Washington State Brokers Exam Cram Test #1 Questions and Answers

Washington State Brokers Exam Cram Test #1 Questions and Answers Which of the following best describes the difference between building codes and zoning regulations? - ANSWER-Building codes affect improvements on the property; zoning regulations control the use of real property A independent contractor relationship between a real estate brokerage firm and a licensee requires that the: - ANSWER-brokerage and licensee must enter into a written agreement An advertisement for a house includes only the following phrase about financing: "Assume the owners original loan with only a $1000 downpayment!" What is wrong with this advertisement? - ANSWER- It doesnt also include the loans annual percentage rate and other financing terms Bobs property has a fair market value of $190000. It is in a county where properties are assessed at 50% of value, and the tax rate is $55 per $1000 of assessed value. Whats Bobs annual property tax? - ANSWER-$5,225 explanation: Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 2/14 Jesse, Kim, and Diane own a home together as joint tenants. if Jesse dies her property interest: - ANSWER-will be automatically transferred to Kim and Diane a sellers agent knows that the seller intentionally failed to disclose on the property disclosure statements that the basement leaks during heavy rains. The sellers agent must: - ANSWER-inform the prospective buyer that there is misrepresented information on the disclosure form Which of the following loans would be subject to the Truth in Lending Act? - ANSWER-A loan to a first time buyer Art sold his house, which was not encumbered with a mortgage. Closing expenses were $5,264, and he paid a commission of 7% of the selling price. He received a check at closing for $372,316. What did the house sell for? - ANSWER-$406,000 Frank gives Stella an option to buy his house. Stella, as the optionee, is obligated to: - ANSWER-pay consideration for the option right A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an access road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each lot worth? - ANSWER-$10,000 Martha gave Hanna the right to purchase her vacant lot for $65,000. Hannah paid Martha $1,200 for this right. Hannah is the: - ANSWER-optionee Which is a list of duties owed to a principal by an agent? - ANSWER-Loyalty, confidentiality, reasonable care, accounting Ajax realty lists a property for a seller at a commission rate of 8%. The MLS provides that a listing brokerage will split commissions at a 50-50 rate. Baron Realty, a cooperating brokerage, finds a buyer for Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 3/14 the property, at a price of $300,000. How much will the seller owe Ajax realty at closing? - ANSWER- $24,000 A buyer enters into a buyer agency agreement with a real estate licensee to negotiate the purchase of a particular FSBO property. The buyer then enters into a purchase and sale agreement, but the property he agreed to buy is subsequently condemned. Which of the following is true? A) The agency is terminated B) They can immediately look for another property C) The agent may sue the buyer for damages, if any were incurred D) This creates a dual agency - ANSWER-A) The agency is terminated A right held by one or more persons to use and possess property to the exclusion of others is a/an: - ANSWER-fee simple estate A new subdivision requires payment of HOA dues. If unpaid, what type of lien do they create? - ANSWER-Specific lien that encumbers the property A homeowner in a recently built subdivision plans to build an extra bedroom extending from the back of his house. Nobody in the subdivision has added on to their houses in a similar manner yet. What would the homeowner need to obtain before he could begin work on his project? - ANSWER-Building Permit Barker is declared incompetent by a court, and his daughter Marge is appointed to handle his affairs. After several years, Marge asks her sister Beth to take over her duties. Beth then lists Barkers property Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 4/14 for sale. Would a sale of Barkers property be valid under these circumstances? - ANSWER-No, Beth has not been designated bt a court to handle Barkers affairs. Peter plans to sell a number of different properties. He enters into an agreement with agent Carla, in which she agrees to act as Peters special agent. Under this agreement, how many properties may Carla list for Peter? - ANSWER-A special agent may perform whatever legal acts have been authorized by the principal, so Carla can list as many properties as are stated in the agreement A buyer and a seller enter into a purchase and sale agreement. The agreement provides that closing must take place by September 30. A clause states that a partys failure to be ready by a date specified in the contract will constitute a breach of the contract. What is the name of this clause? - ANSWER-A time is of the essence clause Interest on a loan for a home purchase is which type of interest? - ANSWER-Simple Which of the following is a primary market lender? - ANSWER-Mortga