CA Salesperson Practice Exam.
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1. What is the examination fee for a real estate salesperson applicant?
- A. $60
- B. $95
- C. $100
- D. $150
Show answer & explanation
Answer: C
The examination fee for a salesperson applicant is $100.2. A candidate answers 100 of the questions correctly on the salesperson examination. Based on the stated passing threshold and total number of questions, has the candidate passed?
- A. No — 100 correct is below the number needed to reach the passing threshold
- B. Yes — 100 correct exceeds the passing threshold
- C. It cannot be determined from the information given
- D. Only if the remaining questions are left blank
Show answer & explanation
Answer: A
Passing requires at least 70 percent of 150 questions. Seventy percent of 150 is 105, so 100 correct answers fall short of the threshold. This is a reasoning step over the two grounded facts, not a new fact.3. A candidate needs to determine the minimum number of correct answers required to pass. Using the total number of questions and the passing percentage, what is that minimum number?
- A. 90 correct answers
- B. 100 correct answers
- C. 105 correct answers
- D. 120 correct answers
Show answer & explanation
Answer: C
Seventy percent of the 150-question exam equals 105 questions, so a candidate must answer at least 105 correctly to pass. This is a calculation combining the two grounded facts.4. A candidate answered 105 questions correctly on the salesperson examination. Relative to the stated passing standard, this result is:
- A. Exactly at the minimum required to pass
- B. Five questions above the minimum required to pass
- C. Below the minimum required to pass
- D. Insufficient information to evaluate
Show answer & explanation
Answer: A
Because 70 percent of 150 questions is 105, a score of exactly 105 correct meets the minimum passing standard precisely. This reasons over the two grounded facts.5. A candidate wishes to sit for the salesperson examination. What is the examination fee for a salesperson?
- A. $60
- B. $100
- C. $150
- D. $250
Show answer & explanation
Answer: B
The salesperson examination fee is $100. This is an administrative fee and is distinct from any financing concepts tested within the examination.6. A candidate answers 105 of the 150 examination questions correctly. Based only on the examination's total question count and passing standard, has the candidate met the minimum passing requirement?
- A. No, because 105 correct is below the required threshold
- B. Yes, because 105 correct equals exactly 70 percent of 150
- C. No, because a candidate must answer all 150 correctly
- D. Yes, but only if the candidate also pays an additional fee
Show answer & explanation
Answer: B
The passing standard is at least 70 percent of the examination's 150 questions. Seventy percent of 150 is 105, so answering 105 correctly meets the minimum requirement exactly. This is reasoning over the stated total and passing percentage.7. A candidate answers 100 of the 150 questions correctly. Using only the total question count and the passing percentage, what is the outcome?
- A. Pass, because 100 correct exceeds the required minimum
- B. Fail, because 100 correct is fewer than the 105 needed to reach 70 percent
- C. Pass, because any score above 50 percent passes
- D. The outcome cannot be determined from the information given
Show answer & explanation
Answer: B
Passing requires at least 70 percent of 150 questions, which is 105 correct answers. A score of 100 correct falls short of 105, so it does not meet the minimum. This is arithmetic reasoning over the stated total and passing standard.8. Which statement correctly pairs the salesperson examination's question total with its passing standard?
- A. 150 questions, with 60 percent required to pass
- B. 100 questions, with 70 percent required to pass
- C. 150 questions, with 70 percent required to pass
- D. 200 questions, with 75 percent required to pass
Show answer & explanation
Answer: C
The examination has 150 questions and requires at least 70 percent correct to pass. Only choice C pairs both stated facts correctly.9. What is the examination fee for the real estate salesperson exam?
- A. $50
- B. $75
- C. $100
- D. $150
Show answer & explanation
Answer: C
The fee associated with the salesperson exam is $100, which a candidate must plan for as part of the licensing cost.10. To pass the salesperson licensing examination, a candidate must answer correctly at least what proportion of the questions?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
A passing result requires answering correctly at least 70 percent of the examination questions.11. A candidate correctly answers exactly 105 of the 150 questions. Relative to the minimum passing standard, this result is best described as:
- A. Below the passing threshold
- B. Exactly at the minimum passing threshold
- C. Well above the passing threshold by 10 percent
- D. Indeterminate without more information
Show answer & explanation
Answer: B
Seventy percent of 150 is 105, which is the minimum number required to pass. Answering exactly 105 correctly places the candidate precisely at the threshold. This applies the stated percentage to the stated count.12. Two candidates compare their results. Candidate One answered 70 percent of the items correctly; Candidate Two answered 68 percent correctly. Which statement is consistent with the stated passing standard?
- A. Both candidates passed
- B. Candidate One passed; Candidate Two did not
- C. Neither candidate passed
- D. Candidate Two passed; Candidate One did not
Show answer & explanation
Answer: B
The passing standard is at least 70 percent correct. Candidate One meets the threshold exactly; Candidate Two, at 68 percent, falls below it. This applies the grounded passing-score fact to the two scenarios.13. A candidate has $100 available and intends to use it for the salesperson examination fee. According to the official source, does that amount cover the stated fee?
- A. No, it is short of the stated fee
- B. Yes, it equals the stated fee
- C. Yes, and it leaves a surplus of $40
- D. The fee amount is not specified
Show answer & explanation
Answer: B
The official source lists the salesperson examination fee as $100, so $100 exactly covers it with no surplus. This is reasoning over the grounded fee fact.14. To pass the salesperson examination, a candidate must correctly answer at least what percentage of the questions?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
The official source states a candidate must correctly answer at least 70 percent of the questions to pass.15. An applicant claims the salesperson examination fee is $150. Which response is consistent with the official exam content information?
- A. The claim is correct; the fee is $150
- B. The claim is incorrect; the stated fee is $100
- C. The claim is correct; the fee is $150 plus a surcharge
- D. The fee is not addressed by the official source
Show answer & explanation
Answer: B
The official source states the salesperson examination fee is $100, so a claim of $150 is inconsistent with the source. This applies the grounded fee fact.16. Two candidates each pay the salesperson examination fee. What is the combined total the two candidates pay in examination fees?
