Free Real Estate Sales Exam Questions That Helps Candidates Pass

Specific performance is a court-ordered remedy requiring a party to perform the contract terms—in real estate, compelling the seller to convey the property. Damages (A) provide money. Rescission (B) cancels the contract. Deed cancellation (D) is not relevant here.

Hypothecation is pledging property as collateral while retaining possession. Subordination (B) changes lien priority. Alienation (C) transfers ownership. Acceleration (D) requires repayment upon default. Hypothecation underlies most mortgage loans.

The acceleration clause allows lenders to demand full repayment if the borrower defaults. Alienation (B) requires payoff upon sale. Subordination (C) alters lien priority. Escalation (D) increases interest rates or payments.

The Americans with Disabilities Act (ADA) requires accessibility in public facilities and accommodations. Fair Housing Act (B) applies to housing. ECOA (A) regulates credit discrimination. RESPA (D) governs settlement practices. ADA primarily applies to commercial real estate.

The principle of conformity suggests that homes in neighborhoods with similar design, quality, and use maintain the highest values. If a home is radically different (oversized or undersized), it can lose value compared to its neighbors. Option B describes regression or progression, not conformity. Inflation (C) affects market value broadly but not this principle. For exams, knowing the principles of conformity, substitution, contribution, and highest and best use is vital for valuation questions.