Real Estate Sales Exam FREE Real Estate Sales Process Question and Answers 2 — Questions and Answers
Question 1: During a real estate transaction, when does the buyer typically submit earnest money?
- After the purchase agreement is signed (Correct answer)
- Before viewing the property
- At the final closing
- After the home inspection period ends
Correct answer: After the purchase agreement is signed
Earnest money is typically submitted shortly after the purchase agreement is executed to demonstrate the buyer's good faith.
Question 2: What is the primary purpose of a Comparative Market Analysis (CMA) in the sales process?
- To determine an appropriate listing price (Correct answer)
- To calculate the buyer's mortgage payment
- To assess property tax obligations
- To estimate closing costs
Correct answer: To determine an appropriate listing price
A CMA compares recent sales of similar properties to help determine a competitive and realistic listing price.
Question 3: Which of the following is considered a counteroffer in a real estate negotiation?
- The seller accepts the offer but changes the closing date (Correct answer)
- The seller rejects the offer outright
- The buyer withdraws the offer
- The listing agent refuses to present the offer
Correct answer: The seller accepts the offer but changes the closing date
Any modification to the original offer terms, such as changing the closing date, constitutes a counteroffer that the buyer must accept or reject.
Question 4: What typically triggers the due diligence period in a residential real estate sale?
- Mutual acceptance of the purchase agreement (Correct answer)
- The listing of the property on MLS
- The buyer's pre-approval for a mortgage
- The seller's disclosure statement delivery
Correct answer: Mutual acceptance of the purchase agreement
The due diligence period generally begins once both parties have mutually accepted and executed the purchase agreement.
Question 5: In a real estate closing, what does the term 'proration' refer to?
- Dividing shared expenses between buyer and seller based on the closing date (Correct answer)
- Calculating the agent's commission split
- Determining the loan origination fee percentage
- Adjusting the purchase price after appraisal
Correct answer: Dividing shared expenses between buyer and seller based on the closing date
Proration is the process of dividing ongoing expenses like property taxes and HOA dues between buyer and seller proportionally based on the closing date.
Question 6: Which document provides the buyer with a detailed breakdown of all closing costs and financial terms of the transaction?
- Closing Disclosure (Correct answer)
- Listing agreement
- Title commitment
- Purchase agreement
Correct answer: Closing Disclosure
The Closing Disclosure, required under TRID rules, itemizes all loan terms, projected payments, and closing costs for the buyer at least three days before closing.
Real Estate Sales Exam FREE Real Estate Sales Process Question and Answers 2
During a real estate transaction, when does the buyer typically submit earnest money?