Magnolia School of Real Estate Exam
2. Questions with Correct Verified
Answers. Latest Edition 2026-2027.
Graded A
Which of the following is true regarding an option contract?
a. If a broker purchased an option contract and decided to exercise his
option, it would be a violation for him to sell the property for a profit.
b. Option contracts do not have to be in writing.
c. Option contracts are bilateral.
d. An option contract is an agreement to keep open for a specified period of
time an offer to sell or lease real property. - Ansd. An option contract is an
agreement to keep open for a specified period of time an offer to sell or
lease real property.
A buyer makes a written offer on a seller's property. The seller counters
and the buyer accepts. The listing broker gives written acceptance to the
seller. Now the offer becomes
a. an express contract
b. a parol contract
c. an oral contract
d. a novation document - Ansa. an express contract
1
,A newly licensed sales associate has developed what she thinks is a great
idea for acquiring more customers. She has decided to mail hand-written
cards to her neighbors informing them that she is a real estate agent. The
card goes on to tell the neighbors that if she shows them a house that they
purchase, she will give them one percent of the commission she earns in
the transaction. Using this information, which applies?
a. This is a violation, and the sales associate could be punished by the
FREC.
b. This is not a violation because it is legal to share commission with a
party to the transaction, provided all parties are informed of the commission
sharing.
c. This is a violation because the referral fee is more than $50.
d. This is a violation and therefore the FREC would most likely issue a first-
degree misdemeanor to the sales associate - Ansb. This is not a violation
because it is legal to share commission with a party to the transaction,
provided all parties are informed of the commission sharing.
A package mortgage
a. includes both real and personal property as security for the debt.
b. includes both real and personal property and is most commonly used
when a buyer purchases a condominium.
c. is a combination of movable property and stationary property.
d. is a mortgage used by developers when purchasing large tracts of land
for tract building. - Ansa. includes both real and personal property as
security for the debt.
2
, A residence is rented for $900 a month and rent is paid on the first of the
month. If the property sold on May 6th, and the day of closing belongs to
the buyer, what is the amount of the proration and how is it entered on the
closing disclosure?
a. Debit seller, Credit buyer $754.84
b. Debit buyer, Credit seller $754.84
c. Debit seller, Credit buyer $759.30
d. Debit buyer, Credit seller $759.30 - Ansa. Debit seller, Credit buyer
$754.84
A sales associate gets into a disagreement with his broker and starts at a
different brokerage immediately. Which applies?
a. because sales associates are employees of the broker, the sales
associate is required to wait until his broker agrees to release him from the
current brokerage.
b. The sales associate must inform the DBPR of the change of employer
within 10 days.
c. The sales associate will not be permitted to earn commission for 30 days
after starting with the new brokerage.
d. The sales associate is required to stay at his current brokerage for a
term of 24 months. - Ansb. The sales associate must inform the DBPR of
the change of employer within 10 days.
3
2. Questions with Correct Verified
Answers. Latest Edition 2026-2027.
Graded A
Which of the following is true regarding an option contract?
a. If a broker purchased an option contract and decided to exercise his
option, it would be a violation for him to sell the property for a profit.
b. Option contracts do not have to be in writing.
c. Option contracts are bilateral.
d. An option contract is an agreement to keep open for a specified period of
time an offer to sell or lease real property. - Ansd. An option contract is an
agreement to keep open for a specified period of time an offer to sell or
lease real property.
A buyer makes a written offer on a seller's property. The seller counters
and the buyer accepts. The listing broker gives written acceptance to the
seller. Now the offer becomes
a. an express contract
b. a parol contract
c. an oral contract
d. a novation document - Ansa. an express contract
1
,A newly licensed sales associate has developed what she thinks is a great
idea for acquiring more customers. She has decided to mail hand-written
cards to her neighbors informing them that she is a real estate agent. The
card goes on to tell the neighbors that if she shows them a house that they
purchase, she will give them one percent of the commission she earns in
the transaction. Using this information, which applies?
a. This is a violation, and the sales associate could be punished by the
FREC.
b. This is not a violation because it is legal to share commission with a
party to the transaction, provided all parties are informed of the commission
sharing.
c. This is a violation because the referral fee is more than $50.
d. This is a violation and therefore the FREC would most likely issue a first-
degree misdemeanor to the sales associate - Ansb. This is not a violation
because it is legal to share commission with a party to the transaction,
provided all parties are informed of the commission sharing.
A package mortgage
a. includes both real and personal property as security for the debt.
b. includes both real and personal property and is most commonly used
when a buyer purchases a condominium.
c. is a combination of movable property and stationary property.
d. is a mortgage used by developers when purchasing large tracts of land
for tract building. - Ansa. includes both real and personal property as
security for the debt.
2
, A residence is rented for $900 a month and rent is paid on the first of the
month. If the property sold on May 6th, and the day of closing belongs to
the buyer, what is the amount of the proration and how is it entered on the
closing disclosure?
a. Debit seller, Credit buyer $754.84
b. Debit buyer, Credit seller $754.84
c. Debit seller, Credit buyer $759.30
d. Debit buyer, Credit seller $759.30 - Ansa. Debit seller, Credit buyer
$754.84
A sales associate gets into a disagreement with his broker and starts at a
different brokerage immediately. Which applies?
a. because sales associates are employees of the broker, the sales
associate is required to wait until his broker agrees to release him from the
current brokerage.
b. The sales associate must inform the DBPR of the change of employer
within 10 days.
c. The sales associate will not be permitted to earn commission for 30 days
after starting with the new brokerage.
d. The sales associate is required to stay at his current brokerage for a
term of 24 months. - Ansb. The sales associate must inform the DBPR of
the change of employer within 10 days.
3
