Current Issues (WA Real Estate Continuing Education 2025) Questions and Answers

Current Issues (WA Real Estate Continuing Education 2025) Questions and Answers What is the purpose of an escalation clause in a real estate purchase contract? Allows the buyer to exceed another buyer's offer, up to a maximum limit Increases the buyer's offer at a specified rate based on the number of offers the seller received The clause allows the buyer and seller agree to on a closing date that is less than 30 days The seller is authorized to accelerate the contracted buyer's contingencies Allows the buyer to exceed another buyer's offer, up to a maximum limit NW MLS Form 22B requires that the buyer list their property and have it added to the MLS with _____ of the date that both the buyer and seller sign Form 22B. 48 hours 3 days 5 days 1 week 5 days When a buyer is selling their own property to pay for the purchase of the seller's property, the seller can reject the offer for the buyer's property if the offer isn't at least 10% less than the seller's property price. has the right to review the offer the buyer receives for the sale of their own property. must remove their property from the MLS until the buyer sells their property. will work with the buyer and their real estate agent to market the buyer's property for them. has the right to review the offer the buyer receives for the sale of their own property. Which one of the following statements is FALSE? When the agent refers just one company, the agent could be at risk for liability if the referral makes a mistake. If it is in the best interest of the client, the agent should reject the reports from the professionals hired to perform the inspections. When asked for referrals, the agent should recommend more than one inspection company. If a buyer selects an inspector that the agent knows has a reputation for poor performance, the agent should disclose this information to the buyer. If it is in the best interest of the client, the agent should reject the reports from the professionals hired to perform the inspections. Which of the following statements about inspections is TRUE? Inspections only cover material defects A property inspection will determine the price the buyer should offer for the property Inspectors are not required to calibrate a thermostat At a minimum, inspections should include tests for lead, asbestos, and radon Inspectors are not required to calibrate a thermostat If a buyer's home inspection report indicates that additional specialized inspections are recommended, the buyer can give notice to the seller within a specified timeframe that additional inspections will be conducted. buyer can move forward with the transaction with the option to rescind after closing. seller can terminate the real estate transaction with the buyer. seller must pay for the specialized inspections relating to pests, dry rot, and mold. buyer can give notice to the seller within a specified timeframe that additional inspections will be conducted. Which of the following would be a valid real estate transaction closing date? Tuesday, July 4 Saturday, April 21 Sunday, September 1 Friday, December 13 Friday, December 13 What role does the Veterans Administration play in a VA loan? The VA guarantees the loan The VA originates the loan The VA funds the loan The VA pays back the loan The VA guarantees the loan Under the new state real estate excise tax rules, what is the highest rate a property will be taxed at if it sold for $4 million? 1.10% 1.28% 2.75% 3.0% 5.5% 3.0% Which of the following would be exempt from the graduated Real Estate Excise Taxes? A property that sells for $250,000. A parcel of land used primarily for commercial timber. An open space of land zoned for industrial business factories. A quarry zone used for mining operations. A parcel of land used primarily for commercial timber. B&O taxes have been expanded to apply to the Real Estate sector in recent years because it is considered part of which business or occupation? It is classified as a Service Business. It is considered to be a "Specified Financial Institution." It is treated as a professional service offshoot of the Department of Housing and Urban Development. It is considered a portion of the travel and tour sector. It is classified as a Service Business. Which of the following is a protected class in Washington, but not federally? Membership in a state militia Age Race Religion Disability status Family status Membership in a state militia How many days' notice does a landlord need to give a tenant when terminating the tenancy with plans to demolish the property and replace it with something different? 