RERA LATEST 2026 COMPREHENSIVE EXAM QUESTIONS
AND SOLUTIONS RATED A+
✔✔Who controls the escrow account? - ✔✔DLD controls the escrow account.
Money/funds are released from the escrow account based on the certified progress of
the Project.
✔✔What is developer's escrow account? - ✔✔The escrow account is required for each
project under construction or off-plan to be developed by the developer after he gets the
approval from RERA to construct the project. Monies received from investors/buyers are
deposited into the escrow account.
✔✔In whose name should the escrow account be? - ✔✔Escrow account is opened
under the project name for each and every project.
✔✔What is the meaning of the suffixes - or and - ee? - ✔✔Words ending in - or signify
the giver of something Words ending in - ee refer to the recepient A grantor gives a
deed to a grantee A vendor is the seller; the vendee is the buyer An offeror makes an
offer to the offeree A lessor gives a lease; the lessee is the tenant A donor makes a
donation; the donee receives it
✔✔What is a down payment or a deposit cheque? - ✔✔A down payment or deposit is
the cheque that the buyer issues in order to reserve a property. According to the
"market norm", it is usually 10% of the selling price.
✔✔Can it be in cash? - ✔✔No, it should be payable in the form of a cheque.
✔✔If in cheque, in whose name? - ✔✔The cheque should be in the name of the Seller
✔✔When does the seller receive the down payment? - ✔✔The deposit (down payment)
cheque is held by the brokerage company until the transfer date. At transfer, and based
on the agreement between the buyer and seller, the deposit cheque is either returned to
the buyer whereby the seller would expect the total amount due to him in the form of a
manager's cheque or the seller would accept the deposit cheque and as such would
only expect the balance to be paid in the form of a manager's cheque.
✔✔What is a security cheque, in whose name is it issued? - ✔✔A security cheque is the
cheque issued by the seller in the name of the buyer as a security for the buyer in case
the seller defaults on the agreement. This is also held by the brokerage company
✔✔Who gets the cheque if the deal go through, and it the deal does not materialize? -
✔✔If the deal goes through, the brokerage company returns the security cheque to the
seller. However, if he defaults on the agreement and both parties had agreed on these
terms, then the security cheque is handed over to the buyer due to the seller's default. It
, is crucial that defaulting clauses are drafted clearly under form F so each party knows
its rights and obligations.
✔✔What is a distress sale? - ✔✔It is a sale of real estate where the seller is under
compulsion, or forced to sell.
✔✔Can a broker advertise a distress sale? - ✔✔yes
✔✔Four Ways to identify market trends - ✔✔Number of home sales and total sales
volume this vs. last year Number of listings this vs. last year Average sale price, per
area, this vs. last year
% of increase or decrease in av. Sale price per year
✔✔What is meant by lender preapproval? - ✔✔It is the practice by a lender of approving
a borrower for a certain loan amount. This allows prospective homebuyers to shop with
the knowledge, likely to be shared with seller and broker to demonstrate their financial
capability, that the loan will be approved.
✔✔What is a listing? - ✔✔A listing is a contract between an owner and a broker
authorizing the broker to find a buyer or a tenant who is willing to buy or lease the
property under the terms of the listing.
✔✔Must a listing be in writing? - ✔✔yes
✔✔What are the different types of listings? - ✔✔Exclusive
Open listing
Sole listing
✔✔Why would an owner give a broker an exclusive listing? - ✔✔This type of listing
guarantees the broker a commission if the property is sold by anyone. It gives the
broker more incentive to sell, with less risk of wasted time and money. With other form
of listings, a broker may be reluctant to spend time or money to advertise or show the
property because another broker may sell the property and collect the commission
✔✔When do listing expire? - ✔✔90 days
✔✔What is a qualified buyer? - ✔✔who is willing or seeking to buy
✔✔What is a competent party? - ✔✔To be competent to buy or sell real estate, a party
must be:
Mentally capable
Of legal age
✔✔What is incompetent? - ✔✔less then 21 years old or crazy
AND SOLUTIONS RATED A+
✔✔Who controls the escrow account? - ✔✔DLD controls the escrow account.
