Washington state Real Estate Exam Set 1 With Complete Solution

when does the real estate agent give the seller's a copy of their listing agreement form? - Answer immediately what are the elements needed for a valid purchase and sales agreement? - Answer consideration (not of monetary value), in writing & lawful purpose. There does not need to be earnest money but often is a mortgage that secures both real and personal property as collateral to secure a borrower's debt - Answer package mortgage name of the state/local sales tax debt to the seller in the transfer of property listed on the uniform settlement statement - Answer documentary stamp tax or transfer tax a property owner could qualify for tax deferred exchange if it was what? - Answer used in a business or trade conditional use permit - Answer allows certain beneficial uses (schools, churches, etc) to operate in residential neighborhoods despite zoning laws what do the terms "offer and acceptance", "mutual assent" & "meeting of the minds" all mean? - Answer that there is an unqualified acceptance in offer, all these terms refer to whether the parties mutually consented to the terms of a contract. (a counteroffer is sometimes referred to as a qualified acceptance.) who's responsibility is it (buyer or seller) when remedial action is needed? - Answer whichever party agreed to pay for the expense in the purchase and sales agreement what about prepayment penalties is true? - Answer neither FHA nor VA loans allow prepayment penalties four elements of economic characteristics of real estate - Answer scarcity, demand, transferability, and utility which charges are prorated between the buyer and seller at closing? - Answer property taxes, utility bills, special assessments. why are recording fees not prorated between the buyer and seller at closing? - Answer instead, each party pays the costs associated with the recording documents that benefit that particular part before the parties to a tax-deferred exchange can qualify for the tax benefit they must provide notice of exchange within...? - Answer 45 days what are the conditions a tenant with a disability must adhere to by law when changing an apartment? - Answer they are allowed to make any necessary modifications at their own expense but the landlord can require that they restore the property at the end of the lease to it's original condition a section of land is equivalent to what? - Answer one square mile, 640 acres a seller who wants to make public notice of their interest in property they are financing (seller financed) should what? - Answer record the mortgage. buyer records the deed to give notice of his/her ownership interest building codes provide what? - Answer minimum standards for construction what is a latent defect? - Answer is a problem that would not be discovered by ordinary inspection what is the lead based paint cut off? - Answer any house built before 1978 what type of repairs can be tax deductible for the owner of an investment property? - Answer repairs to keep an investment property in ordinary operating condition are deductible the year the are preformed equal credit opportunities act? - Answer -it applies to all consumer transactions, not just residential lending, prohibits discrimination based on sex, national origin, marital status or the receipt of public assistance one side of a section in a government survey is how many feet? - Answer 5,280 what does title insurance protect? - Answer offers protection against latent or undiscovered defects in the title which has the greatest effect on real estate in a particular market? - Answer size of the labor force (as opposed to employment rates, local amenities & demographic change) as a home owner what yearly home costs can they put on their federal tax return? - Answer interest paid on the mortgage what is an injunction? - Answer a court filing by homeowners who wish to enforce a deed restriction against another land owner who plans to violate the restriction constructive fraud - Answer when a person who occupies a position of confidence and trust makes a false statement with no intent to deceive. what are the tow most commonly used methods when determining the value of single-family residences? - Answer market data approach or sales comparison approach