Page 1 of 180
Perry Real Estate College Final Exam Actual
Exam 2026/2027 – Complete Exam-Style
Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
Question 1
Scenario: A buyer makes an offer on a property. The seller
counteroffers with a higher price. The buyer signs the
counteroffer. At what point is a binding contract formed?
A) When the buyer made the initial offer
B) When the seller signed the counteroffer
C) When the buyer signs the counteroffer and it is delivered to
the seller
D) When the buyer pays earnest money
Answer: C
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Rationale: A counteroffer rejects the original offer and creates a
new offer. A binding contract is formed when the buyer accepts
the counteroffer (signs it) and that acceptance is communicated to
the seller. Earnest money is not required for contract formation.
Question 2
Which of the following is an example of actual notice?
A) A recorded deed
B) A tenant’s possession of a leasehold property visible to a
buyer
C) A survey recorded in the county clerk’s office
D) A written notice delivered to a property owner
Answer: D
Rationale: Actual notice is express information directly given to
a person (e.g., a letter, conversation). Constructive notice is
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provided by public records or visible possession. A recorded
deed (B) is constructive. Tenant possession (C) gives constructive
notice.
Question 3
Scenario: A real estate agent represents a seller. The agent
knows the property has a leaky basement but does not disclose it
to potential buyers. The buyers discover the leak after closing.
Which legal concept applies?
A) Caveat emptor (buyer beware)
B) Latent defect non-disclosure
C) Puffing
D) Res ipsa loquitur
Answer: B
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Rationale: Sellers and their agents have a duty to disclose
known material defects (latent defects). Failure to disclose can
result in liability. Caveat emptor is outdated for residential
transactions in most states. Puffing is exaggerated opinion.
Question 4
The legal concept that gives the government the right to take
private property for public use with just compensation is:
A) Escheat
B) Police power
C) Eminent domain
D) Taxation
Answer: C
Rationale: Eminent domain is the government’s right to take
property for public purpose with compensation. Police power is
Perry Real Estate College Final Exam Actual
Exam 2026/2027 – Complete Exam-Style
Questions with Detailed Rationales | 100%
Verified | Pass Guaranteed – A+ Graded
Question 1
Scenario: A buyer makes an offer on a property. The seller
counteroffers with a higher price. The buyer signs the
counteroffer. At what point is a binding contract formed?
A) When the buyer made the initial offer
B) When the seller signed the counteroffer
C) When the buyer signs the counteroffer and it is delivered to
the seller
D) When the buyer pays earnest money
Answer: C
,Page 2 of 180
Rationale: A counteroffer rejects the original offer and creates a
new offer. A binding contract is formed when the buyer accepts
the counteroffer (signs it) and that acceptance is communicated to
the seller. Earnest money is not required for contract formation.
Question 2
Which of the following is an example of actual notice?
A) A recorded deed
B) A tenant’s possession of a leasehold property visible to a
buyer
C) A survey recorded in the county clerk’s office
D) A written notice delivered to a property owner
Answer: D
Rationale: Actual notice is express information directly given to
a person (e.g., a letter, conversation). Constructive notice is
,Page 3 of 180
provided by public records or visible possession. A recorded
deed (B) is constructive. Tenant possession (C) gives constructive
notice.
Question 3
Scenario: A real estate agent represents a seller. The agent
knows the property has a leaky basement but does not disclose it
to potential buyers. The buyers discover the leak after closing.
Which legal concept applies?
A) Caveat emptor (buyer beware)
B) Latent defect non-disclosure
C) Puffing
D) Res ipsa loquitur
Answer: B
, Page 4 of 180
Rationale: Sellers and their agents have a duty to disclose
known material defects (latent defects). Failure to disclose can
result in liability. Caveat emptor is outdated for residential
transactions in most states. Puffing is exaggerated opinion.
Question 4
The legal concept that gives the government the right to take
private property for public use with just compensation is:
A) Escheat
B) Police power
C) Eminent domain
D) Taxation
Answer: C
Rationale: Eminent domain is the government’s right to take
property for public purpose with compensation. Police power is
