Texas Real Estate Sales Agent Practice Exam

1. Which statement about the three primary loan categories is accurate?

• A. Conventional loans are not government-backed, FHA loans are insured by the FHA with low down payments, and VA loans are guaranteed for eligible veterans and can permit no down payment
• B. VA loans are insured by the FHA, and conventional loans permit no down payment
• C. FHA loans are guaranteed only for veterans, and conventional loans require government backing
• D. Conventional loans are insured by the FHA, and VA loans always require twenty percent down

2. A homeowner refinances the loan on her principal residence. Under TILA, what protection does she have immediately after closing?

• A. A three-day right of rescission on certain refinances of a principal residence
• B. A thirty-day money-back guarantee on the appraisal fee
• C. An automatic reduction of her APR after three payments
• D. A waiver of all closing disclosures

3. A borrower chooses a loan whose interest rate and payment stay the same for the entire loan term, giving predictable monthly housing costs. What type of loan has the borrower selected?

• A. Adjustable-rate mortgage
• B. Balloon mortgage
• C. Graduated payment mortgage
• D. Fixed-rate mortgage

4. A candidate must clear both the National and State passing thresholds. Combining only the two published minimum-correct requirements, how many correct answers must the candidate achieve in total across both portions?

• A. 56 correct
• B. 71 correct
• C. 84 correct
• D. 96 correct

5. On the State portion of the examination, what is the minimum number of questions a candidate must answer correctly to pass?

• A. 28 questions
• B. 84 questions
• C. 43 questions
• D. 56 questions

6. After a borrower misses several payments, the lender demands the full remaining loan balance at once rather than just the past-due installments. Which mortgage provision permits this?

• A. The defeasance clause
• B. The alienation clause
• C. The subordination clause
• D. The acceleration clause

7. To pass, a candidate must answer a required number of items correctly on the National portion. What is that minimum number of correct answers?

• A. 28 questions
• B. 43 questions
• C. 56 questions
• D. 240 questions

8. A buyer using a conventional loan makes a down payment of only ten percent. What additional cost is she typically required to carry?

• A. Private mortgage insurance, because her down payment is less than twenty percent
• B. An FHA guarantee fee
• C. A VA funding fee
• D. A discount point equal to twenty percent of the loan

9. Under which statute and implementing regulation must a lender disclose the annual percentage rate (APR) and total finance charge so borrowers can compare the true cost of credit?

• A. The Truth in Lending Act, implemented by Regulation Z
• B. The Real Estate Settlement Procedures Act, implemented by Regulation X
• C. The Fair Housing Act, implemented by Regulation B
• D. The Civil Rights Act of 1866

10. A borrower wants to lower the interest rate on a new mortgage by paying cash up front at closing. Which financing tool accomplishes this, and how is each unit measured?

• A. Discount points, each equal to one percent of the loan amount, paid as prepaid interest to buy down the rate
• B. Private mortgage insurance, each unit equal to twenty percent of the loan
• C. An acceleration payment, equal to the full loan balance
• D. A RESPA referral credit, equal to the lender's fee

11. A borrower's mortgage financing consists of two core instruments. Which pair correctly describes them?

• A. A promissory note that evidences the debt and a mortgage or deed of trust that pledges the property as security
• B. A deed of reconveyance and a title insurance binder
• C. A listing agreement and a purchase contract
• D. An estoppel certificate and a lease assignment

12. In a lien-theory jurisdiction, who holds legal title to the property while the mortgage debt remains outstanding?

• A. The lender holds legal title until the debt is repaid
• B. The county recorder holds title in trust
• C. Title is split equally between borrower and lender
• D. The borrower holds title and the lender holds only a lien

13. On a $200,000 loan, how much would one discount point cost the borrower, and what is its purpose?

• A. $2,000, and it is a penalty for early repayment
• B. $2,000, and it is prepaid interest that buys down the interest rate
• C. $200, and it is a one-time origination fee
• D. $20,000, and it is a mandatory reserve deposit

14. A borrower's adjustable-rate mortgage payment is recalculated periodically based on a published benchmark rate plus a fixed percentage the lender adds. What are these two components together called?

