Washington State Managing Broker Exam
UPDATED ACTUAL Questions And
CORRECT Answers
At what point has listing agent earned a commission? - CORRECT 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. - CORRECT ANSWER - Yes, because the seller won't
provide marketable title, which is considered a default.
A mortgagee is the... - CORRECT ANSWER - lender.
The mortgagor is the... - CORRECT ANSWER - borrower.
An assignee is a... - CORRECT 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: - CORRECT ANSWER - Assignee
Describe Tenancy in Common (mention 4 items). - CORRECT ANSWER - 1. No right of
survivorship,
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). -
CORRECT ANSWER - loans made for business, commercial, or agricultural purposes.
An encroachment is considered... - CORRECT 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... - CORRECT 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: - CORRECT 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... - CORRECT
ANSWER - contact the buyer's agent and 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... - CORRECT
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 - CORRECT 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: - CORRECT 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... -
CORRECT 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... - CORRECT 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: - CORRECT
ANSWER - property taxes.
What information does an appraiser need in order to calculate a capitalization rate? - CORRECT
ANSWER - Value & net income. -- In order to calculate a property's value, an appraiser
using the income approach would 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... -
CORRECT 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... - CORRECT ANSWER - tell recipients how to opt out of receiving future
emails.
UPDATED ACTUAL Questions And
CORRECT Answers
At what point has listing agent earned a commission? - CORRECT 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. - CORRECT ANSWER - Yes, because the seller won't
provide marketable title, which is considered a default.
A mortgagee is the... - CORRECT ANSWER - lender.
The mortgagor is the... - CORRECT ANSWER - borrower.
An assignee is a... - CORRECT 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: - CORRECT ANSWER - Assignee
Describe Tenancy in Common (mention 4 items). - CORRECT ANSWER - 1. No right of
survivorship,
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). -
CORRECT ANSWER - loans made for business, commercial, or agricultural purposes.
An encroachment is considered... - CORRECT 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... - CORRECT 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: - CORRECT 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... - CORRECT
ANSWER - contact the buyer's agent and 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... - CORRECT
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 - CORRECT 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: - CORRECT 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... -
CORRECT 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... - CORRECT 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: - CORRECT
ANSWER - property taxes.
What information does an appraiser need in order to calculate a capitalization rate? - CORRECT
ANSWER - Value & net income. -- In order to calculate a property's value, an appraiser
using the income approach would 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... -
CORRECT 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... - CORRECT ANSWER - tell recipients how to opt out of receiving future
emails.
