ROCKWELL REAL ESTATE CLASSES WA FINAL
EXAM 1 2026 FINAL PAPER EXAM PREP
QUESTIONS AND SOLUTIONS
◉ Ben receives a life estate in a property, with his nephew Will
designated as the remainderman. When Ben dies, what kind of
interest does Will receive?
A. Fee Simple Estate
B. Life Estate
C. Remainder Interest
D. Reversionary Interest. Answer: A. Fee Simple Estate
The interest that passes to a designated person upon the death of a
life tenant (or other measuring life) is a fee simple estate. Will has a
remainder interest only up until the moment Ben dies. Once Ben is
dead, Will's interest immediately becomes a fee simple interest.
◉ A buyer accepts a general warranty deed from a seller, believing
that the seller is the sole owner of the property. The buyer later finds
out that the seller is only a co-owner. Has a covenant in the general
warranty deed been violated?
A. No, the only covenant in a general warranty deed promises that
the previous owner didn't encumber the property
,B. No, the principle of caveat emptor controls matters concerning a
deed
C. Yes, there is a covenant providing equitable title
D. Yes, there is a covenant providing marketable title. Answer: D. Yes,
there is a covenant providing marketable title
The general warranty deed contains a covenant of the right to
convey, meaning that the grantor either has title to the interest or is
an agent of the owner with the authority to transfer the interest.
◉ A plaintiff files a lawsuit involving a property and also files a
separate document intended to provide notice of the lawsuit. This
recorded notice of a pending legal action is called a/ an:
A. Abstract of judgement
B. Petition for alienation
C. Writ of execution
D. Lis Pendens. Answer: D. Lis Pendens
A Lis Pendens is a recorded notice stating that there is a lawsuit
pending that may affect title to the defendant's real estate and that
could bind the purchaser of the property.
◉ A movie theater was built ten years ago. If the neighborhood is
now zoned entirely residential, the movie theater:
,A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's
intended use
C. will be allowed to continue if the owner obtains a conditional use
permit
D. will be allowed to continue since it was built before the new
zoning law went into effect. Answer: D. Will be allowed to continue
since it was built before the new zoning law went into effect
The movie theater is an example of a nonconforming use, which
predated a zoning change. Nonconforming uses are generally
allowed to continue, although they may not be enlarged, or resumed
if they are stopped.
◉ In a bilateral contract:
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are
obligated to perform
D. all parties have fully performed their duties. Answer: C. two
parties have exchanged promises, and both parties are obligated to
perform
In a bilateral contract, two parties have exchanged promises and
both parties are obligated to perform. (Bi=two way)
, ◉ Gerald engages a licensee to list his property and find a buyer for
it. In this context, the licensee is acting as a:
A. General agent
B. power of attorney
C. property manager
D. special agent. Answer: D. Special Agent
When a licensee represents a seller in a single transaction, and is
authorized to perform typical duties associated with listing a
property, she acts as a special agent.
◉ A licensee located what seems like a ready, willing, and able buyer.
However, the deal falls through at closing because the buyer cant
obtain necessary financing. At the same time, though, a seller turns
out to be unable to provide marketable title. Does the seller still owe
a commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through the closing
date
D. Yes, because the seller has an absolute duty to provide marketable
title at closing. Answer: B. No, because there was no ready, willing,
and able buyer
EXAM 1 2026 FINAL PAPER EXAM PREP
QUESTIONS AND SOLUTIONS
◉ Ben receives a life estate in a property, with his nephew Will
designated as the remainderman. When Ben dies, what kind of
interest does Will receive?
A. Fee Simple Estate
B. Life Estate
C. Remainder Interest
D. Reversionary Interest. Answer: A. Fee Simple Estate
The interest that passes to a designated person upon the death of a
life tenant (or other measuring life) is a fee simple estate. Will has a
remainder interest only up until the moment Ben dies. Once Ben is
dead, Will's interest immediately becomes a fee simple interest.
◉ A buyer accepts a general warranty deed from a seller, believing
that the seller is the sole owner of the property. The buyer later finds
out that the seller is only a co-owner. Has a covenant in the general
warranty deed been violated?
A. No, the only covenant in a general warranty deed promises that
the previous owner didn't encumber the property
,B. No, the principle of caveat emptor controls matters concerning a
deed
C. Yes, there is a covenant providing equitable title
D. Yes, there is a covenant providing marketable title. Answer: D. Yes,
there is a covenant providing marketable title
The general warranty deed contains a covenant of the right to
convey, meaning that the grantor either has title to the interest or is
an agent of the owner with the authority to transfer the interest.
◉ A plaintiff files a lawsuit involving a property and also files a
separate document intended to provide notice of the lawsuit. This
recorded notice of a pending legal action is called a/ an:
A. Abstract of judgement
B. Petition for alienation
C. Writ of execution
D. Lis Pendens. Answer: D. Lis Pendens
A Lis Pendens is a recorded notice stating that there is a lawsuit
pending that may affect title to the defendant's real estate and that
could bind the purchaser of the property.
◉ A movie theater was built ten years ago. If the neighborhood is
now zoned entirely residential, the movie theater:
,A. will have to be torn down
B. must be remodeled to better conform to the neighborhood's
intended use
C. will be allowed to continue if the owner obtains a conditional use
permit
D. will be allowed to continue since it was built before the new
zoning law went into effect. Answer: D. Will be allowed to continue
since it was built before the new zoning law went into effect
The movie theater is an example of a nonconforming use, which
predated a zoning change. Nonconforming uses are generally
allowed to continue, although they may not be enlarged, or resumed
if they are stopped.
◉ In a bilateral contract:
A. a duty wil be performed by only one party
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are
obligated to perform
D. all parties have fully performed their duties. Answer: C. two
parties have exchanged promises, and both parties are obligated to
perform
In a bilateral contract, two parties have exchanged promises and
both parties are obligated to perform. (Bi=two way)
, ◉ Gerald engages a licensee to list his property and find a buyer for
it. In this context, the licensee is acting as a:
A. General agent
B. power of attorney
C. property manager
D. special agent. Answer: D. Special Agent
When a licensee represents a seller in a single transaction, and is
authorized to perform typical duties associated with listing a
property, she acts as a special agent.
◉ A licensee located what seems like a ready, willing, and able buyer.
However, the deal falls through at closing because the buyer cant
obtain necessary financing. At the same time, though, a seller turns
out to be unable to provide marketable title. Does the seller still owe
a commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through the closing
date
D. Yes, because the seller has an absolute duty to provide marketable
title at closing. Answer: B. No, because there was no ready, willing,
and able buyer
