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National Real Estate Exam Prep Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What is the definition of a "contingency clause" in a real estate contract?✔✔A contingency clause allows the buyer or seller to back out of the contract under certain conditions, such as a failed inspection or financing issues.
What does the term "comparative market analysis (CMA)" refer to in real estate?✔✔A CMA is an evaluation of recently sold properties in the area to determine a property’s value based on similar properties.
What is the primary function of a "mortgage broker" in real estate?✔✔A mortgage broker acts as an intermediary between the borrower and lenders, helping buyers find a suitable mortgage loan.
What is the role of a "real estate agent" in property transactions?✔✔A real estate agent represents clients in the buying, selling, or leasing of properties, providing advice, facilitating negotiations, and handling paperwork.
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What does the term "real property" refer to in real estate?✔✔Real property refers to land and anything permanently attached to it, such as buildings, structures, and fixtures.
What is the difference between a "mortgage" and a "deed of trust"?✔✔A mortgage is a legal agreement in which the borrower pledges property as collateral for a loan, while a deed of trust involves a third-party trustee holding the title until the loan is paid off.
What is a "closing" in a real estate transaction?✔✔Closing is the final step in a real estate transaction where ownership is transferred, and all necessary documents and payments are completed.
What is the definition of "zoning laws" in real estate?✔✔Zoning laws are local regulations that dictate how land can be used, such as residential, commercial, or industrial purposes.`
What does the term "liens" refer to in real estate transactions?✔✔Liens are legal claims or encumbrances on a property, often due to unpaid debts or obligations. 2 / 3
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What is the purpose of a "deed of bargain and sale"?✔✔A deed of bargain and sale is used to transfer ownership of real property from one party to another without any warranty of title.
What does "title insurance" protect against in a real estate transaction?✔✔Title insurance protects the buyer and lender against financial loss due to defects or issues with the property’s title, such as fraud or ownership disputes.
What is a "seller’s disclosure" in real estate transactions?✔✔A seller’s disclosure is a document in which the seller reveals known defects, issues, or hazards concerning the property being sold.
What is the purpose of "escrow" in real estate transactions?✔✔Escrow is an account where funds or documents are held by a third party until all conditions of a real estate transaction are fulfilled.
What is the meaning of "amortization" in relation to mortgage loans?
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