ROCKWELL REAL ESTATE CLASSES WA FINAL
EXAM 1 2026 EXAM REVIEW COMPLETE
QUESTIONS AND ANSWERS
◉ Buyer bob and seller sam decided to wait until sam's listing
agreement with XYZ real estate agency has expired, to avoid paying a
commission. Does the firm have any legal resources?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the lsiting agent can sue Sam under the lsiting agreement
D. No, the listing agent has no further resources. Answer: D. No, the
listing agent has no further resources
If a listing agreement does not include an extender clause, no
resources.
◉ A mortgage that uses both real and personal property to secure
the borrower's debt is a:
A. reverse equity mortgage
B. budget mortgage
C. package mortgage
D. deed of trust. Answer: C. Package mortgage
,uses both real and personal property as collateral
◉ When a borrower maks payments on a fully amoritized loan, her
debt service payments will cover:
A. only principal on the loan
B.only interest on the loan
C.both principal and interest on the loan
D. principal, interest, taxes, and insurance. Answer: C. principal and
interest on a loan
A fully amortized loan is repaid through regular paymets that
include both apportion of the principal and interest. Final payment
will pay off the principal balance, leaving no need for a balloon
payment.
◉ An appraiser is trying to estimate depreciatation 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?
A. Cost
B. Income
,C. Market Data
D. Sales comparison. Answer: B. Income
If comparables sales aren't avaibale anf the accrued depreciation is
difficult the estimate, but the data necessary to use the income
approach are availablr, then it's appropriate to use the income
approach.
◉ The term "familial status" in the Fair Housing Act refers to the
presence of:
A. adult children of tenants living on the property
B. children under the age of 18 living on the property
C. disabled persons living on the property
D. unmarried persons living on the property. Answer: B. children
under the age of 18 living on the property
Discrimination based on familial status refers to discrimination
against someone because a child (a person under 18 years old) is or
will be living on the property. In addition to parents, this rule
protects legal guardians, pregnant women, and people in the process
of obtaining custody of a child.
◉ A type of lease that allows the lessor to share in the increasing
sales generated by a retail property is a/an:
, A. percentage lease
B. graduated lease
C. index lease
D. net lease. Answer: A. Percentage lease
Percentage leases are frequently used in shopping centers and with
other retail properties. They enable the landlord to share in the
tenant's profits as part of the rent.
◉ An apartment building has eight units; each units rents for $800
per month. The property can also be expected to earn $4,000 per
year from laundry and vending machines. An appraiser estimates
that the property typically operates with a 5% vacancy factor. What
is the property's estimated annual effective gross income?. Answer:
D. $76,960
Multiply the eight units in the building by the monthly income (8 x
$800 = $6, 400) Multiply that by 12 months per year, to find the
annual income (12 x $6,400 = $76,800). Calculate what is 5% of that
amount ($76,800 x .05 = $3,840). and subtract that amount from the
annual income ($76,800 - $3,840 = $72,960). Add the $4,000 in
additional revenue (which is not subject to the vacancy factor) to
find the effective gross income ($72,960 + $4,000 = $76,960).
◉ Meridians and base lines relate to the:
EXAM 1 2026 EXAM REVIEW COMPLETE
QUESTIONS AND ANSWERS
◉ Buyer bob and seller sam decided to wait until sam's listing
agreement with XYZ real estate agency has expired, to avoid paying a
commission. Does the firm have any legal resources?
A. Yes, the listing agent can pursue criminal charges
B. Yes, the listing agent can sue Bob under the listing agreement
C. Yes, the lsiting agent can sue Sam under the lsiting agreement
D. No, the listing agent has no further resources. Answer: D. No, the
listing agent has no further resources
If a listing agreement does not include an extender clause, no
resources.
◉ A mortgage that uses both real and personal property to secure
the borrower's debt is a:
A. reverse equity mortgage
B. budget mortgage
C. package mortgage
D. deed of trust. Answer: C. Package mortgage
,uses both real and personal property as collateral
◉ When a borrower maks payments on a fully amoritized loan, her
debt service payments will cover:
A. only principal on the loan
B.only interest on the loan
C.both principal and interest on the loan
D. principal, interest, taxes, and insurance. Answer: C. principal and
interest on a loan
A fully amortized loan is repaid through regular paymets that
include both apportion of the principal and interest. Final payment
will pay off the principal balance, leaving no need for a balloon
payment.
◉ An appraiser is trying to estimate depreciatation 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?
A. Cost
B. Income
,C. Market Data
D. Sales comparison. Answer: B. Income
If comparables sales aren't avaibale anf the accrued depreciation is
difficult the estimate, but the data necessary to use the income
approach are availablr, then it's appropriate to use the income
approach.
◉ The term "familial status" in the Fair Housing Act refers to the
presence of:
A. adult children of tenants living on the property
B. children under the age of 18 living on the property
C. disabled persons living on the property
D. unmarried persons living on the property. Answer: B. children
under the age of 18 living on the property
Discrimination based on familial status refers to discrimination
against someone because a child (a person under 18 years old) is or
will be living on the property. In addition to parents, this rule
protects legal guardians, pregnant women, and people in the process
of obtaining custody of a child.
◉ A type of lease that allows the lessor to share in the increasing
sales generated by a retail property is a/an:
, A. percentage lease
B. graduated lease
C. index lease
D. net lease. Answer: A. Percentage lease
Percentage leases are frequently used in shopping centers and with
other retail properties. They enable the landlord to share in the
tenant's profits as part of the rent.
◉ An apartment building has eight units; each units rents for $800
per month. The property can also be expected to earn $4,000 per
year from laundry and vending machines. An appraiser estimates
that the property typically operates with a 5% vacancy factor. What
is the property's estimated annual effective gross income?. Answer:
D. $76,960
Multiply the eight units in the building by the monthly income (8 x
$800 = $6, 400) Multiply that by 12 months per year, to find the
annual income (12 x $6,400 = $76,800). Calculate what is 5% of that
amount ($76,800 x .05 = $3,840). and subtract that amount from the
annual income ($76,800 - $3,840 = $72,960). Add the $4,000 in
additional revenue (which is not subject to the vacancy factor) to
find the effective gross income ($72,960 + $4,000 = $76,960).
◉ Meridians and base lines relate to the:
