer and seller, as of date of
settlement.
◉PETE. Answer: Police Power, Eminent Domain, Taxation, Escheat
◉Police Power. Answer: Right of the government to regulate and
control the way land is used
,◉Eminent Domain. Answer: Power of a government to take private
property for public use.
◉Taxation. Answer: the government retains the right to tax real
property
◉Escheat. Answer: The state takes property upon an owners death
if there is no will & no heirs exist.
◉Offers. Answer: The person making the offer is called the Offeror
and the person to whom the offer is made id the offeree.
◉Counteroffer. Answer: An offeree's response to an offer in which
the offeree rejects the original offer and at the same time makes a
new offer.
◉Rejection. Answer: refusal to accept
◉Acceptance. Answer: A second party's unqualified willingness to
go along with the first party's proposal.
◉Bill of Sale. Answer: A document used to transfer ownership of
personal property.
, ◉Origination. Answer: The process of creating a new mortgage loan.
◉Processing. Answer: the loan processor will "build a file" that will
be used to make an underwriting decision
◉Underwriting. Answer: The detailed process of evaluating a
borrower's loan application to determine the risk involved for the
lender.
◉Closing. Answer: a meeting of the seller, the buyer, and the lender
of funds, or representatives of each party, to complete the
transaction
◉Funding. Answer: The process of transferring funds to a title or
escrow company for disbursement
◉Servicing. Answer: Sending monthly payment statements and
collecting monthly payments, maintaining payment records and
following up on delinquencies.
◉RESPA. Answer: Real Estate Settlement Procedures Act - prohibits
kickbacks and unearned fees. No referral fees, no split of charges
except for actual services performed.
