Washington Real estate Exam Prep 1

Under the Homestead Act in Washington State, homeowners can exempt how much equity from their personal residence, should they file bankruptcy?

$125,000

type

10 days

1/4 a section is how big

160 acres

he Sherman Anti-Trust Act was enacted in:

1890

a real estate license needs to be renewed every

2 years or 24 months

how big is 1 acre in feet

43,560 feet or 208.71 x 208.71 feet

how long is a mile in feet

5,280 feet

how big is 1 sq mile in acres

640 acres

a town ship is how big

6x6 miles or 36 sq miles

1/2 of a 1/4 section is how big

80 acres

What is a percentage Lease

A lease whose rental is based on a percentage of the monthly or annual gross sales made on the premises. Percentage leases are commonly executed in retail mall outlets and other commercial retail leases.

would relieve the lessee of any obligation to make the rental payments?

Constructive eviction

The Washington case that set precedent pertaining to real estate agents and the use of Standard forms was:

Cultum v. Hertiage House

a non-possessory property interest?

Easement

what is a gross lease

In a gross lease, the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership of the property Most apartment leases are gross leases.

Which of the following terms is associated with a security that is being sold across state lines?

Interstate

what is a material men's lien?

Involves thew supplies that are used to improve the property

Information on who holds title can be obtained from:

Last recorded deed,Preliminary title report,Tax records

The main purpose of Anti-Trust Laws are to:

Promote the policy and practice of competition

Under the income approach to appraising which of the following would be deducted from effective gross income to derive the net operating income?

Property taxes and insurance

RESPA stands for

Real Estate Settlement and Procedures Act.

A deceased person who dies leaving a valid will is said to have died

Testate

A developer entered into a long term fixed rental lease that did not contain an escalation clause. How would this lease affect the appraised value of the property?

The value would decrease.

When a lender charges more interest than is legally allowed, it is known as

Usury

Yang's clients were so pleased with her services that they gave her a check for $300 as a bonus. Who can this check be made out to?

Yangs Brokerage

What is a legal action to stop a nuisance?

abatement

A history of every recorded document dealing with a property?

abstract

What is a condensation of a court judgment?

abstract of judgment

A means of obtaining land value by deducting the value of improvements from the total property value?

abstractive method

What is obtaining title as a result of attaching or joining property to other property?

accession

What is the act of accepting a different consideration than agreed?

accord and satisfaction

What is a gradual buildup of soil by action of water or wind?

accretion

What is a declaration customarily made before a notary, certifying that the signing of an instrument is the signer?s own free act?

acknowledgment

What is a measure of land equal to 43,560 square feet?

acre

What is the personal knowledge of an interest or instrument?

action in rem

What is the disposal of property by a testator prior to death?

ademption

What is the acquisition cost less depreciation plus cost of improvements?

adjusted basis

purchase price + adjustments =

adjusted cost basis

What is a man appointed by a probate court to administer the estate of a deceased?

administrator

What is an easement that allows the easement holder a right of use over the land of another?

affirmative easement

What is an agency created when the principal?s words or conduct led another to believe in the agency and thereby act to the other?s detriment?

agency by estoppel

What is an agency created by a principal approving an unauthorized act of another?

agency by ratification

What is a transfer of property or property rights?

alienation

A person dies testate. The person named to settle the estate would MOST LIKELY be called

an executor.

What is a nonjudicial process for resolution of disputes whereby the parties agree to abide by a decision made by a third person?

arbitration

What is the legal seizure of property under court order prior to a judgment when there is belief that the property will not be available?

attachment

What is the act of witnessing; to attest is to bear witness?

attestation

What is an agreement between owner and sublessee that the owner will recognize the sublease and the sublessee will pay the owner should the sublessor's interests be foreclosed?

attornment

As easement appurtenant burdens one parcel of property for the ________ of another property.

benefit

The optionee's attorney met with the optionor and presented the signed document wherein his client exercised her option. An option contract that has been exercised is a/an

bilateral, executory contract.

a bilateral contract is where

both parties are obligated to perform example purchase and sale agreement

A potential buyer has made an offer on a property. The seller made a counteroffer. In the counteroffer the buyer is

buyer is the offeree.

