As mentioned earlier, real estate agents must take a certification exam to prove that they can do their job effectively. The amount of time it takes to pass this test varies from agency to agency, but most require just around two hours.
In this article, you’ll learn about what kind of questions you will be asked on the exam, and some basic tips for success. We’ll also talk about how much experience you need to have before taking the test, as well as whether or not it is worth your time.
If you are already working with an agent, you can check out our list here of important things to know about them. It’s similar to what we covered in our article about becoming a real estate agent.
This article doesn’t go into detail about every question type on the exam, so if there’s something you’re unsure about, search online for it.
What is the REALTOR® association?
The Realtor Association of America (RA3) is an organization that exists to promote, protect and defend the real estate profession. As such, they hold several events every year where members can attend and participate.
One event held each year by RA3 is what’s called The Ultimate Property Challenge. This is typically done in early spring when many people enter into contract negotiations for their homes or other properties.
The challenge comes at the end of this process when both parties have to report back whether or not they are able to close on the property. If you are just starting out as a professional, this is a good time to see how things work!
It is very common for participants to leave the event with a lot more knowledge than before the challenge started.
What is the Uniform Commercial Code (UCC)?
The Uniform Commercial Code (or UCC for short) is a set of rules that regulate business transactions. These include things like how to complete sales, what items need to be returned or exchanged after a sale, and more.
The UCC was created in 1972 as an effort to make sure businesses could function normally. Before the UCC, there were not many regulations about buying and selling goods so some great deals were lost because people did not feel safe from fraud. Now, with the UCC in place, this is no longer the case.
Businesses are allowed to use the same laws when doing commerce online just like they would do face-to-face. This way, customers can know their rights with ease and will feel safer shopping.
What is a contract?
A contract is an agreement between two or more people to do something together. The term “contract” comes from the Latin word con-tractum, meaning “to bind by oath.”
A contract can be oral or written. An example of an oral contract would be if one person said they would help you move furniture for $20 and then later asked for money to pay bills.
An example of a written contract would be if someone wrote down their promises to help you move furniture and paid them with money.
In real estate, there are several different types of contracts that depend on what things you are buying or selling.
For instance, when you sell your home, you have a sale agreement, listing contract, broker’s contract and finally, an offer and acceptance contract.
All of these agreements focus on how much house you will get each party to agree to purchase.
What are conditions?
The other major part of the exam is what we refer to as conditionals or conditional exams. These assess your knowledge in how to handle different situations where real estate laws apply.
Conditional tests come in two forms, either factual/true false or hypothetical. For the true-false test, there will be one fact that seems obvious and then a question with which you must choose between option A, B, C or D (no longer needed because they have dropped this format).
For the hypothetical test, there will be an event that can occur and a question about whether or not it would violate the law to perform that action. You get points for telling if it’s illegal or not and depending on how well you do, you earn more or less money!
Both types of questions require you to know the answers from before so make sure you are completely familiar with these concepts.
What are assets?
The word asset comes from the Latin term, utilis, which means useful or beneficial. Assets include all types of things, not just money. These can be resources such as materials, equipment, or knowledge. They can be physical (tangible) items like a car or house, or they can be experiences (intangibles) such as learning new skills or traveling.
When you have an abundance of assets, you’re more likely to reach your goals because you have something to fall back on in case of failure. You also may succeed due to the fact that you’ve prepared for setbacks by having enough resources.
It’s important to remember that life is long, and there will be plenty of opportunities to use these resources. So, don’t get focused on how much time you need to spend working on this thing called life, but instead think about the amount of wealth you want to accumulate – not only now, but into the future.
You’re on track when you understand that life is a process filled with failures and successes, and you’re ready whenever you’re presented with a chance to fail.
What are liabilities?
A liability is when someone else pays for your personal spending or bad investment decisions. This is typically not done in real estate, but it can happen.
A liability in this case would be if you invested money in a business that went bankrupt. For example, buying a house with a large mortgage could be considered a liability because of the debt owed to the bank.
The person who owns the loan gets paid back first, then anyone else waiting to buy the home is able to purchase it at a discounted price. In some cases, the lender will even agree to reduce the cost of the house for being less profitable!
This happens more than you might think since many lenders will let others take over the loan before they get their money back.
What is a bank?
A bank is an organization that accepts deposits of money and then loans this money to you or other people for them to spend!
A lot of organizations work like this, but not all banks are the same. Some stay within the rules set out by government regulations, while others do not.
Banks that are regulated by the federal government are called Federal Banks. These types of banks must follow certain rules (like how many loans they can give out) that are put in place to make sure everyone has enough access to money.
Other banks are not as strict with their requirements and thus may offer less financial security. As such, it is important to know which type of bank you will get the most out of their services.
Generalizations about what kind of banking company you should go into business with are hard to come by because different companies fit different needs. It would be best if you could evaluate each one on your own before deciding where to invest your money.
What is a credit card?
A credit card is a tool that your lender uses to lend you money for buying or renting a house or apartment, paying for monthly bills, or both. It is a plastic card with a unique number that contains a code that can be used to access your account.
The bank associates your card’s number with your personal information such as your name, address, and phone number. They then use this information to verify your identity before giving you the loan.
Some people also refer to it as a debit card because it allows you to add money to your account by using it like a check, said Rachel Ryan, CEO of RealtyMogul.com. But most lenders consider it a credit card since you have to pay back the amount you spend later.
Many individuals start off owning only one credit card at first, but as they establish their spending habits, they may need several. Having too many can become expensive if you are not careful how you manage them, so make sure to keep track of which ones you drop and what happens to each one.
Real estate agents must be aware of how long the real estate exam is in order to know when someone has had enough time to relax after passing. Since some states require more than two years to process and review all documents, knowing how much time is left will help you get things done properly.
