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Perry Real Estate College Final Exam | Latest Verified
Questions and Detailed Answers
OVERVIEW DESCRIPTION:
This comprehensive final exam for Perry Real Estate College is designed to rigorously
assess a candidate's mastery of both national real estate principles and state-specific
regulatory requirements. The content aligns with 2026/2027 educational standards and
spans the critical domains of practice, including intricate contract law scenarios, agency
fiduciary duties under BRRETA, federal Fair Housing compliance, and detailed financial
calculations involving seller net proceeds, loan points, and prorations. Structured with a
clear answer key and concise expert rationales for each item, this exam serves as a
definitive tool for evaluating a licensee's readiness to navigate the complexities of property
ownership, valuation methods, and the ethical/legal obligations of the real estate
profession.
QUESTION 1
A buyer and seller enter into a binding purchase and sale agreement. Prior to closing,
the seller deliberately removes the custom chandelier which was bolted to the ceiling
and specifically listed in the contract as an included fixture. This action most likely
constitutes a breach of which type?
A. Unilateral rescission
B. Mutual mistake
C. Anticipatory repudiation
D. Failure to convey marketable title
CORRECT ANSWER: C
EXPERT RATIONALE: Anticipatory repudiation occurs when one party indicates through
action or words, before performance is due, that they will not fulfill a material part of the
contract. Removing a fixture before closing demonstrates intent not to deliver the
property as agreed.
,2|Page
QUESTION 2
A landowner grants a neighbor a permanent right to cross the rear 10 feet of their
property to access a lake. This non-possessory interest is best described as:
A. License
B. Profit a prendre
C. Easement appurtenant
D. Easement in gross
CORRECT ANSWER: C
EXPERT RATIONALE: An easement appurtenant attaches to the land and benefits the
dominant tenement (the neighbor's lot). Because it is a permanent right of way for
access, it runs with the land, not the individual.
QUESTION 3
In the context of a residential sale, an agent tells a minority buyer, "You wouldn't be
happy here; the local social club has very traditional membership policies." This
statement is a direct example of:
A. Blockbusting
B. Redlining
C. Steering
D. Puffery
CORRECT ANSWER: C
EXPERT RATIONALE: Steering is the illegal practice of guiding prospective buyers toward
or away from certain neighborhoods based on protected class status. Implying the
buyer won't fit in socially is a textbook violation of the Fair Housing Act.
QUESTION 4
An investor is analyzing a corner lot currently improved with a single-family home,
,3|Page
though the surrounding area has been rezoned for high-density commercial use. The
appraiser will likely determine the property's value based on:
A. The cost to rebuild the home
B. The current rental income of the home
C. Its highest and best use as a commercial site
D. The average of the sales comparison and income approaches
CORRECT ANSWER: C
EXPERT RATIONALE: Highest and Best Use requires that the valuation consider the most
profitable, legally permissible use that is physically possible. The value of the underlying
commercial land likely exceeds the value of the current residential improvement.
QUESTION 5
Three brothers own a property as joint tenants. One brother sells his interest to a
stranger without the other brothers' knowledge. What is the resulting form of
ownership?
A. The stranger becomes a joint tenant with the remaining two brothers.
B. The joint tenancy is entirely severed, and all three become tenants in common.
C. The stranger becomes a tenant in common with the remaining two brothers, who
remain joint tenants with each other.
D. The sale is void because joint tenancy requires unanimity for transfer.
CORRECT ANSWER: C
EXPERT RATIONALE: A joint tenant's unilateral conveyance severs the joint tenancy only
as to that specific share. The new owner holds as a tenant in common, while the
remaining original owners maintain the joint tenancy between themselves regarding the
remaining two-thirds.
, 4|Page
QUESTION 6
A borrower obtains a $350,000 loan at 6% annual interest. The lender charges 3
discount points. What is the total dollar cost of the points paid at closing?
A. $1,050
B. $7,000
C. $10,500
D. $21,000
CORRECT ANSWER: C
EXPERT RATIONALE: One discount point equals 1% of the loan principal. Three points on
$350,000 equals 3% of $350,000 (0.03 x 350,000 = $10,500).
QUESTION 7
A listing agent discovers the seller's basement floods every heavy rain, but the seller
instructs the agent not to mention it because they installed a new sump pump. What is
the agent's duty regarding latent defects?
A. Obey the seller's instructions as a fiduciary
B. Disclose the material fact to prospective buyers
C. Disclose only if the buyer specifically asks about water issues
D. Disclose only to the buyer's agent and let them decide
CORRECT ANSWER: B
EXPERT RATIONALE: An agent's duty of honesty to third parties overrides the duty of
obedience to the seller when it involves known material defects. Failure to disclose
known latent issues constitutes fraud and misrepresentation.