• A. The index and the margin
• B. The principal and the interest
• C. The discount and the origination fee
• D. The escrow and the impound

15. A borrower pays an upfront fee at closing equal to a percentage of the loan amount in exchange for a permanently reduced interest rate over the life of the loan. What is this fee called?

• A. An origination fee
• B. A discount point
• C. A recording fee
• D. An escrow deposit

16. A borrower is quoted a rate that requires paying one and a half discount points on a $160,000 loan to secure the lower rate. How much will the borrower pay in points at closing?

• A. $1,600
• B. $1,200
• C. $2,400
• D. $16,000

17. A lender compares a buyer's total monthly debt payments, including the proposed mortgage payment, to the buyer's gross monthly income before approving a loan. Which qualifying measure is the lender applying?

• A. Loan-to-value ratio
• B. Capitalization rate
• C. Gross rent multiplier
• D. Debt-to-income ratio

18. A lender divides the loan amount by the property's appraised value to help determine how much risk the lender is taking on relative to the collateral. What is this calculation called?

• A. Loan-to-value ratio
• B. Debt-to-income ratio
• C. Amortization schedule
• D. Capitalization rate

19. A buyer's lender requires mortgage insurance because the buyer's down payment is less than 20 percent of the purchase price on a conventional loan. What is the primary purpose of this insurance?

• A. It protects the lender against loss if the borrower defaults
• B. It protects the borrower against loss of the down payment
• C. It replaces the need for a title insurance policy
• D. It guarantees the borrower a fixed interest rate for the life of the loan

20. A first-time buyer with limited savings and a lower credit score is steered toward a government-insured loan program that permits a smaller minimum down payment than most conventional loans. Which loan type is being described?

• A. VA loan
• B. FHA loan
• C. USDA loan
• D. Conventional loan with 20 percent down

21. A buyer who is an eligible veteran wants a loan with no down payment requirement and no ongoing monthly mortgage insurance premium. Which loan program is designed for this buyer?

• A. FHA loan
• B. Conventional loan
• C. VA loan
• D. USDA loan

22. A borrower signs two separate documents at closing: one is the borrower's personal promise to repay the debt, and the other pledges the property as collateral and allows non-judicial foreclosure if the borrower defaults. Which document creates the personal promise to repay?

• A. The deed of trust
• B. The promissory note
• C. The title commitment
• D. The closing disclosure

23. A borrower's loan has low monthly payments for several years, but the remaining unpaid balance becomes due in a single lump sum at the end of the term. What type of payment structure is this?

• A. Fully amortized loan
• B. Negative amortization loan
• C. Balloon payment loan
• D. Graduated payment loan

24. A seller who owns a property free and clear agrees to act as the lender, allowing the buyer to make payments directly to the seller instead of obtaining a bank loan. What is this arrangement commonly called?

• A. A wraparound mortgage
• B. An assumption
• C. A blanket mortgage
• D. Seller (owner) financing

25. A seller with an existing underlying mortgage extends a new, larger loan to the buyer that wraps around and includes the existing debt, with the seller continuing to make payments on the original loan out of the payments received from the buyer. What is this financing technique called?

• A. A wraparound mortgage
• B. A purchase money mortgage
• C. A package mortgage
• D. A bridge loan

26. A borrower wants to pay off her mortgage early but discovers her loan documents impose a fee for doing so within the first several years. What is this fee called?

• A. An origination fee
• B. A prepayment penalty
• C. A discount point
• D. An acceleration fee

27. A lender evaluates a borrower's income, assets, debts, and credit history before extending a mortgage, in keeping with federal rules designed to ensure borrowers are extended loans they can realistically repay. This underwriting standard is best described as an application of which concept?

• A. The Statute of Frauds
• B. The doctrine of caveat emptor
• C. The ability-to-repay standard
• D. The subordination clause

28. A lender collects a portion of a borrower's property taxes and homeowner's insurance premium with each monthly mortgage payment and holds the funds until the bills come due. What is this account called?

• A. A trust account
• B. An earnest money account
• C. A reserve fund
• D. An escrow (impound) account

29. An agent learns during a listing that the seller would accept far less than the asking price because the seller is going through a divorce. After the listing agreement terminates, may the agent reveal this to a prospective buyer?

• A. No, but only until the property is relisted with a different broker
• B. Yes, because the agency relationship has ended and all duties expire with it
• C. Yes, provided the agent first obtains the buyer's written consent
• D. No, because confidentiality survives termination and forbids revealing information that would harm the principal's bargaining position

30. A seller receives an offer and responds by returning the document with a higher price and a changed closing date. In contract terms, what has the seller's response accomplished?

• A. It accepts the offer, because a price is stated
• B. It operates as a counteroffer that rejects and extinguishes the original offer
• C. It creates a binding option contract in favor of the buyer
• D. It has no legal effect until the buyer signs again

31. A buyer and seller reach an oral agreement for the sale of a parcel of land, but nothing is put in writing. If the seller refuses to proceed, why is the buyer unlikely to enforce the agreement?

• A. Because oral agreements always lack consideration
• B. Because the Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged
• C. Because land sales require a general warranty deed at the offer stage
• D. Because oral agreements are automatically void from the outset

32. A property has a recorded mortgage from 2018 and unpaid property taxes assessed in 2022. If the property is sold to satisfy debts, which claim generally takes priority?

• A. The 2018 mortgage, because it was recorded first
• B. The property tax lien, because tax liens generally take priority over all other liens regardless of when they were recorded
• C. Neither, because both are extinguished by the sale
• D. Whichever creditor demands payment first

33. A candidate correctly answered 55 questions on the National portion. Relative to the passing standard for that portion, this result is:

• A. One correct answer short of passing
• B. Exactly at the passing threshold
• C. One correct answer above the passing threshold
• D. Below the State threshold but above the National threshold

34. The total number of questions a candidate must answer correctly to pass BOTH the National and State portions combined is best described as which of the following?

• A. The sum of 56 and 28
• B. The sum of 56 and 43
• C. The sum of 240 and 56
• D. The sum of 43 and 28

35. A candidate must answer a minimum number of items correctly on the National portion to pass it. What is that minimum number of correct answers?

• A. 28 questions
• B. 43 questions
• C. 56 questions
• D. 60 questions

36. A candidate answered exactly 56 items correctly on the National portion and exactly 28 items correctly on the State portion. Based solely on the stated passing thresholds, what is the outcome?

• A. Passed both portions
• B. Passed National only
• C. Passed State only
• D. Failed both portions

37. A broker deposits a buyer's earnest-money check into the broker's own operating account to save a trip to the bank, intending to move it later. Which fiduciary duty has the broker most directly violated?

• A. Obedience, by ignoring the buyer's instructions
• B. Reasonable care, by acting carelessly
• C. Accounting, by commingling client funds with the broker's own funds
• D. Disclosure, by failing to inform the seller

38. A homeowner hires a property manager to lease units, collect rent, and handle tenant matters across the property over an indefinite period. How is this agent best classified?

• A. A special agent, because the authority is limited to a single transaction
• B. A general agent, because the manager may bind the principal in a range of matters
• C. A customer, because no fiduciary duties are owed
• D. A subagent of the tenants

39. A buyer who is not represented by the agent asks the seller's agent whether the roof has a known, hidden leak. What does the agent owe this unrepresented buyer?

• A. The full range of fiduciary duties, including loyalty
• B. Nothing, because no relationship exists
• C. Honesty and fair dealing, including disclosure of known material latent defects, but not fiduciary duties
• D. Only a duty to keep the seller's information confidential

40. A grantor wishes to convey property with the strongest possible assurances, warranting title against all defects arising at any time. Which instrument accomplishes this?

• A. A quitclaim deed
• B. A general warranty deed
• C. A life estate
• D. A promissory note

41. A 17-year-old minor signs a contract to purchase a home. Later the minor chooses to back out. How is this contract best characterized?

• A. Void, because it never existed legally
• B. Voidable, because a party may disaffirm it
• C. Unenforceable, because it was never in writing
• D. Fully binding on both parties

42. A sales agent wants to begin listing and selling property independently, without being supervised by a broker. Under Texas license law, what must the sales agent do first?

• A. Sponsor with (be supervised under) a licensed broker
• B. Complete a single post-licensing course and practice independently
• C. Register directly with a title company
• D. Obtain a broker's license only after five years of sales experience

43. Before entering into substantive discussions about a transaction, a Texas license holder must provide certain written information explaining the types of real estate representation available. What is this required disclosure called?

• A. The Information About Brokerage Services notice
• B. The Closing Disclosure
• C. The Seller's Disclosure Notice
• D. The Truth in Lending disclosure

44. A seller offers to let the listing broker keep any amount received above a stated minimum sale price as the broker's entire commission. How is this type of listing arrangement generally treated?

• A. It is a standard exclusive right to sell listing
• B. It is an open listing
• C. It is an exclusive agency listing
• D. It is a net listing, which is prohibited or heavily discouraged because it creates a conflict of interest

45. A listing broker owes the seller specific fiduciary duties, including care, obedience to lawful instructions, accounting for funds, loyalty, and disclosure. Which of these duties requires the broker to keep the seller's confidential information from being used against the seller's interest?

• A. Loyalty
• B. Obedience
• C. Accounting
• D. Care

46. A landlord refuses to rent an apartment to a family because the family includes young children. Under federal fair housing law, this refusal is most likely a violation based on which protected class?

• A. National origin
• B. Familial status
• C. Disability
• D. Religion

47. An agent consistently shows homes in certain neighborhoods only to buyers of a particular race and avoids showing those same homes to buyers of other races. This practice is known as:

• A. Blockbusting
• B. Redlining
• C. Puffing
• D. Steering

48. An agent tells homeowners in a neighborhood that property values are about to fall because members of a particular protected class are moving in, encouraging the homeowners to sell quickly and below market value. This practice is known as:

• A. Redlining
• B. Steering
• C. Commingling
• D. Blockbusting

49. A prior occupant of a home died of natural causes in the home five years ago. Under Texas law, is this fact required to be disclosed to a prospective buyer?

• A. No, an occupant's death from natural causes is generally not required to be disclosed and does not constitute a material defect
• B. Yes, it must always be disclosed as a material fact affecting value
• C. Yes, but only if the buyer is purchasing with a VA loan
• D. Yes, but only if the death occurred within the last year

50. A broker's unlicensed administrative assistant answers phones, schedules showings arranged by a licensed agent, and prepares marketing flyers using content the agent provides. Which activity would this assistant NOT be permitted to perform without a license?

• A. Answering routine phone inquiries
• B. Negotiating contract terms or discussing price with a prospective buyer
• C. Scheduling a showing at a licensed agent's direction
• D. Assembling flyers from agent-supplied content

51. A broker deposits earnest money received from a buyer into the same bank account the broker uses to pay personal and office expenses. Which violation has the broker most likely committed?

• A. Conversion
• B. Fraud
• C. Commingling of funds
• D. Misrepresentation

52. A consumer obtains a court judgment against a real estate license holder for fraud in a transaction but is unable to collect the judgment because the license holder has no recoverable assets. What recourse might the consumer have under Texas law?

• A. File a new lawsuit against the Texas Real Estate Commission directly
• B. Request that the license holder's broker personally pay the judgment
• C. Appeal directly to a federal court
• D. Apply to the Real Estate Recovery Trust Fund for reimbursement, subject to statutory conditions

53. A sales agent posts an advertisement for a listed property on social media featuring only the agent's personal name and phone number, with no mention of the sponsoring broker. Under Texas advertising rules, what is the problem with this advertisement?

• A. Advertising generally must include the sponsoring broker's name, since a sales agent may not advertise independently of the broker
• B. There is no problem; agents may advertise entirely under their own name
• C. The advertisement must include the seller's name
• D. The advertisement must include the buyer's lender's name

54. A creditor holding an ordinary unsecured debt attempts to force the sale of a debtor's primary residence in Texas to satisfy the debt. Under Texas homestead law, what generally happens?

• A. The sale proceeds automatically because homestead law only protects rental property
• B. The homestead is generally protected from forced sale by most unsecured creditors, subject to limited exceptions such as valid mortgage or tax liens
• C. The debtor must first obtain court permission to keep the home
• D. The creditor may seize the home only after the debtor files bankruptcy

55. A married couple purchases a home in Texas using income earned by either spouse during the marriage, and the deed does not specify separate property. How is this property most likely classified under Texas law?

• A. Separate property of whichever spouse's name appears first on the deed
• B. Tenancy in common automatically
• C. Community property, owned jointly by both spouses
• D. Property held in a life estate for both spouses

56. A Texas broker prepares a customized purchase contract for a residential resale transaction, drafting unique contract language rather than using a standard form. Why might this practice expose the broker to a charge of unauthorized practice of law?

• A. Brokers may never assist with any contract paperwork
• B. Only attorneys may show property to buyers
• C. Brokers may only use forms provided by the seller's attorney
• D. Texas license holders are generally required to use TREC-promulgated or approved contract forms rather than drafting original contract language, which is considered the practice of law

57. A licensed agent wants to pay a referral fee to a friend who is not a licensed real estate agent for referring a buyer. Under Texas license law, is this generally permitted?

• A. No, compensation for real estate brokerage activity generally may only be paid to licensed persons, not unlicensed individuals
• B. Yes, referral fees to unlicensed persons are unrestricted
• C. Yes, but only if the unlicensed person signs a waiver
• D. Yes, provided the fee is under a certain small amount

58. A licensed sales agent wants to keep her license active and in good standing over time. Under Texas license law, what is generally required to maintain (renew) real estate licensure?

• A. No requirements; licenses never expire in Texas
• B. Sponsorship by a different broker every year regardless of circumstances
• C. Completing required continuing education and timely renewal with the Commission
• D. Retaking the original licensing examination every renewal cycle

59. An owner holds the surface rights to a parcel of land but has separately conveyed the rights to extract minerals beneath the surface to another party. This arrangement BEST illustrates which principle of property ownership?

• A. That surface owners always retain all subsurface rights regardless of any conveyance
• B. That the bundle of rights in land can be separated, so different parties may hold surface and subsurface rights
• C. That mineral rights can never be transferred apart from the surface
• D. That land ownership is a single indivisible right that cannot be split

60. On the National portion of the Texas sales examination, what is the minimum number of questions a candidate must answer correctly to pass?

• A. 28 questions
• B. 43 questions
• C. 56 questions
• D. 60 questions

61. A candidate must clear both the National and State portions of the Texas sales exam. What is the minimum number of correct answers required on the State examination?

• A. 28 questions
• B. 43 questions
• C. 56 questions
• D. 84 questions

62. A candidate answers exactly the minimum required number of questions correctly on BOTH the National and State portions of the Texas sales exam. What is the combined total of correct answers across the two portions at those minimum thresholds?

• A. 56 questions
• B. 71 questions
• C. 84 questions
• D. 112 questions

63. A form of property ownership grants an owner the fullest, most complete bundle of rights available, of potentially infinite duration, and is freely transferable and inheritable. Which characteristic BEST distinguishes this estate from a lesser estate?

• A. It automatically terminates on the owner's death
• B. It conveys the most complete ownership interest, of indefinite duration, and passes to heirs
• C. It grants only the right to use the property for a fixed number of years
• D. It cannot be sold or mortgaged without government approval

64. Two people take title to a property together with the right of survivorship, meaning that when one owner dies, that owner's interest passes automatically to the surviving co-owner rather than to the deceased owner's heirs. Which statement BEST describes the effect of the survivorship feature?

• A. The surviving co-owner automatically absorbs the deceased owner's interest, bypassing probate for that interest
• B. Each owner may will their share to a third party despite the survivorship feature
• C. The deceased owner's share is distributed to that owner's estate through probate
• D. The property is sold and the proceeds split among all heirs

65. A homeowner discovers that an item was permanently affixed to the land in a way that it is now legally treated as part of the real property rather than as personal property. Which factor is MOST commonly used to determine whether such an item has become part of the real property?

• A. The original purchase price of the item
• B. The method and permanence of attachment, along with the intent of the party who attached it
• C. The color and style of the item
• D. Whether the item was manufactured domestically

66. An owner deeds property "to my brother for the duration of his life." The deed names no other party to take afterward. When the brother dies, what happens to the title?

• A. It is extinguished and the property escheats immediately
• B. It reverts to the grantor because no remainderman was named
• C. It automatically vests in the brother's heirs as fee simple
• D. It converts into an easement appurtenant

67. Two siblings each claim to have received the same parcel from their late parent. One received a quitclaim deed to the parcel; the parent, it turns out, held no interest in it at the time. What did the quitclaim deed convey to that sibling?

• A. Full fee simple absolute, by operation of the deed
• B. Whatever interest the grantor actually had — here, nothing
• C. A general warranty of clear title
• D. A life estate for the sibling's life

68. After receiving a valid deed, a purchaser promptly records it in the public land records. What is the primary legal effect of recording?

• A. It gives constructive notice to the world and establishes priority
• B. It eliminates the need for a granting clause
• C. It is required for the deed to be signed by the grantor
• D. It converts the fee simple into a life estate

69. A buyer wants the strongest possible assurance that the seller is defending title against any defect that arose at any point in the chain of ownership. Which deed should the buyer insist upon?

• A. Quitclaim deed
• B. General warranty deed
• C. A deed with no granting clause
• D. An unrecorded deed

70. A closing agent reviews a signed instrument intended to transfer land. Which one of the following is NOT among the requirements for the deed to be effective?

• A. It contains a legal description of the property
• B. It includes a granting clause and names the parties
• C. It is notarized by a licensed appraiser
• D. It is signed by the grantor and delivered and accepted

71. A lender recorded its mortgage lien years before the county recorded an unpaid property tax lien on the same parcel. At a forced sale, which lien is generally satisfied first?

• A. The mortgage lien, because it was recorded earlier
• B. The property tax lien, regardless of recording order
• C. Neither; liens are always paid pro rata
• D. Whichever lienholder demands payment first

72. A driveway easement lets the owner of Lot 1 cross Lot 2 to reach the road. When Lot 1 is later sold, the new owner continues to use the driveway. This is an example of which kind of encumbrance?

• A. A lien that must be re-recorded on each sale
• B. An easement appurtenant that runs with the land
• C. A life estate benefiting Lot 2
• D. A quitclaim conveyance of Lot 2

73. In an easement appurtenant, the parcel that bears the burden of the easement is known as the:

• A. Servient tenement
• B. Dominant tenement
• C. Remainderman
• D. Grantor's reversion

74. An owner holds land in fee simple absolute but a neighbor's recorded easement appurtenant crosses part of it. Which statement best describes the owner's position?

• A. The owner still holds the most complete form of ownership, though the parcel is burdened as the servient tenement
• B. The easement automatically converts the owner's fee into a life estate
• C. The owner may cancel the easement simply by recording a new deed
• D. The easement gives the neighbor superior title to the whole parcel

75. A city government takes a strip of a private owner's land to widen a public road, providing the owner with just compensation as required by law. Which government power authorizes this action?

• A. Eminent domain
• B. Police power
• C. Escheat
• D. Taxation

76. A deed conveys land "to the city for so long as it is used as a public park," with the grantor retaining the right to automatically regain the property if that condition is ever violated. What type of estate has the city received?

• A. A life estate
• B. A fee simple absolute
• C. A fee simple determinable
• D. A leasehold estate

77. A grantor conveys property "to my niece for life, then to my nephew." What interest does the nephew hold while the niece is alive?

• A. A life estate
• B. A fee simple determinable
• C. A leasehold estate
• D. A remainder interest

78. A tenant rents an apartment on a month-to-month basis with no specified end date, and the tenancy automatically renews each month until either party gives proper notice to terminate. What type of leasehold estate is this?

• A. A periodic tenancy
• B. A tenancy for years
• C. A tenancy at will
• D. A tenancy at sufferance

79. A tenant's lease has expired, but the tenant continues to occupy the unit without the landlord's consent and without paying rent. What type of tenancy does this situation create?

• A. A periodic tenancy
• B. A tenancy at sufferance
• C. A tenancy for years
• D. A joint tenancy

80. Three unrelated investors buy a commercial building together. Each owns an individual, undivided interest, and when one investor dies, that investor's share passes to the investor's heirs rather than to the surviving co-owners. What form of concurrent ownership is this?

• A. Tenancy by the entirety
• B. Tenancy in common
• C. Community property
• D. Joint tenancy with right of survivorship

81. A landowner subdivides a large parcel, and the resulting rear lot has no access to a public road except by crossing the front lot that was sold to someone else. What type of easement is likely to be implied to give the rear lot access?

• A. An easement in gross
• B. A prescriptive easement
• C. A license
• D. An easement by necessity

82. For many years, a neighbor has openly and continuously crossed a corner of an adjoining owner's land without permission, and the true owner never objected or took action to stop it. Under what doctrine might the neighbor eventually gain a legal right to continue this use?

• A. Prescriptive easement
• B. Easement by necessity
• C. Adverse possession of fee title
• D. Riparian rights

83. A homeowner gives a neighbor oral permission to park a boat trailer on a side yard temporarily, understanding the homeowner can revoke this permission at any time. What type of interest does the neighbor have?

• A. An easement appurtenant
• B. A license
• C. An easement in gross
• D. A leasehold estate

84. A contractor completes renovation work on a homeowner's property but is never paid. To secure payment, the contractor files a claim against the property itself. What type of lien has the contractor most likely filed?

• A. A judgment lien
• B. An ad valorem tax lien
• C. A mechanic's lien
• D. A mortgage lien

85. A property owner has an existing recorded mortgage. A court later enters a money judgment against the owner in an unrelated lawsuit, and the judgment creditor records a judgment lien against the same property. If the property is later sold to satisfy debts, how does the judgment lien generally rank relative to the earlier mortgage?

• A. The judgment lien automatically outranks the mortgage regardless of recording date
• B. The two liens are paid simultaneously regardless of date
• C. The judgment lien takes priority because a court entered it
• D. The judgment lien generally ranks behind the earlier-recorded mortgage, since general liens typically follow a first-in-time, first-in-right recording priority rule

86. A grantor conveys property by warranty deed but limits the warranty to defects that arose only during the time the grantor personally held title, making no promises about defects from before that period. What type of deed is this?

• A. A special warranty deed
• B. A general warranty deed
• C. A quitclaim deed
• D. A bargain and sale deed without covenants

87. A grantor signs a valid deed conveying property to a buyer but locks it in a drawer and never hands it over or otherwise conveys it to the buyer before the grantor dies. Has title passed to the buyer?

• A. Yes, because the deed was validly signed
• B. No, because a deed must be delivered and accepted during the grantor's lifetime to transfer title, and a signed but undelivered deed does not convey ownership
• C. Yes, because the deed was properly notarized
• D. No, because the buyer must also record the deed before the grantor signs it

88. A candidate observes that the National passing threshold is a multiple of the State passing threshold. Exactly what multiple of the State threshold is the National threshold?

• A. 1.5 times
• B. 2 times
• C. 2.5 times
• D. 3 times

89. A candidate must pass both the National and State examinations. What is the combined minimum number of correctly answered questions across both examinations?