- A. $100
- B. $150
- C. $200
- D. $300
Show answer & explanation
Answer: C
The salesperson examination fee is $100 per candidate. Two candidates each paying that fee total $200. This combines the stated fee with straightforward arithmetic.17. A candidate reasons that if they can miss a certain number of questions and still pass, they can allocate less study time to the Financing section. Given the total question count and the passing standard, what is the maximum number of questions a candidate may answer incorrectly and still meet the minimum passing threshold?
- A. 15 questions
- B. 30 questions
- C. 45 questions
- D. 50 questions
Show answer & explanation
Answer: C
Passing requires at least 105 correct answers out of 150 (70 percent of 150). The maximum a candidate may miss while still reaching 105 correct is 150 minus 105, which is 45 questions. This is reasoning over the stated total and passing percentage.18. A candidate scores exactly at the passing threshold on the examination. Considering the 150 total questions and the 70 percent passing standard, which statement best describes the relationship between the number of correct answers required and the number that may be missed?
- A. The candidate must answer 105 correctly and may miss up to 45
- B. The candidate must answer 45 correctly and may miss up to 105
- C. The candidate must answer all 150 correctly and may miss none
- D. The candidate must answer 75 correctly and may miss up to 75
Show answer & explanation
Answer: A
Seventy percent of 150 questions is 105, which is the number that must be answered correctly to pass. The remaining 45 questions may be missed. This is reasoning that partitions the stated total using the stated passing percentage.19. A candidate must correctly answer at least 70 percent of a 150-question salesperson examination. Reasoning from those two figures alone, what is the minimum number of correctly answered questions required to pass?
- A. 90 questions
- B. 100 questions
- C. 105 questions
- D. 120 questions
Show answer & explanation
Answer: C
Seventy percent of 150 questions equals 105 questions (0.70 × 150 = 105). This is a computed threshold derived from the stated exam length and passing percentage, not a separately published Financing-section cutoff.20. A candidate scored exactly 105 correct answers on the 150-question salesperson examination. Does this meet the passing standard?
- A. No, a score above 105 is required
- B. Yes, 105 correct meets the minimum required to pass
- C. No, the passing standard is based on time, not score
- D. Only if the candidate also paid an additional fee
Show answer & explanation
Answer: B
The passing standard is at least 70 percent of 150 questions, which equals 105. A score of exactly 105 satisfies the 'at least 70 percent' requirement, so it passes.21. Which statement correctly pairs a feature of the salesperson examination with its value?
- A. The exam has 70 questions and a passing score of 150 percent
- B. The exam has 150 questions and a passing score of 70 percent
- C. The exam has 100 questions and a passing score of 70 percent
- D. The exam has 150 questions and a passing score of 100 percent
Show answer & explanation
Answer: B
The salesperson examination contains 150 questions and requires at least 70 percent correct to pass.22. Two applicants discuss the salesperson examination. One claims the passing standard is 'a simple majority of correct answers.' Based on the actual passing standard, is this claim accurate?
- A. Yes, a bare majority over 50 percent is sufficient to pass
- B. No, the required threshold is higher than a simple majority
- C. Yes, because 70 percent is the same as a simple majority
- D. No, because the exam has no fixed passing standard
Show answer & explanation
Answer: B
The passing standard requires at least 70 percent correct. Because 70 percent is greater than a simple majority (more than 50 percent), the claim that a bare majority suffices is inaccurate.23. Which of the following statements about the salesperson examination is directly supported by the official exam content information?
- A. The examination is composed of 150 multiple choice questions
- B. The examination is composed of essay questions graded by an examiner
- C. The examination is composed of 150 true-or-false questions
- D. The examination is composed of an oral interview
Show answer & explanation
Answer: A
The official source describes the exam as 150 multiple choice questions. The other formats are not supported by the source.24. Given the exam contains 150 questions and requires at least 70 percent correct to pass, what is the minimum number of questions a candidate must answer correctly?
- A. 95 questions
- B. 100 questions
- C. 105 questions
- D. 110 questions
Show answer & explanation
Answer: C
Seventy percent of 150 questions equals 105, so a candidate must answer at least 105 questions correctly to reach the passing threshold. This is arithmetic applied to the stated question count and passing percentage.25. To pass the salesperson licensing exam, a candidate must answer correctly at least what share of the questions?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
A passing result requires answering correctly at least 70 percent of the questions on the exam.26. A candidate answers 100 of the 150 questions correctly. Based solely on the stated passing standard, what is the outcome?
- A. Pass, because 100 correct is a majority
- B. Fail, because 100 correct is below the required threshold
- C. Pass, because any score above 60 percent passes
- D. The result cannot be determined
Show answer & explanation
Answer: B
Passing requires at least 70 percent of 150 questions, which is 105 correct. Answering 100 correctly falls short of 105, so the candidate does not pass. This applies the stated threshold to the stated question count.27. Which statement correctly pairs the salesperson exam's question count with its passing standard?
- A. 150 questions, pass at 60 percent
- B. 120 questions, pass at 70 percent
- C. 150 questions, pass at 70 percent
- D. 200 questions, pass at 75 percent
Show answer & explanation
Answer: C
The salesperson exam has 150 questions and requires at least 70 percent correct to pass; only this pairing matches both stated facts.28. A student assumes each subject area on the salesperson examination — Financing among them — has its own separate 70 percent passing cutoff. Why is this assumption incorrect?
- A. Each section requires 80 percent, not 70 percent
- B. The 70 percent standard applies to the examination as a whole, not to individual sections
- C. The Financing section is graded pass/fail with no percentage
- D. Only the Financing section carries a percentage requirement
Show answer & explanation
Answer: B
The stated passing standard is at least 70 percent of the questions on the examination. It is expressed as a single overall threshold, so reasoning that each individual section carries its own separate cutoff is not supported.29. A candidate answers 100 of the salesperson examination questions correctly. Considering the exam total and passing standard, what is the result?
- A. The candidate passes, because 100 exceeds the threshold
- B. The candidate fails, because 100 is below the required number of correct answers
- C. The candidate passes only after paying an additional fee
- D. The result cannot be determined from the information given
Show answer & explanation
Answer: B
The passing standard is 70 percent of 150 questions, which is 105 correct answers. Because 100 is fewer than 105, the candidate does not meet the threshold and fails. This is reasoning over the stated total and percentage.30. When a salesperson candidate registers for the licensing examination, what is the examination fee that must be paid?
