Washington State Real Estate Exam
Graded A+ 2024
Abandonment - ANSWER-The voluntary and permanent cessation of use or enjoyment
with no intention to resume or reclaim one's possession or interest. May pertain to an
easement or a property.
Abrogation - ANSWER-Tenants cannot sign away their rights in advance of signing the
lease.
Abstract of Title - ANSWER-A condensed version of the history of title to a particular
parcel of real estate as recorded in the county clerk's records; consists of a summary of
the original grant and all subsequent conveyances and encumbrances affecting the
property.
Abutting - ANSWER-The joining, reaching, or touching of adjoining land. Abutting
parcels of land have a common boundary.
Accelerated Depreciation - ANSWER-A method of calculating for tax purposes the
depreciation of income property at a faster rat than would be achieved using the
straight-line method. Note** any depreciation taken in excess of that which would be
claimed using the straight-line rate is subject to recapture as ordinary income to the
extent of gain resulting from the sale.
Acceleration Clause - ANSWER-A provision in a written mortgage, note, bond, or
conditional sales contract that, in the event of a default, the whole amount of principal
and interest may be declared to be due an payable at once.
Accretion - ANSWER-An increase or addition to land by the deposit of sand or soil
washed up naturally from a river lake or sea.
Accrued Depreciation - ANSWER-The actual depreciation that has occurred to a
property at any given date; the difference between the cost of replacement new (as of
the date of appraisal) and the present appraised value.
Acknowledgment - ANSWER-A declaration made by a person to a notary public, or
other public official authorized to take acknowledgments that an instrument was
executed by that person as a free and voluntary act.
Actual Eviction - ANSWER-The result of legal action originated by a lessor, whereby a
defaulted tenant is physically ousted from the rented property pursuant to a court order.
Actual Notice - ANSWER-Express information or fact; that which is know; actual
knowledge.
,Adjustable-rate Mortgage - ANSWER-A mortgage in which the interest rate changes at
predetermined intervals. The mortgage has caps, or a ceiling, that limits the amount it
can change at the predetermined intervals.
Administrator - ANSWER-The party appointed by the county court to settle the estate of
a deceased person who died without leaving a will.
Ad Valorem Tax - ANSWER-A tax levied according to value; generally used to refer to
real estate tax. Also called the general tax.
Adverse possession - ANSWER-The right of an occupant of land to acquire title against
the real owner, where possession has been actual, continuous, hostile, visible, and
distinct for the statutory period.
Affidavit - ANSWER-A written statement signed and sworn to before a person
authorized to administer an oath.
Agent - ANSWER-One who represents or has the power to act for another person
(called the principal). The authorization may be express or implied. A fiduciary
relationship is created under the law of agency when a property owner, as the principal,
executes a listing agreement or management contract authorizing a licensed real estate
broker to be the owner's agent.
Agreement of sale - ANSWER-A written agreement whereby the purchaser agrees to
buy certain real estate and the seller agrees to sell, upon terms and conditions set forth
in the agreement.
Air Lot - ANSWER-A designated airspace over a piece of land. Air lots, like surgace
property, may be transferred.
Air Rights - ANSWER-The right to use the open space above a property, generally
allowing the surface to be used for another purpose.
Alienation - ANSWER-The act of transferring property to another. Alienation may be
voluntary, such as by gift or sale; or involuntary, such as through eminent domain or
adverse possession.
Alienation Clause - ANSWER-The clause in a mortgage or deed of trst that states that
the balance of the secured debt becomes immediately due and payable at the
mortgagee's option if the property is sold by the mortgagor. In effect, this clause
prevents the mortgagor from assigning the debt without the mortgagee's approval.
Alluvion - ANSWER-New deposits of soil as the result of accretion.
, Amenitites - ANSWER-The tangible and intangible features that increase the value or
desirability of real estate.
Americans with Disabilities Act (ADA) - ANSWER-A federal law that became effective in
1992. It is designed to eliminate the discrimination against individuals with disabilities by
mandating equal access to jobs, public accommodations, public transportation,
telecommunications and government services.
Amortization - ANSWER-The liquidation of a financial burden by installment payments.
Amortized Loan - ANSWER-A loan in which the principal, as well as the interest, is
payable in monthly or other periodic installments over the term of the loan.
Antitrust Laws - ANSWER-The laws designed to preserve the free enterprise of the
open marketplace by making illegal certain private conspiracies and combinations
formed to minimize competition. Violations of antitrust laws in the real estate business
generally involve either price fixing (brokers conspiring to set fixed compensation rates)
or allocation of customers or markets (brokers agreeing to limit their areas of trade or
dealing to certain areas or properties).
Appraisal - ANSWER-An estimate of the quantity, quality, or value of something. The
process through which conclusions of property value are obtained; also refers to the
report setting forth the process of estimation and conclusion of value.
Appraised Value - ANSWER-An estimate of a property's present worth.
Appreciation - ANSWER-An increase in the worth or value of a property due to
economic or related causes that may prove to be either temporary or permanent;
opposite of depreciation.
Appurenant - ANSWER-Belonging to; incident to. Ex: a garage is appurtenant to a
house. The common interest in the common elements of a condominium is appurtenant
to each apartment.
Arbitration - ANSWER-A means of settling a controversy between two parties through
the medium of an impartial third party whose decision on the controversy (it is agreed)
will be final and binding.
Assemblage - ANSWER-The process of merging two or more parcels of real estate to
create one parcel.
Assessment - ANSWER-The imposition of a tax, charge, or levy, usually according to
established rates.
Assignment - ANSWER-The transfer in writing of rights or interest in a bond, mortgage,
lease, or other instrument.
