WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
1. A home inspection revealed that answer:
black mold is present in a home. D: seek expert advise
What should the buyer's agent tell
the buyer? A buyer's agent typically does not have expertise in en-
vironmental hazards. The proper step, for the matters in
A. That black mold is toxic, and a transaction outside the agent's expertise, is to advise
that the buyer should not buy the the principal to seek expert advice. In this case, that
house would be a mold remediation specialist.
B. That mold is commonplace, and
can be cleaned up with bleach
C. To require the seller to remedy
the problem
D. To seek expert advice
2. A seller wants to net $60,000 from Answer:
a transaction, but will have to pay C: $260,000
off a mortgage and other fees, at
a total cost of $181,800. The seller Start by adding the desired net and the other
will also need to pay a 7% commis- cost, including the mortgage ($60,000 + $181,800 +
sion. What will the property need $241,800).
to sell for? Subtract the commission percentage from 100% (100%
-7%=93%)
A. $241,800 Then divide the total by that percentage ($241,800 /
B. $258,726 .93 = $260,000)
C. $260,000
D. $276,060 Since the agent bases her commission on the total
selling price, you can't simply add 7% of the costs
and profit to the selling price or you wont quite have
her full commission. You need a price that the agent
can take 7% from and still satisfy the seller's goals. A
fuller explanation is found in the section on seller's net
problems in ch. 18 of Fundamentals.
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
3. A buyer asks the buyer's agent to answer:
write an offer on terms that don't B. Buyer's agent is permitted to unilaterally terminate
match the listing agreement. The the agency relationship
buyer's agent refuses to write the
offer and then, in writing, unilat- An agent may unilaterally renounce an agency relation-
erally terminates the agency rela- ship. Termination of the agency may involve a breach
tionship with the buyer. Which is of contract; if so, the agent could be liable to the prin-
true? cipal for damages resulting from the breach. However,
breach of contract isn't in itself grounds for disciplinary
A. Buyer's agent will be subject to action. Failure to present an offer is grounds for disci-
disciplinary action plinary action; but here, since the agent didn't write the
B. Buyer's agent is permitted to offer, no offer exists yet. (An agent is free to renounce
unilaterally terminate the agency rather than help the principal do something pointless
relationship or unwise.)
C. Buyer's agent is allowed to ter-
minate the agency, but must write
the offer before terminating
D. Buyer's agent is not permitted to
write such an offer
4. Closing is set for August 1. The sell- answer
er has already paid the property B: $2,500
taxes for the year, totaling $6,000.
How much of that amount is the Since the buyer is taking title on August 1, she's re-
buyer's responsibility? sponsible for the property taxes for the remaining five
months of the year (August, September, October, No-
A. $2,000 vember, and December). Divide the annual taxes by
B. $2,500 12 to find the monthly amount: $6, - $500.
C. $3,000 Multiply that figure by 5 to determine the buyer's share
D. $3,500 of taxes: 5 x $500 = $2500 (Generally the state will tell
you when to treat all months as equal, but here even set
of dollar amounts in the answers lets you know that)
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
5. The IRS issues rules that determine answer
when a real estate agent is an em- B. The brokerage may require an independent contrac-
ployee and when he is an indepen- tor to have a cell phone
dent contractor. Which of the fol-
lowing statements on that topic isThis question is a bit dated but you may encounter
FALSE? something similar on the license exam. That said, one
of the key differences between employees and inde-
A: The brokerage may allow an in- pendent contractors is the level of supervision; an inde-
dependent contractor to place her pendent contractor uses his judgment how to perform
own ads but the ads must conform a task, while an employee receives specific instructions
with the firm's advertising rules on how to accomplish each task.
