Fundamentals Exam
A home inspection revealed that black mold is present in a home. What should the buyer's agent tell the buyer?
To seek expert advice
Sam takes possession of an unused farm and begins growing crops. He sends the farm's owner a letter describing his actions. Can Sam ever become the owner of the farm?
Yes, as long as he maintains possession
K buys a piece of landlocked property from L on the condition that L provide an easement across the property for ingress and egress. The easement isn't recorded, K later sells the property. Is the easement still valid for the new owner?
Yes, because an easement of this type runs with the land, rather than belonging to an individual
At closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postponed, and the seller no longer wants to sell. Does the seller owe the listing agent a commission in this situation?
Yes, because the seller won't provide marketable title, which is considered a default.
An apartment building is right where a new city park is going to be built. The city condemns it. Can the city terminate the leases of the building's tenants?
Yes, if notice is provided to the tenants, and they receive relocation assistance
A buyer accepts a general warranty deed from a seller, believing that the seller is the sole owner of the property. The buyer later finds out that the seller is only a co-owner. Has a covenant in the general warranty deed been violate?
Yes, there is a covenant providing marketable title
A developer wants a construction loan to build 20 homes. The lender requires a take-out commitment. This means the developer needs:
a permanent lender who will provide financing once construction is completed
A contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
alienation clause
A mortgage often includes a clause requiring the lender's consent before another borrower may assume the mortgage. This clause is called a/an:
alienation clause (due-on sale clause)
A property manager bases the operating budget on:
anticipated expenses and revenue
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:
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
A licensee takes a listing for a house that is owned by a married couple. The husband is working overseas in the Middle East for the next two years. The wife can sign the listing agreement for her husband.
as long as he has given her a power of attorney
When part of the land is removed, but generally the boundaries of a property stay the same, it is known as:
avulsion
A and B sign a rental agreement in which A agrees to lease her property to B in exchange for rent. This contract is:
bilateral
A buyer purchases a rental home that is fully furnished. The document used to transfer title to the furniture is a:
bill of sale
A survey has been completed, and stakes have been placed marking off the property
construct fences and driveways
A licensee is helping her buyer purchase some property. The buyer would like to make an offer on a corner lot that may have once been used as storage for a heating oil company. The licensee should advise her buyer to:
consult with an environmental expert
The purchase and sale agreement has been signed and the seller has completed the seller disclosure form. A windstorm damages the property. The seller's agent is obligated to:
contact the buyer's agent and inform him
A purchase and sale agreement is for $150,000, with 80% financing, closing in 30 days with possession at closing, and a rent provision for possession after closing. This is an example of a/an:
contract with contingencies
A licensee who is taking a listing on a property finds a number of problems that need to be fixed, such as several leaking faucets and faulty electrical outlets. This would be an example of:
curable depreciation
Jones and Smith live across the street from each other in a subdivision that has deed restrictions prohibiting the keeping of larm animals as pets. Jones realizes that Smith is keeping a pet Shetland pony in the backyard. Jones can:
enforce the deed restriction against Smith via lawsuit
A tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental period or duration of possession, is called:
estate at will
Property management for residential property is different from property management for commercial property, in that a manager would be more concerned about:
future space needs of a commercial tenant than of a residential tenant
A real estate agent has assisted an investor with the purchase of a number of commercial properties. The investor will be out of the country for part of the year and asks the agent to manage all aspects of those properties during that time, including advertising and leasing. The real estate agent will be:
general agent
A landowner is negotiating the lease of his land to a developer who wants to build a mall there. They should use a:
ground lease
A former mansion has been divided into three apartments. The best approach to finding the property's value is:
income
An assigned parking space in a lot at a condominium development would be considered a/an:
limited common element
A plaintiff files a lawsuit involving a property and also files a separate document intended to provide notice of the lawsuit. This recorded notice of a pending legal action is called:
lis pendens
An increasingly common land use pattern allows for subdivisions with smaller lot sizes and little or no setback and sideyard requirements while keeping the same density ratios. These are known as:
planned unit developments
A lease is most likely to be a net lease if it requires the tenant to pay:
property taxes
When determining the value of a vacant lot, an appraiser will typically use the:
sales comparison approach
Mineral rights associated with real property are always:
separable and divisible
A percolation test will examine the:
soil's ability to absorb and retain water
Jerry offered to buy some vacant land for $500,000. There were no contingencies in his offer, and it was accepted by the seller. Jerry was planning on building a shopping center on the property, but didn't mention this to the seller or his real estate agent. A few days before closing, Jerry learned that his financing for the shopping center had fallen through. The contract is:
valid
X and Y execute a property drawn up option agreement for X to purchase Y's commercial property. X gives $5 in consideration. The option is:
valid
W, age 17, enters into an installment contract to purchase a five-year-old car from S, an adult. From a legal point of view, the contract is:
voidable by W only
A movie theater was built ten years ago. If the neighborhood is now zoned entirely residential, the movie theater:
will be allowed to continue since it was built before the new zoning law went into effect
Closing is set for August 1. The seller has already paid the property taxes for the year, totaling $6,000. How much of that amount is the buyer's responsibility?
