WA REAL ESTATE FUNDAMENTALS QUESTIONS –
ROCKWELL
Which of the following is most likely to be considered a fixture? - Answers - Plumbing
A life estate will last until: - Answers - The Death of the recipient
A deed that states there is a conveyance of interest, if any, is the: - Answers -
Quitclaim deed
A judgement lien: - Answers - When paid off, requires a satisfaction of judgement to be
recorded to clear the record
The police powers of the government include: - Answers - Building codes and zoning
regulations
The term "meeting of the minds" is associated with: - Answers - Offer and acceptance
Exaggeration about a property's positive characteristics would be considered: -
Answers - Puffing
The seller listed the property for $95k. Assuming that their listing agreement is typical,
the broker would not be entitled to a commission if the seller: - Answers - Rejected a
$90k offer from a financially qualified buyer
A contract specifies that "time is of the essence." That means that: - Answers - All
contractual duties must be fulfilled on or before the date set forth in the contract.
Net listings are strongly discouraged because they are likely to be unfair to the: -
Answers - Seller
A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days
with possession at closing, and a rent provision for possession after closing. This is an
example of a/an: - Answers - Contract with contingencies
A promissory note that is secured by a mortgage is: - Answers - Primary evidence of
the debt (The note is evidence of the debt; the mortgage makes the property security for
the debt.)
Which of the following is an advantages of using private mortgage insurance from a
borrower's perspective: - Answers - It allows for a smaller downpayment
The market price of a property would be best defined as: - Answers - The amount paid
to obtain the property
,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: - Answers - Debit to the buyer and credit to the seller
An agent shows his customer, who is an Asian-American, homes only in neighborhoods
that are predominantly Asian-American. This is called: - Answers - Steering
A property manager will be paid 3% of a property's annual gross rental income. The rent
paid is: $24,000 base rent; $12,000 percentage rent; $8,000 maintenance, taxes, and
insurance (triple net). The commission amount that the manager will receive is: -
Answers - $1080 - In a triple net lease, the tenant pays operating expenses
(maintenance costs, taxes, and insurance) in addition to base rent and, in some cases,
percentage rent. First, calculate the rent paid each year: $24,000 base rent + $12,000
percentage rent = $36,000. Then calculate the commission amount: .03 x $36,000 =
$1,080. (Expenses probably wouldn't be considered part of the rent when calculating a
commission.)
A borrower is purchasing a $300,000 home. She will be using a loan with an LTV of
80%. She will also be paying 3 discount points. What is the total amount of cash that
she will need to bring to closing? - Answers - $67,200 -
There are two components that you'll need to calculate. First, calculate the size of the
loan: $300,000 x .80 = $240,000. She'll need to bring $60,000 to cover the
downpayment ($300,000 - $240,000 = $60,000). Second, calculate the amount of the
discount points, using the loan amount and not the purchase price ($240,000 x .03 =
$7,200). Add the two together for the total amount of cash needed ($60,000 + $7,200 =
$67,200).
A rectangular parcel of land, starting from the point of beginning, measures 180 feet
north, then 90 feet east, then 180 feet south. What is the length and direction of the last
side? - Answers - 90 ft. west
A seller finds that he cannot provide marketable title because of a cloud on title. To
clear the title, he should file a: - Answers - Quiet Title action - (a quitclaim deed would
also work but that means whoever would need to sign the deed would have to
cooperate and that's not usually an option.)
