Barney Fletcher Final Exam ACTUAL
EXAM 2026/2027 | Barney Fletcher
Real Estate | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: National Real Estate Principles (Questions 1–75)
Q1. A seller tells a listing agent, "I will not sell to any family with children." The agent should:
A. Follow the instruction because the seller sets the terms.
B. Refuse the listing and explain fair housing laws prohibit this. [CORRECT]
C. List the property and just not show it to families with children.
D. Tell the seller to use "For Sale By Owner" instead.
Correct Answer: B
Rationale: The Federal Fair Housing Act prohibits discrimination based on familial status (families with
children under 18). A is incorrect because a seller cannot instruct an agent to violate federal law. C is
illegal and subjects the agent to fines and license revocation. D is unethical; the agent has a duty to
uphold fair housing laws and should educate the seller rather than facilitate illegal discrimination.
Q2. A property is listed for $300,000. A buyer offers $280,000. The seller counteroffers at $290,000. The
buyer says, "I need to think about it." The next day, the seller accepts the original $280,000 offer. Is
there a valid contract?
A. Yes, because the seller accepted the original offer before it was withdrawn.
B. No, because the buyer's original offer was terminated by the counteroffer. [CORRECT]
C. Yes, because no time limit was stated on the original offer.
D. No, because the seller's acceptance was not in writing.
,Correct Answer: B
Rationale: A counteroffer acts as a rejection of the original offer, terminating it completely. The original
$280,000 offer no longer exists to be accepted. A is wrong because the offer was already dead. C is
incorrect because time limits don't matter when an offer has been terminated by counteroffer. D is
wrong because while real estate contracts must be in writing (Statute of Frauds), the core issue here is
that there was no valid offer to accept.
Q3. Which of the following is considered real property?
A. A built-in dishwasher
B. A freestanding refrigerator
C. A window air conditioning unit
D. A area rug
Correct Answer: A
Rationale: Real property includes land and anything permanently attached to it (fixtures). A built-in
dishwasher is affixed and considered a fixture. B, C, and D are all personal property (chattels) because
they are movable and not permanently attached. The MARIA test (Method of attachment, Adaptability,
Relationship of parties, Intention, Agreement) confirms built-in appliances are fixtures.
Q4. The power of government to regulate land use for public health, safety, and welfare is called:
A. Eminent domain
B. Escheat
C. Police power [CORRECT]
D. Taxation
Correct Answer: C
Rationale: Police power is the government's authority to enact zoning ordinances, building codes, and
environmental regulations for community welfare. A (eminent domain) is the power to take private
property for public use with compensation. B (escheat) is property reverting to the state when an owner
dies without heirs. D (taxation) is the power to levy property taxes. These are the four government
powers (PETE: Police power, Eminent domain, Taxation, Escheat).
,Q5. A broker is representing a buyer under an exclusive buyer agency agreement. The broker shows the
buyer a FSBO (For Sale By Owner) property. Regarding compensation:
A. The buyer must pay the broker's commission directly.
B. The seller must pay the broker's commission.
C. The broker cannot receive compensation on a FSBO.
D. The broker's compensation can be negotiated with the seller or paid by the buyer per the
agency agreement. [CORRECT]
Correct Answer: D
Rationale: Under buyer agency, the buyer's agreement typically specifies how the broker is
compensated—either through the seller (if cooperative), from the buyer directly, or a combination. A is
too absolute; the seller may agree to pay. B is incorrect because FSBO sellers are not obligated to pay. C
is wrong because brokers can absolutely work with FSBOs and negotiate compensation.
Q6. Which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed [CORRECT]
D. Special warranty deed
Correct Answer: C
Rationale: A general warranty deed provides the most comprehensive protection, with covenants
covering the entire chain of title (seisin, right to convey, against encumbrances, quiet enjoyment,
warranty, further assurances). A (quitclaim) offers no warranties. B (bargain and sale) implies the
grantor holds title but makes no guarantees against encumbrances. D (special warranty) only warrants
against defects caused during the grantor's ownership period.
Q7. A property owner has the right to use water from a river flowing through their land. This is an
example of:
A. Littoral rights
B. Riparian rights [CORRECT]
C. Appropriative rights
, D. Prescriptive rights
Correct Answer: B
Rationale: Riparian rights apply to owners of land bordering flowing water (rivers, streams). A (littoral
rights) apply to land bordering static water (lakes, oceans). C (appropriative rights) are water rights
acquired by use, common in western states. D (prescriptive rights) are acquired through adverse
possession, not water access.
Q8. In a title theory state, who holds legal title during the mortgage period?
A. The mortgagor (borrower)
B. The mortgagee (lender) [CORRECT]
C. The trustee
D. The title insurance company
Correct Answer: B
Rationale: In title theory states, the lender (mortgagee) holds legal title until the loan is paid off, while
the borrower retains equitable title. Georgia is a lien theory state, where the borrower retains legal title
and the lender has a lien. C refers to deed of trust states where a trustee holds title. D is incorrect
because title insurers don't hold title.
Q9. The clause in a mortgage that allows the lender to demand full repayment if the property is sold is
the:
A. Acceleration clause
B. Alienation clause (due-on-sale clause) [CORRECT]
C. Defeasance clause
D. Subordination clause
Correct Answer: B
Rationale: The alienation clause (due-on-sale clause) gives the lender the right to call the loan due if the
property is transferred without permission. A (acceleration clause) allows calling the loan due upon
default. C (defeasance clause) releases the lien when the debt is paid. D (subordination clause) allows a
mortgage to move to junior lien position.