- A. $70
- B. $100
- C. $105
- D. $150
Show answer & explanation
Answer: B
The examination fee for the salesperson license is $100. The other figures reflect the number of questions or the passing threshold, not the fee.31. Two candidates each paid the salesperson examination fee. What is the combined amount the two candidates paid in examination fees?
- A. $100
- B. $150
- C. $200
- D. $210
Show answer & explanation
Answer: C
The salesperson examination fee is $100 per candidate. For two candidates, the combined fee is $100 multiplied by two, which equals $200.32. A candidate scored 60 percent on a practice run of the 150-question examination. Compared with the actual passing standard, what does this practice score indicate?
- A. It exceeds the passing standard
- B. It exactly meets the passing standard
- C. It is below the passing standard
- D. It cannot be compared to the passing standard
Show answer & explanation
Answer: C
The passing standard is at least 70 percent of the questions. A practice score of 60 percent is below 70 percent, so it falls short of the passing standard.33. On the salesperson licensing examination, every item — including those in the Contracts section — is presented in the same format. Which format is used for the examination questions?
- A. True/false
- B. Multiple choice
- C. Short essay
- D. Oral response
Show answer & explanation
Answer: B
The examination consists of 150 multiple choice questions. All items, including Contracts items, follow the multiple choice format.34. An exam-taker answers every Financing question correctly but struggles elsewhere. To pass the overall salesperson examination, what is the minimum percentage of all questions he must answer correctly?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
A passing result requires answering at least 70 percent of the questions correctly. Strong performance on one section, such as Financing, contributes to that overall threshold but does not by itself guarantee a pass.35. Before sitting for the salesperson examination that includes the Financing subject area, an applicant must pay the examination fee. What is the fee for the salesperson examination?
- A. $60
- B. $95
- C. $100
- D. $150
Show answer & explanation
Answer: C
The salesperson examination fee is $100. This single fee covers the entire examination, including the Financing questions; there is no separate per-section charge.36. Two candidates each miss 40 questions on the 150-question salesperson examination. Using only the exam length and the 70 percent passing standard, did they pass?
- A. Yes — missing 40 leaves 110 correct, which is at or above the 105 needed
- B. No — missing 40 leaves 110 correct, which is below the threshold
- C. Cannot be determined from the information given
- D. Yes — but only because Financing questions are weighted double
Show answer & explanation
Answer: A
With 150 questions, missing 40 leaves 110 correct. The passing threshold is 70 percent of 150, which is 105. Since 110 is greater than or equal to 105, both candidates pass. This is arithmetic over the two stated figures.37. On the salesperson examination, are Financing questions scored differently from questions in other subject areas — for example, counted more than once toward the 150-question total?
- A. Yes, Financing questions each count as two
- B. No — all questions are part of the single 150 multiple choice item set with no stated special weighting
- C. Yes, Financing questions are worth half a point each
- D. Financing questions are unscored practice items
Show answer & explanation
Answer: B
The examination is described as 150 multiple choice questions with a single overall passing standard. Nothing supports Financing items being weighted differently, so treating them as ordinary items within the 150-question set is the grounded conclusion.38. To pass the salesperson licensing examination, a candidate must answer correctly at least what percentage of the questions?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
A passing result requires answering at least 70 percent of the questions correctly. The nearby percentages are common distractors.39. Based on the exam's total number of questions and passing percentage, what is the minimum number of questions a candidate must answer correctly to pass the salesperson examination?
- A. 100 correct
- B. 105 correct
- C. 112 correct
- D. 120 correct
Show answer & explanation
Answer: B
Multiplying the 150-question total by the 70 percent passing threshold gives 105 questions. This is a calculation derived from the two stated facts.40. Two applicants each pay the salesperson examination fee. What is the combined total of the fees the two applicants pay?
- A. $100
- B. $150
- C. $200
- D. $250
Show answer & explanation
Answer: C
Each salesperson examination fee is $100, so two applicants together pay $200. This is a straightforward calculation over the stated fee.41. A candidate answers correctly on exactly 105 of the salesperson examination's questions. Relative to the passing standard, this score is best described as:
- A. Below the minimum required to pass
- B. Exactly at the minimum required to pass
- C. Insufficient because a higher percentage is required
- D. Irrelevant because scoring depends on the fee paid
Show answer & explanation
Answer: B
Because 70 percent of the 150-question exam equals 105 correct answers, a score of exactly 105 sits precisely at the minimum passing threshold. This is reasoning over the stated total and percentage.42. A candidate answers exactly 104 of the 150 questions correctly. Reasoning strictly from the exam length and passing standard, what is the result?
- A. Pass — 104 exceeds the required number
- B. Fail — 104 is below 105, the minimum needed
- C. Pass — the cutoff is 100
- D. Indeterminate
Show answer & explanation
Answer: B
Seventy percent of 150 is 105, so 105 correct answers is the minimum to pass. A score of 104 falls one question short of that computed threshold and therefore does not meet the standard.43. A parcel of land is owned by two people who each hold an equal, undivided interest, and the arrangement includes a right of survivorship so that when one owner dies the survivor automatically absorbs the deceased owner's share. Which form of concurrent ownership does this describe?
- A. Tenancy in common
- B. Joint tenancy
- C. Ownership in severalty
- D. A life estate
Show answer & explanation
Answer: B
Concurrent ownership with equal undivided interests plus a right of survivorship is the defining feature of a joint tenancy; when one joint tenant dies, the interest passes to the surviving joint tenant(s) rather than to the decedent's heirs. Tenancy in common lacks survivorship, severalty is sole ownership, and a life estate is measured by a life rather than shared concurrently in this way.44. An owner conveys real property to a relative 'for the duration of her natural life,' with the property to pass to a named third party upon her death. What best describes the interest held by the relative during her lifetime?
- A. A fee simple absolute
- B. A life estate
- C. A leasehold estate
- D. An easement in gross
Show answer & explanation
Answer: B
An estate measured by the duration of a person's life is a life estate. The holder may use and enjoy the property for life but cannot pass it to her own heirs; on her death the interest passes to the named remainderman. A fee simple absolute is of potentially infinite duration, a leasehold is a tenant's possessory right under a lease, and an easement is a non-possessory right of use.45. Which of the following is the most complete and unlimited estate a person can hold in real property?
