Rockwell Exam Real Estate Classes WA | | | | | |
Final Exam 1 with verified solutions | | | | |
A buyer purchases a rental home that is fully furnished. The document used to
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transfer title to the furniture is: | | | | | |
a. quitclaim deed
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b. bill of sale
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c. special warranty deed
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d. general warranty deed - Correct answer ✔b. bill of sale
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Deeds transfer title to real estate, a bill of sale is generally needed to transfer
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title to personal property.
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Ben receives a life estate in a property, with his nephew Will designated as the
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remainderman. When Ben dies, what kind of interest does Will receive? | | | | | | | | | |
A. Fee Simple Estate
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B. Life Estate
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C. Remainder Interest
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D. Reversionary Interest - Correct answer ✔A. Fee Simple Estate
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The interest that passes to a designated person upon the death of a life tenant
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(or other measuring life) is a fee simple estate. Will has a remainder interest
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only up until the moment Ben dies. Once Ben is dead, Will's interest
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immediately becomes a fee simple interest. | | | | |
,A buyer accepts a general warranty deed from a seller, believing that the seller is
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the sole owner of the property. The buyer later finds out that the seller is only a
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co-owner. Has a covenant in the general warranty deed been violated? | | | | | | | | | |
A. No, the only covenant in a general warranty deed promises that the previous
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owner didn't encumber the property | | | |
B. No, the principle of caveat emptor controls matters concerning a deed
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C. Yes, there is a covenant providing equitable title
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D. Yes, there is a covenant providing marketable title - Correct answer ✔D. Yes,
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there is a covenant providing marketable title
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The general warranty deed contains a covenant of the right to convey, meaning
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that the grantor either has title to the interest or is an agent of the owner with
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the authority to transfer the interest.
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A plaintiff files a lawsuit involving a property and also files a separate document
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|intended to provide notice of the lawsuit. This recorded notice of a pending
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legal action is called a/ an: | | | | |
A. Abstract of judgement
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B. Petition for alienation
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C. Writ of execution
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D. Lis Pendens - Correct answer ✔D. Lis Pendens
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A Lis Pendens is a recorded notice stating that there is a lawsuit pending that
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may affect title to the defendant's real estate and that could bind the purchaser
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of the property.
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,A movie theater was built ten years ago. If the neighborhood is now zoned
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entirely residential, the movie theater: | | | |
A. will have to be torn down
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B. must be remodeled to better conform to the neighborhood's intended use
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C. will be allowed to continue if the owner obtains a conditional use permit
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D. will be allowed to continue since it was built before the new zoning law went
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into effect - Correct answer ✔D. Will be allowed to continue since it was built
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before the new zoning law went into effect
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The movie theater is an example of a nonconforming use, which predated a
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zoning change. Nonconforming uses are generally allowed to continue,
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although they may not be enlarged, or resumed if they are stopped.
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In a bilateral contract:
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A. a duty wil be performed by only one party
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B. one party can restrict the performance of another party
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C. two parties have exchanged promises, and both parties are obligated to
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perform
D. all parties have fully performed their duties - Correct answer ✔C. two parties
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have exchanged promises, and both parties are obligated to perform
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In a bilateral contract, two parties have exchanged promises and both parties
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are obligated to perform. (Bi=two way)
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, Gerald engages a licensee to list his property and find a buyer for it. In this
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context, the licensee is acting as a: | | | | | |
A. General agent
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B. power of attorney
| | |
C. property manager
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D. special agent - Correct answer ✔D. Special Agent
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When a licensee represents a seller in a single transaction, and is authorized to
| | | | | | | | | | | | | |
perform typical duties associated with listing a property, she acts as a special
| | | | | | | | | | | | |
agent.
A licensee located what seems like a ready, willing, and able buyer. However,
| | | | | | | | | | | | |
the deal falls through at closing because the buyer cant obtain necessary
| | | | | | | | | | | |
financing. At the same time, though, a 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
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C. Yes, because the licensee saw the transaction through the closing date
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D. Yes, because the seller has an absolute duty to provide marketable title at
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closing - Correct answer ✔B. No, because there was no ready, willing, and able
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buyer
The most important rule of determining whether a seller is obligated to pay a
| | | | | | | | | | | | | |
commission is whether a ready, willing, and able buyer was found during the | | | | | | | | | | | | |
listing period. This would take precedence over the seller's failure to provide
| | | | | | | | | | | |
Final Exam 1 with verified solutions | | | | |
A buyer purchases a rental home that is fully furnished. The document used to
| | | | | | | | | | | | | |
transfer title to the furniture is: | | | | | |
a. quitclaim deed
| |
b. bill of sale
| | |
c. special warranty deed
| | |
d. general warranty deed - Correct answer ✔b. bill of sale
| | | | | | | | | |
Deeds transfer title to real estate, a bill of sale is generally needed to transfer
| | | | | | | | | | | | | | |
title to personal property.