EXAM 2026/2027 | Barney Fletcher
Real Estate | Verified Q&A | Pass
Guaranteed - A+ Graded
Section 1: National Real Estate Principles (Questions 1–75)
Q1. A seller tells a listing agent, "I will not sell to any family with children." The agent should:
A. Follow the instruction because the seller sets the terms.
B. Refuse the listing and explain fair housing laws prohibit this. [CORRECT]
C. List the property and just not show it to families with children.
D. Tell the seller to use "For Sale By Owner" instead.
Correct Answer: B
Rationale: The Federal Fair Housing Act prohibits discrimination based on familial status (families with
children under 18). A is incorrect because a seller cannot instruct an agent to violate federal law. C is
illegal and subjects the agent to fines and license revocation. D is unethical; the agent has a duty to
uphold fair housing laws and should educate the seller rather than facilitate illegal discrimination.
Q2. A property is listed for $300,000. A buyer offers $280,000. The seller counteroffers at $290,000. The
buyer says, "I need to think about it." The next day, the seller accepts the original $280,000 offer. Is
there a valid contract?
A. Yes, because the seller accepted the original offer before it was withdrawn.
B. No, because the buyer's original offer was terminated by the counteroffer. [CORRECT]
C. Yes, because no time limit was stated on the original offer.
D. No, because the seller's acceptance was not in writing.
,Correct Answer: B
Rationale: A counteroffer acts as a rejection of the original offer, terminating it completely. The original
$280,000 offer no longer exists to be accepted. A is wrong because the offer was already dead. C is
incorrect because time limits don't matter when an offer has been terminated by counteroffer. D is
wrong because while real estate contracts must be in writing (Statute of Frauds), the core issue here is
that there was no valid offer to accept.
Q3. Which of the following is considered real property?
A. A built-in dishwasher
B. A freestanding refrigerator
C. A window air conditioning unit
D. A area rug
Correct Answer: A
Rationale: Real property includes land and anything permanently attached to it (fixtures). A built-in
dishwasher is affixed and considered a fixture. B, C, and D are all personal property (chattels) because
they are movable and not permanently attached. The MARIA test (Method of attachment, Adaptability,
Relationship of parties, Intention, Agreement) confirms built-in appliances are fixtures.
Q4. The power of government to regulate land use for public health, safety, and welfare is called:
A. Eminent domain
B. Escheat
C. Police power [CORRECT]
D. Taxation
Correct Answer: C
Rationale: Police power is the government's authority to enact zoning ordinances, building codes, and
environmental regulations for community welfare. A (eminent domain) is the power to take private
property for public use with compensation. B (escheat) is property reverting to the state when an owner
dies without heirs. D (taxation) is the power to levy property taxes. These are the four government
powers (PETE: Police power, Eminent domain, Taxation, Escheat).
,Q5. A broker is representing a buyer under an exclusive buyer agency agreement. The broker shows the
buyer a FSBO (For Sale By Owner) property. Regarding compensation:
A. The buyer must pay the broker's commission directly.
B. The seller must pay the broker's commission.
C. The broker cannot receive compensation on a FSBO.
D. The broker's compensation can be negotiated with the seller or paid by the buyer per the
agency agreement. [CORRECT]
Correct Answer: D
Rationale: Under buyer agency, the buyer's agreement typically specifies how the broker is
compensated—either through the seller (if cooperative), from the buyer directly, or a combination. A is
too absolute; the seller may agree to pay. B is incorrect because FSBO sellers are not obligated to pay. C
is wrong because brokers can absolutely work with FSBOs and negotiate compensation.
Q6. Which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Bargain and sale deed
C. General warranty deed [CORRECT]
D. Special warranty deed
Correct Answer: C
Rationale: A general warranty deed provides the most comprehensive protection, with covenants
covering the entire chain of title (seisin, right to convey, against encumbrances, quiet enjoyment,
warranty, further assurances). A (quitclaim) offers no warranties. B (bargain and sale) implies the
grantor holds title but makes no guarantees against encumbrances. D (special warranty) only warrants
against defects caused during the grantor's ownership period.
Q7. A property owner has the right to use water from a river flowing through their land. This is an
example of:
A. Littoral rights
B. Riparian rights [CORRECT]
C. Appropriative rights
, D. Prescriptive rights
Correct Answer: B
Rationale: Riparian rights apply to owners of land bordering flowing water (rivers, streams). A (littoral
rights) apply to land bordering static water (lakes, oceans). C (appropriative rights) are water rights
acquired by use, common in western states. D (prescriptive rights) are acquired through adverse
possession, not water access.
Q8. In a title theory state, who holds legal title during the mortgage period?
A. The mortgagor (borrower)
B. The mortgagee (lender) [CORRECT]
C. The trustee
D. The title insurance company
Correct Answer: B
Rationale: In title theory states, the lender (mortgagee) holds legal title until the loan is paid off, while
the borrower retains equitable title. Georgia is a lien theory state, where the borrower retains legal title
and the lender has a lien. C refers to deed of trust states where a trustee holds title. D is incorrect
because title insurers don't hold title.
Q9. The clause in a mortgage that allows the lender to demand full repayment if the property is sold is
the:
A. Acceleration clause
B. Alienation clause (due-on-sale clause) [CORRECT]
C. Defeasance clause
D. Subordination clause
Correct Answer: B
Rationale: The alienation clause (due-on-sale clause) gives the lender the right to call the loan due if the
property is transferred without permission. A (acceleration clause) allows calling the loan due upon
default. C (defeasance clause) releases the lien when the debt is paid. D (subordination clause) allows a
mortgage to move to junior lien position.