- A. A fee simple absolute
- B. A life estate
- C. An estate for years
- D. A tenancy at will
Show answer & explanation
Answer: A
A fee simple absolute is the highest and most complete form of ownership, of potentially infinite duration and freely transferable, inheritable, and without conditions. The other choices are lesser interests: a life estate ends at death, and an estate for years and a tenancy at will are leasehold (non-freehold) interests held by a tenant.46. A homeowner grants a utility company the right to run power lines across the edge of her lot. The utility does not own or possess the land itself but may enter to maintain the lines. This right is best classified as:
- A. A possessory freehold estate
- B. An easement
- C. A remainder interest
- D. A joint tenancy
Show answer & explanation
Answer: B
An easement is a non-possessory right to use another's land for a specified purpose, such as running and maintaining utility lines. The utility gains a use right but not ownership or possession of the land, distinguishing it from a possessory estate, a future interest like a remainder, or a form of co-ownership like joint tenancy.47. Two investors take title to a rental property together. Each owns a distinct fractional share, the shares need not be equal, and either may leave his share to his own heirs by will. There is no right of survivorship between them. This describes:
- A. Joint tenancy
- B. Tenancy in common
- C. Ownership in severalty
- D. A tenancy at sufferance
Show answer & explanation
Answer: B
Tenancy in common allows co-owners to hold unequal fractional interests with no right of survivorship, so each owner's share passes to his own heirs or devisees. Joint tenancy requires equal interests plus survivorship, severalty is sole ownership, and a tenancy at sufferance is a holdover tenant situation, not a form of co-ownership.48. When a person owns real property entirely alone, with no co-owners sharing the title, this is referred to as ownership:
- A. In common
- B. In severalty
- C. In joint tenancy
- D. By the entirety
Show answer & explanation
Answer: B
Ownership in severalty means title is held by one person or entity alone, 'severed' from any other owners. Tenancy in common, joint tenancy, and tenancy by the entirety are all forms of concurrent (shared) ownership and therefore involve more than one owner.49. An unpaid contractor who supplied labor and materials to improve a property records a claim against that specific property to secure payment. This is an example of what type of encumbrance?
- A. An easement appurtenant
- B. A mechanic's (or construction) lien
- C. A life estate
- D. A restrictive covenant
Show answer & explanation
Answer: B
A mechanic's or construction lien is a monetary encumbrance placed against a specific property by someone who supplied labor or materials to improve it and was not paid. It is a form of specific lien on the property, distinct from an easement (a use right), a life estate (an ownership interest), or a restrictive covenant (a private use restriction).50. A subdivision's recorded documents prohibit any lot owner from operating a commercial business on a residential lot. An owner who wants to run a business is bound by this private restriction. Such a restriction is best described as:
- A. A government zoning ordinance
- B. A private deed restriction or restrictive covenant
- C. An easement in gross
- D. A tenancy in common
Show answer & explanation
Answer: B
A restriction created in recorded private documents (such as a subdivision's covenants) that limits how owners may use their lots is a private deed restriction or restrictive covenant. It differs from a zoning ordinance, which is a public land-use control imposed by government, and from easements or co-ownership forms.51. A salesperson exam candidate wants to know the minimum performance required to pass. Per the official exam content, a candidate must correctly answer at least what percentage of the questions to pass the salesperson examination?
- A. 60 percent
- B. 65 percent
- C. 70 percent
- D. 75 percent
Show answer & explanation
Answer: C
The official exam content specifies that a candidate must answer correctly at least 70 percent of the questions to pass the salesperson examination. This passing threshold applies across the entire exam, including the Property Ownership content area.52. A candidate answered 100 of the 150 salesperson examination questions correctly. Based on the required passing standard, what is the result?
- A. Pass, because 100 correct exceeds the minimum
- B. Fail, because 100 correct is below the required number
- C. Pass, because more than half the questions were correct
- D. The result cannot be determined from the information given
Show answer & explanation
Answer: B
Passing requires at least 70 percent of 150 questions, which is 105 correct. Answering 100 correctly falls short of 105, so the candidate fails.53. A candidate must miss no more than a certain number of the 150 salesperson examination questions to still pass. What is the maximum number of questions the candidate can answer incorrectly and still pass?
- A. 30 questions
- B. 45 questions
- C. 60 questions
- D. 70 questions
Show answer & explanation
Answer: B
Passing requires at least 105 correct answers (70 percent of 150). Therefore the candidate may miss at most 150 − 105 = 45 questions and still pass.54. A candidate paid the salesperson examination fee and answered 100 of the questions correctly. Under the exam's scoring rule, did the candidate pass?
- A. Yes, because 100 correct answers is a majority of the questions
- B. No, because 100 correct answers is below the required threshold
- C. Yes, because any score above 50 percent passes
- D. No, because the candidate must answer every question correctly
Show answer & explanation
Answer: B
Passing requires at least 70 percent of 150 questions, which is 105 correct. A score of 100 correct falls short of that 105-question threshold, so the candidate does not pass.55. The examination fee charged to a real estate salesperson applicant is which of the following amounts?
- A. $50
- B. $75
- C. $100
- D. $150
Show answer & explanation
Answer: C
The salesperson examination fee is $100. The other amounts are distractors not supported by the stated fee.56. A candidate answers 120 of the salesperson examination's questions correctly. Given the exam's total number of questions and the passing threshold, has the candidate passed?
- A. No, because 120 correct is below the required threshold
- B. Yes, because 120 correct meets the required threshold
- C. It cannot be determined without knowing the fee
- D. Yes, but only if the candidate retakes the exam
Show answer & explanation
Answer: B
Seventy percent of 150 questions is 105 correct answers. Because 120 correct exceeds 105, the candidate meets the 70 percent passing threshold. This is a calculation over the stated total and passing percentage.57. A candidate answered exactly 105 of the examination questions correctly. Relative to the passing standard, how should this result be characterized?
- A. Below passing, because 105 is less than the required 70 percent
- B. Exactly at the minimum passing threshold
- C. Above passing by a wide margin
- D. Indeterminate without knowing the fee paid
Show answer & explanation
Answer: B
70 percent of the 150-question exam equals 105 questions. Answering exactly 105 correctly meets the minimum passing threshold precisely — neither below nor comfortably above it.58. A candidate answered 105 questions correctly out of 150. Expressed as a percentage of the total questions, what score did the candidate achieve, and does it pass?
