Rockwell WA Real Estate Midterm Exam
Questions With Correct Solutions.
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title?
A. Community property
b. Joint tenancy
c. Tenancy in common
d. Term Tenancy - Answer c. Tenancy in common
What would cause a judgment lien to be imposed on a landowner's property?
a. Foreclosure
b. Lawsuit
c. Unpaid construction project
d. Unpaid property taxes - Answer b. Lawsuit
Cluster zoning, which allows smaller lot sizes and reduced frontages, is suitable if a
development:
a. includes both commercial and residential uses
b. still has a density ratio consistent with the general plan
c. abuts a wetland or other sensitive site
d. abuts state-or city-owned land - Answer b. still has a density ratio consistent with the
general plan
A broker would need to have a securities license to participate in:
a. a sale of both real and personal property
b. a sale of a commercial building that is showing a profit
c. a transaction involving an investment contract
d. listing a property owned by a corporation - Answer c. a transaction involving an investment
contract
Buyer Perry would like to assume Seller
,a. acknowledgement of the agreement from ABC Mortgage.
b. purchase contract signed by the buyer and seller
c. release of liability signed by the ABC Mortgage
d. release of liability signed by Joan - Answer c. release of liability signed by the ABC Mortgage
A buyer who records a deed is giving:
a. constructive notice
b. actual notice
c. pending notice
d. statutory notice - Answer a. constructive notice
John leases a commercial property. In the
lease, he agrees to pay part of the utilities
and taxes, as well as a fixed monthly rent
amount, This is a:
a. net lease
b. percentage lease
c. ground lease
d. graduated lease - Answer a. net lease
By what right would a railroad company acquire private land necessary for a new railway line?
a. Partition action
b. Eminent domain
c. Suit in federal court
d. condemnation - Answer b. eminent domain
A real estate agent lists Harold's home, which he owns as a life estate. Harold's children hold the
remainder interest. Which of the following is true?
a. someone who buys Harold's life estate receives only the interest held by Harold
b. Harold's children need to sign the listing agreement
c. The buyer will automatically receive a fee simple absolute interest
, a. Department of Housing and Urban Development
b. state government
c. local health department and zoning authority
d. property owner - Answer c. local health department and zoning authority
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 payment of the entire loan balance
c. Prevent the borrower from selling the property
d. Report the borrower to a collection agency - Answer b. Demand immediate payment of the
entire loan balance
after the sale of a property in a 1031 exchange, the seller must close on the new property
within:
a. 10 days
b. 30 days
c. 45 days
d. 180 days - Answer d. 180 days
Which law prohibits discrimination in real estate transactions based on race, with no
exceptions?
a. Civil Rights Act of 1866
b. Civil Rights Act of 1964
c. Civil Rights Act of 1968
d. Fair Housing Act - Answer a. Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should:
a. assume the seller's standard policy of title insurance
b. Order a survey
c. request a title insurance policy that has the fewest exceptions
d. have her attorney prepare an abstract of title - Answer c. request a title insurance policy
that has the fewest exceptions
Questions With Correct Solutions.
Five people buy an investment property. They take title so that they each have equal ownership
shares, and so that if one of them dies, his share will pass to his heirs. How did they take title?
A. Community property
b. Joint tenancy
c. Tenancy in common
d. Term Tenancy - Answer c. Tenancy in common
What would cause a judgment lien to be imposed on a landowner's property?
a. Foreclosure
b. Lawsuit
c. Unpaid construction project
d. Unpaid property taxes - Answer b. Lawsuit
Cluster zoning, which allows smaller lot sizes and reduced frontages, is suitable if a
development:
a. includes both commercial and residential uses
b. still has a density ratio consistent with the general plan
c. abuts a wetland or other sensitive site
d. abuts state-or city-owned land - Answer b. still has a density ratio consistent with the
general plan
A broker would need to have a securities license to participate in:
a. a sale of both real and personal property
b. a sale of a commercial building that is showing a profit
c. a transaction involving an investment contract
d. listing a property owned by a corporation - Answer c. a transaction involving an investment
contract
Buyer Perry would like to assume Seller
,a. acknowledgement of the agreement from ABC Mortgage.
b. purchase contract signed by the buyer and seller
c. release of liability signed by the ABC Mortgage
d. release of liability signed by Joan - Answer c. release of liability signed by the ABC Mortgage
A buyer who records a deed is giving:
a. constructive notice
b. actual notice
c. pending notice
d. statutory notice - Answer a. constructive notice
John leases a commercial property. In the
lease, he agrees to pay part of the utilities
and taxes, as well as a fixed monthly rent
amount, This is a:
a. net lease
b. percentage lease
c. ground lease
d. graduated lease - Answer a. net lease
By what right would a railroad company acquire private land necessary for a new railway line?
a. Partition action
b. Eminent domain
c. Suit in federal court
d. condemnation - Answer b. eminent domain
A real estate agent lists Harold's home, which he owns as a life estate. Harold's children hold the
remainder interest. Which of the following is true?
a. someone who buys Harold's life estate receives only the interest held by Harold
b. Harold's children need to sign the listing agreement
c. The buyer will automatically receive a fee simple absolute interest
, a. Department of Housing and Urban Development
b. state government
c. local health department and zoning authority
d. property owner - Answer c. local health department and zoning authority
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 payment of the entire loan balance
c. Prevent the borrower from selling the property
d. Report the borrower to a collection agency - Answer b. Demand immediate payment of the
entire loan balance
after the sale of a property in a 1031 exchange, the seller must close on the new property
within:
a. 10 days
b. 30 days
c. 45 days
d. 180 days - Answer d. 180 days
Which law prohibits discrimination in real estate transactions based on race, with no
exceptions?
a. Civil Rights Act of 1866
b. Civil Rights Act of 1964
c. Civil Rights Act of 1968
d. Fair Housing Act - Answer a. Civil Rights Act of 1866
If a buyer wants to protect herself against unrecorded encumbrances, she should:
a. assume the seller's standard policy of title insurance
b. Order a survey
c. request a title insurance policy that has the fewest exceptions
d. have her attorney prepare an abstract of title - Answer c. request a title insurance policy
that has the fewest exceptions