| | |
Ben receives a life estate in a property, with his nephew Will designated as the
| | | | | | | | | | | | | | |
remainderman. When Ben dies, what kind of interest does Will receive? | | | | | | | | | |
A. Fee Simple Estate
| | |
B. Life Estate
| |
C. Remainder Interest
| |
D. Reversionary Interest - Correct answer ✔A. Fee Simple Estate
| | | | | | | | |
The interest that passes to a designated person upon the death of a life tenant
| | | | | | | | | | | | | | |
(or other measuring life) is a fee simple estate. Will has a remainder interest
| | | | | | | | | | | | | |
only up until the moment Ben dies. Once Ben is dead, Will's interest
| | | | | | | | | | | | |
immediately becomes a fee simple interest. | | | | |
,A buyer accepts a general warranty deed from a seller, believing that the seller is
| | | | | | | | | | | | | |
the sole owner of the property. The buyer later finds out that the seller is only a
| | | | | | | | | | | | | | | | | |
co-owner. Has a covenant in the general warranty deed been violated? | | | | | | | | | |
A. No, the only covenant in a general warranty deed promises that the previous
| | | | | | | | | | | | | |
owner didn't encumber the property | | | |
B. No, the principle of caveat emptor controls matters concerning a deed
| | | | | | | | | | |
C. Yes, there is a covenant providing equitable title
| | | | | | | |
D. Yes, there is a covenant providing marketable title - Correct answer ✔D. Yes,
| | | | | | | | | | | | | |
there is a covenant providing marketable title
| | | | | |
The general warranty deed contains a covenant of the right to convey, meaning
| | | | | | | | | | | | |
that the grantor either has title to the interest or is an agent of the owner with
| | | | | | | | | | | | | | | | |
the authority to transfer the interest.
| | | | |
A plaintiff files a lawsuit involving a property and also files a separate document
| | | | | | | | | | | | |
|intended to provide notice of the lawsuit. This recorded notice of a pending
| | | | | | | | | | | | |
legal action is called a/ an: | | | | |
A. Abstract of judgement
| | |
B. Petition for alienation
| | |
C. Writ of execution
| | |
D. Lis Pendens - Correct answer ✔D. Lis Pendens
| | | | | | | |
A Lis Pendens is a recorded notice stating that there is a lawsuit pending that
| | | | | | | | | | | | | | |
may affect title to the defendant's real estate and that could bind the purchaser
| | | | | | | | | | | | | |
of the property.
| |
,A movie theater was built ten years ago. If the neighborhood is now zoned
| | | | | | | | | | | | | |
entirely residential, the movie theater: | | | |
A. will have to be torn down
| | | | | |
B. must be remodeled to better conform to the neighborhood's intended use
| | | | | | | | | | |
C. will be allowed to continue if the owner obtains a conditional use permit
| | | | | | | | | | | | |
D. will be allowed to continue since it was built before the new zoning law went
| | | | | | | | | | | | | | | |
into effect - Correct answer ✔D. Will be allowed to continue since it was built
| | | | | | | | | | | | | | |
before the new zoning law went into effect
| | | | | | |
The movie theater is an example of a nonconforming use, which predated a
| | | | | | | | | | | | |
zoning change. Nonconforming uses are generally allowed to continue,
| | | | | | | | |
although they may not be enlarged, or resumed if they are stopped.
| | | | | | | | | | |
In a bilateral contract:
| | |
A. a duty wil be performed by only one party
| | | | | | | | |
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 - Correct answer ✔C. two parties
| | | | | | | | | | | | | |
have exchanged promises, and both parties are obligated to perform
| | | | | | | | |
In a bilateral contract, two parties have exchanged promises and both parties
| | | | | | | | | | | |
are obligated to perform. (Bi=two way)
| | | | |
, Gerald engages a licensee to list his property and find a buyer for it. In this
| | | | | | | | | | | | | | | |
context, the licensee is acting as a: | | | | | |
A. General agent
| |
B. power of attorney
| | |
C. property manager
| |
D. special agent - Correct answer ✔D. Special Agent
| | | | | | | |
When a licensee represents a seller in a single transaction, and is authorized to
| | | | | | | | | | | | | |
perform typical duties associated with listing a property, she acts as a special
| | | | | | | | | | | | |
agent.
A licensee located what seems like a ready, willing, and able buyer. However,
| | | | | | | | | | | | |
the deal falls through at closing because the buyer cant obtain necessary
| | | | | | | | | | | |
financing. At the same time, though, a 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 the closing date
| | | | | | | | | | |
D. Yes, because the seller has an absolute duty to provide marketable title at
| | | | | | | | | | | | | |
closing - Correct answer ✔B. No, because there was no ready, willing, and able
| | | | | | | | | | | | | |
buyer
The most important rule of determining whether a seller is obligated to pay a
| | | | | | | | | | | | | |
commission is whether a ready, willing, and able buyer was found during the | | | | | | | | | | | | |
listing period. This would take precedence over the seller's failure to provide
| | | | | | | | | | | |