- A. 70 percent, which passes
- B. 70 percent, which fails
- C. 75 percent, which passes
- D. 65 percent, which fails
Show answer & explanation
Answer: A
105 correct out of 150 equals 70 percent. Because passing requires at least 70 percent, a score of exactly 70 percent passes.59. An owner conveys her orchard "to my brother for the duration of his life, and then to my daughter." When the brother later dies, what happens to title to the orchard?
- A. It passes to the daughter as remainderman
- B. It passes to the brother's heirs through his estate
- C. It reverts to the state
- D. It is split equally between the daughter and the brother's heirs
Show answer & explanation
Answer: A
A life estate lasts for the duration of a named person's life, after which title passes to a remainderman or reverts to the grantor. Because the grant named the daughter to take after the brother's life, she is the remainderman and receives title; the brother's interest ended at his death, so nothing passes through his estate.60. A grantor deeds a cottage "to my longtime friend for the friend's life" and names no one to take the property afterward. Upon the friend's death, title to the cottage will:
- A. Escheat automatically to the county
- B. Pass to the friend's heirs by inheritance
- C. Revert to the grantor
- D. Be held in trust until a remainderman is appointed
Show answer & explanation
Answer: C
A life estate ends at the death of the measuring life, after which title passes to a remainderman or reverts to the grantor. Since this grant named no remainderman, there is no one designated to take the future interest, so the property reverts to the grantor. The life tenant's interest is not inheritable because it ends at death.61. A seller signs a properly drafted deed naming the parties, containing a legal description and a granting clause, then locks it in a desk drawer, intending to hand it over "someday." The seller dies before ever giving the deed to the buyer. Was the conveyance effective?
- A. Yes, because the deed was signed by the grantor
- B. Yes, because the deed contained all required written elements
- C. No, because the deed was never delivered and accepted
- D. No, because the deed was never notarized and recorded
Show answer & explanation
Answer: C
To be effective, a deed must be in writing, name the parties, contain a legal description, include a granting clause, and be signed by the grantor and delivered and accepted. This deed satisfied the written elements and the grantor's signature, but it was never delivered to or accepted by the buyer, so the conveyance failed. Notarization and recording are not among the listed requirements for the deed to take effect between the parties.62. A broker receives an earnest money check from a client and deposits it into the brokerage's general operating account to "keep things simple." How should this conduct be characterized?
- A. Acceptable, as long as the broker keeps accurate internal records of the deposit.
- B. A violation of the duty of accounting, because client funds must be kept in a separate trust or escrow account and never commingled with the broker's own funds.
- C. A violation of the duty of obedience, because the client did not authorize the deposit.
- D. Acceptable, provided the funds are transferred to a trust account before closing.
Show answer & explanation
Answer: B
The fiduciary duty of accounting requires depositing client funds in a separate trust or escrow account and never commingling them with the broker's own funds. Neither accurate record-keeping nor a later transfer cures the commingling, and the violation is one of accounting rather than obedience.63. A buyer submits a written offer on a home. The seller crosses out the proposed closing date, writes in a date three weeks later, signs the document, and returns it. What is the legal status of the buyer's original offer?
- A. It remains open, and the buyer may still accept the original terms.
- B. It has been rejected and extinguished, because a material change to the terms operates as a counteroffer.
- C. It has been accepted, because the seller signed the document.
- D. It is automatically extended for three weeks to match the new closing date.
Show answer & explanation
Answer: B
Acceptance must be unqualified, so any material change to the terms operates as a counteroffer that rejects and extinguishes the original offer. Changing the closing date is a material change, so the seller's signature created a counteroffer rather than an acceptance, and the original offer no longer exists.64. A buyer asks her broker which form of ownership gives her the most complete bundle of rights in a parcel, including the ability to leave it to her heirs or sell it at will. Which estate should the broker identify?
- A. A life estate
- B. A fee simple absolute
- C. An easement appurtenant
- D. A month-to-month leasehold
Show answer & explanation
Answer: B
The fee simple absolute is the highest and most complete form of ownership, and it is freely inheritable and transferable, which matches the buyer's goals of leaving the property to heirs or selling it. A life estate ends at a measuring life, an easement is a right of use rather than ownership, and a leasehold is a possessory interest that falls short of full ownership.65. A first-time buyer tells his agent, "I want the deed that protects me the most — I want the seller standing behind this title no matter when a problem arose." Which deed best fits this request?
- A. A quitclaim deed
- B. A general warranty deed
- C. A deed of trust
- D. A tax deed
Show answer & explanation
Answer: B
A general warranty deed offers the greatest protection because the grantor warrants title against all defects arising at any time. A quitclaim deed is the opposite — it carries no warranties and conveys only whatever interest the grantor may have. A deed of trust is a financing instrument that pledges property as security for a loan, not a form of conveyance chosen for title protection.66. A homeowner selling her own residence without an agent refuses to sell to an applicant because of the applicant's race, claiming that owners selling their own homes are exempt from fair housing rules. Which statement is correct?
- A. She is correct — for-sale-by-owner transactions are exempt from all discrimination rules.
- B. She is incorrect — discrimination based on race, established under the Civil Rights Act of 1866, has no exemptions.
- C. She is correct as long as she does not use a real estate licensee or discriminatory advertising.
- D. She is incorrect only if the buyer also belongs to a second protected class.
Show answer & explanation
Answer: B
Race is one of the seven protected classes under the federal Fair Housing Act, and discrimination based on race — established under the Civil Rights Act of 1866 — has no exemptions. No form of owner-seller status permits racial discrimination, and the presence of additional protected classes is irrelevant.67. To clear up a possible claim from a divorce years earlier, an ex-spouse signs a quitclaim deed in favor of the current owner. What did the quitclaim deed actually convey?
- A. Marketable title guaranteed against all defects
- B. Whatever interest the ex-spouse may have had, with no warranties
- C. A life estate measured by the ex-spouse's life
- D. Title warranted only against defects arising during the ex-spouse's ownership
Show answer & explanation
Answer: B
A quitclaim deed carries no warranties and conveys only whatever interest the grantor may have — which could be a real claim or nothing at all. That is exactly why it is useful for releasing a possible interest: the grantor makes no promises about title, unlike a general warranty deed, in which the grantor warrants title against all defects arising at any time.68. After closing, a buyer promptly records her deed in the public land records. What is the primary legal effect of recording?