Graded A+ 2024
Abandonment - ANSWER-The voluntary and permanent cessation of use or enjoyment
with no intention to resume or reclaim one's possession or interest. May pertain to an
easement or a property.
Abrogation - ANSWER-Tenants cannot sign away their rights in advance of signing the
lease.
Abstract of Title - ANSWER-A condensed version of the history of title to a particular
parcel of real estate as recorded in the county clerk's records; consists of a summary of
the original grant and all subsequent conveyances and encumbrances affecting the
property.
Abutting - ANSWER-The joining, reaching, or touching of adjoining land. Abutting
parcels of land have a common boundary.
Accelerated Depreciation - ANSWER-A method of calculating for tax purposes the
depreciation of income property at a faster rat than would be achieved using the
straight-line method. Note** any depreciation taken in excess of that which would be
claimed using the straight-line rate is subject to recapture as ordinary income to the
extent of gain resulting from the sale.
Acceleration Clause - ANSWER-A provision in a written mortgage, note, bond, or
conditional sales contract that, in the event of a default, the whole amount of principal
and interest may be declared to be due an payable at once.
Accretion - ANSWER-An increase or addition to land by the deposit of sand or soil
washed up naturally from a river lake or sea.
Accrued Depreciation - ANSWER-The actual depreciation that has occurred to a
property at any given date; the difference between the cost of replacement new (as of
the date of appraisal) and the present appraised value.
Acknowledgment - ANSWER-A declaration made by a person to a notary public, or
other public official authorized to take acknowledgments that an instrument was
executed by that person as a free and voluntary act.
Actual Eviction - ANSWER-The result of legal action originated by a lessor, whereby a
defaulted tenant is physically ousted from the rented property pursuant to a court order.
Actual Notice - ANSWER-Express information or fact; that which is know; actual
knowledge.
,Adjustable-rate Mortgage - ANSWER-A mortgage in which the interest rate changes at
predetermined intervals. The mortgage has caps, or a ceiling, that limits the amount it
can change at the predetermined intervals.
Administrator - ANSWER-The party appointed by the county court to settle the estate of
a deceased person who died without leaving a will.
Ad Valorem Tax - ANSWER-A tax levied according to value; generally used to refer to
real estate tax. Also called the general tax.
Adverse possession - ANSWER-The right of an occupant of land to acquire title against
the real owner, where possession has been actual, continuous, hostile, visible, and
distinct for the statutory period.
Affidavit - ANSWER-A written statement signed and sworn to before a person
authorized to administer an oath.
Agent - ANSWER-One who represents or has the power to act for another person
(called the principal). The authorization may be express or implied. A fiduciary
relationship is created under the law of agency when a property owner, as the principal,
executes a listing agreement or management contract authorizing a licensed real estate
broker to be the owner's agent.
Agreement of sale - ANSWER-A written agreement whereby the purchaser agrees to
buy certain real estate and the seller agrees to sell, upon terms and conditions set forth
in the agreement.
Air Lot - ANSWER-A designated airspace over a piece of land. Air lots, like surgace
property, may be transferred.
Air Rights - ANSWER-The right to use the open space above a property, generally
allowing the surface to be used for another purpose.
Alienation - ANSWER-The act of transferring property to another. Alienation may be
voluntary, such as by gift or sale; or involuntary, such as through eminent domain or
adverse possession.
Alienation Clause - ANSWER-The clause in a mortgage or deed of trst that states that
the balance of the secured debt becomes immediately due and payable at the
mortgagee's option if the property is sold by the mortgagor. In effect, this clause
prevents the mortgagor from assigning the debt without the mortgagee's approval.
Alluvion - ANSWER-New deposits of soil as the result of accretion.
, Amenitites - ANSWER-The tangible and intangible features that increase the value or
desirability of real estate.
Americans with Disabilities Act (ADA) - ANSWER-A federal law that became effective in
1992. It is designed to eliminate the discrimination against individuals with disabilities by
mandating equal access to jobs, public accommodations, public transportation,
telecommunications and government services.
Amortization - ANSWER-The liquidation of a financial burden by installment payments.
Amortized Loan - ANSWER-A loan in which the principal, as well as the interest, is
payable in monthly or other periodic installments over the term of the loan.
Antitrust Laws - ANSWER-The laws designed to preserve the free enterprise of the
open marketplace by making illegal certain private conspiracies and combinations
formed to minimize competition. Violations of antitrust laws in the real estate business
generally involve either price fixing (brokers conspiring to set fixed compensation rates)
or allocation of customers or markets (brokers agreeing to limit their areas of trade or
dealing to certain areas or properties).
Appraisal - ANSWER-An estimate of the quantity, quality, or value of something. The
process through which conclusions of property value are obtained; also refers to the
report setting forth the process of estimation and conclusion of value.
Appraised Value - ANSWER-An estimate of a property's present worth.
Appreciation - ANSWER-An increase in the worth or value of a property due to
economic or related causes that may prove to be either temporary or permanent;
opposite of depreciation.
Appurenant - ANSWER-Belonging to; incident to. Ex: a garage is appurtenant to a
house. The common interest in the common elements of a condominium is appurtenant
to each apartment.
Arbitration - ANSWER-A means of settling a controversy between two parties through
the medium of an impartial third party whose decision on the controversy (it is agreed)
will be final and binding.
Assemblage - ANSWER-The process of merging two or more parcels of real estate to
create one parcel.
Assessment - ANSWER-The imposition of a tax, charge, or levy, usually according to
established rates.
Assignment - ANSWER-The transfer in writing of rights or interest in a bond, mortgage,
lease, or other instrument.
