ROCKWELL REAL ESTATE QUESTIONS AND ANSWERS
GUARANTEE A+
✔✔In a bilateral contract:
A. a duty will be performed by one party only
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties - ✔✔C. two parties have exchanged
promises, and both parties are obligated to perform
✔✔Which of the following is not a requirement for a broker's license in the state of
Washington?
A. College diploma
B. Age 18 or older
C. Pass a state license examination
D. Complete 90 hours of prelicense education - ✔✔A. College diploma
✔✔An investor rents a property to a tenant. For tax purposes, depreciation on this
property is based on:
A. market value, plus capital improvements, minus land value
B. market value, plus rental income, minus land value
C. price, plus capital improvements, minus land value
D. price, plus rental income, minus land value - ✔✔C. price, plus capital improvements,
minus land value
✔✔A promissory note that is secured by a mortgage is:
A. a defeasance agreement
B. primary evidence of the debt
C. a guarantee of payment
D. security for the loan - ✔✔B. primary evidence of the debt
✔✔J is selling real estate without a license. J is guilty of a:
A. misdemeanor
B. gross misdemeanor
C. second degree felony
D. first degree felony - ✔✔B. gross misdemeanor
✔✔S's license is temporarily suspended by the Director for a violation of the license law.
S is also fined $500. The money collected as a result of the fine is:
,A. placed in the state's general fund
B. used to support existing auditing and investigation services
C. deposited in the real estate education account, to be used solely for education for the
benefit of licensees
D. used to compensate victims of real estate fraud - ✔✔C. deposited in the real estate
education account, to be used solely for education for the benefit of licensees
✔✔A rural lot runs 500 feet east/west along its northern boundary, and 600 feet
east/west along its southern boundary. Its eastern boundary runs 200 feet due
north/south, while its western boundary runs 224 feet in a diagonal northeast/southwest
direction. The cost of the land is $6 per square foot. What is the cost of this lot?
A. $600,000
B. $660,000
C. $672,000
D. $720,000 - ✔✔B. $660,000
✔✔Unless the purchase agreement or other contract states differently, an earnest
money check given to a real estate licensee shall be made out to the:
A. licensee's firm, as licensed
B. closing or escrow agent
C. seller
D. appropriate multiple listing association - ✔✔A. licensee's firm, as licensed
✔✔A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater:
A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
D. will be allowed to continue since it was built before the new zoning law went into
effect - ✔✔D. will be allowed to continue since it was built before the new zoning law
went into effect
✔✔J passes the license exam on March 20. How much time does J have to apply for
his license, before being required to retake the license examination?
A. Six months
B. 12 months
C. 18 months
D. Two years - ✔✔B. 12 months
, ✔✔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:
A. acceptance
B. contract with contingencies
C. counteroffer
D. unilateral contract - ✔✔B. contract with contingencies
(Process of elimination: A is too vague, no mention of C or D since a purchase and sale
agreement is bilateral. Financing is a contingency here)
✔✔Net listings are strongly discouraged because they are likely to be unfair to the:
A. broker
B. buyer
C. seller
D. All of the Above - ✔✔C. seller
✔✔A couple with children would like to buy a house that was built in 1950. The home
was recently remodeled, with completely new paint and plumbing. In this situation, what
does the agent always have to do?
A. Ensure that the paint used during the remodel is lead-free
B. Make sure the buyers receive a pamphlet on lead-based paint
C. Provide them with a copy of a recent lead inspection report
D. Nothing; the house was remodeled so lead-based paint rules don't apply - ✔✔B.
Make sure the buyers receive a pamphlet on lead-based paint
✔✔The market price of a property would be best defined as:
A. the amount paid to obtain the property
B. the initial basis, plus capital improvements and minus depreciation
C. the price that the property would likely bring in a sale under normal circumstances
D. the value of the property to a particular owner - ✔✔A. the amount paid to obtain the
property
(Market price is simply the price that someone paid in an actual transaction--it;s not an
estimate of value)
✔✔Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her
property interest:
A. will be inherited by her children according to the provisions of her will
B. must be bequeathed to Kim and Diane in her will
GUARANTEE A+
✔✔In a bilateral contract:
A. a duty will be performed by one party only
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties - ✔✔C. two parties have exchanged
promises, and both parties are obligated to perform
✔✔Which of the following is not a requirement for a broker's license in the state of
Washington?
