Real Estate Salesperson Practice Test

An earnest money deposit — A valid contract requires offer and acceptance, consideration, legally competent parties, and a lawful purpose. Earnest money is customary evidence of good faith but is not legally required for validity.

Source: PSI National Real Estate Exam Content Outline §7 Contracts

Guaranteeing the principal a minimum sale price — Fiduciary duties include obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care (OLD CAR). An agent never guarantees results such as a minimum price — only faithful representation of the principal's interests.

Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency

Age — The federal Fair Housing Act protects race, color, religion, national origin, sex, familial status, and disability. Age is not a federal protected class, though some state and local laws add it.

Source: Federal Fair Housing Act (42 U.S.C. §3604)

The borrower's personal promise and evidence of the debt — The promissory note is the borrower's written promise to repay the debt on stated terms, making it the evidence of the debt itself. The mortgage or deed of trust separately pledges the property as security.

Source: U.C.C. § 3-104 (Negotiable Instrument; "note" defined)

$21,000 — Multiply the sale price by the commission rate: $350,000 × 0.06 = $21,000. Commission is calculated on the full sale price unless the agreement states otherwise.

Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations