Real Estate Broker Exam — National Portion
Contracts and agency: practice questions
Our Real Estate Broker (National) bank has 45 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.
Question 1
Compensatory damages in a contract breach are meant to:
- Punish the breaching party for bad conduct
- Reward the broker
- Cover the injured party's actual loss
- Cover only court costs
Show the answer
C. Cover the injured party's actual loss — Compensatory damages replace actual loss; punitive damages punish; liquidated damages are agreed in advance.
Question 2
A purchase agreement signed last week that is set to close next month is:
- Executory
- Void
- Implied
- Executed
Show the answer
A. Executory — An executory contract still has obligations to perform.
Question 3
A contract that appears valid but cannot be enforced because the statute of limitations has run is:
- Executed
- Voidable
- Void
- Unenforceable
Show the answer
D. Unenforceable — An unenforceable contract may have been valid but cannot be enforced in court.
Question 4
A broker who learns confidential information about a former client's finances:
- May share it freely once the listing expires or is cancelled
- Must publish it in the MLS
- Must tell future buyers
- Should keep it confidential even after the agency ends
Show the answer
D. Should keep it confidential even after the agency ends — The duty of confidentiality generally survives the end of the agency.
Question 5
Consideration in a real estate contract means:
- Something of legal value exchanged
- The broker's commission
- An earnest money deposit in every case
- Kindness shown during negotiations
Show the answer
A. Something of legal value exchanged — Consideration may be money or a promise; earnest money is not required for a valid contract.