WA State 3 Real Estate Exam
1. At what point in a transaction must you disclose your agency status in writing? -
ANSWER When first meeting any potential party to the transaction
A counteroffer: - ANSWER acts as a rejection of the initial offer
3. Which of the following practices would not be an illegal discriminatory action? -
ANSWER Referring a buyer to a Spanish-speaking colleague work with a Spanish-
speaking agent
4. If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the
person who benefits from the contingency do? - ANSWER Terminate the agreement
and have the earnest money deposit returned
Waive the contingency and continue with the agreement. Both
5. Under which type of listing will the seller owe a commission to the listing agent
regardless of who is the proçuring cause of the sale? - ANSWER Exclusive right to
sell
If an investor purchases a property for $20,000 and intends to make a 5% profit, how
much should he sell the property for, not factoring in taxes and closing costs? -
ANSWER $21,000
Who is responsible for the day of closing when prorating to the day of closing? -
ANSWER Buyer
The Washington Revised Code (RCW) and Administrative Code(WAC) contain the
real estate license laws as well as all permanent laws now in force in the state. It is a
good place for licensees to go for information on - ANSWER Required duties and
business regulations
When property managers have many vacancies and there is competition in the
marketplace from similar properties, who has leverage in negotiations? - ANSWER
The tenant
Calculate 7 months of interest on a $375,000 loan with an interest rate of 4.5%. -
ANSWER $1,406.25
Marcia is changing firms. When she leaves her original brokerage, she must all her
clients current transactions. - ANSWER Leave
What does the habendum clause in a deed indicate? - ANSWER The quantity or
extent of the interest being conveyed
What is the interest rate on a loan of $105,000 with an annual interest of $3,150? -
ANSWER 3%
, Hal is a broker who is behind on his child support payments, but knows he can catch
up after his next big sale. Hal's license may be before that can happen. - ANSWER
Suspended
Which of the following phrases would be considered discriminatory if used in an
advertisement? - ANSWER "2-2 available for empty nesters"
When a party makes changes to an offer and re-presents the new offer, it is called
a(n). - ANSWER Counter offer
If zoning officials do not want to grant a variance, what may be done to allow a
varying use of the property with specific restrictions to that owner's use? - ANSWER
Conditional use permit
What did the Bill and Mary originally pay for their home that they sold for $178,000 in
which they realized a 10% profit? - ANSWER $161,818
What does "prorate" mean? - ANSWER Divide proportionately
How does an underwriter verify an applicant's income? - ANSWER Past two years
of the borrower's tax returns
Which type of real estate agreement must be in writing to be enforceable? -
ANSWER Month-to-month rental agreement
Ben's seller client is depending on him to help the seller decide on a fair price for the
property. If Ben were to advise a low price and then bid on the property himself, this
would be grounds for - ANSWER Disciplinary action
A duty of is owed to third parties to the transaction. - ANSWER Honesty, fairness
and material facts about the property
Under the Interstate Land Sales Full Disclosure sellers are required to file a
statement of recora witn HUD supplying accurate material facts? - ANSWER Sellers
dealing in the interstate sale of more than 24 properties
What legislation regulates the advertising of financing terms by lending institutions? -
ANSWER Regulation Z
Liens, easements and encroachments all create - ANSWER Encumbrance
What is an executed contract? - ANSWER An existing contract in which all terms
have been fulfilled.
The least limited, most absolute interest in real property that is transferable,
inheritable and of indefinite duration is a - ANSWER A fee simple estate
Which of the following phrases would be considered discriminatory if used in an
advertisement? - ANSWER "2-2 available in a Catholic community"
1. At what point in a transaction must you disclose your agency status in writing? -
ANSWER When first meeting any potential party to the transaction
A counteroffer: - ANSWER acts as a rejection of the initial offer
3. Which of the following practices would not be an illegal discriminatory action? -
ANSWER Referring a buyer to a Spanish-speaking colleague work with a Spanish-
speaking agent
4. If a contingency is not fulfilled despite a good faith effort to fulfill it, what may the
person who benefits from the contingency do? - ANSWER Terminate the agreement
and have the earnest money deposit returned
Waive the contingency and continue with the agreement. Both
5. Under which type of listing will the seller owe a commission to the listing agent
regardless of who is the proçuring cause of the sale? - ANSWER Exclusive right to
sell
If an investor purchases a property for $20,000 and intends to make a 5% profit, how
much should he sell the property for, not factoring in taxes and closing costs? -
ANSWER $21,000
Who is responsible for the day of closing when prorating to the day of closing? -
ANSWER Buyer
The Washington Revised Code (RCW) and Administrative Code(WAC) contain the
real estate license laws as well as all permanent laws now in force in the state. It is a
good place for licensees to go for information on - ANSWER Required duties and
business regulations
When property managers have many vacancies and there is competition in the
marketplace from similar properties, who has leverage in negotiations? - ANSWER
The tenant
Calculate 7 months of interest on a $375,000 loan with an interest rate of 4.5%. -
ANSWER $1,406.25
Marcia is changing firms. When she leaves her original brokerage, she must all her
clients current transactions. - ANSWER Leave
What does the habendum clause in a deed indicate? - ANSWER The quantity or
extent of the interest being conveyed
What is the interest rate on a loan of $105,000 with an annual interest of $3,150? -
ANSWER 3%
, Hal is a broker who is behind on his child support payments, but knows he can catch
up after his next big sale. Hal's license may be before that can happen. - ANSWER
Suspended
Which of the following phrases would be considered discriminatory if used in an
advertisement? - ANSWER "2-2 available for empty nesters"
When a party makes changes to an offer and re-presents the new offer, it is called
a(n). - ANSWER Counter offer
If zoning officials do not want to grant a variance, what may be done to allow a
varying use of the property with specific restrictions to that owner's use? - ANSWER
Conditional use permit
What did the Bill and Mary originally pay for their home that they sold for $178,000 in
which they realized a 10% profit? - ANSWER $161,818
What does "prorate" mean? - ANSWER Divide proportionately
How does an underwriter verify an applicant's income? - ANSWER Past two years
of the borrower's tax returns
Which type of real estate agreement must be in writing to be enforceable? -
ANSWER Month-to-month rental agreement
Ben's seller client is depending on him to help the seller decide on a fair price for the
property. If Ben were to advise a low price and then bid on the property himself, this
would be grounds for - ANSWER Disciplinary action
A duty of is owed to third parties to the transaction. - ANSWER Honesty, fairness
and material facts about the property
Under the Interstate Land Sales Full Disclosure sellers are required to file a
statement of recora witn HUD supplying accurate material facts? - ANSWER Sellers
dealing in the interstate sale of more than 24 properties
What legislation regulates the advertising of financing terms by lending institutions? -
ANSWER Regulation Z
Liens, easements and encroachments all create - ANSWER Encumbrance
What is an executed contract? - ANSWER An existing contract in which all terms
have been fulfilled.
The least limited, most absolute interest in real property that is transferable,
inheritable and of indefinite duration is a - ANSWER A fee simple estate
Which of the following phrases would be considered discriminatory if used in an
advertisement? - ANSWER "2-2 available in a Catholic community"