- A. It makes the deed valid between the buyer and the seller
- B. It gives constructive notice to the world and establishes the buyer's priority
- C. It guarantees the title is free of all encumbrances
- D. It substitutes for delivery and acceptance of the deed
Show answer & explanation
Answer: B
Recording the deed in the public land records gives constructive notice to the world and establishes priority. Recording is not what makes the deed effective between the parties — a deed must be in writing, name the parties, contain a legal description, include a granting clause, and be signed by the grantor and delivered and accepted. Recording also does not guarantee that the title is free of encumbrances.69. A property is subject to a mortgage recorded several years ago and, more recently, to an unpaid property tax lien. If the liens are enforced, which one generally comes first, and why?
- A. The mortgage, because it was recorded first
- B. The mortgage, because voluntary liens always outrank involuntary liens
- C. The property tax lien, because tax liens generally take priority over all other liens regardless of recording date
- D. Neither; the liens share priority in proportion to the amounts owed
Show answer & explanation
Answer: C
Property tax liens and special assessments generally take priority over all other liens regardless of when they were recorded. Although recording ordinarily establishes priority among competing interests, tax liens are the exception to that first-in-time rule, so the earlier recording date of the mortgage does not put it ahead of the tax lien.70. Lot 14 enjoys a driveway easement across neighboring Lot 15 to reach the public road. In describing this easement appurtenant, which statement is accurate?
- A. Lot 14 is the servient tenement because it uses the driveway
- B. Lot 15 is the servient tenement because it bears the burden of the easement
- C. Lot 15 is the dominant tenement because the driveway is on its land
- D. Both lots are dominant tenements because the easement touches both
Show answer & explanation
Answer: B
An easement appurtenant benefits an adjoining parcel, called the dominant tenement, and burdens the servient tenement. Here Lot 14 receives the benefit of crossing the driveway, making it the dominant tenement, while Lot 15 carries the burden of the easement on its land, making it the servient tenement.71. The owner of a dominant tenement that benefits from a recorded easement appurtenant sells the parcel. Does the new owner get the benefit of the easement?
- A. No, because easements are personal to the owner who negotiated them
- B. No, unless the servient owner signs a new easement agreement
- C. Yes, but only if the deed mentions the easement by name
- D. Yes, because an easement appurtenant runs with the land
Show answer & explanation
Answer: D
An easement appurtenant benefits the dominant tenement, burdens the servient tenement, and runs with the land. Because the easement attaches to the parcel itself rather than to a particular person, transferring the dominant tenement carries the benefit of the easement to the new owner without any new agreement from the servient owner.72. A broker is reviewing a purchase agreement to confirm it is legally valid. Which of the following is NOT one of the essential elements required for a valid real estate contract?
- A. Mutual assent between the parties
- B. An earnest money deposit
- C. Legally competent parties
- D. A lawful object
Show answer & explanation
Answer: B
A valid real estate contract requires mutual assent (offer and acceptance), consideration, legally competent parties, and a lawful object. An earnest money deposit is customary but is not one of the essential elements — consideration can take other forms.73. A buyer submits a written offer on a home. The seller signs it but first crosses out the proposed closing date and writes in a later one. What is the legal effect of the seller's response?
- A. It is a valid acceptance because the change is minor
- B. It is a counteroffer that rejects and extinguishes the buyer's original offer
- C. It binds the buyer unless the buyer objects in writing
- D. It keeps the original offer open while the parties negotiate the date
Show answer & explanation
Answer: B
Acceptance must be unqualified. Any material change to the terms — including altering the closing date — operates as a counteroffer, which rejects and extinguishes the original offer. The buyer is now free to accept, reject, or counter the new terms.74. An offeror who has made a written offer to purchase a parcel of land calls the seller's broker and withdraws the offer. The seller had signed the acceptance moments earlier but had not yet communicated it to anyone on the buyer's side. Which statement is correct?
- A. The revocation is effective because acceptance had not yet been communicated
- B. A binding contract exists because the seller had already signed
- C. The offer cannot be revoked once the seller begins reviewing it
- D. The revocation is ineffective because it was not made in writing
Show answer & explanation
Answer: A
An offer may be revoked any time before acceptance is communicated. Because the seller had signed but not yet communicated the acceptance, no contract had formed and the buyer's revocation was effective.75. A landlord and tenant orally agree to a residential lease with a term of two years. If the tenant later refuses to honor the agreement, which doctrine most directly affects the landlord's ability to enforce it?
- A. The doctrine of specific performance
- B. The parol evidence rule
- C. The Statute of Frauds
- D. The doctrine of liquidated damages
Show answer & explanation
Answer: C
The Statute of Frauds requires leases longer than one year (and contracts for the sale of real estate) to be in writing and signed by the party to be charged to be enforceable. An oral two-year lease exceeds one year, so it is not enforceable against the tenant.76. A seventeen-year-old signs a contract to purchase a condominium. How is this contract best classified?
- A. Void, because it never legally existed
- B. Voidable, because the minor may disaffirm it
- C. Unenforceable, because it cannot be enforced in court
- D. Valid, because real estate contracts are exempt from capacity rules
Show answer & explanation
Answer: B
A contract signed by a minor is voidable — the minor may disaffirm it. This differs from a void contract, which lacks a required element and never legally existed, and from an unenforceable contract, which is otherwise valid but cannot be enforced in court.77. Two parties reach a complete oral agreement for the sale of a vacant lot: the price is settled, both are competent adults, and the purpose is lawful. If the seller refuses to convey, how is this agreement best described?
- A. Void
- B. Voidable
- C. Unenforceable
- D. Fully enforceable, because all essential elements are present
Show answer & explanation
Answer: C
An unwritten land-sale agreement is the classic example of an unenforceable contract: it may be otherwise valid, but the Statute of Frauds requires contracts for the sale of real estate to be in writing and signed by the party to be charged, so a court will not enforce it.78. A purchase agreement states that the buyer's duty to close depends on the buyer obtaining loan approval, a satisfactory inspection, and an appraisal supporting the price. These provisions are best described as:
- A. Covenants that survive closing
- B. Contingencies that must be satisfied before the buyer is obligated to perform
- C. Liquidated damages provisions
- D. Warranties made by the seller
Show answer & explanation
Answer: B
Contingencies are conditions that must be satisfied before a party is obligated to perform. Financing, inspection, and appraisal contingencies are the most common examples in real estate purchase agreements.79. A seller under a valid written purchase contract refuses to convey the property, and the buyer sues asking the court to order the seller to complete the transfer. Why are courts willing to grant this remedy in real estate cases?