Money/funds are released from the escrow account based on the certified progress of
the Project.
✔✔What is developer's escrow account? - ✔✔The escrow account is required for each
project under construction or off-plan to be developed by the developer after he gets the
approval from RERA to construct the project. Monies received from investors/buyers are
deposited into the escrow account.
✔✔In whose name should the escrow account be? - ✔✔Escrow account is opened
under the project name for each and every project.
✔✔What is the meaning of the suffixes - or and - ee? - ✔✔Words ending in - or signify
the giver of something Words ending in - ee refer to the recepient A grantor gives a
deed to a grantee A vendor is the seller; the vendee is the buyer An offeror makes an
offer to the offeree A lessor gives a lease; the lessee is the tenant A donor makes a
donation; the donee receives it
✔✔What is a down payment or a deposit cheque? - ✔✔A down payment or deposit is
the cheque that the buyer issues in order to reserve a property. According to the
"market norm", it is usually 10% of the selling price.
✔✔Can it be in cash? - ✔✔No, it should be payable in the form of a cheque.
✔✔If in cheque, in whose name? - ✔✔The cheque should be in the name of the Seller
✔✔When does the seller receive the down payment? - ✔✔The deposit (down payment)
cheque is held by the brokerage company until the transfer date. At transfer, and based
on the agreement between the buyer and seller, the deposit cheque is either returned to
the buyer whereby the seller would expect the total amount due to him in the form of a
manager's cheque or the seller would accept the deposit cheque and as such would
only expect the balance to be paid in the form of a manager's cheque.
✔✔What is a security cheque, in whose name is it issued? - ✔✔A security cheque is the
cheque issued by the seller in the name of the buyer as a security for the buyer in case
the seller defaults on the agreement. This is also held by the brokerage company
✔✔Who gets the cheque if the deal go through, and it the deal does not materialize? -
✔✔If the deal goes through, the brokerage company returns the security cheque to the
seller. However, if he defaults on the agreement and both parties had agreed on these
terms, then the security cheque is handed over to the buyer due to the seller's default. It
, is crucial that defaulting clauses are drafted clearly under form F so each party knows
its rights and obligations.
✔✔What is a distress sale? - ✔✔It is a sale of real estate where the seller is under
compulsion, or forced to sell.
✔✔Can a broker advertise a distress sale? - ✔✔yes
✔✔Four Ways to identify market trends - ✔✔Number of home sales and total sales
volume this vs. last year Number of listings this vs. last year Average sale price, per
area, this vs. last year
% of increase or decrease in av. Sale price per year
✔✔What is meant by lender preapproval? - ✔✔It is the practice by a lender of approving
a borrower for a certain loan amount. This allows prospective homebuyers to shop with
the knowledge, likely to be shared with seller and broker to demonstrate their financial
capability, that the loan will be approved.
✔✔What is a listing? - ✔✔A listing is a contract between an owner and a broker
authorizing the broker to find a buyer or a tenant who is willing to buy or lease the
property under the terms of the listing.
✔✔Must a listing be in writing? - ✔✔yes
✔✔What are the different types of listings? - ✔✔Exclusive
Open listing
Sole listing
✔✔Why would an owner give a broker an exclusive listing? - ✔✔This type of listing
guarantees the broker a commission if the property is sold by anyone. It gives the
broker more incentive to sell, with less risk of wasted time and money. With other form
of listings, a broker may be reluctant to spend time or money to advertise or show the
property because another broker may sell the property and collect the commission
✔✔When do listing expire? - ✔✔90 days
✔✔What is a qualified buyer? - ✔✔who is willing or seeking to buy
✔✔What is a competent party? - ✔✔To be competent to buy or sell real estate, a party
must be:
Mentally capable
Of legal age
✔✔What is incompetent? - ✔✔less then 21 years old or crazy
