National Real Estate Broker Supplemental Exam

Exclusive right-to-sell entitles the broker to a commission no matter who finds the buyer, including the seller themselves, while exclusive agency lets the seller find their own buyer without owing a commission.

A single agent owes full fiduciary duties of loyalty and advocacy to one client, while a transaction broker assists both parties with only limited duties such as honesty, fair dealing, and confidentiality, owing fiduciary duties to neither party.

A client has a representation agreement entitling them to full fiduciary duties (loyalty, obedience, advocacy), while a customer receives only honesty, fairness, and disclosure of material facts.

A void contract has no legal effect from inception (e.g., illegal purpose or adjudicated incompetency), while a voidable contract is valid until the injured party elects to disaffirm it (e.g., minor, duress).

A voidable contract can be affirmed or rescinded by one party, while an unenforceable contract is otherwise valid but cannot be enforced in court due to a procedural deficiency such as the Statute of Frauds.

A general warranty deed warrants title against all defects regardless of when they arose, while a special warranty deed limits the warranty only to defects arising during the grantor's period of ownership.

A bargain and sale deed implies the grantor holds title and possession but makes no warranties against encumbrances, while a quitclaim deed conveys only whatever interest the grantor may have with no implication of ownership at all.

Ginnie Mae is a full government agency that guarantees mortgage-backed securities composed solely of FHA, VA, and USDA loans, while Freddie Mac is a government-sponsored enterprise that purchases conventional loans from lenders and packages them into mortgage-backed securities.

The promissory note is the borrower's personal promise to repay the debt, while the mortgage is the security instrument that pledges real property as collateral and creates the lien.

An addendum adds new terms or provisions at or before contract execution, while an amendment modifies terms of an already-executed contract by mutual agreement of all parties.

An executed contract is one in which all parties have fully performed all obligations, while an executory contract has one or more performance obligations that remain to be completed in the future.

In a sublease the tenant transfers possession to a third party for only part of the remaining term while retaining a reversionary interest, while an assignment transfers the entire remaining leasehold interest with nothing retained.