A. College diploma
B. Age 18 or older
C. Pass a state license examination
D. Complete 90 hours of prelicense education - ✔✔A. College diploma
✔✔An investor rents a property to a tenant. For tax purposes, depreciation on this
property is based on:
A. market value, plus capital improvements, minus land value
B. market value, plus rental income, minus land value
C. price, plus capital improvements, minus land value
D. price, plus rental income, minus land value - ✔✔C. price, plus capital improvements,
minus land value
✔✔A promissory note that is secured by a mortgage is:
A. a defeasance agreement
B. primary evidence of the debt
C. a guarantee of payment
D. security for the loan - ✔✔B. primary evidence of the debt
✔✔J is selling real estate without a license. J is guilty of a:
A. misdemeanor
B. gross misdemeanor
C. second degree felony
D. first degree felony - ✔✔B. gross misdemeanor
✔✔S's license is temporarily suspended by the Director for a violation of the license law.
S is also fined $500. The money collected as a result of the fine is:
,A. placed in the state's general fund
B. used to support existing auditing and investigation services
C. deposited in the real estate education account, to be used solely for education for the
benefit of licensees
D. used to compensate victims of real estate fraud - ✔✔C. deposited in the real estate
education account, to be used solely for education for the benefit of licensees
✔✔A rural lot runs 500 feet east/west along its northern boundary, and 600 feet
east/west along its southern boundary. Its eastern boundary runs 200 feet due
north/south, while its western boundary runs 224 feet in a diagonal northeast/southwest
direction. The cost of the land is $6 per square foot. What is the cost of this lot?
A. $600,000
B. $660,000
C. $672,000
D. $720,000 - ✔✔B. $660,000
✔✔Unless the purchase agreement or other contract states differently, an earnest
money check given to a real estate licensee shall be made out to the:
A. licensee's firm, as licensed
B. closing or escrow agent
C. seller
D. appropriate multiple listing association - ✔✔A. licensee's firm, as licensed
✔✔A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater:
A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's intended use
C. will be allowed to continue if the owner obtains a conditional use permit
D. will be allowed to continue since it was built before the new zoning law went into
effect - ✔✔D. will be allowed to continue since it was built before the new zoning law
went into effect
✔✔J passes the license exam on March 20. How much time does J have to apply for
his license, before being required to retake the license examination?
A. Six months
B. 12 months
C. 18 months
D. Two years - ✔✔B. 12 months
, ✔✔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:
A. acceptance
B. contract with contingencies
C. counteroffer
D. unilateral contract - ✔✔B. contract with contingencies
(Process of elimination: A is too vague, no mention of C or D since a purchase and sale
agreement is bilateral. Financing is a contingency here)
✔✔Net listings are strongly discouraged because they are likely to be unfair to the:
A. broker
B. buyer
C. seller
D. All of the Above - ✔✔C. seller
✔✔A couple with children would like to buy a house that was built in 1950. The home
was recently remodeled, with completely new paint and plumbing. In this situation, what
does the agent always have to do?
A. Ensure that the paint used during the remodel is lead-free
B. Make sure the buyers receive a pamphlet on lead-based paint
C. Provide them with a copy of a recent lead inspection report
D. Nothing; the house was remodeled so lead-based paint rules don't apply - ✔✔B.
Make sure the buyers receive a pamphlet on lead-based paint
✔✔The market price of a property would be best defined as:
A. the amount paid to obtain the property
B. the initial basis, plus capital improvements and minus depreciation
C. the price that the property would likely bring in a sale under normal circumstances
D. the value of the property to a particular owner - ✔✔A. the amount paid to obtain the
property
(Market price is simply the price that someone paid in an actual transaction--it;s not an
estimate of value)
✔✔Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her
property interest:
A. will be inherited by her children according to the provisions of her will
B. must be bequeathed to Kim and Diane in her will
