Rockwell Real Estate Exam WA 2
UPDATED QUESTIONS AND CORRECT
ANSWERS
At what point in a transaction must you disclose your agency status in writing?
A. at closing
B. when first meeting any potential party to the transaction
C. when a party signs an offer
D. Before a party signs an offer - CORRECT ANSWER D. Before a party signs an
offer
You must disclose your agency status to each party in a transaction as soon as practicable.
However, the initial disclosure may be oral - the law doesn't require written confirmation of
the agency disclosure until each party is about to sign an offer.
A counteroffer:
A. acts as a rejection of the initial offer
B. is used to rescind a previously existing contract
C. is used only to make an offer contingent on a particular event
D. is used when a buyer wants to make an offer where the seller has already accepted an offer
- CORRECT ANSWER A. acts as a rejection of the initial offer
A counteroffer is a rejection of the previous offer. Either a buyer or a seller may make a
counteroffer, in response to either the initial or previous counteroffer.
Which of the following practices would not be an illegal discriminatory action?
A. Always assigning minority buyers to work with minority agents
,B. Referring all Spanish-speaking buyers to Spanish speaking colleagues
C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference
to work with a Spanish-speaking agent
D. Failing to transmit an offer from an Asian buyer to the seller of a property in an all-white
neighborhood - CORRECT ANSWER C. Referring a buyer to a Spanish-speaking
colleague after the buyer expressed a preference to work with a Spanish-speaking agent
It is unlawful to treat certain types of buyers differently from others based on discriminatory
reasons. However, there is nothing illegal about honoring a buyer's request to work with an
agent of a particular ethnicity or national origin.
If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the person
who benefits from the contingency do?
A. Terminate the agreement and have the earnest money deposit returned
B. Waive the contingency and continue with the agreement
C. Sue the other party for a breach of contract
D. Either A or B - CORRECT ANSWER D. Either A or B
The party who benefits from a contingency may, if the contingency is not fulfilled, terminate
the agreement or waive the contingency and complete the purchase anyway
Under which type of listing will the seller owe a commission to the listing agent regardless of
who is the procuring cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing - CORRECT ANSWER C. Exclusive right to sell
Under an exclusive right to sell listing, the listing agent will earn a commission if the
property sells during the listing period, even if another agent or the seller finds the buyer
,Under which type of listing will an agent receive a commission only if he is the procuring
cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing - CORRECT ANSWER A. Open listing
Under an open listing, the seller pays a commission only if the agent is the person responsible
for bringing about the agreement between buyer and seller. No commission is owed if another
agent or seller is responsible for the sale.
All of the following should be taken into account in choosing a closing date, except:
A. the due date of the next installment of the property taxes
B. how long the seller needs to make any necessary repairs
C. whether the buyer needs to sell her current home
D. the time needed to clear way any liens - CORRECT ANSWER A. the due date of
the next installment of the property taxes
In choosing a closing date, it's important to consider how long it will take for the seller to
make any necessary repairs, for the buyer to sell her current home, and for any liens to clear.
The property tax due date is irrelevant, since this expense is prorated between the parties at
closing
Excise tax is usually paid by the:
A. buyer
B. seller
C. lender
, D. borrower - CORRECT ANSWER B. seller
the excise tax is tax imposed on the sale of the property
A conventional loan can be:
A. an ARM
B. a 15-year loan
C. a 30-year loan
D. All of the above - CORRECT ANSWER D. all of the above
A conventional loan is one that is not insured or guaranteed by a government agency. A
conventional loan does not have a set term and it may have an adjustable rate.
Which document should be prepared if the buyer plans to take possession before the closing
date?
A. Rental agreement
B. Sale of buyer's home contingency
C. Bump notice
D. Backup offer - CORRECT ANSWER A. Rental agreement
If the parties plan to transfer possession of the property either before or after the closing date,
they should sign a rental agreement that includes the rental terms and the amount of rent.
Which party to a purchase and sale agreement usually benefits from a contingency?