B. The brokerage may require an
independent contractor to have a An instruction to carry a particular equipment doesn't
cell phone particularly suggest an independent contractor
C. The brokerage will take taxes relationship, making B the only possible answer. But
from an employee's paycheck certainly all agents carry cell phones now whether in-
D. The brokerage will tell an em- structed to do so or not.
ployee when to work certain hours
6. A tenant has already paid his Correct Answer: B
$1,200 rent for the month for a sin- 36% of students missed this question
gle-family property. The property's
owner sells it to a new buyer, with The rent has already been paid to the seller, so the seller
closing occurring on the 15th of will need to give some of that rent to the buyer. The
June. The parties decide the seller buyer's prorated share will be a debit for the seller and
is entitled to rent for the closing a credit for the buyer on the settlement statement. The
date. On the settlement statement, seller's share is for the 1st through the 15th (15 days),
the prorated rent will appear as a: and the buyer's share is for the 16th through the 30th
(also 15 days), so the $1,200 can be divided in half.
The settlement statement will show a $600 debit for the
A. $600 debit for the buyer and a seller and a $600 credit for the buyer.
$600 credit for the seller
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
B. $600 debit for the seller and a
$600 credit for the buyer
C. $1,200 credit for the buyer
D. $1,200 credit for the seller
7. Mineral rights associated with real Correct Answer: B
property are always: 27% of students missed this question
A. conveyed along with the surface Mineral rights may be sold separately from the land.
rights to the property However, they are appurtenant to the land and will be
B. separable and divisible conveyed with the land unless there is an agreement
C. sold separately from the proper- otherwise.
ty
D. an interest in personal property
8. John, Kevin, and Lyle own a proper- Correct Answer: D
ty as tenants in common, but only
Kevin and Lyle live on the property. When co-owners can't agree on whether to sell or how
John would like to sell the property to divide their property, one or more of them may file a
for redevelopment, but Kevin and partition action to terminate the co-ownership. If there
Lyle refuse. What is John's best op- isn't a feasible way to physically divide the property,
tion? the
court will order that the property be sold and the sale
A. Charge Kevin and Lyle rent proceeds be divided between the former co-owners.
B. Create a trust to manage the
property
C. Evict Kevin and Lyle
D. Obtain a court order to sell the
property
9. W, age 17, enters into an in- Answer: B
stallment contract to purchase a
five-year-old car from S, an adult.
Study online at https://quizlet.com/_bqrsla
1. A home inspection revealed that answer:
black mold is present in a home. D: seek expert advise
What should the buyer's agent tell
the buyer? A buyer's agent typically does not have expertise in en-
vironmental hazards. The proper step, for the matters in
A. That black mold is toxic, and a transaction outside the agent's expertise, is to advise
that the buyer should not buy the the principal to seek expert advice. In this case, that
house would be a mold remediation specialist.
B. That mold is commonplace, and
can be cleaned up with bleach
C. To require the seller to remedy
the problem
D. To seek expert advice
2. A seller wants to net $60,000 from Answer:
a transaction, but will have to pay C: $260,000
off a mortgage and other fees, at
a total cost of $181,800. The seller Start by adding the desired net and the other
will also need to pay a 7% commis- cost, including the mortgage ($60,000 + $181,800 +
sion. What will the property need $241,800).
to sell for? Subtract the commission percentage from 100% (100%
-7%=93%)
A. $241,800 Then divide the total by that percentage ($241,800 /
B. $258,726 .93 = $260,000)
C. $260,000
D. $276,060 Since the agent bases her commission on the total
selling price, you can't simply add 7% of the costs
and profit to the selling price or you wont quite have
her full commission. You need a price that the agent
can take 7% from and still satisfy the seller's goals. A
fuller explanation is found in the section on seller's net
problems in ch. 18 of Fundamentals.
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
3. A buyer asks the buyer's agent to answer:
write an offer on terms that don't B. Buyer's agent is permitted to unilaterally terminate
match the listing agreement. The the agency relationship
buyer's agent refuses to write the
offer and then, in writing, unilat- An agent may unilaterally renounce an agency relation-
erally terminates the agency rela- ship. Termination of the agency may involve a breach
tionship with the buyer. Which is of contract; if so, the agent could be liable to the prin-
true? cipal for damages resulting from the breach. However,
breach of contract isn't in itself grounds for disciplinary
A. Buyer's agent will be subject to action. Failure to present an offer is grounds for disci-
disciplinary action plinary action; but here, since the agent didn't write the
B. Buyer's agent is permitted to offer, no offer exists yet. (An agent is free to renounce
unilaterally terminate the agency rather than help the principal do something pointless
relationship or unwise.)