A defeasible fee estate means that title

can be defeated upon the occurrence or nonoccurrence of a specified event.

the taking of private land for public use is called

condemnation

Severalty ownership of air rights combined with an undivided interest in the common areas of real estate would MOST LIKELY describe a

condominium

It is the responsibility of the ______________ to collect property taxes ( think pirates' chest of gold )

county treasurer

An added loan fee charged by a lender to make the yield on a lower-than-market interest VA or FHA loan competitive with higher interest conventional loans.

discount points

the right that the government exercises to condemn property is called

eminent domain

Tenancy in Common has:shares of

equal or unequal interest

A grantee purchased a property and did not record the deed. Later the property was transferred to an heir, who sold the property. This would create a/an

gap in the title.

After acknowledgment and delivery the deed must be accepted by the

grantee

When a person dies without leaving a will, this is known as

intestate

what is a mechanics lien ?

involves the labor performed to improve the property

adjusted basis or adjusted tax basis is

is the original cost of the property plus capital improvements minus depreciation

A lease has been assigned. The new landlord tenant relationship would be between the

lessor and the assignee.

When determining if an article is a fixture, a person would consider the

method of annexation.

The appraiser is to determine the most probable price that a buyer will pay for a property. This is known as

objective value.

A builder secured a construction loan. He MOST LIKELY obtained what kind of mortgage

open-end term mortgage.

A method of financing in which the loan that finances the purchase of a home also finances the purchase of personal items such as a washer and dryer, refrigerator, stove and other specified appliances.

package mortgage

A provision that specifies the amount of rent and when the rent is due is known as a __________________provision in a lease.

payment of rents

A leasehold estate that automatically renews for the original term is a/an

periodic tenancy.

lock and block method of survey is also called

plat and map method

The acquiring of a right in property, usually in the form of an intangible property right such as an easement or right-of-way, by means of adverse use of property that is continuous and uninterrupted for the prescriptive period.

prescription

A borrower purchased mortgagee's title insurance on a property. After the final payment was made on the mortgage, a title defect was found. The borrower would have recourse through the

previous owner if a general warranty deed was transferred at the closing.

he federal Civil Rights Act of 1866 prohibits all _________ discrimination in the sale or rental of property.

racial

lines that run north to south are called what

range lines

Department of Revenue in Washington State oversees

real estate excise tax

The Civil Rights Act of 1968 expands the definition of discrimination to include not only race, but also national origin, color, and ______.

religion

Abida and Alonsa's lease will expire on April 30. They have given notice to the landlord that they will be moving. The landlord's right to regain possession of the property after the expiration of the lease is called a

reversionary interest.

Acknowledgment is when a seller(the grantor), signs a deed and affirms that their __________ is/are valid.

signature

When property taxes and special assessments are due and they are NOT paid, they become

specific liens against the property.

An agent will only show prospective buyers properties where the agent thinks they should live, not the properties the buyers want to see. The agent is guilty of

steering.

A deed states that title is held by Carrie and David as co-owners. In most states, their ownership would be interpreted as

tenancy in common.

The Department of Treasury oversees

the IRS

Constructive eviction occurs when

the landlord causes a major interference with the tenant's possession of the property.

A chain of title is

the sequence of historical transfers of title to a property

A suit to quiet title would be filed when.

there is an adverse possession claim on the property.

lines that run east to west are called

town ship lines

The management agreement must state____________________ of a dwelling.

type

unilateral contract is

when one party is obligated to perform . example lease option where the seller is obligated to perform upon the lessee exercises his her option

does the vendor only pays capital gain taxes on the amount of money received from the installment payments for each year instead of a lump sum.

yes