National Real Estate Broker Supplemental Exam

Exclusive right-to-sell entitles the broker to a commission no matter who sells, including the seller; exclusive agency allows the seller to sell independently without owing a commission.

A void contract has no legal effect from inception (e.g., illegal purpose or adjudicated incompetent party), 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A voidable contract can be affirmed or rescinded by the aggrieved party, while an unenforceable contract meets validity requirements but cannot be proven or enforced in court due to a procedural deficiency such as the Statute of Frauds.

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

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

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

Ginnie Mae is a wholly owned government corporation that guarantees mortgage-backed securities composed of FHA, VA, and USDA loans; Freddie Mac is a GSE that purchases conventional loans from lenders and packages them into mortgage-backed securities.

A single agent owes full fiduciary duties of loyalty, obedience, and advocacy to a client, while a transaction broker owes only limited duties of honesty, fair dealing, and confidentiality to both parties without representing either.

An addendum adds new terms or provisions to a purchase agreement at or before execution, while an amendment modifies existing terms of an already-executed contract.

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

An ad valorem tax is levied on all properties within a taxing jurisdiction based on assessed value to fund general government services, while a special assessment is levied only against properties that directly benefit from a specific public improvement.

A freehold estate (e.g., fee simple, life estate) is of indefinite or uncertain duration and is classified as real property, while a leasehold estate lasts for a determinable period and is classified as personal property (a chattel real).