2026 Real Estate Exam-Day Cheat Sheet
High-yield compliance checklists, permitted vs prohibited MLS rules, mortgage financing IPC caps (Fannie/Freddie/FHA/VA), state comparisons (CA vs TX vs FL), and Sherman Act antitrust red flags.
📌 Quick Summary / Core Test Principles:2026 Real Estate Quick Rules: Written agreement BEFORE touring (in-person or live virtual); Terms must be objectively ascertainable (no 'whatever seller pays'); Broker fee is CAPPED at contract amount (no surplus retained); ALL MLS broker compensation fields are BANNED; General seller concessions on MLS are LEGAL but CANNOT mandate broker fee; Conventional (Fannie/Freddie) EXCLUDES customary broker fees from 3/6/9% IPC caps; FHA allows seller-paid fees outside 6% cap; VA Circular 26-24-14 lets veterans pay fees directly; Open house host does NOT need buyer agreement for walk-in visitors; Dual agency is ILLEGAL in FL/CO, Intermediary in TX, and legal with written consent in CA; Horizontal price-fixing and collective boycotts are per se criminal felonies under Sherman Act § 1!
Core Compliance
1. Mandatory Pre-Touring Written Buyer Agreement Checklist
| Required Element | Settlement / Statutory Standard | Prohibited Practice / Trap |
|---|---|---|
| Execution Timing | Must be signed BEFORE touring any residential property (in-person or live virtual). | Signing after the tour, at the offer stage, or relying on oral agreements. |
| Compensation Specificity | Must state an objectively ascertainable amount (e.g., 2.5% of price or $7,500 flat fee). | Open-ended terms like 'whatever seller offers' or 'standard market rate'. |
| Total Compensation Ceiling | Broker can never receive more total compensation from all sources than agreed amount. | Retaining excess seller concessions as an unearned 'bonus' or surplus. |
| Scope & Exclusivity | Can be exclusive or non-exclusive; can cover 1 home, 1 day, or a multi-month period. | Falsely telling consumers that long-term exclusive contracts are mandated by law. |
| Definite Termination Date | Must specify a fixed calendar expiration date without automatic rollovers. | Perpetual agreements or clauses that auto-renew without express written agreement. |
| Broker Ownership | Agreement is between consumer and the designated broker/brokerage firm entity. | Salesperson contracting in their personal individual capacity outside the broker. |
💡 Pro Tip:Rule of thumb: If you unlock the front door or start a live video walkthrough for a buyer, you must already have a signed agreement in your digital transaction file!
Antitrust Boundaries
2. Permitted vs. Prohibited MLS & Off-MLS Compensation Practices
| Practice Category | Permitted Under 2024–2026 Rules | Strictly Prohibited & Sanctioned |
|---|---|---|
| MLS Compensation Fields | NONE. All cooperative compensation fields are deleted from MLS platforms. | Entering fee percentages into agent remarks, public remarks, or virtual tour links. |
| MLS Concession Fields | Advertising general seller concessions (e.g., '$10,000 credit toward buyer closing costs'). | Conditioning or earmarking the MLS concession to pay a buyer broker fee. |
| Off-MLS Negotiations | Direct phone, text, email, or bilateral agreements (e.g. Form CBC) with seller consent. | Creating multi-broker spreadsheets, Google Drives, or shared groups to circulate fee offers. |
| Brokerage Websites | Displaying seller fee offerings on the broker's own website for its OWN listings only. | Displaying cooperative compensation offers on other brokers' listings via IDX/VOW feeds. |
| Search & Filtering | Filtering by price, bedrooms, bathrooms, school district, and square footage. | MLS filters or sorting algorithms that rank or filter listings by fee or concession amount. |
| Sign Riders & Print Ads | Yard signs stating 'Seller Concessions Available - Inquire Within'. | Sign riders specifying fixed unilateral broker commission percentages. |
💡 Pro Tip:The MLS is an inventory exchange, NOT a compensation exchange. All broker-to-broker fee agreements must be negotiated bilaterally off the MLS!
Underwriting Standards
3. Mortgage Financing & Seller Concession Limits Matrix
| Loan Program | Maximum IPC Concession Cap | Treatment of Seller-Paid Broker Fees | Key Agency Guidance |
|---|---|---|---|
| Conventional (Fannie Mae) | 3% (LTV > 90%), 6% (LTV 75.01–90%), 9% (LTV ≤ 75%) | DOES NOT COUNT against IPC caps if customary and contractually agreed. | Fannie Mae Announcement SEL-2024-03 |
| Conventional (Freddie Mac) | 3% (LTV > 90%), 6% (LTV 75.01–90%), 9% (LTV ≤ 75%) | DOES NOT COUNT against IPC caps if customary and contractually agreed. | Freddie Mac Bulletin 2024-A |
| FHA-Insured (HUD) | 6.0% maximum interested party contribution cap | DOES NOT COUNT against 6% IPC cap; does NOT reduce maximum mortgage amount. | HUD / FHA Info #2024-18 |
| VA Home Loan (Veterans) | 4.0% seller concession cap (excludes normal discount points) | Veterans may directly pay reasonable buyer broker fees under temporary exception. | VA Circular 26-24-14 |
| USDA Rural Housing | 6.0% maximum seller concession cap | Follows customary sales contract provisions without mortgage reduction. | USDA Single Family Housing Guidelines |
| All-Cash Purchases | No regulatory cap (governed purely by contract terms) | Seller may pay buyer broker fee directly from closing proceeds per contract. | Standard Purchase Contract Terms |
💡 Pro Tip:Always confirm that seller-paid buyer broker fees are explicitly itemized on the Closing Disclosure (CD) in Section H or closing cost credits!
