Rockwell WA Real Estate Exam
Who is responsible for the earnest money deposit?
a. the listing firm
b. the selling firm
c. the mortgage company
d. the firm to which the check is made payable - CORRECT ANSWER-d. the firm to
which the check is made payable
Real estate license fees are put into the
a. Director's personal account
b. Real Estate Commission Account
c. Real Estate Education Fund
d. Washington Association of Relators trust account - CORRECT ANSWER-b. Real
Estate Commission Account
M tells her next door neighbor, P, that she will pay him a commission if he can help sell
her home. P, an unemployed bartender, locates a buyer and a sale results. M changes
her mind and refuses to pay P his promised commission. Which of the following is true?
- CORRECT ANSWER-P is not entitled to a commission, because he is unlicensed
Who issues rules and regulations that govern the activities of real estate licensees?
a. Director
b. Governor
c. Real Estate Commission
d. Real Estate Program Manager - CORRECT ANSWER-a. Director
Appointments to the Real Estate Commission are made by:
a. general election
b. the Director of the Department of Licensing
c. the Governor
d. the state legislature - CORRECT ANSWER-c. the Governor
Under what circumstances could an agent contact a previous client without having to
consult the Do Not Call Registry? - CORRECT ANSWER-If he represented the buyer
within the previous 18 months
Washington State's real estate agency law does not address which of the following? -
CORRECT ANSWER-Penalties for not disclosing agency status
L's broker's license was issued on October 16. L's license will expire at the end of:
a. this year, on Dec 31st
b. next year, on Dec 31st
c. one year, on Oct 16th
,d. Two years, on Oct 16th - CORRECT ANSWER-d. Two years, on Oct 16th
What does the expression "Caveat Emptor" mean? - CORRECT ANSWER-Let the
buyer beware
A store owner would like to sell common stock in her business (a chain of stores) to
investors. She asks an inexperienced licensee for help. The licensee should: -
CORRECT ANSWER-refer the client to a securities dealer
The best definition of a fee simple estate is: - CORRECT ANSWER-The greatest
interest one can own in land
What is the best way to ascertain if a physical object encroaches on a boundary line? -
CORRECT ANSWER-Order a survey
What type of title does a buyer receive to the property once the sales contract has been
signed? - CORRECT ANSWER-Equitable
An appraiser makes projections about how the population of a metropolitan area will
grow and how much residents' income will increase, using data about both basic and
non-basic industries. This is known as: - CORRECT ANSWER-economic-base analysis
An agent is ready to list a farm that was previously owned by a deceased woman with
four adult children. Two of the children asked the agent to take the listing. Before taking
the listing, the agent should: - CORRECT ANSWER-Check the public records to see
who owns the property
A developer wants a construction loan to build 20 homes. The lender requires a take-
out commitment. This means the developer needs: - CORRECT ANSWER-a permanent
lender who will provide financing once construction is complete
When determining the value of a vacant lot, an appraiser will typically use the:
a. cost approach
b. income approach
c. sales comparison approach
d. summation approach - CORRECT ANSWER-c. sales comparison approach
Buyer Perry would like to assume Seller
Joan's loan with ABC Mortgage Company,
in a way that would mean no further liability
for Joan. To accomplish this, Perry and
Joan should use a:
a. acknowledgement of the agreement from ABC Mortgage.
b. purchase contract signed by the buyer and seller
, c. release of liability signed by the ABC Mortgage
d. release of liability signed by Joan - CORRECT ANSWER-c. release of liability signed
by the ABC Mortgage
A buyer who records a deed is giving:
a. constructive notice
b. actual notice
c. pending notice
d. statutory notice - CORRECT ANSWER-a. constructive notice
John leases a commercial property. In the
lease, he agrees to pay part of the utilities
and taxes, as well as a fixed monthly rent
amount, This is a:
a. net lease
b. percentage lease
c. ground lease
d. graduated lease - CORRECT ANSWER-a. net lease
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 - CORRECT ANSWER-c. Tenancy in common
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 - CORRECT ANSWER-b. Lawsuit
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 - CORRECT ANSWER-b. still has a density ratio
consistent with the general plan
A broker would need to have a securities license to participate in:
a. a sale of both real and personal property
b. a sale of a commercial building that is showing a profit
c. a transaction involving an investment contract
Who is responsible for the earnest money deposit?
