WA State 3 Real Estate Exam Prep: Rockwell
Institute Sample Exams 3 With complete
solutions
The owner of property located along a stream or river may have which type of water
right?
A. Alluvion
B. Riparian
C. Appropriation
D. Littoral - ANSWER-Your Answer: B
Maria buys a home in a subdivision that is subject to restrictive covenants. The city
Maria lives in allows fences, but the
subdivision's restrictive covenants don't. Of the following, which is true?
A. Restrictive covenants only limit lot size; they don't limit fencing
B. The city is a government entity, so its rules take precedence over private restrictions
C. The deed's restrictive covenants take precedence over the city because they are
more restrictive
D. Maria owns the property, so she has a legal right to build a fence regardless of the
deed's restrictions - ANSWER-Your Answer: C
Explanation:
When zoning ordinances and private restrictions conflict, the more restrictive of the two
prevails.
Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed
covenants that will prevent a buyer
from subdividing the land in the future. She'd also like the agent to create a trust from
the sale, to benefit her disabled sister.
Robert's reply should be:
A. I can draft the trust, but an attorney will need to draft the covenants
B. I can draft both of these documents
C. I can draft the covenants, but an attorney will need to draft the trust
D. I can't help you with either of these things; you'll need to contact an attorney -
ANSWER-Correct Answer: D
,ERiparian rights are water rights that belong to owners of property that borders a stream
or river. (Littoral rights refer to water rights associated with property that borders
stationary water, such as a lake.)
Five people buy an investment property. They take title so that they each have equal
ownership shares, and so that if one of them dies, his share will pass to his heirs. How
did they take title?
A. Community property
B. Joint tenancy
C. Tenancy in common
D. Term tenancy - ANSWER-Correct Answer: C
29% of students missed this question
If co-owners are able to will their property to their heirs (instead of having it pass
through right of survivorship), that means they hold title as tenants in common, not as
joint tenants. (Tenants in common may have equal or unequal ownership interests.)
What would cause a judgment lien to be imposed on a landowner's property?
A. Foreclosure
B. Lawsuit
C. Unpaid construction project
D. Unpaid property taxes - ANSWER-Your Answer: B
40% of students missed this question
Explanation:
A judgment lien attaches to the property of someone who loses a lawsuit and is ordered
to pay damages. (This person is referred to as the judgment debtor.) If the judgment
debtor doesn't pay off the lien, the court can issue a writ of execution ordering the sale
of the property.
xplanation:
A real estate licensee is limited to filling in the blanks on a printed form drafted by
attorneys. Going beyond that, by drafting covenants or trust documents, for example,
would be considered the unauthorized practice of law
Mortgage interest rates are primarily influenced by the:
A. assessed value of the property
B. condition of the money market
C. credit history of the borrower
D. value of similar mortgaged properties in the area - ANSWER-Your Answer: B
Mortgage interest rates are primarily influenced by the supply of and demand for funds
in the money market. This is determined by many factors, including actions taken by the
Federal Reserve.
,For income tax purposes, a homeowner can deduct:
A. property taxes
B. principal payments on a mortgage
C. capital expenditures
D. the adjusted basis - ANSWER-Correct Answer: A
28% of students missed this question
Explanation:
A real property owner can deduct the property taxes she pays, up to a certain limit.
A tenant farmer has occupied a farm on which she has grown crops for several years.
The landowner sells the farm to someone else who immediately gives the tenant notice
to vacate. The timing of the notice will mean the crops currently in the ground will not be
ready for harvest before the end of her lease. Who do the first crops belong to?
A. The tenant
B. The former owner
C. The new owner
D. The tenant and the new owner - ANSWER-Correct Answer: A
A special rule, called the doctrine of emblements, applies to crops planted by a tenant
farmer. If the lease is terminated through no fault of the tenant before the crops are
ready for harvest, the tenant has the right to re-enter the land and harvest the first crop
that matures after the tenancy is terminated
An Asian-American buyer asks to be shown homes that are located in neighborhoods
that he knows are primarily Asian. If a real estate agent complies with his wishes, this is:
A. illegal, as it is blockbusting
B. illegal, as it is steering
C. legal, as it is done at the buyer's request
D. legal, as the Fair Housing Act has an exception for single-family homes - ANSWER-
Your Answer: C
It is legal for an agent to show a buyer homes in the neighborhoods that the buyer has
chosen, even if the buyer chose the neighborhoods based on race. Nothing in the Fair
Housing Act requires an agent to show buyers houses against their will.
