Washington Managing Broker Exam Study
Questions and Complete Answers| Verified 100%
Correct| Newest 2025
When a corporation buys a property with another entity, this is the way it would take
title. It cannot be a joint tenancy since there is no right of survivorship since a
corporation is perpetual.
Truth in Lending Act's disclosure requirements do not apply to loans made for... (3
entities). - ✔✔loans made for business, commercial, or agricultural purposes.
An encroachment is considered... - ✔✔...considered a trespass if it violates a
neighboring owner's right to possession, and can be the basis for an ejectment action.
Ad valorem taxes are... - ✔✔taxes based on the value of the property. General real
estate taxes are ad valorem taxes.
Sonia 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: - ✔✔ad valorem taxes.
The PSA has been signed and Seller has completed the Seller Disclosure Statement. A
windstorm damages the property. The seller's agent is obligated to... - ✔✔contact
the buyer's agent and inform him. Seller will have to amend the disclosure statement,
but seller's agent is not allowed to do that.
Once a contract for deed is signed by the parties, they buyer immediately receives... -
✔✔Equitable title. The seller retains legal title. The seller transfers legal title once the
buyer finishes paying off the contract/purchase price.
,A take-out commitment - ✔✔A clause that allows individual lots to be released from
the blanket lien when they are sold to purchasers.
A developer wants a construction loan to build 20 homes. The lender requires a take-out
commitment. This means that the developer: - ✔✔a permanent lender who will
provide financing once construction is complete.
A licensee who is taking a listing on a property finds a number of problems that need to
be fixed, such as several leaking faucets and faulty electrical outlets. This would be an
example of... - ✔✔curable depreciation (i.e., deferred maintenance). It's likely that
the cost of correcting the problems could be recovered in the sales price when the
property is sold.
A net lease... - ✔✔requires the tenant to pay some or all of a property's operating
expenses, such as property taxes, insurance, and maintenance. A net lease requires a
tenant to pay utilities, but so do many gross leases (for instance, most apartment rentals
require tenants to pay their electric bill; a gross lease, however, will never require a
tenant to pay property taxes.
A lease is most likely to be a net lease if it requires the tenant to pay: - ✔✔property
taxes.
What information does an appraiser need in order to calculate a capitalization rate? -
✔✔Value & net income. -- In order to calculate a property's value, an appraiser using
the income approach would need to know the property's net income and capitalization
rate. So, conversely, if the appraiser wanted to find the cap rate, he would need to know
the property's value and net income.
, It is common practice for Buyer to name an escrow agent in the offer and make out the
check to that company; however technically, according to the law, the check should be
made out to... - ✔✔the licensee's firm, as licensed.
If a real estate agent is sending out emails offering services, the federal CAN-SPAM Act
requires the agent to... - ✔✔tell recipients how to opt out of receiving future emails.
When a licensee is terminated, the date of termination is the... - ✔✔...postmark date
or the date the license is hand-delivered to the Department of Licensing. (Or when it's
done online.).
Failure to provide a buyer with a completed property disclosure form... - ✔✔...would
constitute unprofessional conduct under the Uniform Regulation of Business and
Professions Act (URBPA) because it would be considered incompetence, negligence,
malpractice, or misrepresentation.
A licensee fails to attend a scheduled disciplinary hearing. What happens? - ✔✔The
hearing is held without the licensee present.
A broker arranges a transaction while working for ABC Realty. Before the transaction
closes, the broker's license becomes inactive. Can ABC Realthy pay the commission to
the broker? - ✔✔Yes -- A broker may receive a commission as long as she was
properly licensed at the time she procured a promise for the payment of compensation.
Who is responsible for preparing and conducting real estate license examinations? -
✔✔The Real Estate Commission (although they delegate it to a. professional testing
service).
Advantages of an S Corporation (3 things). - ✔✔Lack of corporate taxes, no FICA
taxes, and limited liability.
Questions and Complete Answers| Verified 100%
Correct| Newest 2025
When a corporation buys a property with another entity, this is the way it would take
title. It cannot be a joint tenancy since there is no right of survivorship since a
corporation is perpetual.
Truth in Lending Act's disclosure requirements do not apply to loans made for... (3
entities). - ✔✔loans made for business, commercial, or agricultural purposes.
An encroachment is considered... - ✔✔...considered a trespass if it violates a
neighboring owner's right to possession, and can be the basis for an ejectment action.
Ad valorem taxes are... - ✔✔taxes based on the value of the property. General real
estate taxes are ad valorem taxes.
Sonia 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: - ✔✔ad valorem taxes.
The PSA has been signed and Seller has completed the Seller Disclosure Statement. A
windstorm damages the property. The seller's agent is obligated to... - ✔✔contact
the buyer's agent and inform him. Seller will have to amend the disclosure statement,
but seller's agent is not allowed to do that.
Once a contract for deed is signed by the parties, they buyer immediately receives... -
✔✔Equitable title. The seller retains legal title. The seller transfers legal title once the
buyer finishes paying off the contract/purchase price.
,A take-out commitment - ✔✔A clause that allows individual lots to be released from
the blanket lien when they are sold to purchasers.
A developer wants a construction loan to build 20 homes. The lender requires a take-out
commitment. This means that the developer: - ✔✔a permanent lender who will
provide financing once construction is complete.
A licensee who is taking a listing on a property finds a number of problems that need to
be fixed, such as several leaking faucets and faulty electrical outlets. This would be an
example of... - ✔✔curable depreciation (i.e., deferred maintenance). It's likely that
the cost of correcting the problems could be recovered in the sales price when the
property is sold.
A net lease... - ✔✔requires the tenant to pay some or all of a property's operating
expenses, such as property taxes, insurance, and maintenance. A net lease requires a
tenant to pay utilities, but so do many gross leases (for instance, most apartment rentals
require tenants to pay their electric bill; a gross lease, however, will never require a
tenant to pay property taxes.
A lease is most likely to be a net lease if it requires the tenant to pay: - ✔✔property
taxes.
What information does an appraiser need in order to calculate a capitalization rate? -
✔✔Value & net income. -- In order to calculate a property's value, an appraiser using
the income approach would need to know the property's net income and capitalization
rate. So, conversely, if the appraiser wanted to find the cap rate, he would need to know
the property's value and net income.
, It is common practice for Buyer to name an escrow agent in the offer and make out the
check to that company; however technically, according to the law, the check should be
made out to... - ✔✔the licensee's firm, as licensed.
If a real estate agent is sending out emails offering services, the federal CAN-SPAM Act
requires the agent to... - ✔✔tell recipients how to opt out of receiving future emails.
When a licensee is terminated, the date of termination is the... - ✔✔...postmark date
or the date the license is hand-delivered to the Department of Licensing. (Or when it's
done online.).
Failure to provide a buyer with a completed property disclosure form... - ✔✔...would
constitute unprofessional conduct under the Uniform Regulation of Business and
Professions Act (URBPA) because it would be considered incompetence, negligence,
malpractice, or misrepresentation.
A licensee fails to attend a scheduled disciplinary hearing. What happens? - ✔✔The
hearing is held without the licensee present.
A broker arranges a transaction while working for ABC Realty. Before the transaction
closes, the broker's license becomes inactive. Can ABC Realthy pay the commission to
the broker? - ✔✔Yes -- A broker may receive a commission as long as she was
properly licensed at the time she procured a promise for the payment of compensation.
Who is responsible for preparing and conducting real estate license examinations? -
✔✔The Real Estate Commission (although they delegate it to a. professional testing
service).
Advantages of an S Corporation (3 things). - ✔✔Lack of corporate taxes, no FICA
taxes, and limited liability.
