Rockwell Exam 4 Questions with Answers (100% Correct
Answers)
Once a contract for deed is signed by the parties, the buyer immediately receives:
A. a life estate
B. legal title
C. equitable title
D. the right to lease the property —Answer: C. equitable title
A buyer receives equitable title to the property once the land contract has been signed
A real estate broker represents the seller in a transaction involving an investment property.
Several months later, the new owner asks the broker if he would act as property manager for
that property. The broker may take this position:
A. only if his designated broker allows it
B. only if the broker and the buyer are not related
C. only if the broker does not work for compensation
D. only if the broker works for a third party rather than the buyer —Answer: A. only if his
designated broker allows it
Max would like to know if there's an encroachment on his boundary line. He should:
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,A. examine the legal description
B. order an appraisal
C. order a survey
D. do a title search —Answer: C. order a survey
Two parties enter into an option agreement, scheduled to end in December. However, in
October the optionee decides he doesn't want to buy the property. What should the parties do
in order to terminate the option?
A. Complete a formal statement of novation
B. Exercise the option's contingency clause
C. File an interpleader action so a court can void the contract
D. Nothing; the option will expire automatically —Answer: D. Nothing; the option will expire
automatically
Prices in a local market are trending downward. A seller found that she had to lower the price
of her house by $25,000 over the course of six months before she could find a buyer. Upset over
selling at a loss, she informs her listing agent that she is going to lower the commission rate that
she pays. Can she do this?
A. Yes, a loss by the seller must be shared by the listing agent
B. Yes, since commission rates are negotiated and can be changed at any time
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,C. No, commission rates are established by the local multiple listing service and cannot be
changed
D. No, the commission rate, once established in the listing agreement contract, cannot be
changed unless both parties agree —Answer: D. No, the commission rate, once established in
the listing agreement contract, cannot be changed unless both parties agree
Sally lists her property for sale with Broker Al. Al learns that the property is about to be
rezoned to a higher use. He tells Sally he would like to purchase the property himself. She
agrees, and the sale closes. Six months later, Al resells the property for a significant profit. This
is legal:
A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change
and what it would mean for the property's value
B. as long as he disclosed to Sally the profit he made off the resale, after his sale closed
C. only if Al shares his profits with Sally
D. under no circumstances —Answer: A. as long as before Sally agreed to the sale, Al informed
her of the upcoming zoning change and what it would mean for the property's value
Sarita bought a home. She had poor credit, so the owner agreed to finance the purchase. The
parties agreed to a 20-year loan term. Sarita took title to the property, and the seller held a lien
against the property. What type of financing instrument was used?
A. Option to buy
B. Land contract
C. Purchase money mortgage
D. Open mortgage —Answer: C. Purchase money mortgage
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, A broker can serve as a closing agent for a fee in the state of Washington, if the:
A. broker is a licensed escrow officer
B. fee is reasonable
C. buyer and seller agree
D. broker discloses the fact to all parties —Answer: A. broker is a licensed escrow officer
XYZ Realty has the exclusive right to represent a new subdivision. An agent working for the
subdivision office, and named on the listing agreement, shows a property to the Meyers, who
are not working with their own agent. When the Meyers decide to buy, they have XYZ's agent
provide basic help in filling out an offer form. Which of the following is true?
A. The agent owes the buyers the duty of loyalty
B. The buyers are not represented by an agent
C. The buyers are represented by this agent
D. This has created a dual agency —Answer: B. The buyers are not represented by an agent
Generally providing any brokerage services creates an agency relationship with a buyer, but
there's an important exception to this rule: if the agent is already representing another party
under a written agreement, then providing minimal services does not create an agency
Key word is BASIC
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Answers)
Once a contract for deed is signed by the parties, the buyer immediately receives:
A. a life estate
B. legal title
C. equitable title
D. the right to lease the property —Answer: C. equitable title
A buyer receives equitable title to the property once the land contract has been signed
A real estate broker represents the seller in a transaction involving an investment property.
Several months later, the new owner asks the broker if he would act as property manager for
that property. The broker may take this position:
A. only if his designated broker allows it
B. only if the broker and the buyer are not related
C. only if the broker does not work for compensation
D. only if the broker works for a third party rather than the buyer —Answer: A. only if his
designated broker allows it
Max would like to know if there's an encroachment on his boundary line. He should:
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,A. examine the legal description
B. order an appraisal
C. order a survey
D. do a title search —Answer: C. order a survey
Two parties enter into an option agreement, scheduled to end in December. However, in
October the optionee decides he doesn't want to buy the property. What should the parties do
in order to terminate the option?
A. Complete a formal statement of novation
B. Exercise the option's contingency clause
C. File an interpleader action so a court can void the contract
D. Nothing; the option will expire automatically —Answer: D. Nothing; the option will expire
automatically
Prices in a local market are trending downward. A seller found that she had to lower the price
of her house by $25,000 over the course of six months before she could find a buyer. Upset over
selling at a loss, she informs her listing agent that she is going to lower the commission rate that
she pays. Can she do this?
A. Yes, a loss by the seller must be shared by the listing agent
B. Yes, since commission rates are negotiated and can be changed at any time
© 2025 All rights reserved
,C. No, commission rates are established by the local multiple listing service and cannot be
changed
D. No, the commission rate, once established in the listing agreement contract, cannot be
changed unless both parties agree —Answer: D. No, the commission rate, once established in
the listing agreement contract, cannot be changed unless both parties agree
Sally lists her property for sale with Broker Al. Al learns that the property is about to be
rezoned to a higher use. He tells Sally he would like to purchase the property himself. She
agrees, and the sale closes. Six months later, Al resells the property for a significant profit. This
is legal:
A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change
and what it would mean for the property's value
B. as long as he disclosed to Sally the profit he made off the resale, after his sale closed
C. only if Al shares his profits with Sally
D. under no circumstances —Answer: A. as long as before Sally agreed to the sale, Al informed
her of the upcoming zoning change and what it would mean for the property's value
Sarita bought a home. She had poor credit, so the owner agreed to finance the purchase. The
parties agreed to a 20-year loan term. Sarita took title to the property, and the seller held a lien
against the property. What type of financing instrument was used?
A. Option to buy
B. Land contract
C. Purchase money mortgage
D. Open mortgage —Answer: C. Purchase money mortgage
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, A broker can serve as a closing agent for a fee in the state of Washington, if the:
A. broker is a licensed escrow officer
B. fee is reasonable
C. buyer and seller agree
D. broker discloses the fact to all parties —Answer: A. broker is a licensed escrow officer
XYZ Realty has the exclusive right to represent a new subdivision. An agent working for the
subdivision office, and named on the listing agreement, shows a property to the Meyers, who
are not working with their own agent. When the Meyers decide to buy, they have XYZ's agent
provide basic help in filling out an offer form. Which of the following is true?
A. The agent owes the buyers the duty of loyalty
B. The buyers are not represented by an agent
C. The buyers are represented by this agent
D. This has created a dual agency —Answer: B. The buyers are not represented by an agent
Generally providing any brokerage services creates an agency relationship with a buyer, but
there's an important exception to this rule: if the agent is already representing another party
under a written agreement, then providing minimal services does not create an agency
Key word is BASIC
© 2025 All rights reserved
