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National Portion - Real Estate Exam Prep Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the act of mixing client funds with personal funds called?✔✔ Commingling
What is the fiduciary duty that requires an agent to act in the best interest of the client?✔✔ Loyalty
What type of estate lasts for an unknown duration and ends at death?✔✔ Life estate
What is the highest form of ownership interest in real estate?✔✔ Fee simple absolute
What is the term for the legal process of transferring title from one party to another?✔✔ Conveyance
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What is the document used to transfer ownership of real property?✔✔ Deed
What is the process of increasing land area due to natural deposits?✔✔ Accretion
What does the term "encumbrance" refer to in real estate?✔✔ A claim, lien, or liability on a property that may affect its value
What is the term for a temporary, revocable right to use another's property?✔✔ License
Who is the principal in a real estate transaction?✔✔ The client who hires the agent
What is the purpose of a home inspection?✔✔ To assess the physical condition of the property
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What does "title" refer to in real estate?✔✔ Legal ownership of a property
What is the role of an escrow agent?✔✔ To hold funds and documents until conditions of the contract are met
What does the term "appreciation" mean in real estate?✔✔ An increase in property value over time
What is a "cloud on title"?✔✔ An issue or claim that affects ownership of property
What is the purpose of a deed restriction?✔✔ To limit or control property use
What is a latent defect?✔✔ A hidden flaw not easily discovered during inspection
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What does the term "hypothecation" mean?✔✔ Pledging property as collateral without giving up possession
What is the purpose of a home warranty?✔✔ To protect the buyer against certain post-sale repairs
What is the primary function of an appraiser?✔✔ To estimate a property's market value
What is a special assessment?✔✔ A charge levied on a property for a specific public improvement
What is a balloon payment in a mortgage loan?✔✔ A large, final payment due at the end of the loan term
What is the term for property that is movable and not permanently attached?✔✔ Personal property
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