Before you read
Test yourself first: 5 questions
Question 1 of 5
Building or filling on federally regulated wetlands generally requires:
Answer: A. Wetlands are protected; development often needs federal/state permits, which materially affects buildability and value.
Question 2 of 5
The Fair Housing Act design requirement for 'reinforced bathroom walls' exists primarily to allow:
Answer: B. Bathroom walls must be reinforced so grab bars can be installed later when a resident needs them, supporting accessibility for persons with disabilities.
Question 3 of 5
Which of the following would most likely require a jumbo loan rather than a conforming loan?
Answer: B. When the needed loan amount is above the conforming limit, the borrower needs a jumbo loan, since the loan is too large to be purchased by Fannie Mae or Freddie Mac.
Question 4 of 5
A seller must pay off a $150,000 loan and a 6% commission, and wants to net $50,000 at closing. Ignoring other costs, what is the minimum sale price?
Answer: C. The seller needs $150,000 + $50,000 = $200,000 after commission, which is 94% of price; $200,000 / 0.94 = $212,766.
Question 5 of 5
A buyer needs a $190,000 loan and the lender charges 2 points plus a 1% origination fee. What is the total of points and origination fee?
Answer: C. Two discount points equal 2% and the origination fee is 1%, totaling 3%: $190,000 x 0.03 = $5,700.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Exemptions typically include owners handling their own property, attorneys acting within their law practice, trustees and personal representatives under court authority, and resident managers leasing units where they work. Unlicensed assistants may do clerical work — but not show property, discuss terms, or negotiate. Paying a commission or referral fee to an unlicensed person is prohibited; splitting fees is broker-to-broker business. One truth across states: compensation flows through the employing broker.
License Law Basics — Who Needs One: FAQs
Is License Law Basics — Who Needs One on the real estate exam?
Yes. Brokerage & Practice is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
