ROCKWELL REAL ESTATE CLASSES WA FINAL
EXAM 1 2026 EXAMINATION TEST COMPLETE
QUESTIONS AND ANSWERS GRADED A+
◉ Max would like to know if there's an encroachment on his
boundary line. He should:
A. examine the legal description
B. order an appraisal
C. order a survey
D. do a title search. Answer: C. order a survey
◉ Two parties enter into an option agreement, scheduled to end in
December. However, in October the optionee decides he doesn't
want to buy the property. What should the parties do in order to
terminate the option?
A. Complete a formal statement of novation
B. Exercise the option's contingency clause
C. File an interpleader action so a court can void the contract
D. Nothing; the option will expire automatically. Answer: D. Nothing;
the option will expire automatically
,◉ Prices in a local market are trending downward. A seller found
that she had to lower the price of her house by $25,000 over the
course of six months before she could find a buyer. Upset over selling
at a loss, she informs her listing agent that she is going to lower the
commission rate that she pays. Can she do this?
A. Yes, a loss by the seller must be shared by the listing agent
B. Yes, since commission rates are negotiated and can be changed at
any time
C. No, commission rates are established by the local multiple listing
service and cannot be changed
D. No, the commission rate, once established in the listing agreement
contract, cannot be changed unless both parties agree. Answer: D.
No, the commission rate, once established in the listing agreement
contract, cannot be changed unless both parties agree
◉ Sally lists her property for sale with Broker Al. Al learns that the
property is about to be rezoned to a higher use. He tells Sally he
would like to purchase the property himself. She agrees, and the sale
closes. Six months later, Al resells the property for a significant
profit. This is legal:
A. as long as before Sally agreed to the sale, Al informed her of the
upcoming zoning change and what it would mean for the property's
value
,B. as long as he disclosed to Sally the profit he made off the resale,
after his sale closed
C. only if Al shares his profits with Sally
D. under no circumstances. Answer: A. as long as before Sally agreed
to the sale, Al informed her of the upcoming zoning change and what
it would mean for the property's value
◉ Sarita bought a home. She had poor credit, so the owner agreed to
finance the purchase. The parties agreed to a 20-year loan term.
Sarita took title to the property, and the seller held a lien against the
property. What type of financing instrument was used?
A. Option to buy
B. Land contract
C. Purchase money mortgage
D. Open mortgage. Answer: C. Purchase money mortgage
◉ A broker can serve as a closing agent for a fee in the state of
Washington, if the:
A. broker is a licensed escrow officer
B. fee is reasonable
C. buyer and seller agree
, D. broker discloses the fact to all parties. Answer: A. broker is a
licensed escrow officer
◉ XYZ Realty has the exclusive right to represent a new subdivision.
An agent working for the subdivision office, and named on the listing
agreement, shows a property to the Meyers, who are not working
with their own agent. When the Meyers decide to buy, they have
XYZ's agent provide basic help in filling out an offer form. Which of
the following is true?
A. The agent owes the buyers the duty of loyalty
B. The buyers are not represented by an agent
C. The buyers are represented by this agent
D. This has created a dual agency. Answer: B. The buyers are not
represented by an agent
Generally providing any brokerage services creates an agency
relationship with a buyer, but there's an important exception to this
rule: if the agent is already representing another party under a
written agreement, then providing minimal services does not create
an agency
Key word is BASIC
EXAM 1 2026 EXAMINATION TEST COMPLETE
QUESTIONS AND ANSWERS GRADED A+
◉ Max would like to know if there's an encroachment on his
boundary line. He should:
A. examine the legal description
B. order an appraisal
C. order a survey
D. do a title search. Answer: C. order a survey
◉ Two parties enter into an option agreement, scheduled to end in
December. However, in October the optionee decides he doesn't
want to buy the property. What should the parties do in order to
terminate the option?
A. Complete a formal statement of novation
B. Exercise the option's contingency clause
C. File an interpleader action so a court can void the contract
D. Nothing; the option will expire automatically. Answer: D. Nothing;
the option will expire automatically
,◉ Prices in a local market are trending downward. A seller found
that she had to lower the price of her house by $25,000 over the
course of six months before she could find a buyer. Upset over selling
at a loss, she informs her listing agent that she is going to lower the
commission rate that she pays. Can she do this?
A. Yes, a loss by the seller must be shared by the listing agent
B. Yes, since commission rates are negotiated and can be changed at
any time
C. No, commission rates are established by the local multiple listing
service and cannot be changed
D. No, the commission rate, once established in the listing agreement
contract, cannot be changed unless both parties agree. Answer: D.
No, the commission rate, once established in the listing agreement
contract, cannot be changed unless both parties agree
◉ Sally lists her property for sale with Broker Al. Al learns that the
property is about to be rezoned to a higher use. He tells Sally he
would like to purchase the property himself. She agrees, and the sale
closes. Six months later, Al resells the property for a significant
profit. This is legal:
A. as long as before Sally agreed to the sale, Al informed her of the
upcoming zoning change and what it would mean for the property's
value
,B. as long as he disclosed to Sally the profit he made off the resale,
after his sale closed
C. only if Al shares his profits with Sally
D. under no circumstances. Answer: A. as long as before Sally agreed
to the sale, Al informed her of the upcoming zoning change and what
it would mean for the property's value
◉ Sarita bought a home. She had poor credit, so the owner agreed to
finance the purchase. The parties agreed to a 20-year loan term.
Sarita took title to the property, and the seller held a lien against the
property. What type of financing instrument was used?
A. Option to buy
B. Land contract
C. Purchase money mortgage
D. Open mortgage. Answer: C. Purchase money mortgage
◉ A broker can serve as a closing agent for a fee in the state of
Washington, if the:
A. broker is a licensed escrow officer
B. fee is reasonable
C. buyer and seller agree
, D. broker discloses the fact to all parties. Answer: A. broker is a
licensed escrow officer
◉ XYZ Realty has the exclusive right to represent a new subdivision.
An agent working for the subdivision office, and named on the listing
agreement, shows a property to the Meyers, who are not working
with their own agent. When the Meyers decide to buy, they have
XYZ's agent provide basic help in filling out an offer form. Which of
the following is true?
A. The agent owes the buyers the duty of loyalty
B. The buyers are not represented by an agent
C. The buyers are represented by this agent
D. This has created a dual agency. Answer: B. The buyers are not
represented by an agent
Generally providing any brokerage services creates an agency
relationship with a buyer, but there's an important exception to this
rule: if the agent is already representing another party under a
written agreement, then providing minimal services does not create
an agency
Key word is BASIC
