ROCKWELL REAL ESTATE CLASSES WA FINAL
EXAM 1 2026 COMPREHENSIVE EXAM
QUESTIONS AND CORRECT ANSWERS
◉ Sonya buys a parcel of land and pays taxes on it for five years.
After she builds a home on it, the taxes she'll pay are:
A. special assessments
B. ad valorem taxes
C. estate taxes
D. excise taxes. Answer: B. ad valorem taxes
General real estate taxes are ad valorem taxes
◉ Paul would like to make an offer on a house right away, but he
doesn't have the cash available for an earnest money deposit yet. He
is, however, expecting a large commission check from his sales job
within several weeks, so he offers the seller a promissory note for
$10,000 as the earnest money deposit. He will also be seeking
conventional financing to pay for the rest of the home's price. Will
the promissory note be tied to the buyer's mortgage?
,A. Yes, the institutional lender will require both promissory notes to
be collateralized
B. Yes, the promissory note is not valid unless it has been
collateralized
C. No, the promissory note is a promise to pay a debt and is a
contract on its own
D. Not relevant, because a promissory note may never be used as
earnest money. Answer: C. No, the promissory note is a promise to
pay a debt and is a contract on its own
◉ A buyer was considering purchasing a property sight unseen
through a foreclosure auction. A friend warned him, "Caveat emptor."
This expression means:
A. Let the buyer beware
B. Let the lender beware
C. Neither a borrower nor a lender be
D. Time flies. Answer: A. Let the buyer beware
Latin for let the buyer beware
◉ The document that would enable a listing licensee to sign a sales
contract in the owner's absence would be known as a:
,A. covenant of right to convey
B. habendum clause
C. power of attorney
D. power of sale. Answer: C. power of attorney
◉ Washington State's real estate agency law does not address which
of the following?
A. Definition of dual agency
B. Creation and termination of agency relationships
C. Vicarious liability of principal and licensee
D. Penalties for not disclosing agency status. Answer: D. Penalties for
not disclosing agency status
◉ What kind of property could a buyer purchase with an FHA
203(b) loan?
A. Apartment building
B. Commercial property
C. Farm occupied by a tenant
D. Four-unit dwelling where the buyer will occupy one of the units.
Answer: D. Four-unit dwelling where the buyer will occupy one of
the units
, A 203(b) loans is the standard type of FHA loan that most home
buyers will use. This type of loan may be used to purchase a
property with up to four dwelling units, as long as one of the units
will be the borrower's primary residence
◉ The owner of a small store leased a retail space and the tenant
installed his own shelving by bolting it to the walls. At the end of his
lease, he wanted to take the shelving with him to his new location.
Which of the following is true?
A. The shelves are fixtures, and must be removed by the tenant
B. The shelves are fixtures, and must remain as part of the building
C. The shelves are trade fixtures, and may be removed by the tenant
D. The shelves are trade fixtures, and must remain as part of the
building. Answer: C. The shelves are trade fixtures, and may be
removed by the tenant
◉ 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:
A. insist that all four children sign quitclaim deeds
B. check the public records to see who owns the property
EXAM 1 2026 COMPREHENSIVE EXAM
QUESTIONS AND CORRECT ANSWERS
◉ Sonya buys a parcel of land and pays taxes on it for five years.
After she builds a home on it, the taxes she'll pay are:
A. special assessments
B. ad valorem taxes
C. estate taxes
D. excise taxes. Answer: B. ad valorem taxes
General real estate taxes are ad valorem taxes
◉ Paul would like to make an offer on a house right away, but he
doesn't have the cash available for an earnest money deposit yet. He
is, however, expecting a large commission check from his sales job
within several weeks, so he offers the seller a promissory note for
$10,000 as the earnest money deposit. He will also be seeking
conventional financing to pay for the rest of the home's price. Will
the promissory note be tied to the buyer's mortgage?
,A. Yes, the institutional lender will require both promissory notes to
be collateralized
B. Yes, the promissory note is not valid unless it has been
collateralized
C. No, the promissory note is a promise to pay a debt and is a
contract on its own
D. Not relevant, because a promissory note may never be used as
earnest money. Answer: C. No, the promissory note is a promise to
pay a debt and is a contract on its own
◉ A buyer was considering purchasing a property sight unseen
through a foreclosure auction. A friend warned him, "Caveat emptor."
This expression means:
A. Let the buyer beware
B. Let the lender beware
C. Neither a borrower nor a lender be
D. Time flies. Answer: A. Let the buyer beware
Latin for let the buyer beware
◉ The document that would enable a listing licensee to sign a sales
contract in the owner's absence would be known as a:
,A. covenant of right to convey
B. habendum clause
C. power of attorney
D. power of sale. Answer: C. power of attorney
◉ Washington State's real estate agency law does not address which
of the following?
A. Definition of dual agency
B. Creation and termination of agency relationships
C. Vicarious liability of principal and licensee
D. Penalties for not disclosing agency status. Answer: D. Penalties for
not disclosing agency status
◉ What kind of property could a buyer purchase with an FHA
203(b) loan?
A. Apartment building
B. Commercial property
C. Farm occupied by a tenant
D. Four-unit dwelling where the buyer will occupy one of the units.
Answer: D. Four-unit dwelling where the buyer will occupy one of
the units
, A 203(b) loans is the standard type of FHA loan that most home
buyers will use. This type of loan may be used to purchase a
property with up to four dwelling units, as long as one of the units
will be the borrower's primary residence
◉ The owner of a small store leased a retail space and the tenant
installed his own shelving by bolting it to the walls. At the end of his
lease, he wanted to take the shelving with him to his new location.
Which of the following is true?
A. The shelves are fixtures, and must be removed by the tenant
B. The shelves are fixtures, and must remain as part of the building
C. The shelves are trade fixtures, and may be removed by the tenant
D. The shelves are trade fixtures, and must remain as part of the
building. Answer: C. The shelves are trade fixtures, and may be
removed by the tenant
◉ 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:
A. insist that all four children sign quitclaim deeds
B. check the public records to see who owns the property