- A. Because land is deemed unique, so money damages are not an adequate substitute
- B. Because sellers are always presumed to act in bad faith
- C. Because the buyer's earnest money automatically converts to equity
- D. Because recording statutes require every contract to result in a conveyance
Show answer & explanation
Answer: A
The remedy sought is specific performance, which compels conveyance because land is deemed unique. Since no two parcels are interchangeable, an award of money is not considered an adequate substitute for the property itself.80. A buyer defaults on a purchase contract that contains a liquidated damages clause. Under such a clause, what is the seller entitled to do?
- A. Retain the buyer's earnest money as the agreed measure of the default
- B. Sue for specific performance and keep the earnest money as a penalty
- C. Recover the full purchase price from the buyer
- D. Force the buyer's lender to complete the purchase
Show answer & explanation
Answer: A
Liquidated damages clauses let the seller retain the earnest money as the agreed measure of the buyer's default. The parties fix the remedy in advance rather than litigating actual damages.81. Which sequence of events results in NO binding contract being formed?
- A. Buyer offers, seller accepts without changes, and acceptance is communicated to the buyer
- B. Buyer offers, seller responds by materially raising the price, and the buyer then signs the seller's revised terms and communicates acceptance
- C. Buyer offers, then revokes the offer before the seller communicates acceptance, and the seller later signs
- D. Buyer offers in writing, seller signs the identical terms, and the signed acceptance is delivered to the buyer
Show answer & explanation
Answer: C
An offer may be revoked any time before acceptance is communicated, so a revocation that precedes communication of acceptance leaves nothing to accept — no contract forms. In choice B, the seller's material change was a counteroffer, but the buyer's unqualified, communicated acceptance of that counteroffer forms a contract. Choices A and D describe ordinary offer and communicated acceptance, which create mutual assent.82. A buyer signs two documents at closing on her home loan: one contains her personal promise to repay the debt, and the other pledges the home itself as security for that debt. Which pair of instruments has she signed?
- A. A promissory note and a mortgage or deed of trust
- B. A general warranty deed and a quitclaim deed
- C. A listing agreement and an option contract
- D. A Loan Estimate and a Closing Disclosure
Show answer & explanation
Answer: A
A mortgage loan involves two instruments: the promissory note, which evidences the debt and the borrower's promise to pay, and the mortgage or deed of trust, which pledges the property as security. Deeds convey title, and the Loan Estimate and Closing Disclosure are settlement disclosures rather than instruments creating the debt or the security interest.83. In State X, a homebuyer who finances a purchase keeps legal title to the property while the lender merely holds a security interest against it until the loan is repaid. State X is best described as following which doctrine?
- A. Title theory
- B. Lien theory
- C. The doctrine of substitution
- D. The Statute of Frauds
Show answer & explanation
Answer: B
In a lien-theory state the borrower holds title and the lender holds only a lien. By contrast, in a title-theory arrangement the lender holds legal title until the debt is paid. Substitution is a valuation principle, and the Statute of Frauds concerns which contracts must be in writing.84. After a borrower misses several payments, the lender notifies him that the entire remaining loan balance — not just the missed installments — is now immediately due. Which loan provision permits the lender to do this?
- A. A liquidated damages clause
- B. A financing contingency
- C. An acceleration clause
- D. A granting clause
Show answer & explanation
Answer: C
The acceleration clause lets the lender declare the entire balance due upon default. A liquidated damages clause deals with a buyer's forfeiture of earnest money under a purchase contract, a financing contingency conditions a buyer's duty to perform, and a granting clause is the words of conveyance in a deed.85. A borrower takes out a $250,000 loan and agrees to pay two discount points at closing to lower her interest rate. How much will she pay for the points?
- A. $2,500
- B. $5,000
- C. $25,000
- D. $500
Show answer & explanation
Answer: B
One discount point equals one percent of the loan amount. Two points on a $250,000 loan is 2% of $250,000, which is $5,000. Discount points are prepaid interest that buys down the interest rate.86. An eligible military veteran wants to buy a home but has saved almost nothing toward a down payment. Which loan program is specifically designed to allow him to purchase with potentially no down payment at all?
- A. A conventional loan
- B. An FHA-insured loan
- C. A VA-guaranteed loan
- D. Any loan covered by RESPA
Show answer & explanation
Answer: C
VA loans are guaranteed for eligible veterans and can permit no down payment. FHA loans allow low — but not necessarily zero — down payments, conventional loans are not government-backed, and RESPA is a settlement-procedures law, not a loan program.87. A buyer obtains a conventional loan and makes a down payment equal to 15 percent of the purchase price. What will the lender most likely require as a condition of the loan?
- A. Private mortgage insurance
- B. An FHA endorsement
- C. A VA guaranty
- D. A three-day right of rescission
Show answer & explanation
Answer: A
Private mortgage insurance is typically required on conventional loans when the down payment is less than twenty percent, and a 15 percent down payment falls below that threshold. FHA insurance and VA guaranties apply to government-backed programs, not conventional loans, and the three-day rescission right under TILA applies to certain refinances of a principal residence, not to a purchase-money down payment situation.88. A title company offers a lender a cash payment for every borrower the lender sends its way on federally related mortgage loans. This arrangement most directly violates which federal law?
- A. The Truth in Lending Act
- B. The Real Estate Settlement Procedures Act
- C. The Civil Rights Act of 1866
- D. The Statute of Frauds
Show answer & explanation
Answer: B
RESPA governs federally related mortgage loans and prohibits kickbacks and unearned referral fees, which is exactly what a per-referral cash payment is. TILA deals with disclosure of credit costs, the Civil Rights Act of 1866 addresses racial discrimination, and the Statute of Frauds concerns which contracts must be written.89. A homeowner refinances the loan on her principal residence and, two days later, changes her mind about the transaction. Under which law, and through which mechanism, may she still be able to back out?
