Rockwell Real Estate Exam WA 2 Questions All Solved (Verified Answers) New Update

Rockwell Real Estate Exam WA 2 Questions All Solved (Verified Answers) New Update At what point in a transaction must you disclose your agency status in writing? A. at closing B. when first meeting any potential party to the transaction C. when a party signs an offer D. Before a party signs an offer - Answers - D. Before a party signs an offer You must disclose your agency status to each party in a transaction as soon as practicable. However, the initial disclosure may be oral - the law doesn't require written confirmation of the agency disclosure until each party is about to sign an offer. A counteroffer: A. acts as a rejection of the initial offer B. is used to rescind a previously existing contract C. is used only to make an offer contingent on a particular event D. is used when a buyer wants to make an offer where the seller has already accepted an offer - Answers - A. acts as a rejection of the initial offer A counteroffer is a rejection of the previous offer. Either a buyer or a seller may make a counteroffer, in response to either the initial or previous counteroffer. Which of the following practices would not be an illegal discriminatory action? A. Always assigning minority buyers to work with minority agents B. Referring all Spanish-speaking buyers to Spanish speaking colleagues C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference to work with a Spanish-speaking agent D. Failing to transmit an offer from an Asian buyer to the seller of a property in an all-white neighborhood - Answers - C. Referring a buyer to a Spanish-speaking colleague after the buyer expressed a preference to work with a Spanish-speaking agent It is unlawful to treat certain types of buyers differently from others based on discriminatory reasons. However, there is nothing illegal about honoring a buyer's request to work with an agent of a particular ethnicity or national origin. If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the person who benefits from the contingency do? A. Terminate the agreement and have the earnest money deposit returned B. Waive the contingency and continue with the agreement C. Sue the other party for a breach of contract D. Either A or B - Answers - D. Either A or B The party who benefits from a contingency may, if the contingency is not fulfilled, terminate the agreement or waive the contingency and complete the purchase anyway Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale? A. Open listing B. Exclusive agency C. Exclusive right to sell D. Net listing - Answers - C. Exclusive right to sell Under an exclusive right to sell listing, the listing agent will earn a commission if the property sells during the listing period, even if another agent or the seller finds the buyer Under which type of listing will an agent receive a commission only if he is the procuring cause of the sale? A. Open listing B. Exclusive agency C. Exclusive right to sell D. Net listing - Answers - A. Open listing Under an open listing, the seller pays a commission only if the agent is the person responsible for bringing about the agreement between buyer and seller. No commission is owed if another agent or seller is responsible for the sale. All of the following should be taken into account in choosing a closing date, except: A. the due date of the next installment of the property taxes B. how long the seller needs to make any necessary repairs C. whether the buyer needs to sell her current home D. the time needed to clear way any liens - Answers - A. the due date of the next installment of the property taxes In choosing a closing date, it's important to consider how long it will take for the seller to make any necessary repairs, for the buyer to sell her current home, and for any liens to clear. The property tax due date is irrelevant, since this expense is prorated between the parties at closing Excise tax is usually paid by the: A. buyer B. seller C. lender D. borrower - Answers - B. seller the excise tax is tax imposed on the sale of the property A conventional loan can be: A. an ARM B. a 15-year loan C. a 30-year loan D. All of the above - Answers - D. all of the above A conventional loan is one that is not insured or guaranteed by a government agency. A conventional loan does not have a set term and it may have an adjustable rate. Which document should be prepared if the buyer plans to take possession before the closing date? A. Rental agreement B. Sale of buyer's home contingency C. Bump notice D. Backup offer - Answers - A. Rental agreement If the parties plan to transfer possession of the property either before or after the closing date, they should sign a rental agreement that includes the rental terms and the amount of rent. Which party to a purchase and sale agreement usually benefits from a contingency? A. buyer B. seller C. designated broker D. second buyer - Answers - A. buyer A contingency in a purchase and sale agreement usually benefits the buyer, by protecting the buyer from having to complete the purchase if something doesn't work out. Unless specified in writing, all deposits to a brokerage of $10,000 or less will be held: A. in the brokerage firm's pooled trust account or by the closing agent B. in the brokerage firm's operations account C. in the designated broker's personal account D. in a trust account set up specifically for the individual client - Answers - A. in the brokerage firm's pooled trust account or by the closing agent Trust fund deposits of $10,000 or less must be held in the brokerage's pooled trust account, with interest on the account paid to the state. Earnest money deposits may also be passed directly to the escrow agent. Which party is usually responsible for the costs of modifications or repairs made a as a result of unsatisfactory inspection results? A. Buyer B. Seller C. Listing agent D. None of the above - Answers - B. Seller Typically, if a buyer deems an inspection report unsatisfactory, he will give the seller an opportunity to make repairs. If the seller chooses to make the repairs, the work is usually paid for by the seller. Disclosure of and consent to a dual agency: A. are not required in a transaction where both agents work for the same brokerage B. must occur only after the parties sign the purchase and sale agreement C. must be in writing D. allow the agent to promote the interest of one party over that of another party - Answers - C. must be in writing Dual agency is legal in Washington only if it disclosed and consented to in writing. In a VA transaction, who pays the points? A. The buyer B. The seller C. As negotiated between the buyer and seller D. The government - Answers - C. As negotiated between the buyer and seller