Rockwell Real Estate Exam 1 Questions
With All Correct Detailed Answers A+
Pass
A licensee locates what seems like a ready, willing, and able buyer. However, the deal
falls through at closing because the buyer can't obtain necessary financing. At the same
time, though, the seller turns out to be unable to provide marketable title. Does the
seller still owe a commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing -
Answers -✔✔ B. No, because there was no ready, willing, and able buyer
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real
Estate has expired, to avoid paying a commission. Does the listing agent have any legal
recourse?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the listing agent can sue Sam under the listing agreement
D. No, the listing agent has no further recourse - Answers -✔✔ D. No, the listing agent
has no further recourse
Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15.
Bronson already paid the taxes for the entire year, but the Hatchers are assuming
responsibility for the taxes as of the closing date. The settlement statement will prorate
the taxes as a:
A. credit to the buyer, and debit to the seller
B. debit to the buyer, and credit to the seller
C. debit to the seller
D. credit to the buyer - Answers -✔✔ B. debit to the buyer, and credit to the seller
To be entitled to sue for a commission, a person must be able to prove that at the time
the real estate activities were performed, she:
A. was licensed
B. had passed the real estate exam
C. had at least a verbal promise of compensation
D. was under the supervision of a mentor - Answers -✔✔ A. was licensed
,Q falls behind on his child support payments. The matter is forwarded to the Director of
the Department of Licensing. What action is available to the Director? She can:
A. suspend Q's license
B. revoke Q's license
C. fine Q up to $5,000
D. issue a cease and desist order - Answers -✔✔ A. suspend Q's license
A legal action brought in court to compel a party to fulfill the terms of a contract because
the land is unique and money damages would not adequately compensate the party
victimized by a breach is called a/an:
A. partition action
B. suit for specific performance
C. quiet title action
D. injunction - Answers -✔✔ B. suit for specific performance
An appraiser needs to be state-certified to perform which of the following appraisals?
A. Appraisal of a residence valued at $200,000
B. Appraisal of a residence valued at $500,000
C. Appraisal related to a loan that will be issued by a federally insured lender
D. Appraisal related to an FHA loan - Answers -✔✔ D. Appraisal related to an FHA loan
Which of the following actions by a developer would require a zoning variance or a
rezone, because it would result in a more intensive use of the land?
A. Deed restriction prohibiting further subdivision of individual lots
B. Deed restriction prohibiting painting houses non-earth-tone colors
C. Fewer outbuildings placed on each lot than allowed by law
D. Increase in number of lots per acre - Answers -✔✔ D. Increase in number of lots per
acre
On a settlement statement, an earnest money deposit that will be held by the brokerage
firm until closing is a:
A. credit to the buyer
B. credit to the seller
C. debit (charge) to the buyer
D. debit (charge) to the seller - Answers -✔✔ A. credit to the buyer
A licensee would not be disciplined for:
A. accepting compensation from both parties to a transaction without a written
disclosure
, B. failing to adequately supervise an employee who misrepresents a property to a
prospect
C. failing to include the firm's name, as licensed, in an advertisement
D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller - Answers -
✔✔ D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Tests to distinguish a fixture from personal property include all of the following,
EXCEPT:
A. method of attachment
B. cost of the item
C. intent of the annexor
D. adaptability - Answers -✔✔ B. cost of the item
In a bilateral contract:
A. a duty will be performed by one party only
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties - Answers -✔✔ C. two parties have
exchanged promises, and both parties are obligated to perform
Which of the following is not a requirement for a broker's license in the state of
Washington?
A. College diploma
B. Age 18 or older
C. Pass a state license examination
D. Complete 90 hours of prelicense education - Answers -✔✔ A. College diploma
An investor rents a property to a tenant. For tax purposes, depreciation on this property
is based on:
A. market value, plus capital improvements, minus land value
B. market value, plus rental income, minus land value
C. price, plus capital improvements, minus land value
D. price, plus rental income, minus land value - Answers -✔✔ C. price, plus capital
improvements, minus land value
A promissory note that is secured by a mortgage is:
A. a defeasance agreement
B. primary evidence of the debt
C. a guarantee of payment
D. security for the loan - Answers -✔✔ B. primary evidence of the debt
With All Correct Detailed Answers A+
Pass
A licensee locates what seems like a ready, willing, and able buyer. However, the deal
falls through at closing because the buyer can't obtain necessary financing. At the same
time, though, the seller turns out to be unable to provide marketable title. Does the
seller still owe a commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through to the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing -
Answers -✔✔ B. No, because there was no ready, willing, and able buyer
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real
Estate has expired, to avoid paying a commission. Does the listing agent have any legal
recourse?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the listing agent can sue Sam under the listing agreement
D. No, the listing agent has no further recourse - Answers -✔✔ D. No, the listing agent
has no further recourse
Bronson agreed to sell his house to the Hatchers. Closing is scheduled for May 15.
