ROCKWELL WA REAL ESTATE PRACTICE EXAM
QUESTIONS
A property is listed for $275,000. The buyers offer $265,000, and insist that the gourmet
six-burner stove remain with the property. When the signed offer is presented to the
sellers, the sellers accept the price, but want to take the stove with them. They cross out
the item about the stove, sign the form, and return it to the buyers. Under these
circumstances: - Answers - A. there is now a valid contract that has been signed by all
parties
B. the offer has been invalidated and the buyers will need to begin looking for a new
property
C. the sellers can turn around and accept the original offer, if the buyers won't go along
with giving up the stove
***D. the original offer is terminated, and the sellers have made a counteroffer
A buyer is looking at a house in a neighborhood with newly installed sidewalks. When
the buyer asks about taxes, the seller assures her that the home isn't subject to any
special assessments. The buyer's agent should: - Answers - A. advise the buyer that
the property may be subject to special assessments and recommend that the buyer look
into it
B. check the county records to see if the property has any special assessments pending
against it
C. contact an attorney to begin an investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. Assuming that their listing agreement is
typical, the broker would NOT be entitled to a commission if the seller: - Answers -
***A. rejected a $90,000 offer from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer
A licensee would not be disciplined for: - Answers - 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
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property
interest: - Answers - A. will be inherited by her children according to the provisions of
her will
B. must be bequeathed to Kim and Diane in her will
C. will be automatically devised to her heirs
***D. will be automatically transferred (conveyed) to Kim and Diane
The deed that states that there is a conveyance of interest, if any, is the: - Answers -
A. grant deed
B. bargain and sale deed
***C. quitclaim deed
D. special warranty deed
The selling agent must NOT accept a promissory note as an earnest money deposit: -
Answers - A. unless the agent knows that the buyer has an excellent credit history
***B. unless the purchase and sale agreement discloses that the deposit is a note
C. unless the seller agreed during negotiation discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because they are likely to be unfair to the: -
Answers - A. broker
B. buyer
***C. seller
D. All of the above
A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater: - Answers - 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
John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle
live on the property. John would like to sell the property for redevelopment, but Kevin
and Lyle refuse. What is John's best option? - Answers - A. Charge Kevin and Lyle
rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
***D. Obtain a court order to sell the property
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? - Answers - 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
A homeowner bought his home for $150,000. Ten years later, he refinanced his
mortgage and borrowed $100,000. Which of the following is true for this type of
property? - Answers - A. Interest on the difference between the original loan amount
and the refinanced amount is not deductible
B. Interest on only half of the difference between the original amount and refinanced
amount is deductible
***C. Interest on loans such as this one for the purchase or refinance of a principal
residence is deductible
D. Interest deductibility will depend on the borrower's tax bracket
When part of the land is removed, but the boundaries of a property generally stay the
same, it is known as: - Answers - A. accretion
, B. adverse possession
***C. avulsion
D. partition
An Internet website operated by a licensee displays the properties he has listed. The
site must give the: - Answers - A. physical location of the properties
***B. brokerage's licensed name
C. brokerage's email address
D. physical location of the real estate firm's office
A homeowner has an unpaid hospital bill for $20,000. The hospital files suit and wins a
judgment for the full amount. Is the homeowner's home (which he owns free and clear)
at risk? - Answers - A. No, because the debt must be at least $25,000 to force a sale
B. No, because the debt must exceed the value of the homestead
***C. Yes, but he may be partly or fully protected by state homestead laws
D. Yes, a court may always force a sale to fulfill a judgment
A seller's agent, upon meeting with a prospective buyer, becomes concerned that the
buyer is unlikely to be financially qualified. The agent should: - Answers - A. perform a
full examination of the buyer's finances
B. refuse to accept that buyer's offer
***C. relay those concerns to the seller, who will decide
D. withdraw from the listing
An appraiser is trying to estimate depreciation when valuing an older residential rental
property, but is finding it difficult because no comparables have sold recently. However,
the appraiser can find sufficient data on rental rates in the same market, and a
capitalization rate can be supported. Which approach to value should the appraiser
use? - Answers - A. Cost
***B. Income
C. Market data
QUESTIONS
A property is listed for $275,000. The buyers offer $265,000, and insist that the gourmet
