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ROCKWELL EXAM WITH COMPLETE 4 VERSIONS
ALL 500 QUESTIONS AND WELL ELABORATED
ANSWERS WITH RAIONALES LATEST UPDATE THIS YEAR
Question: A seller lists his house and sells it "as is" to a buyer. Shortly after the sale closes, the
buyer finds a large hole in the ground next to the house. The hole, which has caused significant
damage to the foundation, was almost certainly intentionally concealed with leaves and
branches. Which of the following is correct?
A. Only the licensee is liable
B. Only the seller is liable
C. Both the seller and the licensee may be liable
D. Neither is liable, because the house was sold "as is" - CORRECT ANSWER✔✔C. Both the seller
and the licensee may be liable
Question: A right held by one or more persons to use and possess property to the exclusion of
others is a/an:
A. warranty
B. easement
C. fee simple estate
D. right of equity - CORRECT ANSWER✔✔C. fee simple estate
Question: An attorney at law is exempt from real estate licensing laws when:
A. negotiating the sale of any business opportunity
B. arranging the sale of real property while settling a client's estate
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C. soliciting real estate business
D. engaging in real estate business through her licensed law firm - CORRECT ANSWER✔✔B.
arranging the sale of real property while settling a client's estate
Question: Ajax Realty lists a property for a seller at a commission rate of 8%. The multiple listing
service provides that a listing brokerage will split commissions at a 50-50 rate. Baron Realty, a
cooperating brokerage, finds a buyer for the property, at a price of $300,000. How much will the
seller owe Ajax Realty at closing?
A. $0
B. $12,000
C. $18,000
D. $24,000 - CORRECT ANSWER✔✔D. $24,000
$300,000 * .08 = $24,000
Question: A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide. How
many square yards of carpet will need to be purchased?
A. 10
B. 30
C. 90
D. 270 - CORRECT ANSWER✔✔B. 30
Question: What is the most important consideration for a property manager who is deciding on
appropriate rental rates?
A. How many units are in the property
B. Proximity of the property to places of employment
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C. The number of units available in the city
D. The rental rates for similar properties in the same market - CORRECT ANSWER✔✔D. The
rental rates for similar properties in the same market
Question: A mortgage, and the associated mortgage note, are both examples of:
A. contracts
B. deeds
C. non-negotiable instruments
D. option agreements - CORRECT ANSWER✔✔A. contracts
Question: The primary purpose of the Truth in Lending Act (Regulation Z) is to require the
lender to:
A. provide the borrower with a statement showing its aggregate interest charge for similar
properties in today's marketplace
B. include in any advertisement about available financing the annual percentage rate, plus the
applicable finance charges
C. disclose the complete cost of credit to consumer loan applicants
D. reveal the true cost of all real estate loans, except purchase money loans - CORRECT
ANSWER✔✔C. disclose the complete cost of credit to consumer loan applicants
The Truth in Lending Act requires lenders to disclose financing costs to applicants for consumer
loans
Question: When the parties to a contract put themselves back into the same positions they
were in before they entered into the contract, the contract has been:
A. canceled
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B. rescinded
C. revoked
D. performed - CORRECT ANSWER✔✔B. rescinded
Question: Z, a real estate licensee, has been certified by the Department of Social and Health
Services as not in compliance with his court-ordered child support payments. What disciplinary
action is available to the Director of the Department of Licensing?
A. Suspend Z's license
B. Revoke Z's license
C. File a cease and desist order
D. File a criminal complaint in superior court - CORRECT ANSWER✔✔A. Suspend Z's license
Question: Agent Amy has a listing on an investment property where she will get a $4,000
commission if it sells. She has another listing on an investment property where she'll get a
$5,000 commission if it sells. If she arranges an exchange of the two properties, her commission
would be:
A. $4000
B. $5000
C. $9000
D. None, because it was an exchange rather than a sale - CORRECT ANSWER✔✔C. $9,000
Question: Which of the following is EXEMPT from the pooled interest-bearing account
requirement?