QUESTION 8
A Georgia licensee wishes to change their legal name due to marriage. According to
state-specific licensing regulations, the licensee must:
Perry Real Estate College Final Exam | Latest Verified
Questions and Detailed Answers
OVERVIEW DESCRIPTION:
This comprehensive final exam for Perry Real Estate College is designed to rigorously
assess a candidate's mastery of both national real estate principles and state-specific
regulatory requirements. The content aligns with 2026/2027 educational standards and
spans the critical domains of practice, including intricate contract law scenarios, agency
fiduciary duties under BRRETA, federal Fair Housing compliance, and detailed financial
calculations involving seller net proceeds, loan points, and prorations. Structured with a
clear answer key and concise expert rationales for each item, this exam serves as a
definitive tool for evaluating a licensee's readiness to navigate the complexities of property
ownership, valuation methods, and the ethical/legal obligations of the real estate
profession.
QUESTION 1
A buyer and seller enter into a binding purchase and sale agreement. Prior to closing,
the seller deliberately removes the custom chandelier which was bolted to the ceiling
and specifically listed in the contract as an included fixture. This action most likely
constitutes a breach of which type?
A. Unilateral rescission
B. Mutual mistake
C. Anticipatory repudiation
D. Failure to convey marketable title
CORRECT ANSWER: C
EXPERT RATIONALE: Anticipatory repudiation occurs when one party indicates through
action or words, before performance is due, that they will not fulfill a material part of the
contract. Removing a fixture before closing demonstrates intent not to deliver the
property as agreed.
,2|Page
QUESTION 2
A landowner grants a neighbor a permanent right to cross the rear 10 feet of their
property to access a lake. This non-possessory interest is best described as:
A. License
B. Profit a prendre
C. Easement appurtenant
D. Easement in gross
CORRECT ANSWER: C
EXPERT RATIONALE: An easement appurtenant attaches to the land and benefits the
dominant tenement (the neighbor's lot). Because it is a permanent right of way for
access, it runs with the land, not the individual.
QUESTION 3
In the context of a residential sale, an agent tells a minority buyer, "You wouldn't be
happy here; the local social club has very traditional membership policies." This
statement is a direct example of:
A. Blockbusting
B. Redlining
C. Steering
D. Puffery
CORRECT ANSWER: C
EXPERT RATIONALE: Steering is the illegal practice of guiding prospective buyers toward
or away from certain neighborhoods based on protected class status. Implying the
buyer won't fit in socially is a textbook violation of the Fair Housing Act.
QUESTION 4
An investor is analyzing a corner lot currently improved with a single-family home,
,3|Page
though the surrounding area has been rezoned for high-density commercial use. The
appraiser will likely determine the property's value based on:
A. The cost to rebuild the home
B. The current rental income of the home
C. Its highest and best use as a commercial site
D. The average of the sales comparison and income approaches
CORRECT ANSWER: C
EXPERT RATIONALE: Highest and Best Use requires that the valuation consider the most
profitable, legally permissible use that is physically possible. The value of the underlying
commercial land likely exceeds the value of the current residential improvement.
QUESTION 5
Three brothers own a property as joint tenants. One brother sells his interest to a
stranger without the other brothers' knowledge. What is the resulting form of
ownership?
A. The stranger becomes a joint tenant with the remaining two brothers.
B. The joint tenancy is entirely severed, and all three become tenants in common.
C. The stranger becomes a tenant in common with the remaining two brothers, who
remain joint tenants with each other.
D. The sale is void because joint tenancy requires unanimity for transfer.
CORRECT ANSWER: C
EXPERT RATIONALE: A joint tenant's unilateral conveyance severs the joint tenancy only
as to that specific share. The new owner holds as a tenant in common, while the
remaining original owners maintain the joint tenancy between themselves regarding the
remaining two-thirds.
, 4|Page
QUESTION 6
A borrower obtains a $350,000 loan at 6% annual interest. The lender charges 3
discount points. What is the total dollar cost of the points paid at closing?
A. $1,050
B. $7,000
C. $10,500
D. $21,000
CORRECT ANSWER: C
EXPERT RATIONALE: One discount point equals 1% of the loan principal. Three points on
$350,000 equals 3% of $350,000 (0.03 x 350,000 = $10,500).
QUESTION 7
A listing agent discovers the seller's basement floods every heavy rain, but the seller
instructs the agent not to mention it because they installed a new sump pump. What is
the agent's duty regarding latent defects?
A. Obey the seller's instructions as a fiduciary
B. Disclose the material fact to prospective buyers
C. Disclose only if the buyer specifically asks about water issues
D. Disclose only to the buyer's agent and let them decide
CORRECT ANSWER: B
EXPERT RATIONALE: An agent's duty of honesty to third parties overrides the duty of
obedience to the seller when it involves known material defects. Failure to disclose
known latent issues constitutes fraud and misrepresentation.
QUESTION 8
A Georgia licensee wishes to change their legal name due to marriage. According to
state-specific licensing regulations, the licensee must:
