Washington Real Estate Fundamentals Rockwell Practice Exam

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• Which entity provides guidelines for unlicensed personal assistants under the supervision of licensees?
• A buyer should consider the disclosure statement to be
• An assigned parking space in a condominium development is an example of which type of property interest?
• Which term describes an agent authorized to perform ongoing duties on behalf of the principal?
• What term describes the difference between property value and mortgage debt?
• If a broker learns a property will soon be rezoned and informs the seller before the sale agreement is reached, and later profits from resale, which statement is correct?
• Under Real Estate Broker relationships, which obligation must licensees fulfill?
• Which of the following could be deducted as expenses from annual income taxes on an investment property?
• A percolation test will examine the:
• A specific lien affects which of the following?
• As a result of the federal reserve action, interest rates for residential loans go down. Which of the following is most likely to occur as a result?
• In the replacement cost approach, depreciation is subtracted from replacement cost to reflect what?
• Which appraisal approach relies primarily on comparing recent sales of similar properties?
• Jones and Smith live across the street in a subdivision that has deed restrictions prohibiting the keeping of large animals as pets. Jones realizes that Smith is keeping a pet pony. Jones can:
• A prepaid item by the seller is recorded as which entry?
• Overpricing a property for sale typically leads to:
• Equitable title is created when the contract is signed and the buyer has an interest in the land.
• Under which circumstances may a seller keep the earnest money deposit of a defaulting buyer?
• Exaggeration about a property's positive characteristics would be considered:
• In calculating the area of the triangular foyer with a 4-foot base and a 4-foot height, which method is correct?
• To operate a day care in a home within a residential subdivision, the buyer should obtain a
• If a supplier furnishes materials for a house and is not paid, they may file a
• Net operating income is used in value calculations and is defined as gross income minus which type of expenses?
• In real estate, when is a contract formed?
• A real estate agent has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the agent to manage all aspects of the properties including advertising and leasing. The real estate agent will be an:
• After a disciplinary hearing, if the director rules against a licensee and revokes the license, to what court can the licensee appeal?
• Reconciliation in appraisal involves:
• A survey has been completed, and stakes have been placed marking off the property. The survey can be used to:
• In appraisal, the relationship between basic and non-basic employment patterns as a means of predicting population and income is known as
• A licensee takes a listing from his sister. He should:
• Addenda to a P&S agreement must be:
• In Bob's property tax scenario, with fair market value $190,000, assessed at 50%, tax rate $55 per $1,000 of assessed value, what is the annual property tax?
• When using the sales comparison approach, appraisers adjust the sale prices of comparables to account for differences with the subject property. This statement is:
• The date and time a document was recorded help establish which concept?
• At closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postponed, and the seller no longer wants to sell. Does the seller owe the listing agent a commission in this situation?
• The instrument used to purchase property when the seller provides financing and the buyer takes the deed with the seller's lien is
• In a real estate loan, which document provides the evidence of the debt and is the primary instrument?
• Direct expenses in construction of an improvement:
• A property's assessed value is typically based on which of the following?
• If a federal reserve action causes mortgage rates to decrease, which market change is most likely?
• In a triple net lease, which cost is not typically included in the rent when calculating the broker's commission?
• A limited partnership is a preferable method of owning real estate investment properties because:
• A buyer would be protected from risk of loss due to a failed heating system through:
• A couple in their 70s with no liens on their home would like some extra income, but don't want to make monthly loan payments. What kind of loan might a lender offer them?
• An out-of-state real estate licensee may enter Washington to engage in which activity?
• In a two-licensee team where one negotiated the deal, who is typically paid by the brokerage?
• RESPA applies to which type of loan transactions?
• On a settlement statement, an earnest money deposit that will be held by the brokerage firm until closing is a:
• Meridians and base lines relate to which survey system?
• A property manager typically
• When an offer to purchase is agreed to and signed by all parties but not closed, the purchaser has
• What is the typical eligibility criterion for a reverse mortgage?
• In a team where Licensee A is the agent on a purchase and sale agreement, but Licensee B negotiated the transaction, which is true about commissions?
• How many square feet are in one acre?
• In the given example, which amount represents the revenue that is not affected by vacancies when calculating effective gross income?
• Which situation would be exempt under the Fair Housing Act?
• Four people own an investment property with equal shares and a death transfer is possible to heirs. What form of title describes their ownership?
• A buyer made an offer on a property and the seller accepted the offer. A week later, the seller asked the licensee to amend the contract's provision for closing from 60 days to 90 days. The licensee completed the amendment and all parties initialed the change. The buyer now asks if the seller would agree to split the cost of any needed repairs found during the home inspection. Which of the following should be prepared to include this provision?
• Ad valorem taxes are based on which value?
• Which ownership form allows the owner to transfer an interest to heirs freely?
• What is the primary purpose of a comprehensive plan?
• What are the three approaches to value used by appraisers?
• A lot with a depth of 80 feet and an area of 4,800 sq ft was sold for $350 per front foot. What was the total sales price?
• Which of the following would NOT be considered a nominal earnest money deposit, subject to the pooled interest-bearing account requirement?
• Which is the correct formula for the area of a triangle?
• An offer to purchase includes a promise to deposit earnest money within two business days after mutual acceptance, contingent on a soil feasibility report. If the seller accepts on May 5, by what date must the earnest money be deposited?
• Which practice involves showing properties only in neighborhoods matching the buyer's racial or ethnic background?
• The Civil Rights Act of 1866 prohibits racial discrimination in housing under which law?
• The mortgagee assigns its interest and the assignee records the assignment. The mortgagor now needs to make payments to the:
• The Real Estate Brokerage Agency Law requires the licensee to do all of the following except which?
• Can Sam become owner of the farm by adverse possession if he maintains possession?
• What is a key functional duty of the real estate commission?
• Agency is created when
• Is compensation to an unlicensed assistant contingent on a sale being completed permissible?
• Which development action would require a zoning variance or rezoning because it would increase density on the site?
• 1 discount point =
• A seller complains that the seller's agent is showing other properties to buyers that compete with the seller's property. Which of the following is true?
• Mavis buys a home for $500,000 with 90% loan-to-value. She pays two discount points to reduce the rate from 5% to 4.75%. What is the total cash due at closing?
• If a buyer intends to operate a home-based business and informs the licensee, the licensee should
• An increasingly common land use pattern allows for subdivisions with smaller lot sizes and little or no setback and sideyard requirements while keeping the same density ratios. These are known as:
• A lot measures 65,340 square feet. How many acres is that?
• A tenant signs a one-year lease. Four months later the owner sells the property to a third party, who wants to move in immediately. Which of the following is correct?
• In a scenario where a broker has a financial interest in a service company used for managed properties, what action must occur?
• Prior to a licensee's second license renewal, how many hours of education approved by the Director must be completed?
• Which easement benefits a person or organization rather than a specific parcel of land?
• Which statement about fair housing laws is true?
• In the example, Ned and Carla bought a house that was listed at 105,000 and their offer was 5,000 below the listing price. What price did they pay relative to the listing?
• An attachment is:
• The police powers of the government include:
• The Mrs. Murphy exemption in fair housing law applies to:
• After a windstorm damages the property, the seller's agent is obligated to:
• The wife can sign the listing agreement for her husband who is overseas if he has given her what document?
• Licensees are required to keep the Director notified of changes in their:
• A manager screens tenants on disability where wheelchair users are placed on first floor. This practice is allowed if there's no elevator to the upper floors.
• Which tax funds public improvements and is assessed on real estate?
• General agency occurs when the principal authorizes the agent to perform duties associated with the continued operation of the business such as property management.
• The Thompsons, a retired couple, need more income. Their lender offers a type of loan in which the lender will send the couple a monthly check for as long as the couple lives on the property, in exchange for a lien against the equity in their property. The lender is referring to a/an:
• A licensee can reveal confidential information about his principal under which circumstance?
• Which statement best aligns with HUD guidelines for nondiscriminatory advertising language?
• Special assessments levied against a property for local improvements are computed on the basis of:
• Which action completes the transfer of real property when a deed is executed?
• Under direct instruction of the licensee, an unlicensed personal assistant may
• The market price of a property would be best defined as:
• A licensee hears that a religious group will be opening a commune in a neighborhood. He begins contacting neighbors and telling them about this, encouraging them to list their properties with him before property values decline. This is:
• What is correct about fiduciary duties in a listing arrangement when a listing agent reveals the seller's minimum acceptable price to a buyer?
• If Licensee D works out of a home office, for how long is she required to maintain records of closed transactions?
• An eight-unit building rents for $800/mo and earns $4,000 annually from laundry and vending. With a 5% vacancy factor, what is the estimated annual effective gross income?
• To operate a day care in a residential area, which permit is commonly required?
• J, a designated broker who manages several commercial properties, also owns a janitorial company. Under what conditions is this permitted?
• Which of the following is the best definition of a material fact?
• In the example, what is the annual insurance cost?
• In a CMA, adjustments are made to the comparable's price to reflect what the subject property would sell for if it were identical.
• The Real Estate Settlement Procedures Act (RESPA) applies to which of the following loans?
• Which disclosure is most commonly used in real estate transactions?
• A broker will be working for a firm as an independent contractor. The firm must provide the broker with:
• What is the required notice period to the Real Estate Program Manager after learning of any criminal complaint or indictment naming the licensee as a defendant?
• True or False: A license not renewed within one year after expiration is canceled.
• Under what circumstances could the agent contact that buyer without consulting the Do Not Call Registry?
• Which of the following is generally income tax deductible in home ownership?
• An investor looks at a property listed for $150k, with a monthly net operating income of $1k. He decides instead to offer $120k. What kind of income approach analysis would he have used to arrive at that conclusion?
• In a disciplinary action, which of the following is NOT a permissible action by the director of the department of licensing?
• Which tax is based on the assessed value of property?
• Which of the following is deductible on a federal income tax return?
• Reinstating a license after expiration due to nonpayment requires which action?
• Under what circumstances may an unlicensed attorney in fact engage in activities that would normally require a real estate license?
• A real estate licensee hired by a property management company to lease and manage commercial properties; which action should the licensee take?
• Deborah sells her property to Juan, but Juan fails to record the deed. Which statement is true about unrecorded deeds?
• In a contract-for-deed arrangement, which party typically holds legal title until the contract is fulfilled?
• A person who owns one unit in a multiunit structure together with a specified undivided interest in the common elements would own a:
• If an agent fails to renew a license within one year after expiration, the license is considered:
• Under FHA 203B, which occupancy condition applies to the borrower?
• In an option contract, which statement is true?
• Who has the authority to discipline licensees and impose penalties for license law violations?
• In the event of an intoxicated signer, what is the typical remedy?
• In a reverse mortgage, what is commonly true regarding heirs and debt liability?
• If the subject property is newer than the comparable, how should you adjust the comparable's price?
• Radon poses a health risk as a hazard when it is present as which condition?
• A contract for deed wouldn't be a good idea if the seller's mortgage has which type of clause?
• Which element is essential for a deed to be legally binding?
• Which of the following is an advantages of using private mortgage insurance from a borrower's perspective:
• The title to real estate passes when a valid deed is
• Unit-cost-in place, square foot, quantity survey and cubic foot most likely refer to:
• What is the primary purpose of a seller disclosure form in real estate transactions?
• Tenants in common describes ownership where:
• In the example, what is the annual property tax?
• A licensee suspects potential heating oil storage site contamination. What should she advise the buyer to do?
• When a group of affiliated licensees forms a team within the brokerage and the firm holds a license while the team does not, whose name must appear in all advertising?
• In home financing, which item is generally tax deductible?
• To clear a cloud on title, the seller should file which legal action?
• A municipality uses a long-range plan to guide growth and land use. This plan is commonly called a:
• What is the best description of a fee simple estate
• In a front-foot sale scenario, the price is calculated by multiplying the number of front feet by the price per front foot.
• Discount points in real estate financing are best described as:
• A metes and bounds description must contain which of the following?
• In an occupancy provision after closing, what is this arrangement commonly called?
• Which term describes an agent who uses landmarks or monuments as reference points to define property boundaries?
• Under a contract for deed, once signed by both parties, the buyer immediately receives which type of title?
• An investor is interested in purchasing a multi-family dwelling. He would most likely want to look for a property where rents are similar to comps in the area.
• Which of the following is the best example of non-discriminatory language, according to HUD's guidelines for the Fair Housing Act?
• Which type of deed provides the least protection to a buyer because it contains no covenants or warranties?
• Deed restrictions in a subdivision can affect home-based businesses, such as prohibiting them.
• What term refers to the legal concept that a person has ownership rights in a property?
• What is the term for the portion of property value that exceeds the mortgage debt?
• Title insurance protects the owner against which of the following?
• A parcel measures 198 feet by 330 feet. It sold for $30,000. What was the price per acre?
• In a seller-financed sale where the buyer becomes owner of record and the seller retains a lien, the financing is evidenced by
• Martha gave Hannah the right to purchase her vacant lot for $65,000. Hannah paid Martha $1,200 for this right. Hannah is the:
• A real estate broker is defined as which type of licensee?
• A deed that states there is a conveyance of interest, if any, is the:
• A property manager wants his son to perform maintenance on the managed property. Which item is NOT required to be provided to the owner?
• In a gross lease, who typically bears most of the property’s operating expenses?
• Which of the following is a type of encumbrance that gives someone the right to use land for a specific purpose?
• In a construction loan, what does a take-out commitment require?
• What is the primary activity of Fannie Mae?
• Which notice indicates a pending lawsuit that may result in a lien against the property?
• A promissory note that is secured by a mortgage is:
• Where are transaction records for an affiliated licensee that rarely works in the main office required to be kept?
• When a broker attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. The Director can:
• Which statement describes the WA activity an out-of-state licensee may perform?
• A contractor in WA would consider the following to be an indirect expense in the construction of an improvement:
• A rectangular parcel of land starts from the point of beginning and measures 180 feet north, 90 feet east, then 180 feet south. What is the length and direction of the last side?
• Which action clears a cloud on the title records?
• Which statement best describes the duty of loyalty for a real estate agent?
• A candidate passes the real estate license exam on March 20. How long do they have to apply for licensure before retaking the exam is required?
• Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are:
• A life estate will last until:
• An appeal bond of $1,000 is required for a disciplinary appeal.
• Which statement is true about Tenants in Common?
• Ned and Carla buy a house listed at $105,000; their offer for $5,000 less than that is accepted. They obtain a loan with an 80% loan-to-value ratio. The loan is for 30 years with a 5.5% interest rate. Taxes for the year are $4,000; insurance for the year is $800. What is their monthly PITI payment?
• Which transaction would be subject to the Truth in Lending Act?
• Washington State's real estate agency law does not address which of the following?
• Under normal circumstances, a real estate agent may do which of the following on behalf of a principal?
• A property manager bases the operating budget on:
• The clause that allows the lender to demand full repayment if the property is transferred is called which of the following?
• A real estate contract for the purchase and sale of land lacks an adequate land description. The agreement is:
• If an easement for ingress and egress across land is not recorded, does it run with the land and remain valid for a new owner?
• Which lien is created by a court judgment and attaches to property to secure payment?
• Which statement is true about the passage of title in a real estate transaction?
• In a rental scenario, a prospective tenant is denied for race in a 12-unit building where the owner lives on the premises. This would be:
• On a Friday afternoon, an agent receives an offer on a listed property for $10,000 less than the listed price, and the sellers will be away all weekend. What should the agent do?
• In a real estate option, what constitutes valid consideration?
• An agent shows his customer, who is an Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called:
• In tenancy in common, what happens to a deceased owner's share?
• A landowner negotiating a lease with a developer who wants to build a mall should use which lease form?
• The Director may impose penalties for license law violations. Which of the following is NOT one of the penalties?
• An owner's title policy primarily insures against which risk?
• A broker obtains a listing from a seller with whom the broker has no prior relationship. The designated broker advises cancellation due to past dealings. Which statement is true?
• A general lien attaches to which of the debtor's property?
• A condensed history of the ownership of a property is called a/an:
• Which statement best characterizes a tenancy in common?
• In a real estate option contract where the option holder provides $5 as consideration, what is the effect?
• How much earnest money must be submitted with a valid purchase and sale?
• Which term describes an agent who is authorized for a single transaction or purpose?
• For which type of borrower would an adjustable rate loan generally not be a good idea?
• A judgment lien is cleared from the record when:
• Which term describes property that has no legal access to a public road?
• In a scenario where a licensee hires another licensee from the same firm to assist in negotiations and sales, the supervising licensee must be what?
• Discount points are calculated as a percentage of which amount?
• In a dual agency, which duty may be waived by the parties?
• A lender agrees that a seller who owes $400k on a mortgage that is in default may list the property at $350k, which is the current market value of the property. This type of transaction is known as a:
• Regarding lead-based paint disclosure, which statement is true?
• What provides the best evidence of the buyer's intention to perform under a real estate purchase contract?
• The legal advisor for the director of the DOL is
• A buyer is unfamiliar with the concept of discount points and asks a licensee to explain. The licensee responds, "Discount points are used to replace funds that are being held by the Federal Reserve, so that more funds are available to lend." Is this description correct?
• A licensee considering employment that would involve control over the firm's operational and financial decisions would require which level of licensure?
• An agent sends faxes to clients highlighting prospective properties that they might like. The faxes should always include the:
• When can a minor enter into a binding contract?
• Gail's listing stipulates exclusive authority to list the property and allows her to sell the home herself without paying ABC. What type of listing is this?
• Who is ultimately responsible for the delivery of earnest money?
• Net listings are strongly discouraged because they are likely to be unfair to the:
• The closing statements of all transactions in which a real estate broker participates must show all of the following except
• What instrument is used to transfer title to real property from grantor to grantee?
• Which statement best defines severalty ownership?
• If the director makes a written finding that the public interest will be irreparably harmed by a delay in issuing an order, the director may issue a
• What is the best way to determine whether there is an encroachment of a boundary line?
• The seller tells the buyer's agent that the home has never had flooding issues, but a sump pump is present. What should the buyer's agent do?
• If property value is 500,000 and the mortgage balance is 320,000, what is the owner's equity?
• Which instance is an example of an agency relationship terminated by operation of law?
• Estate for years
• An owner's title policy would protect a buyer against which of the following?
• If a licensee intentionally misrepresents course hours to satisfy renewal requirements, what action can the Director take?
• A $4500 EM check bounces because of insufficient funds. The first thing the broker should do is:
• Which of the following persons could be eligible to receive a VA loan?
• Which statement is accurate regarding the pooled account requirement for earnest money?
• Encroachments are:
• PITI stands for:
• In an exclusive agency listing, the seller is permitted to sell the property themselves without paying a commission to the listing broker.
• Jerry offered to buy vacant land for $500,000 with no contingencies. Financing for his planned shopping center falls through before closing. The contract is:
• Ad valorem taxes are assessed based on:
• What document creates the lender's lien on the property to secure repayment of the loan?
• Total cash needed at closing for a $300,000 purchase with 80% LTV and 3 discount points.
• A primary advantage of owning a property in severalty is:
• A licensee is about to change her business location. Which of the following should she do?
• In the example, the porch value used for adjustment was
• Under the Truth in Lending Act, which disclosure is required when financing the purchase of agricultural land with no residence?
• Which party typically purchases a mortgagee title policy?
• Radon presents the greatest health risk when it is
• If a property manager neglects to prevent damage by vagrants, who is liable?
• A licensee charged with stealing prescription drugs; who must notify the Real Estate Program Manager?
• A plaintiff files a lawsuit involving a property and also files a separate document intended to provide notice of the lawsuit. This recorded notice of a pending legal action is called a/an:
• How many hours of education are required for the first license renewal?
• When does equitable title typically vest in a real estate sale contract?
• Zoning requirements state that a lot must be at least four times the size of the building located on the lot. An architect draws up a plan for a building that is 20k sq. ft. At least how many acres does the lot need to be?
• In real estate terminology, what does EM stand for when discussing a check accompanying an offer?
• The example uses a purchase price of 100,000 with an 80% loan-to-value. What is the loan amount in this scenario?
• The final estimated value of the subject property is equal to the adjusted price of the chosen comparable.
• Which statement about interest on a fully amortized mortgage or deed of trust loan is true?
• Real estate transaction records should be kept for how long at minimum?
• A condensed history of the ownership of a property is called a/an:
• A property is listed for $275,000. The buyers offer $265,000, and insist that the gourmet six-burner stove remain with the property. When the signed offer is presented to the sellers, the sellers accept the price, but want to take the stove with them. They cross out the item about the stove, sign the form, and return it to the buyers. Under these circumstances:
• To obtain a 100% loan with no down payment, the most likely loan type would be which?
• General property taxes are based on which factor?
• When a licensee is a defendant in a civil suit arising from real estate activities, by when must they notify the Real Estate Program Manager?
• A buyer accepts a warranty deed from a seller believed to be the sole owner, but the seller is actually a co-owner. Has the covenant of marketable title been violated?
• To qualify as a tax-deferred exchange, a property must be
• Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15. Bronson already paid the taxes for the entire year, but the Hatchers are assuming responsibility for the taxes as of the closing date. The settlement statement will prorate the taxes as a:
• Earnest money deposit may be held by someone other than the firm to which the check is made out to only under which condition?
• Brian purchases two parcels: one square mile and five acres. If he paid $2,000 per acre, what is his total purchase price?
• Milo is filing his federal income tax return. He can deduct
• The seller listed the property for $95k. Assuming that their listing agreement is typical, the broker would not be entitled to a commission if the seller:
• Janet wants to rent a heated garage for a flat rate of $100 per month. What type of lease is this?
• Which instrument provides a unit owner with fee simple title to a unit and a share of the common elements?
• Effective Gross Income is defined as:
• In the eight-unit example, which income source is not reduced by the vacancy factor when calculating the effective gross income?
• Tests to distinguish a fixture from personal property include all of the following except:
• What does LTV stand for in real estate lending?
• When valuing a vacant lot, which appraisal approach is typically used by appraisers?
• Where must addenda to a Purchase and Sale agreement be kept?
• Who can file a mechanic's lien?
• Which statement about supervision of an assistant from the same firm is accurate?
• Which of the following is not a penalty the Director may impose for license law violations?
• Which statement about a mortgagee title policy is true?
• Which statement best describes a take-out commitment in construction lending?
• A lien may be created by recording:
• A buyer asks about a rumor that a sex offender lives in the neighborhood. The real estate agent should:
• Maya and Andrew are real estate agents who work for competing brokerages. They don't like a new discount broker and decide together not to show any of the new broker's listings. This is a violation of the Sherman Act because it is:
• All of the following are requirements for a valid deed except:
• The cost of an appeal from a final decision made by the Director of the Department of Licensing in an adjudicative proceeding is paid by the:
• A tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental period or duration of possession is called a/an:
• Recording a deed provides constructive notice to the world.
• A contract signed by a person who was intoxicated at the time of signature would be:
• An assigned parking space in a condominium development would be considered a/an:
• Of the following types of contracts, which one is a unilateral contract?
• A periodic estate is:
• A homeowner has been sharing with a friendly neighbor the use of a driveway that crosses both of their properties. However, the owner is about to move out and the remaining neighbor would like to make sure that she can continue to use the driveway even if the new owner is not amenable to that. The homeowner should request an:
• A prospective buyer offers earnest money of 1,000 and a promissory note for 4,000; must the promissory note be tied to the buyer's mortgage?
• Which statement correctly describes a letter of intent?
• The third listing agent’s pricing approach, which did not include a CMA and set a high price, illustrates which concept?
• Joint tenancy is characterized by:
• In an option contract, which statement best describes its essential characteristic?
• An affiliated licensee rarely works from the firm's main office. Where must the records for the licensee's transactions be kept?
• A seller's agent, upon meeting with a prospective buyer, becomes concerned that the buyer is unlikely to be financially qualified. The agent should:
• A listing agent notices leaky faucets and faulty outlets; this would be an example of?
• A disciplinary hearing will be conducted by
• Which loan type is most likely to have the lowest loan-to-value ratio?
• Which of the following is most likely to be considered a fixture?
• In the context of the given asset scenario, which amount is included in annual gross income but is not subject to the vacancy factor?