• A. 56 questions
• B. 72 questions
• C. 84 questions
• D. 96 questions

90. A candidate wants to know whether the State examination passing standard is higher or lower than the National passing standard, in terms of the number of questions required correct. Which statement is accurate?

• A. The State standard is higher than the National standard
• B. The State standard is lower than the National standard
• C. The two standards are identical
• D. The State standard is exactly double the National standard

91. A prospective buyer emails a signed offer to purchase a home. Before the seller communicates any acceptance, the buyer sends a second email withdrawing the offer. Which statement best describes the buyer's ability to withdraw?

• A. The offer cannot be withdrawn once it has been put in writing and signed.
• B. The offer may be revoked at any time before acceptance is communicated.
• C. The offer may be revoked only if the seller has not yet read it.
• D. The offer becomes irrevocable the moment the seller receives it.

92. Which set of elements must all be present for a real estate contract to be valid?

• A. Mutual assent, consideration, legally competent parties, and a lawful object.
• B. Offer, earnest money, a licensed broker, and recording.
• C. Consideration, a contingency, a survey, and notarization.
• D. Mutual assent, a title policy, delivery, and acceptance.

93. A 16-year-old signs a purchase agreement to buy a condominium. Which term most accurately describes the resulting contract?

• A. Void.
• B. Voidable.
• C. Unenforceable.
• D. Fully binding on the minor.

94. A buyer proposes a change to the closing date and initials the change on the offer before returning it. Assuming the change is material, which best explains why no contract has yet formed?

• A. Consideration is missing, so no valid contract can exist.
• B. Because acceptance must be unqualified, the material change is a counteroffer, and a counteroffer extinguishes the original offer rather than accepting it.
• C. The Statute of Frauds bars any change to a written offer.
• D. An offer becomes irrevocable once written, so it cannot be altered.

95. A written lease for a term of two years is agreed to orally but never reduced to writing or signed. Under the Statute of Frauds, is this lease enforceable?

• A. Yes, because leases are exempt from the Statute of Frauds.
• B. Yes, because oral agreements on price are always binding.
• C. No, because leases longer than one year must be in writing and signed by the party to be charged.
• D. No, because a lease can never be enforced without recording.

96. A purchase contract states that the buyer's obligation to close depends on obtaining mortgage financing and a satisfactory inspection. These provisions are best described as:

• A. Counteroffers that must be separately accepted.
• B. Contingencies that must be satisfied before a party is obligated to perform.
• C. Liquidated damages clauses.
• D. Elements required for the contract to be valid.

97. A seller performs fully, but the buyer refuses to close on a unique parcel. The seller asks a court to force the buyer to complete the purchase rather than merely awarding money. Which remedy is the seller seeking, and why is it available here?

• A. Liquidated damages, because the contract set a fixed sum.
• B. Revocation, because the offer can be withdrawn.
• C. Specific performance, because land is deemed unique.
• D. Rescission, because a contingency failed.

98. A purchase agreement provides that if the buyer defaults, the seller keeps the earnest money as the agreed measure of the buyer's default. This provision is an example of a:

• A. Liquidated damages clause.
• B. Financing contingency.
• C. Specific performance clause.
• D. Counteroffer.

99. A seller receives a written offer and returns it with the purchase price increased by a material amount, signing where indicated. In contract terms, what is the legal effect of the seller's response?

• A. It forms a binding contract because the seller signed the document.
• B. It is a conditional acceptance that keeps the original offer open.
• C. It operates as a counteroffer that rejects and extinguishes the original offer.
• D. It has no legal effect until the buyer signs again.

100. Two neighbors shake hands on the oral sale of a house and agree on price, but nothing is put in writing. Under the Statute of Frauds, how is this agreement best classified?

• A. Unenforceable, because it is otherwise valid but cannot be enforced in court.
• B. Void, because it never existed legally.
• C. Fully enforceable, because both parties agreed on the price.
• D. Voidable, because either party may disaffirm it.