Rockwell Exam 4 Questions and Answers 100% Pass

Rockwell Exam 4 Questions and Answers 100% Pass Once a contract for deed is signed by the parties, the buyer immediately receives: A. a life estate B. legal title C. equitable title D. the right to lease the property - C. equitable title A buyer receives equitable title to the property once the land contract has been signed A real estate broker represents the seller in a transaction involving an investment property. Several months later, the new owner asks the broker if he would act as property manager for that property. The broker may take this position: A. only if his designated broker allows it B. only if the broker and the buyer are not related 2 | P a g e Katelyn Whitman© 2025, All Rights Reserved. C. only if the broker does not work for compensation D. only if the broker works for a third party rather than the buyer - A. only if his designated broker allows it Max would like to know if there's an encroachment on his boundary line. He should: A. examine the legal description B. order an appraisal C. order a survey D. do a title search - C. order a survey Two parties enter into an option agreement, scheduled to end in December. However, in October the optionee decides he doesn't want to buy the property. What should the parties do in order to terminate the option? A. Complete a formal statement of novation B. Exercise the option's contingency clause C. File an interpleader action so a court can void the contract D. Nothing; the option will expire automatically - D. Nothing; the option will expire automatically 3 | P a g e Katelyn Whitman© 2025, All Rights Reserved. Prices in a local market are trending downward. A seller found that she had to lower the price of her house by $25,000 over the course of six months before she could find a buyer. Upset over selling at a loss, she informs her listing agent that she is going to lower the commission rate that she pays. Can she do this? A. Yes, a loss by the seller must be shared by the listing agent B. Yes, since commission rates are negotiated and can be changed at any time C. No, commission rates are established by the local multiple listing service and cannot be changed D. No, the commission rate, once established in the listing agreement contract, cannot be changed unless both parties agree - D. No, the commission rate, once established in the listing agreement contract, cannot be changed unless both parties agree Sally lists her property for sale with Broker Al. Al learns that the property is about to be rezoned to a higher use. He tells Sally he would like to purchase the property himself. She agrees, and the sale closes. Six months later, Al resells the property for a significant profit. This is legal: A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change and what it would mean for the property's value 4 | P a g e Katelyn Whitman© 2025, All Rights Reserved. B. as long as he disclosed to Sally the profit he made off the resale, after his sale closed C. only if Al shares his profits with Sally D. under no circumstances - A. as long as before Sally agreed to the sale, Al informed her of the upcoming zoning change and what it would mean for the property's value Sarita bought a home. She had poor credit, so the owner agreed to finance the purchase. The parties agreed to a 20-year loan term. Sarita took title to the property, and the seller held a lien against the property. What type of financing instrument was used? A. Option to buy B. Land contract C. Purchase money mortgage D. Open mortgage - C. Purchase money mortgage A broker can serve as a closing agent for a fee in the state of Washington, if the: A. broker is a licensed escrow officer B. fee is reasonable C. buyer and seller agree 5 | P a g e Katelyn Whitman© 2025, All Rights Reserved. D. broker discloses the fact to all parties - A. broker is a licensed escrow officer XYZ Realty has the exclusive right to represent a new subdivision. An agent working for the subdivision office, and named on the listing agreement, shows a property to the Meyers, who are not working with their own agent. When the Meyers decide to buy, they have XYZ's agent provide basic help in filling out an offer form. Which of the following is true? A. The agent owes the buyers the duty of loyalty B. The buyers are not represented by an agent C. The buyers are represented by this agent D. This has created a dual agency - B. The buyers are not represented by an agent Generally providing any brokerage services creates an agency relationship with a buyer, but there's an important exception to this rule: if the agent is already representing another party under a written agreement, then providing minimal services does not create an agency Key word is BASIC 6 | P a g e Katelyn Whitman© 2025, All Rights Reserved. Under normal circumstances, a real estate agent may do which of the following on behalf of a principal? A. Receive financial benefits from a sale without the principal's knowledge B. Sign a contract on behalf of the principal C. Submit all written offers D. Withhold disclosure of known defects to protect the principal's interests - C. Submit all written offers A buyer's earnest money deposit can be kept by a seller in the eve