• LTV stands for
• Which individual is eligible for a VA loan?
• A void contract is one that
• When using the replacement cost approach to estimate the value of a home that is three years old, the appraiser should do which of the following?
• If a buyer defaults and the earnest money deposit is forfeited, who typically receives the funds?
• An option to purchase binds which of the following parties?
• In the lease example, who is the lessee?
• If zoning requires the lot to be at least four times the building size, and the building is 12,000 sq ft, what is the minimum lot size in square feet?
• The position involving control over the firm's operational and financial decisions requires which licensure?
• A & B sign a rental agreement in which A agrees to lease her property to B in exchange for rent. This contract is:
• A fee simple estate is best described as
• Before purchasing a home where the buyer plans to operate a business, the agent should verify
• What is the primary purpose of recording a deed with the county recorder's office?
• Which of the following is not considered an improvement to land?
• Which items are typically shown on closing statements in real estate transactions in which a broker participates?
• A local ordinance states that no sign can extend more than two feet above the roofline. The Morgans want to put a sign on their roof, but the sign is six feet high. To install legally, they must apply for a:
• Encroachments are what type of issue?
• Under RESPA, which statement is true?
• A contract specifies that 'time is of the essence.' That means that:
• In an executory real estate contract, what remains to be done by the parties?
• Which taxes are levied on real estate to fund public improvements?
• Before listing a property, a licensee should perform a competitive market analysis (CMA) to determine what?
• Usury laws fix which of the following:
• Which of the following is NOT a stated goal of the Washington Center for Real Estate Research?
• In advertising by a team affiliated with a brokerage that does not hold a firm license, whose name must appear in all advertising?
• A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days with possession at closing, and a rent provision for possession after closing. This is an example of a/an:
• Special purpose properties include which type?
• What is the primary purpose of fiduciary duties in real estate representing a client?
• Encumbrances include
• What is the primary purpose of a mortgage note?
• If a Washington real estate licensee's license expired due to nonpayment of renewal fees, how can it be reinstated?
• Through careful management, a property manager increases an apartment building's monthly income from $3,000 to $3,500. With a cap rate of 8%, what is the increase in value?
• The term 'meeting of the minds' is associated with:
• In a net lease, the tenant is typically required to pay which cost?
• Regarding record-keeping for affiliated licensees who work from a home office, which statement is correct?
• Under FHA 203B, what kind of property can a buyer purchase?
• The mortgage and the mortgage note are both examples of:
• Which term describes permission to deviate from a zoning ordinance?
• Who can conduct a disciplinary hearing in Washington for license issues?
• Special agency occurs when principals give an agent a limited authority to act on their behalf.
• Taxes levied to pay for sidewalks or sewers are called which of the following?
• Mary wrote a quitclaim deed transferring property to a joint tenancy with her husband. The deed was never recorded and later lost. Does the ex-husband have a valid claim on the property?
• What is the square footage of the living area for Jamie's house?
• As a property manager you may:
• What is a similarity between an open listing and an exclusive-agency listing?
• Mortgagee title policies protect which parties against loss?
• Which statement best describes the effect of an unrecorded deed between grantor and grantee?
• Under the Housing for Older Persons Act, what is required in qualified projects?
• Which cost is the licensee responsible for in an appeal regardless of outcome?
• A transaction will include a home warranty. The seller's agent should determine which party will be responsible for the one-time premium.
• An equitable interest refers to
• A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally incompetent. The buyer's guardian suggests continuing payments. Which is true?
• A property manager receives a commission of 3% of annual gross rental income. If base rent is 24,000 and percentage rent is 12,000, while operating expenses are paid separately in a triple net lease, what is the manager's commission?
• All of the following are true regarding public records EXCEPT they
• An appraiser needs to be state certified to perform which of the following appraisals?
• Which of the following could be a consequence of a short sale?
• When the parties to a contract put themselves back into the same positions they were in before they entered into the contract, the contract has been:
• In a competitive market analysis, a comparable property is slightly older than the subject and is worth $2,000 less due to age. The comparable has a porch worth $1,000 that the subject lacks. If the comparable sold for $269,500, what is the estimated value of the subject property?