30 days 60 days 90 days 120 days 1 year 120 days Which of the following would be the best description of NAR's Pathways to Professionalism? It requires mandatory compliance and violations of the Pathways can result in sanctions and punishments. Compliance is voluntary, but violations can result in sanctions and punishments. It requires mandatory compliance, but there are no punishments or sanctions for violations. Compliance is voluntary, and there are no punishments or sanctions for violations. Compliance is voluntary, and there are no punishments or sanctions for violations. In the NAR Pathways to Professionalism, the advice is broken up into subsections entitled "Respect to ___." Which of the following is NOT a category in the Pathways? Respect for Peers Respect for Property Respect for Potential Clients Respect for the Public Respect for Potential Clients Which of the following is the definition of a "managing broker?" A natural person acting on behalf of a real estate firm to perform real estate brokerage services under the supervision of a designated broker. A natural person in whom authority is vested to delegate management duties for branch offices to other brokers. The broker who has registered his or her name in the proper state office; authorized to control and organize the brokerage. The founding member of a real estate brokerage. A natural person acting on behalf of a real estate firm to perform real estate brokerage services under the supervision of a designated broker. NAR has expressed some concerns about the legal issues of real estate teams. In Washington, only one law, WAC 308-124B-210, has been produced that could apply to the concept of Real Estate teams. What does WAC 308-124B-210 relate to? Use of unlicensed assistants in the team. Micromanagement, commission, and classification of team members. Presentation of written offers. Use of names, titles, or brands without obtaining an assumed name license. Use of names, titles, or brands without obtaining an assumed name license. Seller is considering two offers to purchase her home. One offer for $250,000 and the other for $255,000. A buyer presents a third offer to the listing broker offering to pay $45,000 in cash now for the property. Should the listing broker present the offer to the seller? No, the listing broker has a duty to only present the client with viable offers. No, the listing broker should not present offers to the client when the offer is less than half the value of the highest bid. Yes, the listing broker should present the offer to the client because it has considerations that could impact the seller's decision, such as immediate payment and the all-cash nature of the offer. Yes, the listing broker has a duty to present all offers to the client. Yes, the listing broker has a duty to present all offers to the client. Which of the following markets would most likely bring about a greater number of multiple offer scenarios? An active market where there are significantly more buyers than sellers. A market where there are precisely as many buyers as sellers. A market where there are more sellers than buyers. A zoning modification creates a market with significantly more residential real estate than before; encouraging more residential sales. An active market where there are significantly more buyers than sellers. If a prospective buyer writes a letter to the homeowner to try and influence their decision, which of the following statements would NOT potentially cause a Fair Housing violation? "My children loved the tree fort in the back yard." "Since I take care of my grandfather, the spare room will be extremely helpful." "The house is perfect, since I only work three miles away!" "I was glad to see that the house has handholds in the shower and handrails on the staircases; I'm not as young as I used to be and my grandchildren always told me to install them in my old house." "My partner and I both loved the house." "The house is perfect, since I only work three miles away!" What is a downside in demanding the "highest, best, final offer" by a specific deadline? If the seller has not specifically instructed the listing broker to stop presenting offers, the listing broker is still obligated to present these offers to the seller. The buyer may offer slightly less than their best offer in hopes that there are no other potential buyers. Few buyers are willing to respond to strict demands like a "highest, best, final offer" demand. There is no such thing as a "best" offer since the buyer cannot know what the seller values most in an offer. If the seller has not specifically instructed the listing broker to stop presenting offers, the listing broker is still obligated to present these offers to the seller. Buyer Bonnie emails an offer to Seller Steve's Listing Broker. The offer states that Bonnie is willing to pay $160,000 for the property, will pay for the costs of all inspections and title insurance, and will put down $5,000 in earnest money. Steve must respond to the offer by June 5, and "time is of the essence." If Steve accepts Bonnie's offer on June 6, what happens? Bonnie must put down the $5,000 earnest money and continue with the contract. Bonnie may choose to proceed with the offer and tender the earnest money or may treat the offer as terminated. Bonnie cannot accept the offer since it is past the essential deadline. Steve can claim that he accepted the offer within a reasonable amount of time, and therefore the offer was properly accepted. Bonnie may choose to proceed with the offer and tender the earnest money or may treat the offer as terminated.