Bronson already paid the taxes for the entire year, but the Hatchers are assuming
responsibility for the taxes as of the closing date. The settlement statement will prorate
the taxes as a:
A. credit to the buyer, and debit to the seller
B. debit to the buyer, and credit to the seller
C. debit to the seller
D. credit to the buyer - Answers -✔✔ B. debit to the buyer, and credit to the seller
To be entitled to sue for a commission, a person must be able to prove that at the time
the real estate activities were performed, she:
A. was licensed
B. had passed the real estate exam
C. had at least a verbal promise of compensation
D. was under the supervision of a mentor - Answers -✔✔ A. was licensed
,Q falls behind on his child support payments. The matter is forwarded to the Director of
the Department of Licensing. What action is available to the Director? She can:
A. suspend Q's license
B. revoke Q's license
C. fine Q up to $5,000
D. issue a cease and desist order - Answers -✔✔ A. suspend Q's license
A legal action brought in court to compel a party to fulfill the terms of a contract because
the land is unique and money damages would not adequately compensate the party
victimized by a breach is called a/an:
A. partition action
B. suit for specific performance
C. quiet title action
D. injunction - Answers -✔✔ B. suit for specific performance
An appraiser needs to be state-certified to perform which of the following appraisals?
A. Appraisal of a residence valued at $200,000
B. Appraisal of a residence valued at $500,000
C. Appraisal related to a loan that will be issued by a federally insured lender
D. Appraisal related to an FHA loan - Answers -✔✔ D. Appraisal related to an FHA loan
Which of the following actions by a developer would require a zoning variance or a
rezone, because it would result in a more intensive use of the land?
A. Deed restriction prohibiting further subdivision of individual lots
B. Deed restriction prohibiting painting houses non-earth-tone colors
C. Fewer outbuildings placed on each lot than allowed by law
D. Increase in number of lots per acre - Answers -✔✔ D. Increase in number of lots per
acre
On a settlement statement, an earnest money deposit that will be held by the brokerage
firm until closing is a:
A. credit to the buyer
B. credit to the seller
C. debit (charge) to the buyer
D. debit (charge) to the seller - Answers -✔✔ A. credit to the buyer
A licensee would not be disciplined for:
A. accepting compensation from both parties to a transaction without a written
disclosure
, B. failing to adequately supervise an employee who misrepresents a property to a
prospect
C. failing to include the firm's name, as licensed, in an advertisement
D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller - Answers -
✔✔ D. offering to advertise a property, for a fee, for a "For Sale by Owner" seller
Tests to distinguish a fixture from personal property include all of the following,
EXCEPT:
A. method of attachment
B. cost of the item
C. intent of the annexor
D. adaptability - Answers -✔✔ B. cost of the item
In a bilateral contract:
A. a duty will be performed by one party only
B. one party can restrict the performance of another party
C. two parties have exchanged promises, and both parties are obligated to perform
D. all parties have fully performed their duties - Answers -✔✔ C. two parties have
exchanged promises, and both parties are obligated to perform
Which of the following is not a requirement for a broker's license in the state of
Washington?
A. College diploma
B. Age 18 or older
C. Pass a state license examination
D. Complete 90 hours of prelicense education - Answers -✔✔ A. College diploma
An investor rents a property to a tenant. For tax purposes, depreciation on this property
is based on:
A. market value, plus capital improvements, minus land value
B. market value, plus rental income, minus land value
C. price, plus capital improvements, minus land value
D. price, plus rental income, minus land value - Answers -✔✔ C. price, plus capital
improvements, minus land value
A promissory note that is secured by a mortgage is:
A. a defeasance agreement
B. primary evidence of the debt
C. a guarantee of payment
D. security for the loan - Answers -✔✔ B. primary evidence of the debt
