Washington State Managing Broker Exam Practice Questions and Answers

Washington State Managing Broker Exam Practice Questions and Answers At what point has listing agent earned a commission? - ANSWER-When a ready, willing, and able buyer is found. If the seller backs out after accepting the offer, even if the buyer agrees to a rescission, the commission is still due. At closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postponed, and the seller no longer wants to sell. Does the seller owe the listing agent a commission? Yes or no, and why. - ANSWER-Yes, because the seller won't provide marketable title, which is considered a default. A mortgagee is the... - ANSWER-lender. The mortgagor is the... - ANSWER-borrower. An assignee is a... - ANSWER-person something was transferred to (for example, a secondary lender that buys a mortgage). The mortgagee assigns its interest and the assignee records the assignment. The mortgagor now needs to make payments to the: - ANSWER-Assignee Describe Tenancy in Common (mention 4 items). - ANSWER-1. No right of survivorship, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 2/27 2. No requirement of equal interests, but if percentage of ownership is not equal, it needs to be stated on the deed. 3. Individual interest can be willed to someone else. 4. Unity of possession — even when percentage of ownership varies, they equally possess and occupy the entire property. When a corporation buys a property with another entity, this is the way it would take title. It cannot be a joint tenancy since there is no right of survivorship since a corporation is perpetual. Truth in Lending Act's disclosure requirements do not apply to loans made for... (3 entities). - ANSWER-loans made for business, commercial, or agricultural purposes. An encroachment is considered... - ANSWER-...considered a trespass if it violates a neighboring owner's right to possession, and can be the basis for an ejectment action. Ad valorem taxes are... - ANSWER-taxes based on the value of the property. General real estate taxes are ad valorem taxes. Sonia buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are: - ANSWER-ad valorem taxes. The PSA has been signed and Seller has completed the Seller Disclosure Statement. A windstorm damages the property. The seller's agent is obligated to... - ANSWER-contact the buyer's agent and Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 3/27 inform him. Seller will have to amend the disclosure statement, but seller's agent is not allowed to do that. Once a contract for deed is signed by the parties, they buyer immediately receives... - ANSWER- Equitable title. The seller retains legal title. The seller transfers legal title once the buyer finishes paying off the contract/purchase price. A take-out commitment - ANSWER-A clause that allows individual lots to be released from the blanket lien when they are sold to purchasers. A developer wants a construction loan to build 20 homes. The lender requires a take-out commitment. This means that the developer: - ANSWER-a permanent lender who will provide financing once construction is complete. A licensee who is taking a listing on a property finds a number of problems that need to be fixed, such as several leaking faucets and faulty electrical outlets. This would be an example of... - ANSWER-curable depreciation (i.e., deferred maintenance). It's likely that the cost of correcting the problems could be recovered in the sales price when the property is sold. A net lease... - ANSWER-requires the tenant to pay some or all of a property's operating expenses, such as property taxes, insurance, and maintenance. A net lease requires a tenant to pay utilities, but so do many gross leases (for instance, most apartment rentals require tenants to pay their electric bill; a gross lease, however, will never require a tenant to pay property taxes. A lease is most likely to be a net lease if it requires the tenant to pay: - ANSWER-property taxes. What information does an appraiser need in order to calculate a capitalization rate? - ANSWER-Value & net income. -- In order to calculate a property's value, an appraiser using the income approach would Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024 Copyright ©Stuvia International BV Page 4/27 need to know the property's net income and capitalization rate. So, conversely, if the appraiser wanted to find the cap rate, he would need to know the property's value and net income. It is common practice for Buyer to name an escrow agent in the offer and make out the check to that company; however technically, according to the law, the check should be made out to... - ANSWER- the licensee's firm, as licensed. If a real estate agent is sending out emails offering services, the federal CAN-SPAM Act requires the agent to... - ANSWER-tell recipients how to opt out of receiving future emails. When a licensee is terminated, the date of termination is the... - ANSWER-...postmark date or the date the license is hand-delivered to the Department of Licensing. (Or when it's done online.). Failure to provide a buyer with a completed property disclosure form... - ANSWER-...would constitute unprofessional conduct under the Uniform Regulation of Business and Professions Act (URBPA) because it would be considered incompetence, negligence, malpractice, or misrepresentation. A licensee fails to attend a scheduled disciplinary hearing. What happens? - ANSWER-The hearing is held without the licensee present. A broker arranges a transaction while working for ABC