A. All earnest money deposits for residential transactions
B. Earnest money deposits of no more than $10,000
C. Earnest money deposits of no more than $5,500
ROCKWELL EXAM WITH COMPLETE 4 VERSIONS
ALL 500 QUESTIONS AND WELL ELABORATED
ANSWERS WITH RAIONALES LATEST UPDATE THIS YEAR
Question: A seller lists his house and sells it "as is" to a buyer. Shortly after the sale closes, the
buyer finds a large hole in the ground next to the house. The hole, which has caused significant
damage to the foundation, was almost certainly intentionally concealed with leaves and
branches. Which of the following is correct?
A. Only the licensee is liable
B. Only the seller is liable
C. Both the seller and the licensee may be liable
D. Neither is liable, because the house was sold "as is" - CORRECT ANSWER✔✔C. Both the seller
and the licensee may be liable
Question: A right held by one or more persons to use and possess property to the exclusion of
others is a/an:
A. warranty
B. easement
C. fee simple estate
D. right of equity - CORRECT ANSWER✔✔C. fee simple estate
Question: An attorney at law is exempt from real estate licensing laws when:
A. negotiating the sale of any business opportunity
B. arranging the sale of real property while settling a client's estate
, Page 2 of 152
C. soliciting real estate business
D. engaging in real estate business through her licensed law firm - CORRECT ANSWER✔✔B.
arranging the sale of real property while settling a client's estate
Question: Ajax Realty lists a property for a seller at a commission rate of 8%. The multiple listing
service provides that a listing brokerage will split commissions at a 50-50 rate. Baron Realty, a
cooperating brokerage, finds a buyer for the property, at a price of $300,000. How much will the
seller owe Ajax Realty at closing?
A. $0
B. $12,000
C. $18,000
D. $24,000 - CORRECT ANSWER✔✔D. $24,000
$300,000 * .08 = $24,000
Question: A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide. How
many square yards of carpet will need to be purchased?
A. 10
B. 30
C. 90
D. 270 - CORRECT ANSWER✔✔B. 30
Question: What is the most important consideration for a property manager who is deciding on
appropriate rental rates?
A. How many units are in the property
B. Proximity of the property to places of employment
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C. The number of units available in the city
D. The rental rates for similar properties in the same market - CORRECT ANSWER✔✔D. The
rental rates for similar properties in the same market
Question: A mortgage, and the associated mortgage note, are both examples of:
A. contracts
B. deeds
C. non-negotiable instruments
D. option agreements - CORRECT ANSWER✔✔A. contracts
Question: The primary purpose of the Truth in Lending Act (Regulation Z) is to require the
lender to:
A. provide the borrower with a statement showing its aggregate interest charge for similar
properties in today's marketplace
B. include in any advertisement about available financing the annual percentage rate, plus the
applicable finance charges
C. disclose the complete cost of credit to consumer loan applicants
D. reveal the true cost of all real estate loans, except purchase money loans - CORRECT
ANSWER✔✔C. disclose the complete cost of credit to consumer loan applicants
The Truth in Lending Act requires lenders to disclose financing costs to applicants for consumer
loans
Question: When the parties to a contract put themselves back into the same positions they
were in before they entered into the contract, the contract has been:
A. canceled
, Page 4 of 152
B. rescinded
C. revoked
D. performed - CORRECT ANSWER✔✔B. rescinded
Question: Z, a real estate licensee, has been certified by the Department of Social and Health
Services as not in compliance with his court-ordered child support payments. What disciplinary
action is available to the Director of the Department of Licensing?
A. Suspend Z's license
B. Revoke Z's license
C. File a cease and desist order
D. File a criminal complaint in superior court - CORRECT ANSWER✔✔A. Suspend Z's license
Question: Agent Amy has a listing on an investment property where she will get a $4,000
commission if it sells. She has another listing on an investment property where she'll get a
$5,000 commission if it sells. If she arranges an exchange of the two properties, her commission
would be:
A. $4000
B. $5000
C. $9000
D. None, because it was an exchange rather than a sale - CORRECT ANSWER✔✔C. $9,000
Question: Which of the following is EXEMPT from the pooled interest-bearing account
requirement?
A. All earnest money deposits for residential transactions
B. Earnest money deposits of no more than $10,000
C. Earnest money deposits of no more than $5,500
