A home is listed for $200,000. A prospective buyer tells the listing agent that she may
make an offer for $190,00. The listing agent tells her that the seller won't accept
anything under $195,000. The buyer offers $195,000 and the seller accepts. Which is
correct?
A. The listing agent violated her fiduciary duty to the seller by engaging in self-
dealing
B. The listing agent violated her fiduciary duty to the seller by telling the buyer how
low the seller would go
C. The listing agent did not violate her fiduciary duty to the seller because that is not
information that the seller would expect to remain confidential
D. The listing agent fulfilled her fiduciary duty to the seller by facilitating a successful
offer and acceptance
Give this one a try later!
, B. The listing agent violated her fiduciary duty to the seller by telling the
buyer how low the seller would go
Explanation: By telling the buyer that the seller's walk-away price is
$195,000, the listing agent divulged information that the seller would
expect to remain confidential and, if divulged, works to the seller's
detriment. Under general agency law, this is a violation of the agent's
fiduciary duties. (It also violates the agent's duties to the principal under
Washington's Real Estate Brokerage Relationships Act.)
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit
$5,000 in earnest money within two business days after mutual acceptance. The offer
is contingent on results of a soil feasibility report. On May 5 the seller accepts the
offer. On May 11 the soil report is ordered. On May 17 the soil feasibility report comes
back and is approved by the buyer. By what date does the earnest money need to be
deposited?
A. May 4
B. May 7
C. May 13
D. May 19
Give this one a try later!
B. May 7
Explanation: Mutual acceptance occurs when the offeree communicates
acceptance to the offeror. In this case, acceptance occurred on May 5, so
the deposit would need to be deposited by May 7, two days later.
An out-of-state real estate licensee (who is licensed in another state) may enter
Washington to engage in which real estate activity?
A. Property management
B. Residential sales
,C. Commercial sales or leasing
D. Contract collection
Give this one a try later!
C. Commercial sales or leasing
Explanation: Washington law allows out-of-state licensees to perform
duties that would require a license when engaged in commercial real
estate transactions. The out-of-state licensee must have a written
agreement to work in cooperation with a brokerage licensed in
Washington.
Net listings are strongly discouraged because they are likely to be unfair to the:
A.broker
B. buyer
C. seller
D. all of the above
Give this one a try later!
C. Seller
Explanation: In a net listing, the seller agrees to accept a certain amount of
money from the sale and the listing broker receives any surplus beyond
that. This arrangement is likely to be unfair to an uninformed seller. The
broker could end up collecting a far larger commission than a broker who
charges an ordinary percentage-based commission would have (while
performing no extra work to justify the higher amount).
Prior to a licensee's second license renewal, she must complete how many hours of
education in courses approved by the Director?
A. 20
B. 30
, C. 45
D. 60
Give this one a try later!
B. 30
Explanation: Washington law allows out-of-state licensees to perform
duties that would require a license when engaged in commercial real
estate transactions. The out-of-state licensee must have a written
agreement to work in cooperation with a brokerage licensed in
Washington.
Mary, in an effort to shore up a rocky marriage, wrote a quitclaim deed that
transferred her property to a joint tenancy with her husband (as opposed to creating
a tenancy in common). She told her husband about this, but the document was never
recorded. They later divorced, by which point the deed had been lost. Does Mary's
now ex-husband have a valid claim on the property?
A. No, although if the deed had been recorded it would have provided constructive
notice
B. No, because he didn't sign the deed
C. Yes, because a court will consider oral evidence about a contract
D. Yes, because quitclaim deeds do not required the signature of the grantee to
transfer title
Give this one a try later!
A. No, although if the deed had been recorded it would have provided
constructive notice
Explanation: Mary's ex-husband couldn't enforce the transfer in court
because the only evidence of the deed is oral evidence, which is generally
unacceptable as proof of a transfer of real estate. If the deed had been
recorded, the recorded document would provide the public at large with
constructive notice of the transfer, and it would also satisfy a court.
make an offer for $190,00. The listing agent tells her that the seller won't accept
anything under $195,000. The buyer offers $195,000 and the seller accepts. Which is
correct?