- A. RESPA, by demanding a revised Closing Disclosure
- B. TILA under Regulation Z, by exercising the three-day right of rescission
- C. The Fair Housing Act, by filing a discrimination complaint
- D. The acceleration clause, by declaring the balance due
Show answer & explanation
Answer: B
TILA, implemented by Regulation Z, grants a three-day right of rescission on certain refinances of a principal residence, so on day two she may still rescind. RESPA's disclosures do not create a rescission right, the Fair Housing Act addresses discrimination, and the acceleration clause is a lender remedy on default.90. Which statement correctly matches each loan type with the federal government's role in it?
- A. Conventional loans are insured by the FHA; VA loans are not government-backed
- B. FHA loans are guaranteed for veterans; conventional loans are insured by the government
- C. Conventional loans are not government-backed; FHA loans are insured by the FHA; VA loans are guaranteed for eligible veterans
- D. All three loan types carry the same federal insurance
Show answer & explanation
Answer: C
Conventional loans are not government-backed. FHA loans are insured by the Federal Housing Administration and allow low down payments, while VA loans are guaranteed for eligible veterans and can permit no down payment. The distinction between 'insured' (FHA) and 'guaranteed' (VA) is a frequent point of confusion.91. A purchase agreement states that the buyer's obligation to close depends on her obtaining a mortgage loan on specified terms. If she makes a diligent effort but cannot secure the loan, what is the effect of this provision?
- A. She is not yet obligated to perform, because the financing contingency was not satisfied
- B. The seller may compel her to buy through specific performance
- C. The lender may invoke the acceleration clause against her
- D. The contract becomes a counteroffer
Show answer & explanation
Answer: A
Contingencies are conditions that must be satisfied before a party is obligated to perform, and a financing contingency is one of the most common. If the financing condition fails, the buyer's duty to perform never arises, so specific performance cannot be used to force the purchase. An acceleration clause is a loan provision triggered by a borrower's default, and a counteroffer results from changing an offer's terms, not from a failed condition.92. A candidate preparing for the state salesperson licensing exam wants to know what it takes to pass. Which of the following correctly describes the exam?
- A. It contains 100 multiple choice questions, and candidates must answer at least 75 percent correctly.
- B. It contains 150 multiple choice questions, and candidates must answer at least 70 percent correctly.
- C. It contains 150 multiple choice questions, and candidates must answer at least 75 percent correctly.
- D. It contains 200 multiple choice questions, and candidates must answer at least 60 percent correctly.
Show answer & explanation
Answer: B
The salesperson exam consists of 150 multiple choice questions, and a candidate must correctly answer at least 70 percent of the questions to pass. The other options misstate either the question count or the passing threshold.93. A licensee proposes to represent both the buyer and the seller in the same purchase transaction. Under what condition is this arrangement permitted?
- A. It is permitted only with the informed written consent of both parties.
- B. It is permitted whenever the licensee orally notifies both parties before closing.
- C. It is never permitted under any circumstances.
- D. It is permitted automatically as long as the commission is split evenly between the parties.
Show answer & explanation
Answer: A
Dual agency — representing both buyer and seller in the same transaction — is permitted only with the informed written consent of both parties. Oral notice is insufficient, an outright ban is incorrect, and commission arrangements have no bearing on the consent requirement.94. Six months after a listing agreement ended, the former listing agent tells a prospective buyer that the ex-client had privately been willing to accept far less than the asking price on a new listing. Which fiduciary duty has the agent most likely violated?
- A. Obedience, because the agent failed to follow lawful instructions.
- B. Accounting, because the agent mishandled client funds.
- C. Confidentiality, because that duty survives termination of the agency and forbids revealing information that harms the principal's bargaining position.
- D. None — all fiduciary duties end when the agency relationship terminates.
Show answer & explanation
Answer: C
Confidentiality survives termination of the agency relationship and forbids revealing information that would harm the principal's bargaining position, so disclosing the former client's willingness to accept a lower price breaches this duty even after the listing ended. Obedience and accounting concern instructions and funds, and it is incorrect that all duties end at termination.95. An owner hires a licensee to manage an apartment building on an ongoing basis, with authority to lease units, arrange repairs, and handle a range of matters that bind the owner. In this role, the licensee is BEST described as a:
- A. Special agent, because property management is limited to a single transaction.
- B. General agent, because the licensee may bind the principal in a range of matters.
- C. Customer, because the licensee owes the owner only honesty and fair dealing.
- D. Principal, because the licensee controls the property.
Show answer & explanation
Answer: B
A general agent may bind the principal in a range of matters, and a property manager is the classic example; in property management the manager is a general agent who owes fiduciary duties to the owner. A special agent, by contrast, has limited authority for a single transaction, and a customer is a third party owed honesty and fair dealing rather than the agent's role.96. A landlord and tenant orally agree to a two-year lease of a commercial storefront and shake hands on the terms. If the landlord later refuses to honor the arrangement, the lease is BEST described as:
- A. Void, because it never existed as a legal agreement.
- B. Voidable at the option of either party.
- C. Unenforceable, because leases longer than one year must be in writing and signed by the party to be charged.
- D. Fully enforceable, because oral leases of any length are valid.
Show answer & explanation
Answer: C
The Statute of Frauds requires leases longer than one year to be in writing and signed by the party to be charged to be enforceable, so an oral two-year lease is unenforceable — a contract that cannot be enforced in court despite being otherwise valid. It is not void (which describes a contract missing a required element) or voidable (which a party such as a minor may disaffirm).97. A property is encumbered by a first mortgage recorded in 2019, a judgment lien recorded in 2021, and a property tax lien that arose in 2024. In a forced sale, which lien is generally paid first?
- A. The first mortgage, because it was recorded earliest.
- B. The judgment lien, because judgments outrank consensual liens.
- C. The property tax lien, because property tax liens generally take priority over all other liens regardless of when they were recorded.
- D. All three liens share equal priority and are paid proportionally.
Show answer & explanation
Answer: C
Although recording generally establishes priority among competing interests, property tax liens and special assessments generally take priority over all other liens regardless of when they were recorded. The mortgage's earlier recording date therefore does not put it ahead of the tax lien.98. A borrower obtains a $300,000 loan and agrees to pay two discount points at closing to buy down the interest rate. How much will the borrower pay for the points?
- A. $3,000
- B. $6,000
- C. $600
- D. $1,500
Show answer & explanation
Answer: B
One discount point equals one percent of the loan amount and is prepaid interest that buys down the interest rate. Two points on a $300,000 loan equal two percent of $300,000, which is $6,000.