Free Real Estate Sales Exam Questions That Helps Candidates Pass

The duty of disclosure requires agents to share all material facts about a property that affect value or desirability. Loyalty (A) means prioritizing client interests. Confidentiality (C) protects private information. Accounting (D) safeguards client funds.

Loyalty is the duty that requires agents to prioritize their client’s interests above all else, even personal gain. Accounting (B) protects client funds. Disclosure (C) requires sharing material facts. Obedience (D) means following lawful instructions.

The alienation clause, or “due-on-sale clause,” requires loan payoff when property is sold, preventing assumption without lender approval. Acceleration (A) applies to default. Defeasance (C) cancels lender rights after payoff. Subordination (D) alters lien priority.

A contract signed under duress is voidable at the option of the party under pressure. It is not automatically void, because the injured party may choose to affirm it. Valid (A) and enforceable (D) do not apply, while void (B) applies when contracts lack legality altogether.

Contribution states that improvements add value only if they are useful to buyers. For example, a $50,000 pool may only add $15,000 in value if buyers don’t value it highly. Conformity (A), progression (C), and substitution (D) are related principles.