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? - Answers -
Increase in number of lots per acre
A contract for the purchase and sale of real property does not contain an adequate land
description. The agreement is: - Answers - Unenforceable
, In a dual agency, which of the following duties can the parties agree with the agent that
they will waive? - Answers - The duty to submit additional offers after acceptance has
been reached
Which of the following is the most commonly used type of disclosure? - Answers -
Seller disclosure statement (not used in agricultural land or foreclosures)
A mortgage, and the associated mortgage note are both examples of: - Answers -
Contracts
To obtain a 100% loan, with no downpayment, a borrower would most likely need to use
a/an: - Answers - VA Loan
A real estate licensee is performing a competitive market analysis. He locates a
comparable property that is slightly older than the subject property. The age of the
comparable makes it worth $2,000 less. The comparable has a small porch worth
$1,000 that the subject property lacks. If the comparable sold for $269,500 recently,
what is the estimated value of the subject property? - Answers - $270,500 -
To estimate the value of the subject property, adjust the comparable's sales price to
reflect what it would sell for if it were identical to the subject property. Add $2,000 to the
comparable's sales price (to make it more like the subject property, which is newer), and
then subtract $1,000 from the comparable's sales price (again, to make it more like the
subject property, which lacks a porch). ($269,500 + $2,000 - $1,000 = $270,500.)
Which of the following is a rule or requirement under the Real Estate Settlement
Procedures Act RESPA? - Answers - A seller is prohibited from choosing a title
insurance company for the buyer
The manager of a six-story, 18-unit apartment building carefully screens tenant
applications to make sure that tenants who use wheelchairs are assigned to the first
floor. This: - Answers - Is allowed if there's no elevator to the upper floors
Mavis buys a home with a $500,000 sales price. She will be obtaining a loan for 90% of
the property's value. She is paying two discount points, in order to bring the interest rate
down from 5% to 4.75%. What is the total amount of cash that she will owe at closing? -
Answers - $59,000 -
Mavis will need to make a $50,000 downpayment ($500,000 sales price x .90 =
$450,000 loan amount; $500,000 sales price - $450,000 loan = $50,000 downpayment).
She will also need to pay discount points ($450,000 loan x .02 = $9,000 discount
points). The interest rate is not necessary for answering this problem. Add the
downpayment and discount points for the total amount due at closing ($50,000 + $9,000
= $59,000).
Mary, in an effort to shore up a rocky marriage, wrote a quitclaim deed that transferred
her property to a joint tenancy with her husband (as opposed to creating a tenancy in
common). She told her husband about this, but the document was never recorded. They
ROCKWELL
Which of the following is most likely to be considered a fixture? - Answers - Plumbing
A life estate will last until: - Answers - The Death of the recipient
A deed that states there is a conveyance of interest, if any, is the: - Answers -
Quitclaim deed
A judgement lien: - Answers - When paid off, requires a satisfaction of judgement to be
recorded to clear the record
The police powers of the government include: - Answers - Building codes and zoning
regulations
The term "meeting of the minds" is associated with: - Answers - Offer and acceptance
Exaggeration about a property's positive characteristics would be considered: -
Answers - Puffing
The seller listed the property for $95k. Assuming that their listing agreement is typical,
the broker would not be entitled to a commission if the seller: - Answers - Rejected a
$90k offer from a financially qualified buyer
A contract specifies that "time is of the essence." That means that: - Answers - All
contractual duties must be fulfilled on or before the date set forth in the contract.
Net listings are strongly discouraged because they are likely to be unfair to the: -
Answers - Seller
A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days
with possession at closing, and a rent provision for possession after closing. This is an
example of a/an: - Answers - Contract with contingencies
A promissory note that is secured by a mortgage is: - Answers - Primary evidence of
the debt (The note is evidence of the debt; the mortgage makes the property security for
the debt.)
Which of the following is an advantages of using private mortgage insurance from a
borrower's perspective: - Answers - It allows for a smaller downpayment
The market price of a property would be best defined as: - Answers - The amount paid
to obtain the property
,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: - Answers - Debit to the buyer and credit to the seller
An agent shows his customer, who is an Asian-American, homes only in neighborhoods
that are predominantly Asian-American. This is called: - Answers - Steering
A property manager will be paid 3% of a property's annual gross rental income. The rent
paid is: $24,000 base rent; $12,000 percentage rent; $8,000 maintenance, taxes, and
insurance (triple net). The commission amount that the manager will receive is: -
Answers - $1080 - In a triple net lease, the tenant pays operating expenses
(maintenance costs, taxes, and insurance) in addition to base rent and, in some cases,
percentage rent. First, calculate the rent paid each year: $24,000 base rent + $12,000
percentage rent = $36,000. Then calculate the commission amount: .03 x $36,000 =
$1,080. (Expenses probably wouldn't be considered part of the rent when calculating a
commission.)