Mark and Kim's two-year lease on their apartment expires. Unhappy that the couple
doesn't plan to renew the lease, the
property manager charges them one month's rent for failure to give notice. If the lease
says nothing about this issue, in this case:
A. no notice is required and no additional fee must be paid
B. Mark and Kim owe one month's additional rent
, C. Mark and Kim owe one month's additional rent plus a nonrenewal fee
D. Mark and Kim will lose the full amount of their security deposit - ANSWER-Your
Answer: A
Explanation:
The tenants had an estate for years: a lease for a specific period of time. Unless the
parties renew the lease, or unless the lease itself provides otherwise, an estate for
years simply terminates at the end of the agreed period. No notice is necessary, and the
tenants can't be charged a penalty for failing to give notice.
11. Cluster zoning, which allows smaller lot sizes and reduced frontages, is suitable if a
development:
A. includes both commercial and residential uses
B. still has a density ratio consistent with the general plan
C. abuts a wetland or other sensitive site
D. abuts state- or city-owned land - ANSWER-Your Answer: B
Explanation:
Cluster zoning is an approach to zoning that allows developments in suburban or rural
areas to have smaller lot sizes and higher density, but also more shared green space.
However, a development cannot exceed the limits on density established in the general
plan (the community's comprehensive plan).
Mark is selling his property, which has an unfinished basement. He gets a full-price offer
from Susan, but the offer requires Mark to finish the basement prior to closing. Do Mark
and Susan have a binding contract?
A. Yes, because both parties have made offers to each other
B. Yes, because Susan made a full-price offer
C. No, because a valid offer must be written and recorded
D. No, because Mark has not accepted Susan's offer - ANSWER-Correct Answer: D
For a valid contract to exist, there must be offer and acceptance. An advertisement (like
a listing) is not considered an offer, only an invitation to negotiate. The buyer's offer is
just that: an offer, without an acceptance
A minority buyer with a disabled daughter makes a full-price offer on a property. The
home doesn't have any grab bars in the bathroom and the front door isn't wide enough
for a wheelchair. The seller informs the buyer's agent that the property wouldn't be
suitable for the daughter, so he is going to refuse the offer. The buyer's agent should:
A. explain the situation to the buyer, and advise her to consult an attorney and/or file a
complaint with HUD
B. instruct the seller to make those modifications at his own expense
Institute Sample Exams 3 With complete
solutions
The owner of property located along a stream or river may have which type of water
right?
A. Alluvion
B. Riparian
C. Appropriation
D. Littoral - ANSWER-Your Answer: B
Maria buys a home in a subdivision that is subject to restrictive covenants. The city
Maria lives in allows fences, but the
subdivision's restrictive covenants don't. Of the following, which is true?
A. Restrictive covenants only limit lot size; they don't limit fencing
B. The city is a government entity, so its rules take precedence over private restrictions
C. The deed's restrictive covenants take precedence over the city because they are
more restrictive
D. Maria owns the property, so she has a legal right to build a fence regardless of the
deed's restrictions - ANSWER-Your Answer: C
Explanation:
When zoning ordinances and private restrictions conflict, the more restrictive of the two
prevails.
Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed
covenants that will prevent a buyer
from subdividing the land in the future. She'd also like the agent to create a trust from
the sale, to benefit her disabled sister.
Robert's reply should be:
A. I can draft the trust, but an attorney will need to draft the covenants
B. I can draft both of these documents
C. I can draft the covenants, but an attorney will need to draft the trust
D. I can't help you with either of these things; you'll need to contact an attorney -
ANSWER-Correct Answer: D
,ERiparian rights are water rights that belong to owners of property that borders a stream
or river. (Littoral rights refer to water rights associated with property that borders
stationary water, such as a lake.)
Five people buy an investment property. They take title so that they each have equal
ownership shares, and so that if one of them dies, his share will pass to his heirs. How
did they take title?
A. Community property
B. Joint tenancy
C. Tenancy in common
D. Term tenancy - ANSWER-Correct Answer: C
29% of students missed this question
If co-owners are able to will their property to their heirs (instead of having it pass
through right of survivorship), that means they hold title as tenants in common, not as
joint tenants. (Tenants in common may have equal or unequal ownership interests.)
What would cause a judgment lien to be imposed on a landowner's property?