six-burner stove remain with the property. When the signed offer is presented to the
sellers, the sellers accept the price, but want to take the stove with them. They cross out
the item about the stove, sign the form, and return it to the buyers. Under these
circumstances: - Answers - A. there is now a valid contract that has been signed by all
parties
B. the offer has been invalidated and the buyers will need to begin looking for a new
property
C. the sellers can turn around and accept the original offer, if the buyers won't go along
with giving up the stove
***D. the original offer is terminated, and the sellers have made a counteroffer
A buyer is looking at a house in a neighborhood with newly installed sidewalks. When
the buyer asks about taxes, the seller assures her that the home isn't subject to any
special assessments. The buyer's agent should: - Answers - A. advise the buyer that
the property may be subject to special assessments and recommend that the buyer look
into it
B. check the county records to see if the property has any special assessments pending
against it
C. contact an attorney to begin an investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. Assuming that their listing agreement is
typical, the broker would NOT be entitled to a commission if the seller: - Answers -
***A. rejected a $90,000 offer from a financially qualified buyer
B. accepted a $90,000 offer from a financially qualified buyer
C. accepted a $95,000 offer, but his title turned out to be unmarketable
D. rejected a $95,000 offer from a financially qualified buyer
A licensee would not be disciplined for: - Answers - 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
Jesse, Kim, and Diane own a home together as joint tenants. If Jesse dies, her property
interest: - Answers - A. will be inherited by her children according to the provisions of
her will
B. must be bequeathed to Kim and Diane in her will
C. will be automatically devised to her heirs
***D. will be automatically transferred (conveyed) to Kim and Diane
The deed that states that there is a conveyance of interest, if any, is the: - Answers -
A. grant deed
B. bargain and sale deed
***C. quitclaim deed
D. special warranty deed
The selling agent must NOT accept a promissory note as an earnest money deposit: -
Answers - A. unless the agent knows that the buyer has an excellent credit history
***B. unless the purchase and sale agreement discloses that the deposit is a note
C. unless the seller agreed during negotiation discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because they are likely to be unfair to the: -
Answers - A. broker
B. buyer
***C. seller
D. All of the above
A movie theater was built ten years ago. If the neighborhood is now zoned entirely
residential, the movie theater: - Answers - 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
John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle
live on the property. John would like to sell the property for redevelopment, but Kevin
and Lyle refuse. What is John's best option? - Answers - A. Charge Kevin and Lyle
rent
B. Create a trust to manage the property
C. Evict Kevin and Lyle
***D. Obtain a court order to sell the property
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? - Answers - 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
A homeowner bought his home for $150,000. Ten years later, he refinanced his
mortgage and borrowed $100,000. Which of the following is true for this type of
property? - Answers - A. Interest on the difference between the original loan amount
and the refinanced amount is not deductible
B. Interest on only half of the difference between the original amount and refinanced
amount is deductible
***C. Interest on loans such as this one for the purchase or refinance of a principal
residence is deductible
D. Interest deductibility will depend on the borrower's tax bracket
When part of the land is removed, but the boundaries of a property generally stay the
same, it is known as: - Answers - A. accretion
, B. adverse possession
***C. avulsion
D. partition
An Internet website operated by a licensee displays the properties he has listed. The
site must give the: - Answers - A. physical location of the properties
***B. brokerage's licensed name
C. brokerage's email address
D. physical location of the real estate firm's office
A homeowner has an unpaid hospital bill for $20,000. The hospital files suit and wins a
judgment for the full amount. Is the homeowner's home (which he owns free and clear)
at risk? - Answers - A. No, because the debt must be at least $25,000 to force a sale
B. No, because the debt must exceed the value of the homestead
***C. Yes, but he may be partly or fully protected by state homestead laws
D. Yes, a court may always force a sale to fulfill a judgment
A seller's agent, upon meeting with a prospective buyer, becomes concerned that the
buyer is unlikely to be financially qualified. The agent should: - Answers - A. perform a
full examination of the buyer's finances
B. refuse to accept that buyer's offer
***C. relay those concerns to the seller, who will decide
D. withdraw from the listing
An appraiser is trying to estimate depreciation when valuing an older residential rental
property, but is finding it difficult because no comparables have sold recently. However,
the appraiser can find sufficient data on rental rates in the same market, and a
capitalization rate can be supported. Which approach to value should the appraiser
use? - Answers - A. Cost
***B. Income
C. Market data