A. buyer
B. seller
C. designated broker
UPDATED QUESTIONS AND CORRECT
ANSWERS
At what point in a transaction must you disclose your agency status in writing?
A. at closing
B. when first meeting any potential party to the transaction
C. when a party signs an offer
D. Before a party signs an offer - CORRECT ANSWER D. Before a party signs an
offer
You must disclose your agency status to each party in a transaction as soon as practicable.
However, the initial disclosure may be oral - the law doesn't require written confirmation of
the agency disclosure until each party is about to sign an offer.
A counteroffer:
A. acts as a rejection of the initial offer
B. is used to rescind a previously existing contract
C. is used only to make an offer contingent on a particular event
D. is used when a buyer wants to make an offer where the seller has already accepted an offer
- CORRECT ANSWER A. acts as a rejection of the initial offer
A counteroffer is a rejection of the previous offer. Either a buyer or a seller may make a
counteroffer, in response to either the initial or previous counteroffer.
Which of the following practices would not be an illegal discriminatory action?
A. Always assigning minority buyers to work with minority agents
,B. Referring all Spanish-speaking buyers to Spanish speaking colleagues
C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference
to work with a Spanish-speaking agent
D. Failing to transmit an offer from an Asian buyer to the seller of a property in an all-white
neighborhood - CORRECT ANSWER C. Referring a buyer to a Spanish-speaking
colleague after the buyer expressed a preference to work with a Spanish-speaking agent
It is unlawful to treat certain types of buyers differently from others based on discriminatory
reasons. However, there is nothing illegal about honoring a buyer's request to work with an
agent of a particular ethnicity or national origin.
If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the person
who benefits from the contingency do?
A. Terminate the agreement and have the earnest money deposit returned
B. Waive the contingency and continue with the agreement
C. Sue the other party for a breach of contract
D. Either A or B - CORRECT ANSWER D. Either A or B
The party who benefits from a contingency may, if the contingency is not fulfilled, terminate
the agreement or waive the contingency and complete the purchase anyway
Under which type of listing will the seller owe a commission to the listing agent regardless of
who is the procuring cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing - CORRECT ANSWER C. Exclusive right to sell
Under an exclusive right to sell listing, the listing agent will earn a commission if the
property sells during the listing period, even if another agent or the seller finds the buyer
,Under which type of listing will an agent receive a commission only if he is the procuring
cause of the sale?
A. Open listing
B. Exclusive agency
C. Exclusive right to sell
D. Net listing - CORRECT ANSWER A. Open listing
Under an open listing, the seller pays a commission only if the agent is the person responsible
for bringing about the agreement between buyer and seller. No commission is owed if another
agent or seller is responsible for the sale.
All of the following should be taken into account in choosing a closing date, except:
A. the due date of the next installment of the property taxes
B. how long the seller needs to make any necessary repairs
C. whether the buyer needs to sell her current home
D. the time needed to clear way any liens - CORRECT ANSWER A. the due date of
the next installment of the property taxes
In choosing a closing date, it's important to consider how long it will take for the seller to
make any necessary repairs, for the buyer to sell her current home, and for any liens to clear.
The property tax due date is irrelevant, since this expense is prorated between the parties at
closing
Excise tax is usually paid by the:
A. buyer
B. seller
C. lender
, D. borrower - CORRECT ANSWER B. seller
the excise tax is tax imposed on the sale of the property
A conventional loan can be:
A. an ARM
B. a 15-year loan
C. a 30-year loan
D. All of the above - CORRECT ANSWER D. all of the above
A conventional loan is one that is not insured or guaranteed by a government agency. A
conventional loan does not have a set term and it may have an adjustable rate.
Which document should be prepared if the buyer plans to take possession before the closing
date?
A. Rental agreement
B. Sale of buyer's home contingency
C. Bump notice
D. Backup offer - CORRECT ANSWER A. Rental agreement
If the parties plan to transfer possession of the property either before or after the closing date,
they should sign a rental agreement that includes the rental terms and the amount of rent.
Which party to a purchase and sale agreement usually benefits from a contingency?
A. buyer
B. seller
C. designated broker