A. Foreclosure
B. Lawsuit
C. Unpaid construction project
D. Unpaid property taxes - ANSWER-Your Answer: B
40% of students missed this question
Explanation:
A judgment lien attaches to the property of someone who loses a lawsuit and is ordered
to pay damages. (This person is referred to as the judgment debtor.) If the judgment
debtor doesn't pay off the lien, the court can issue a writ of execution ordering the sale
of the property.
xplanation:
A real estate licensee is limited to filling in the blanks on a printed form drafted by
attorneys. Going beyond that, by drafting covenants or trust documents, for example,
would be considered the unauthorized practice of law
Mortgage interest rates are primarily influenced by the:
A. assessed value of the property
B. condition of the money market
C. credit history of the borrower
D. value of similar mortgaged properties in the area - ANSWER-Your Answer: B
Mortgage interest rates are primarily influenced by the supply of and demand for funds
in the money market. This is determined by many factors, including actions taken by the
Federal Reserve.
,For income tax purposes, a homeowner can deduct:
A. property taxes
B. principal payments on a mortgage
C. capital expenditures
D. the adjusted basis - ANSWER-Correct Answer: A
28% of students missed this question
Explanation:
A real property owner can deduct the property taxes she pays, up to a certain limit.
A tenant farmer has occupied a farm on which she has grown crops for several years.
The landowner sells the farm to someone else who immediately gives the tenant notice
to vacate. The timing of the notice will mean the crops currently in the ground will not be
ready for harvest before the end of her lease. Who do the first crops belong to?
A. The tenant
B. The former owner
C. The new owner
D. The tenant and the new owner - ANSWER-Correct Answer: A
A special rule, called the doctrine of emblements, applies to crops planted by a tenant
farmer. If the lease is terminated through no fault of the tenant before the crops are
ready for harvest, the tenant has the right to re-enter the land and harvest the first crop
that matures after the tenancy is terminated
An Asian-American buyer asks to be shown homes that are located in neighborhoods
that he knows are primarily Asian. If a real estate agent complies with his wishes, this is:
A. illegal, as it is blockbusting
B. illegal, as it is steering
C. legal, as it is done at the buyer's request
D. legal, as the Fair Housing Act has an exception for single-family homes - ANSWER-
Your Answer: C
It is legal for an agent to show a buyer homes in the neighborhoods that the buyer has
chosen, even if the buyer chose the neighborhoods based on race. Nothing in the Fair
Housing Act requires an agent to show buyers houses against their will.
Mark and Kim's two-year lease on their apartment expires. Unhappy that the couple
doesn't plan to renew the lease, the
property manager charges them one month's rent for failure to give notice. If the lease
says nothing about this issue, in this case:
A. no notice is required and no additional fee must be paid
B. Mark and Kim owe one month's additional rent
, C. Mark and Kim owe one month's additional rent plus a nonrenewal fee
D. Mark and Kim will lose the full amount of their security deposit - ANSWER-Your
Answer: A
Explanation:
The tenants had an estate for years: a lease for a specific period of time. Unless the
parties renew the lease, or unless the lease itself provides otherwise, an estate for
years simply terminates at the end of the agreed period. No notice is necessary, and the
tenants can't be charged a penalty for failing to give notice.
11. Cluster zoning, which allows smaller lot sizes and reduced frontages, is suitable if a
development:
A. includes both commercial and residential uses
B. still has a density ratio consistent with the general plan
C. abuts a wetland or other sensitive site
D. abuts state- or city-owned land - ANSWER-Your Answer: B
Explanation:
Cluster zoning is an approach to zoning that allows developments in suburban or rural
areas to have smaller lot sizes and higher density, but also more shared green space.
However, a development cannot exceed the limits on density established in the general
plan (the community's comprehensive plan).
Mark is selling his property, which has an unfinished basement. He gets a full-price offer
from Susan, but the offer requires Mark to finish the basement prior to closing. Do Mark
and Susan have a binding contract?
A. Yes, because both parties have made offers to each other
B. Yes, because Susan made a full-price offer
C. No, because a valid offer must be written and recorded
D. No, because Mark has not accepted Susan's offer - ANSWER-Correct Answer: D
For a valid contract to exist, there must be offer and acceptance. An advertisement (like
a listing) is not considered an offer, only an invitation to negotiate. The buyer's offer is
just that: an offer, without an acceptance
A minority buyer with a disabled daughter makes a full-price offer on a property. The
home doesn't have any grab bars in the bathroom and the front door isn't wide enough
for a wheelchair. The seller informs the buyer's agent that the property wouldn't be
suitable for the daughter, so he is going to refuse the offer. The buyer's agent should:
A. explain the situation to the buyer, and advise her to consult an attorney and/or file a
complaint with HUD
B. instruct the seller to make those modifications at his own expense
