WA RE Exam Questions and Answers

WA RE Exam Questions and Answers An easement for ingress and egress that is created by a court of law where it is reasonably necessary for the enjoyment of the property is A)Appruent B) By necessity C) By Prescription D In gross B - By Necessity X and Y execute a property drawn up option agreement for X to purchase Y's commercial property. X Gives $5 in consideration. The option is: A) Unenforceable B) Valid C) Void D)Voidable B - Valid How Long are deed restrictions valid? A) Potentially forever B) Only as to the first purchaser of the property C) Only if the restriction is a covenant not a condition D) Until a subsequent buyer and seller agree to release it. A - potentially forever A quitclaim deed conveys: A)Unencumbered title B) The grantors interest in a given property, if any C) An estate for years D) fee simple title, including a covenant of quiet enjoyment B - The grantors interest in a given property, if any A mortgage, and the assicoiated mortgage note, are both examples of A- Contracts B- Deeds C - Non-negotiable instruments D- Options agreements A - contract By what right would a railroad company acquire private land necessary for a new railway line? A) Partition action B) Emenit domain C) Suit in federal Court D) Condemnation B - Enement Domain A real estate agent lists harolds home, which he owns as a life estate. Harolds children hold the remainder of interest. Which of the following is true? A) Someone who buys harolds life estate only receives the interest held by Harold B) Harolds Children need to sign the listing agreement C) The buyer will automatically receive a fee simple absolute interest D) Since a life estate can not be sold, the listing is invalid A - someone who buys harolds life estate receives only the interest held by Harold A borrower defaults on a mortgage What does the acceleration clause in the mortgage allow the lender to do? A) compel the borrower to sell the property and repay the debt B) Demand immediate repayment of the entire loan balance C) Prevent the borrower from selling the property D) Report the borrower to a collection agency B - demand immediate repayment of the entire loan balance The purpose of a building code is to: A) support zoning objectives B) acquire land for public use C) establish lot size and setback requirements D) provide minimum standards for construction D) Provide minimum standards for construciton Which is true regarding a standard FHA loan? A) An FHA appraisal is required B) No Downpayment is required C) Secondary financing from an institutional lender may be used for the downpayment D) The maximun loan term is 20 years A) an FHA appraisal is required A local bank refuses to make residential loans in a particular section of town because of the ethnic background of its residents. This is a discriminatory practice called: A) block busting B) redlining C) Steering D) Collusion B ) redlining A corporation takes title to real property though a/an A) Estate in severalty B ) Joint Tenancy C) Tenancy at will D) A corp may not take title A) Estate in severity For how long is a deed restriction valid? A) potentially forever B) Only as to the first purchaser of the property C) Only if the restriction is a covenant, not a condition D) Until a subsequent buyer and seller agree to release it A) potentially forever A property investor sells 100-acre rural parcel of land with the restriction that the buyer may not divide the land into parcels smaller than one acre each. This restriction is: A)invalid; this restriction violates the rules against perpetuities B) invalid, one can not put private restriction on rural land C) valid; restrictions are always valid on agricultural land D) Valid; this restriction does not violate public property D) Valid; this restriction does not violate public prop a landowner is negotiating the lease of his land to a developer who wants to build a mall there. They should use a: A) gross lease B) ground lease C) net lease D)Percentage lease B) Ground lease A dual-state brokerage firm doing business in WA must: A) maintain an account in WA if holding any funds in a trust B) keep its transactions records on file with DOL C) only hire out of state business D) maintain an office in WA A) maintain an account in WA if holding any funds in a trust which of the following about a blind ad is true? a) it is misleading bc it fails to state the asking price B) it fails to identify the advertiser as a RE agent c) it does not indicate the location of the property D) it is an ad directed toward low income buyers B) it fails to identify the advertiser as a RE agent if an agent fails to renew a lic within one year after expiration, the license is consiered: A) inactive B) suspended C) revoked D) cancelled D) cancelled Of the following contracts, which is unilateral contract? A) escrow instrucitons B) exclusive right to sell listing C) lease D) Option D) option Agen Ralph represents the sellers in a transaction. At the time, he takes the listing, which of the following should he disclose to the sellers? A) current market conditions B) Neighborhoods racial demographics C) presence of abestos in a neighboring house D_ presence of sex offender in the neighborhood A - current market conditions one advantage of investing in real estate is A) high liquidity B) low risk C) homestead protection D) Sheltering income D- sheltering income a tenant farmer had a heart attack, and he had to terminate his lease and retire. However, his last crop was still growing in the fields and he wanted to come back and harvest, the crops are considred to be: A) emblements, which belong to the tenant farmer B) fixtures, which belong to the property owner C) real property, which belongs to the property owner D) Trade fixtures which belong to the farmer A) emblements, which belong to the tenant farmer Which of the following entities would participate in the primary market for mortgage lending? A) commercial bank B) federal home mortgage corp C) federal housing association D) jfederal national mortgage assoc A) commercial bank maria and jerry bought a property together. They set it up so that this would happen. if marla died, jerry would own the entire porperty. if jerry died, marla would own the entire property. they own the property in which manner? A) joint tenancy B) severality C) Tenancy in common D) An estate for years A) Joint tenancy one of the economic charasterics of real estae is: A) immobility B) location C) scarcity D) topography C) scarcity Of the following, which would have the greatest effect on the supply of the real estate in a particular market? A) Demographic Change B) Employment rates C) Local amenities D) Size of labor force D- Size of labor force The process of acquiring title to property through open, notorious, hostile, and continuious use is known as A) Adverse Posession B) Condemnation C) Dedication D) Prior affiliation A) adverse possession Sheila obtained a home loan from a commercial lender, and paid for a mortgagee's title policy. Who would this policy protect? A) Sheila the buyer B) Only the ledner C) Both Shila and the lender D) the seller B - only the lender Which of the following would have the greatest negative effect of a residential subdivision propertys value? A) The homes electrical system needs to be updated B) the improvements are more than 30 years old C) The home is located next to a busy freeway The property subdivision of very similar looking houses C - The property is located next a busy freeway Which of the following is true about surveys? A) They determine the placement of improvements on a property B) They identify setback lines from the property boundaries C) They protect against easements by prescription D) They reveal encroachments not of public record D - The reveal encroachments not of public record An appraiser trying to estimate depreciation when valuing and older residential property, but is finding it difficult becuase no comps have sold recently. However, ifthe appraiser can find sufficent data on rental rate in the same market and a capitalization rate can be supported. Which approach to value should the appraiser use? A) cost b) income C) market datea D) sales comps B) income A broker can serve as a closing agent for a fee in the state of Washington, if the A) Broker is a lic escrow officer B) fee is reasonable C) buyer and seller agree D) broker discloses the fact to all parties A) Broker is lic escrow officer Who issues the rules and regulations that govern the activities of real estate licensees? A) Director B) governor C) real estate commission D) real estate program manager A) Director appointments to the real estatecommission are made by A) general election B) the director of the department of license C) the govenor D) the state legislator C) The governor A brokerage firms trust accounts must be opened: A) in the firms name, and must be designated as trust accounts B) with the designated broker listed as the beneficiary C) in a recognized financial institution in the same county as the firms office D) with signature cards for all trust beneficaries A) in the firms name, and must be designated as a trust account Which of the following is an absolute requirement of selling agent in every real estate transaction? A) The agent must discolse that he is the agent for the buyer B) The agent must disclose that he is the agent for the seller C) the agent must conduct himself in accordance with agency status D the agent must disclose that his fudiciary duty rest with the parties that is paying the comission C The agent must conduct himself in accordance with agency status a 30 hour clock couse must be completed to activate a license tha has been inactive for more than A) six months B) one year C) two years D) Three years D) Three years It is not necessicary to complete 30 hours of continuing education in order to renew A) Active lic B) Brokers Lic C) Inactive Lic D) managing broker lic C) inactive lic In Washington, a person licensed to act on behalf of a real estate brokerage is called a/an: A) indapendant lic B) affiliated lic C) Associate Lic D) Designated lic B) Affiliated lic in a disciplinary action, the director of the dept of lic can do any of the following except: A) Award damages to individuals defrauded by real estate licensees B) revoke a lic C) deny a lic D refer criminal violations to the prosecuting attorney int he county where the offense was comitted A) Award damages to individuals defrauded by RE licenses When title to property is lost but the property boundaries remain the same, it is: A) acceleration B) accretion C) alienation D) Avulision C) Alienation