A legal document that pledges real property as security for a loan, giving the lender a claim if the borrower defaults.
Why Mortgage matters on the exam
This term belongs to Financing. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Mortgage
Every Freehold question shows why the right answer is right — and cites its source.
A trust account may generally be established and controlled only by:
Any employee of the brokerage whatsoever at all, whether licensed or not licensed
The buyer's own mortgage lender
An unlicensed office manager who is designated by the broker for that purpose
A licensed broker, in the broker's licensed name or the brokerage's name
Show answer & explanation
A licensed broker, in the broker's licensed name or the brokerage's name — Because brokers bear fiduciary responsibility for client funds, trust accounts must be established and controlled by a licensed broker rather than unlicensed staff.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Vicarious liability primarily concerns which relationship?
Between two entirely unrelated brokerages competing over that very same listing
Between a home buyer and their mortgage lender
Between an appraiser and the lender
Between a broker and the affiliated licensees acting on the brokerage's behalf
Show answer & explanation
Between a broker and the affiliated licensees acting on the brokerage's behalf — Vicarious liability arises from the broker-agent relationship, holding the broker accountable for acts an affiliated licensee performs within the scope of that relationship.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which of the following would most likely need to be retained in a brokerage's transaction file?
The agent's personal grocery receipts
Unrelated correspondence with a different client's landlord
The listing agreement, purchase contract, and related disclosures
The broker's personal home mortgage statement
Show answer & explanation
The listing agreement, purchase contract, and related disclosures — Transaction files should contain the documents generated during that specific transaction, such as listing agreements, contracts, and required disclosures, to support recordkeeping obligations.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
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