Jurisdictional Rules
4. State-by-State Regulatory Comparison: CA vs. TX vs. FL vs. National
| Statutory Topic | California (DRE) | Texas (TREC) | Florida (FREC) | National Baseline |
|---|---|---|---|---|
| Mandatory Buyer Agreement | Mandatory prior to touring; Cal. Civ. Code § 1670.5 & AB 2992. | Mandatory prior to touring; TREC Rule § 535.148 & TXR forms. | Mandatory prior to touring under settlement & FREC Rule 61J2. | Mandatory across all REALTOR® MLSs nationwide. |
| Dual Agency Status | PERMITTED with informed written consent from both parties (CC § 2079.17). | PROHIBITED; replaced by statutory Intermediary status (TRELA § 1101.559). | STRICTLY ILLEGAL; default is Transaction Brokerage (Fla. Stat. § 475.278). | Varies by state; 4 states ban dual agency outright. |
| Commission Rebates to Client | LEGAL with full disclosure to all parties and mortgage lender. | LEGAL with full disclosure to all parties and mortgage lender. | LEGAL with full disclosure to all parties and mortgage lender. | Legal in 40+ states; strongly supported by DOJ Antitrust. |
| Designated Expiration Date | MANDATORY; no automatic extensions (B&P Code § 10176(f)). | MANDATORY; no automatic extensions (TRELA § 1101.652(b)(12)). | MANDATORY in written exclusive agreements (Fla. Stat. § 475.25). | Standard license law requirement across North America. |
| Open House Exemption | Walk-in visitors touring seller's open house do NOT trigger buyer agreement. | Walk-in visitors touring seller's open house do NOT trigger buyer agreement. | Walk-in visitors touring seller's open house do NOT trigger buyer agreement. | Universal settlement exception for casual public open houses. |
💡 Pro Tip:Know your state's agency rules: Florida bans dual agency completely, Texas uses Intermediary with appointments, and California allows dual agency with written consent!
Antitrust Compliance
5. Antitrust Red Flags & Prohibited Statements Under Sherman Act § 1
| Prohibited Statement / Red Flag | Why It Violates Federal Antitrust Law | Compliant Replacement Statement |
|---|---|---|
| '3% is the standard commission required by our board.' | False misrepresentation and horizontal price fixing; fees are NEVER set by law or MLS. | 'All brokerage commissions are fully negotiable and set independently by each firm.' |
| 'Let's all agree not to show listings from that discount broker.' | Illegal group boycott and concerted refusal to deal under Sherman Act Section 1. | 'Each brokerage independently chooses which properties to show based on client needs.' |
| 'Our office will only accept what the seller is offering.' | Violates settlement ban on open-ended compensation terms in buyer contracts. | 'Our representation fee is an agreed 2.5% flat rate, credited by any seller concessions.' |
| 'I can't show you that home because the seller pays zero fee.' | Unlawful broker steering and breach of fiduciary duties of loyalty and good faith. | 'That home matches your search; let's discuss how we can negotiate a seller concession in our offer.' |
| 'All the brokers in our town have agreed on a 2.5% minimum fee.' | Criminal per se horizontal price-fixing conspiracy carrying felony penalties. | 'Our brokerage firm independently establishes our fee structure based on our services.' |
💡 Pro Tip:Never discuss commission rates, fee minimums, or boycott strategies with competitors at association mixers, broker opens, or social events!
Rapid Memory Recall
6. First-5-Minute Exam Dump Sheet: 2026 Real Estate Essentials
| Rule / Concept | Key Operational Metric | Core Legal Mandate |
|---|---|---|
| Pre-Touring Written Agreement | Timing: Prior to Tour | Mandatory for in-person and live virtual showings on residential 1-4 units. |
| Open-Ended Fees | Status: Strictly Illegal | Fees must be objectively ascertainable; 'whatever seller pays' is banned. |
| Broker Compensation Cap | Ceiling: Agreed Contract Amount | Broker cannot receive surplus from seller above the buyer agreement fee. |
| MLS Compensation Fields | Status: 100% Banned | No cooperative broker compensation fields on MLS or electronic feeds (IDX/VOW). |
| MLS Seller Concessions | Status: Permissible | Can advertise general seller credit, but cannot condition on paying buyer broker. |
| Conventional IPC Exemption | Status: Excluded from Cap | Fannie Mae & Freddie Mac exclude customary buyer broker fees from 3/6/9% caps. |
| VA Loan Exception | VA Circular 26-24-14 | Veterans may directly pay reasonable buyer broker fees where seller refuses. |
| Dual Agency Legality | FL: Illegal; TX: Intermediary; CA: Legal | Must obtain informed written consent prior to or at purchase offer execution. |
💡 Pro Tip:Before starting your 2026 real estate exam, write down: 1. Sign BEFORE tour; 2. No open-ended fees; 3. Cap at contract rate; 4. No MLS fee fields; 5. Concessions cannot mandate fee!