Washington State Brokers Exam Cram
Test #1
A buyer and a seller enter into a purchase and sale agreement. The agreement
provides that closing must take place by September 30. A clause states that a party's
failure to be ready by a date specified in the contract will constitute a breach of the
contract. What is the name of this clause? - ANS-A time is of the essence clause
\A buyer enters into a buyer agency agreement with a real estate licensee to
negotiate the purchase of a particular FSBO property. The buyer then enters into a
purchase and sale agreement, but the property he agreed to buy is subsequently
condemned. Which of the following is true?
A) The agency is terminated
B) They can immediately look for another property
C) The agent may sue the buyer for damages, if any were incurred
D) This creates a dual agency - ANS-A) The agency is terminated
\A buyer is looking at a house in a neighborhood with newly installed sidewalks.
When the buyer asks about the taxes, the seller assures her that the home is not
subject to any special assessments. The buyers agent should: - ANS-advise the
buyer that the property may be subject to special assessments and recommend that
the buyer look into it
\A buyer is planning to purchase a property where he can operate a small mechanics
shop out of his home. He eventually finds a property he likes, and tells the listing
agent his plans. However, after closing he finds out that there are deed restrictions
that prevent him from operating such a business from his home. Which of the
following is true?
A) Since the agent knew the buyers intended use, the agent should have
investigated whether it was feasible or informed the buyer that he or his agent should
investigate it
B) The agent represented the seller and did not have a duty of loyalty to the buyer
C) The seller always has to disclose the zoning on a property
D) The real estate agent was the one responsible for investigating deed restrictions -
ANS-A) Since the agent knew the buyers intended use, the agent should have
investigated whether it was feasible or informed the buyer that he or his agent should
investigate it
\A buyer who is concerned with whether a propertys soil is suitable for construction
of a septic system would, as part of the inspection process, order a/an: -
ANS-percolation test
, \A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an
access road, leaving two triangular lots. If the land sells for $2,000 per acre, how
much is each lot worth? - ANS-$10,000
\A deed restriction is a covenant that: - ANS-restricts future owners of the property
\A deed that is not signed by the seller is still considered valid as long as it: - ANS-is
signed by an authorized attorney in fact
\A developer lists 20 different properties in a subdivision, with four different
licensees. Each licensee gets her own model unit to work from. Which of the
following is true? - ANS-Each model must display the Fair Housing logo
\A developer wants to subdivide a parcel and market it to potential buyers in other
states. The property is divided into 135 vacant lots. He must register with the Office
of Interstate Land Sales, which is administered by: - ANS-HUD
\A home is built on a hillside with underground springs that cause the ground to
soften from time to time. The owner, who has had the property for three years with
no problems, sells the house without mentioning the underground springs. The listing
agent who is also aware of the springs but says nothing. A year later, the buyer
realizes a corner of her house is sinking. She is entitled to sue: - ANS-both the listing
agent and the seller
\A homeowner in a recently built subdivision plans to build an extra bedroom
extending from the back of his house. Nobody in the subdivision has added on to
their houses in a similar manner yet. What would the homeowner need to obtain
before he could begin work on his project? - ANS-Building Permit
\A homeowner with a mortgage sells his home to a purchaser who agrees to assume
the mortgage. The purchaser applies for and obtains the lenders approval and the
seller is released from liability of the mortgage. This is an example of: -
ANS-novation
\A independent contractor relationship between a real estate brokerage firm and a
licensee requires that the: - ANS-brokerage and licensee must enter into a written
agreement
\A landlord occasionally uses his master key to enter rental houses that he owns
while residents are away. He avoids giving notice because he's looking for
undisclosed pets, any damage or physical problems, and the like. This would be: -
ANS-Not allowed under the implied covenant of quiet enjoyement
\A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide.
How many square yards of carpet will need to be purchased? - ANS-30.
explanation: 18x15=270
9 feet per sq yd, so 270/9=30
\A loan is set up so that the borrowers payments are the same size each month.
Each payment is partly interest and partly principal, and the loans balance at the end
of the loan term will be zero. Which type of loan is this? - ANS-Fully amortized
\A new subdivision requires payment of HOA dues. If unpaid, what type of lien do
they create? - ANS-Specific lien that encumbers the property
Test #1
A buyer and a seller enter into a purchase and sale agreement. The agreement
provides that closing must take place by September 30. A clause states that a party's
failure to be ready by a date specified in the contract will constitute a breach of the
contract. What is the name of this clause? - ANS-A time is of the essence clause
\A buyer enters into a buyer agency agreement with a real estate licensee to
negotiate the purchase of a particular FSBO property. The buyer then enters into a
purchase and sale agreement, but the property he agreed to buy is subsequently
condemned. Which of the following is true?
A) The agency is terminated
B) They can immediately look for another property
C) The agent may sue the buyer for damages, if any were incurred
D) This creates a dual agency - ANS-A) The agency is terminated
\A buyer is looking at a house in a neighborhood with newly installed sidewalks.
When the buyer asks about the taxes, the seller assures her that the home is not
subject to any special assessments. The buyers agent should: - ANS-advise the
buyer that the property may be subject to special assessments and recommend that
the buyer look into it
\A buyer is planning to purchase a property where he can operate a small mechanics
shop out of his home. He eventually finds a property he likes, and tells the listing
agent his plans. However, after closing he finds out that there are deed restrictions
that prevent him from operating such a business from his home. Which of the
following is true?
A) Since the agent knew the buyers intended use, the agent should have
investigated whether it was feasible or informed the buyer that he or his agent should
investigate it
B) The agent represented the seller and did not have a duty of loyalty to the buyer
C) The seller always has to disclose the zoning on a property
D) The real estate agent was the one responsible for investigating deed restrictions -
ANS-A) Since the agent knew the buyers intended use, the agent should have
investigated whether it was feasible or informed the buyer that he or his agent should
investigate it
\A buyer who is concerned with whether a propertys soil is suitable for construction
of a septic system would, as part of the inspection process, order a/an: -
ANS-percolation test
, \A corn field with a depth of 900 feet and a frontage of 484 feet is bisected by an
access road, leaving two triangular lots. If the land sells for $2,000 per acre, how
much is each lot worth? - ANS-$10,000
\A deed restriction is a covenant that: - ANS-restricts future owners of the property
\A deed that is not signed by the seller is still considered valid as long as it: - ANS-is
signed by an authorized attorney in fact
\A developer lists 20 different properties in a subdivision, with four different
licensees. Each licensee gets her own model unit to work from. Which of the
following is true? - ANS-Each model must display the Fair Housing logo
\A developer wants to subdivide a parcel and market it to potential buyers in other
states. The property is divided into 135 vacant lots. He must register with the Office
of Interstate Land Sales, which is administered by: - ANS-HUD
\A home is built on a hillside with underground springs that cause the ground to
soften from time to time. The owner, who has had the property for three years with
no problems, sells the house without mentioning the underground springs. The listing
agent who is also aware of the springs but says nothing. A year later, the buyer
realizes a corner of her house is sinking. She is entitled to sue: - ANS-both the listing
agent and the seller
\A homeowner in a recently built subdivision plans to build an extra bedroom
extending from the back of his house. Nobody in the subdivision has added on to
their houses in a similar manner yet. What would the homeowner need to obtain
before he could begin work on his project? - ANS-Building Permit
\A homeowner with a mortgage sells his home to a purchaser who agrees to assume
the mortgage. The purchaser applies for and obtains the lenders approval and the
seller is released from liability of the mortgage. This is an example of: -
ANS-novation
\A independent contractor relationship between a real estate brokerage firm and a
licensee requires that the: - ANS-brokerage and licensee must enter into a written
agreement
\A landlord occasionally uses his master key to enter rental houses that he owns
while residents are away. He avoids giving notice because he's looking for
undisclosed pets, any damage or physical problems, and the like. This would be: -
ANS-Not allowed under the implied covenant of quiet enjoyement
\A living room needs to be re-carpeted. It measures 18 feet long by 15 feet wide.
How many square yards of carpet will need to be purchased? - ANS-30.
explanation: 18x15=270
9 feet per sq yd, so 270/9=30
\A loan is set up so that the borrowers payments are the same size each month.
Each payment is partly interest and partly principal, and the loans balance at the end
of the loan term will be zero. Which type of loan is this? - ANS-Fully amortized
\A new subdivision requires payment of HOA dues. If unpaid, what type of lien do
they create? - ANS-Specific lien that encumbers the property