a. the listing firm
b. the selling firm
c. the mortgage company
d. the firm to which the check is made payable - CORRECT ANSWER-d. the firm to
which the check is made payable
Real estate license fees are put into the
a. Director's personal account
b. Real Estate Commission Account
c. Real Estate Education Fund
d. Washington Association of Relators trust account - CORRECT ANSWER-b. Real
Estate Commission Account
M tells her next door neighbor, P, that she will pay him a commission if he can help sell
her home. P, an unemployed bartender, locates a buyer and a sale results. M changes
her mind and refuses to pay P his promised commission. Which of the following is true?
- CORRECT ANSWER-P is not entitled to a commission, because he is unlicensed
Who issues rules and regulations that govern the activities of real estate licensees?
a. Director
b. Governor
c. Real Estate Commission
d. Real Estate Program Manager - CORRECT ANSWER-a. Director
Appointments to the Real Estate Commission are made by:
a. general election
b. the Director of the Department of Licensing
c. the Governor
d. the state legislature - CORRECT ANSWER-c. the Governor
Under what circumstances could an agent contact a previous client without having to
consult the Do Not Call Registry? - CORRECT ANSWER-If he represented the buyer
within the previous 18 months
Washington State's real estate agency law does not address which of the following? -
CORRECT ANSWER-Penalties for not disclosing agency status
L's broker's license was issued on October 16. L's license will expire at the end of:
a. this year, on Dec 31st
b. next year, on Dec 31st
c. one year, on Oct 16th
,d. Two years, on Oct 16th - CORRECT ANSWER-d. Two years, on Oct 16th
What does the expression "Caveat Emptor" mean? - CORRECT ANSWER-Let the
buyer beware
A store owner would like to sell common stock in her business (a chain of stores) to
investors. She asks an inexperienced licensee for help. The licensee should: -
CORRECT ANSWER-refer the client to a securities dealer
The best definition of a fee simple estate is: - CORRECT ANSWER-The greatest
interest one can own in land
What is the best way to ascertain if a physical object encroaches on a boundary line? -
CORRECT ANSWER-Order a survey
What type of title does a buyer receive to the property once the sales contract has been
signed? - CORRECT ANSWER-Equitable
An appraiser makes projections about how the population of a metropolitan area will
grow and how much residents' income will increase, using data about both basic and
non-basic industries. This is known as: - CORRECT ANSWER-economic-base analysis
An agent is ready to list a farm that was previously owned by a deceased woman with
four adult children. Two of the children asked the agent to take the listing. Before taking
the listing, the agent should: - CORRECT ANSWER-Check the public records to see
who owns the property
A developer wants a construction loan to build 20 homes. The lender requires a take-
out commitment. This means the developer needs: - CORRECT ANSWER-a permanent
lender who will provide financing once construction is complete
When determining the value of a vacant lot, an appraiser will typically use the:
a. cost approach
b. income approach
c. sales comparison approach
d. summation approach - CORRECT ANSWER-c. sales comparison approach
Buyer Perry would like to assume Seller
Joan's loan with ABC Mortgage Company,
in a way that would mean no further liability
for Joan. To accomplish this, Perry and
Joan should use a:
a. acknowledgement of the agreement from ABC Mortgage.
b. purchase contract signed by the buyer and seller
, c. release of liability signed by the ABC Mortgage
d. release of liability signed by Joan - CORRECT ANSWER-c. release of liability signed
by the ABC Mortgage
A buyer who records a deed is giving:
a. constructive notice
b. actual notice
c. pending notice
d. statutory notice - CORRECT ANSWER-a. constructive notice
John leases a commercial property. In the
lease, he agrees to pay part of the utilities
and taxes, as well as a fixed monthly rent
amount, This is a:
a. net lease
b. percentage lease
c. ground lease
d. graduated lease - CORRECT ANSWER-a. net lease
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 - CORRECT ANSWER-c. Tenancy in common
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 - CORRECT ANSWER-b. Lawsuit
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 - CORRECT ANSWER-b. still has a density ratio
consistent with the general plan
A broker would need to have a securities license to participate in:
a. a sale of both real and personal property
b. a sale of a commercial building that is showing a profit
c. a transaction involving an investment contract