A borrower is purchasing a $300,000 home. She will be using a loan with an LTV of
80%. She will also be paying 3 discount points. What is the total amount of cash that
she will need to bring to closing? - Answers - $67,200 -
There are two components that you'll need to calculate. First, calculate the size of the
loan: $300,000 x .80 = $240,000. She'll need to bring $60,000 to cover the
downpayment ($300,000 - $240,000 = $60,000). Second, calculate the amount of the
discount points, using the loan amount and not the purchase price ($240,000 x .03 =
$7,200). Add the two together for the total amount of cash needed ($60,000 + $7,200 =
$67,200).
A rectangular parcel of land, starting from the point of beginning, measures 180 feet
north, then 90 feet east, then 180 feet south. What is the length and direction of the last
side? - Answers - 90 ft. west
A seller finds that he cannot provide marketable title because of a cloud on title. To
clear the title, he should file a: - Answers - Quiet Title action - (a quitclaim deed would
also work but that means whoever would need to sign the deed would have to
cooperate and that's not usually an option.)
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? - Answers -
Increase in number of lots per acre
A contract for the purchase and sale of real property does not contain an adequate land
description. The agreement is: - Answers - Unenforceable
, In a dual agency, which of the following duties can the parties agree with the agent that
they will waive? - Answers - The duty to submit additional offers after acceptance has
been reached
Which of the following is the most commonly used type of disclosure? - Answers -
Seller disclosure statement (not used in agricultural land or foreclosures)
A mortgage, and the associated mortgage note are both examples of: - Answers -
Contracts
To obtain a 100% loan, with no downpayment, a borrower would most likely need to use
a/an: - Answers - VA Loan
A real estate licensee is performing a competitive market analysis. He locates a
comparable property that is slightly older than the subject property. The age of the
comparable makes it worth $2,000 less. The comparable has a small porch worth
$1,000 that the subject property lacks. If the comparable sold for $269,500 recently,
what is the estimated value of the subject property? - Answers - $270,500 -
To estimate the value of the subject property, adjust the comparable's sales price to
reflect what it would sell for if it were identical to the subject property. Add $2,000 to the
comparable's sales price (to make it more like the subject property, which is newer), and
then subtract $1,000 from the comparable's sales price (again, to make it more like the
subject property, which lacks a porch). ($269,500 + $2,000 - $1,000 = $270,500.)
Which of the following is a rule or requirement under the Real Estate Settlement
Procedures Act RESPA? - Answers - A seller is prohibited from choosing a title
insurance company for the buyer
The manager of a six-story, 18-unit apartment building carefully screens tenant
applications to make sure that tenants who use wheelchairs are assigned to the first
floor. This: - Answers - Is allowed if there's no elevator to the upper floors
Mavis buys a home with a $500,000 sales price. She will be obtaining a loan for 90% of
the property's value. She is paying two discount points, in order to bring the interest rate
down from 5% to 4.75%. What is the total amount of cash that she will owe at closing? -
Answers - $59,000 -
Mavis will need to make a $50,000 downpayment ($500,000 sales price x .90 =
$450,000 loan amount; $500,000 sales price - $450,000 loan = $50,000 downpayment).
She will also need to pay discount points ($450,000 loan x .02 = $9,000 discount
points). The interest rate is not necessary for answering this problem. Add the
downpayment and discount points for the total amount due at closing ($50,000 + $9,000
= $59,000).
Mary, in an effort to shore up a rocky marriage, wrote a quitclaim deed that transferred
her property to a joint tenancy with her husband (as opposed to creating a tenancy in
common). She told her husband about this, but the document was never recorded. They
