WA State 3 Real Estate Exam Prep: Rockwell Institute Sample Exams 3 questions with correct answers|100% verified|71 pages

WA State 3 Real Estate Exam Prep: Rockwell Institute Sample Exams 3 questions with correct answers The owner of property located along a stream or river may have which type of water right? A. Alluvion B. Riparian C. Appropriation D. Littoral Correct Answer-Your Answer: B Riparian rights are water rights that belong to owners of property that borders a stream or river. (Littoral rights refer to water rights associated with property that borders stationary water, such as a lake.) Five people buy an investment property. They take title so that they each have equal ownership shares, and so that if one of them dies, his share will pass to his heirs. How did they take title? A. Community property B. Joint tenancy C. Tenancy in common D. Term tenancy Correct Answer-Correct Answer: C 29% of students missed this question If co-owners are able to will their property to their heirs (instead of having it pass through right of survivorship), that means they hold title as tenants in common, not as joint tenants. (Tenants in common may have equal or unequal ownership interests.) What would cause a judgment lien to be imposed on a landowner's property? A. Foreclosure B. Lawsuit C. Unpaid construction project D. Unpaid property taxes Correct Answer-Your Answer: B 40% of students missed this question Explanation: A judgment lien attaches to the property of someone who loses a lawsuit and is ordered to pay damages. (This person is referred to as the judgment debtor.) If the judgment debtor doesn't pay off the lien, the court can issue a writ of execution ordering the sale of the property. Maria buys a home in a subdivision that is subject to restrictive covenants. The city Maria lives in allows fences, but the subdivision's restrictive covenants don't. Of the following, which is true? A. Restrictive covenants only limit lot size; they don't limit fencing B. The city is a government entity, so its rules take precedence over private restrictions C. The deed's restrictive covenants take precedence over the city because they are more restrictive D. Maria owns the property, so she has a legal right to build a fence regardless of the deed's restrictions Correct Answer-Your Answer: C Explanation: When zoning ordinances and private restrictions conflict, the more restrictive of the two prevails. Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed covenants that will prevent a buyer from subdividing the land in the future. She'd also like the agent to create a trust from the sale, to benefit her disabled sister. Robert's reply should be: A. I can draft the trust, but an attorney will need to draft the covenants B. I can draft both of these documents C. I can draft the covenants, but an attorney will need to draft the trust D. I can't help you with either of these things; you'll need to contact an attorney Correct Answer-Correct Answer: D Explanation: A real estate licensee is limited to filling in the blanks on a printed form drafted by attorneys. Going beyond that, by drafting covenants or trust documents, for example, would be considered the unauthorized practice of law Mortgage interest rates are primarily influenced by the: A. assessed value of the property B. condition of the money market C. credit history of the borrower D. value of similar mortgaged properties in the area Correct Answer-Your Answer: B Mortgage interest rates are primarily influenced by the supply of and demand for funds in the money market. This is determined by many factors, including actions taken by the Federal Reserve. For income tax purposes, a homeowner can deduct: A. property taxes B. principal payments on a mortgage C. capital expenditures D. the adjusted basis Correct Answer-Correct Answer: A 28% of students missed this question Explanation: A real property owner can deduct the property taxes she pays, up to a certain limit. A tenant farmer has occupied a farm on which she has grown crops for several years. The landowner sells the farm to someone else who immediately gives the tenant notice to vacate. The timing of the notice will mean the crops currently in the ground will not be ready for harvest before the end of her lease. Who do the first crops belong to? A. The tenant B. The former owner C. The new owner D. The tenant and the new owner Correct Answer-Correct Answer: A A special rule, called the doctrine of emblements, applies to crops planted by a tenant farmer. If the lease is terminated through no fault of the tenant before the crops are ready for harvest, the tenant has the right to re-enter the land and harvest the first crop that matures after the tenancy is terminated An Asian-American buyer asks to be shown homes that are located in neighborhoods that he knows are primarily Asian. If a real estate agent complies with his wishes, this is: A. illegal, as it is blockbusting B. illegal, as it is steering C. legal, as it is done at the buyer's request D. legal, as the Fair Housing Act has an exception for single-family homes Correct Answer-Your Answer: C It is legal for an agent to show a buyer homes in the neighborhoods that the buyer has chosen, even if the buyer chose the neighborhoods based on race. Nothing in the Fair Housing Act requires an agent to show buyers houses against their will. Mark and Kim's two-year lease on their apartment expires. Unhappy that the couple doesn't plan to renew the lease, the property manager charges them one month's rent for failure to give notice. If the lease says nothing about this issue, in this case: A. no notice is required and no additional fee must be paid B. Mark and Kim owe one month's additional rent C. Mark and Kim owe one month's additional rent plus a nonrenewal fee D. Mark and Kim will lose the full amount of their security deposit Correct Answer-Your Answer: A Explanation: The tenants had an estate for years: a lease for a specific period of time. Unless the parties renew the lease, or unless the lease itself provides otherwise, an estate for years simply terminates at the end of the agreed period. No notice is necessary, and the tenants can't be charged a penalty for failing to give notice.