C. Buyer's agent is allowed to ter-
minate the agency, but must write
the offer before terminating
D. Buyer's agent is not permitted to
write such an offer
4. Closing is set for August 1. The sell- answer
er has already paid the property B: $2,500
taxes for the year, totaling $6,000.
How much of that amount is the Since the buyer is taking title on August 1, she's re-
buyer's responsibility? sponsible for the property taxes for the remaining five
months of the year (August, September, October, No-
A. $2,000 vember, and December). Divide the annual taxes by
B. $2,500 12 to find the monthly amount: $6, - $500.
C. $3,000 Multiply that figure by 5 to determine the buyer's share
D. $3,500 of taxes: 5 x $500 = $2500 (Generally the state will tell
you when to treat all months as equal, but here even set
of dollar amounts in the answers lets you know that)
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
5. The IRS issues rules that determine answer
when a real estate agent is an em- B. The brokerage may require an independent contrac-
ployee and when he is an indepen- tor to have a cell phone
dent contractor. Which of the fol-
lowing statements on that topic isThis question is a bit dated but you may encounter
FALSE? something similar on the license exam. That said, one
of the key differences between employees and inde-
A: The brokerage may allow an in- pendent contractors is the level of supervision; an inde-
dependent contractor to place her pendent contractor uses his judgment how to perform
own ads but the ads must conform a task, while an employee receives specific instructions
with the firm's advertising rules on how to accomplish each task.
B. The brokerage may require an
independent contractor to have a An instruction to carry a particular equipment doesn't
cell phone particularly suggest an independent contractor
C. The brokerage will take taxes relationship, making B the only possible answer. But
from an employee's paycheck certainly all agents carry cell phones now whether in-
D. The brokerage will tell an em- structed to do so or not.
ployee when to work certain hours
6. A tenant has already paid his Correct Answer: B
$1,200 rent for the month for a sin- 36% of students missed this question
gle-family property. The property's
owner sells it to a new buyer, with The rent has already been paid to the seller, so the seller
closing occurring on the 15th of will need to give some of that rent to the buyer. The
June. The parties decide the seller buyer's prorated share will be a debit for the seller and
is entitled to rent for the closing a credit for the buyer on the settlement statement. The
date. On the settlement statement, seller's share is for the 1st through the 15th (15 days),
the prorated rent will appear as a: and the buyer's share is for the 16th through the 30th
(also 15 days), so the $1,200 can be divided in half.
The settlement statement will show a $600 debit for the
A. $600 debit for the buyer and a seller and a $600 credit for the buyer.
$600 credit for the seller
, WA State Real Estate Exam Prep: Rockwell Institute Sample Exams
Study online at https://quizlet.com/_bqrsla
B. $600 debit for the seller and a
$600 credit for the buyer
C. $1,200 credit for the buyer
D. $1,200 credit for the seller
7. Mineral rights associated with real Correct Answer: B
property are always: 27% of students missed this question
A. conveyed along with the surface Mineral rights may be sold separately from the land.
rights to the property However, they are appurtenant to the land and will be
B. separable and divisible conveyed with the land unless there is an agreement
C. sold separately from the proper- otherwise.
ty
D. an interest in personal property
8. John, Kevin, and Lyle own a proper- Correct Answer: D
ty as tenants in common, but only
Kevin and Lyle live on the property. When co-owners can't agree on whether to sell or how
John would like to sell the property to divide their property, one or more of them may file a
for redevelopment, but Kevin and partition action to terminate the co-ownership. If there
Lyle refuse. What is John's best op- isn't a feasible way to physically divide the property,
tion? the
court will order that the property be sold and the sale
A. Charge Kevin and Lyle rent proceeds be divided between the former co-owners.
B. Create a trust to manage the
property
C. Evict Kevin and Lyle
D. Obtain a court order to sell the
property
9. W, age 17, enters into an in- Answer: B
stallment contract to purchase a
five-year-old car from S, an adult.