A. The listing agent violated her fiduciary duty to the seller by engaging in self-
dealing
B. The listing agent violated her fiduciary duty to the seller by telling the buyer how
low the seller would go
C. The listing agent did not violate her fiduciary duty to the seller because that is not
information that the seller would expect to remain confidential
D. The listing agent fulfilled her fiduciary duty to the seller by facilitating a successful
offer and acceptance
Give this one a try later!
, B. The listing agent violated her fiduciary duty to the seller by telling the
buyer how low the seller would go
Explanation: By telling the buyer that the seller's walk-away price is
$195,000, the listing agent divulged information that the seller would
expect to remain confidential and, if divulged, works to the seller's
detriment. Under general agency law, this is a violation of the agent's
fiduciary duties. (It also violates the agent's duties to the principal under
Washington's Real Estate Brokerage Relationships Act.)
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit
$5,000 in earnest money within two business days after mutual acceptance. The offer
is contingent on results of a soil feasibility report. On May 5 the seller accepts the
offer. On May 11 the soil report is ordered. On May 17 the soil feasibility report comes
back and is approved by the buyer. By what date does the earnest money need to be
deposited?
A. May 4
B. May 7
C. May 13
D. May 19
Give this one a try later!
B. May 7
Explanation: Mutual acceptance occurs when the offeree communicates
acceptance to the offeror. In this case, acceptance occurred on May 5, so
the deposit would need to be deposited by May 7, two days later.
An out-of-state real estate licensee (who is licensed in another state) may enter
Washington to engage in which real estate activity?
A. Property management
B. Residential sales
,C. Commercial sales or leasing
D. Contract collection
Give this one a try later!
C. Commercial sales or leasing
Explanation: Washington law allows out-of-state licensees to perform
duties that would require a license when engaged in commercial real
estate transactions. The out-of-state licensee must have a written
agreement to work in cooperation with a brokerage licensed in
Washington.
Net listings are strongly discouraged because they are likely to be unfair to the:
A.broker
B. buyer
C. seller
D. all of the above
Give this one a try later!
C. Seller
Explanation: In a net listing, the seller agrees to accept a certain amount of
money from the sale and the listing broker receives any surplus beyond
that. This arrangement is likely to be unfair to an uninformed seller. The
broker could end up collecting a far larger commission than a broker who
charges an ordinary percentage-based commission would have (while
performing no extra work to justify the higher amount).
Prior to a licensee's second license renewal, she must complete how many hours of
education in courses approved by the Director?
A. 20
B. 30
, C. 45
D. 60
Give this one a try later!
B. 30
Explanation: Washington law allows out-of-state licensees to perform
duties that would require a license when engaged in commercial real
estate transactions. The out-of-state licensee must have a written
agreement to work in cooperation with a brokerage licensed in
Washington.
Mary, in an effort to shore up a rocky marriage, wrote a quitclaim deed that
transferred her property to a joint tenancy with her husband (as opposed to creating
a tenancy in common). She told her husband about this, but the document was never
recorded. They later divorced, by which point the deed had been lost. Does Mary's
now ex-husband have a valid claim on the property?
A. No, although if the deed had been recorded it would have provided constructive
notice
B. No, because he didn't sign the deed
C. Yes, because a court will consider oral evidence about a contract
D. Yes, because quitclaim deeds do not required the signature of the grantee to
transfer title
Give this one a try later!
A. No, although if the deed had been recorded it would have provided
constructive notice
Explanation: Mary's ex-husband couldn't enforce the transfer in court
because the only evidence of the deed is oral evidence, which is generally
unacceptable as proof of a transfer of real estate. If the deed had been
recorded, the recorded document would provide the public at large with
constructive notice of the transfer, and it would also satisfy a court.