$2,500
Rudiger purchases a home for $200,000, and receives an 80% loan from his bank. He has to pay three discount points to receive the loan. He is also responsible for a 1% origination fee and a $300 appraisal. The seller paid a 6% commission to the listing brokerage. What is the amount of the discount points that he paid?
$4,800
Jamie's house is mostly rectangular, measuring 30 ft by 40 ft. There is also an enclosed triangular foyer (a fully walled-in entry area) in front, measuring four feet across, four feet along the perpendicular side, and 5.7 feet along the diagonal side. In the back, there is a screened porch, which is 40 feet long and 5 feet deep. To the side, there is an attached garage, which measure.....
1,208 ft. Living space excludes garage and porch
The seller tells the buyer's agent that the home has never had flooding issues, but when touring the home, the buyer's agent notices a sump pump in the basement. The buyer's agent should:
Advise the buyer that the sump pump may be a sign of flooding and that she should inquire into whether flooding is an issue
A seller tells a real estate agent that she has lived in the neighborhood for a long time and would like to be selective about who buys her house; she would like the agent to tell her the race and nationality of all prospective buyers. How should the agent respond?
End her agency with the seller, as it would be a violation of the federal Fair Housing Act
Gail gives ABC Realty a listing that stipulates it is the only real estate firm authorized to list her home. At the same time she insists on including a provision that would allow her to sell the home herself without paying a commission to ABC. Which of the following describes the kind of listing she has created?
Exclusive agency listing
An offer is dated June 4. The offer is accepted on June 7. The buyers are approved for a loan and satisfy the financing contingency on June 9. The transaction closes on June 28. The date of the contract is:
June 7
A couple with children would like to buy a house that was built in 1950. The home was recently remodeled, with completely new paint and plumbing. In this situation, what does the agent always have to do?
Make sure the buyers receive a pamphlet on lead-based paint
Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following statements is true about unrecorded deeds?
The deed is still valid between Deborah and Juan
A real estate licensee is performing a competitive market analysis. He locates a comparable property that is slightly older than the subject property. The age of the comparable makes it worth $2k less. The comparable has a small porch worth $1,000 that the subject property lacks. If the comparable sold for &269,500 recently, what is the estimated value of the subject property?
$270,500
A tenant has already paid his $1,200 rent for the month for a single-family property. The property's owner sells it to a new buyer, with closing occurring on the 15th of June. The parties decide the seller is entitled to rent for the closing date. On the settlement statement, the prorated rent will appear as a:
$600 debit for the seller and a $600 credit for the buyer
A real estate agent sold a home for $275,000. Prior to closing, the agent's license was revoked on grounds of moral turpitude. With respect to his eligibility for the commission, which of the following statements is true?
He is eligible for the commission because he was duly licensed when the sale was made
A real estate agent would like to contact a buyer that he previously represented, to ask if that person would be interested in listing her home or if she has any referrals. Under what circumstances could the agent contact that person without having to consult the Do Not Call registry?
He represented the buyer within the previous 18 months
A federal law requires lenders to give a booklet about shopping for a home loan to all prospective borrowers within three business days of loan application. What law is this?
RESPA
A homeowner bought his home for $150,000. Ten years later, he refinanced his mortgage and borrowed $100,000. Which of the following is true for this type of property?
Interest on loans such as this one for the purchase or refinance of a principal residence is deductible
In preparation for appeal proceedings, the Director of the Department of Licensing prepares a full transcript of the original disciplinary hearing and, per the law, submits it to the court along with the cost to prepare the materials. Who is responsible for paying for this?
Licensee/apellant
Under which of the following circumstances would a listing be terminated?
Seller dies
Price fixing (including setting commission rates in a community) is prohibited by the:
Sherman Antitrust Act and state antitrust laws
Allen begins providing construction services on May 2 and records a construction lien on May 5. Bart begins providing services on May 3 and records a construction lien on May 4. On May 10, a judgment lien against the property is recorded. The property's owner also receives notice on May 10 that he is in arrears on his property tax payments. Which lien has lien priority?
Tax lien
A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally incompetent. The buyer's guardian contacts the seller and says that he can continue to make the buyer's payments as agreed. Which of the following is true?
The buyer can finish out the contract as the buyer's guardian has proposed
What information does an appraiser need in order to calculate a capitalization rate?
Value and net income
John wants to rent a heated garage and is willing to pay a flat rate of $100 per month. Which type of lease would this be?
gross lease
A limited partnership is a preferable method of owning real estate investment properties because:
it allows persons with less capital available to still participate in real estate projects
The requirements of the Truth in Lending Act would apply to a:
loan for the purchase of a mobile home and lot for use as a principal residence
A property manager of a ten-unit building shows an apartment to a woman who uses a wheelchair. The woman says that she would need to make some modifications, such as adding grab bars in the shower and removing carpeting in the bedroom. The landlord:
must allow the tenant to make the modifications at her own expense, but can require her to restore the property at the end of the lease
A real estate agent from Oregon is involved in a commercial property transaction in Washington. The agent from Oregon must do all of the following EXCEPT:
register with the Department of Licensing at least 20 days before engaging in brokerage activities
The Director may impose all of the following penalties on a licensee for violating the license law, EXCEPT:
requiring licensee to pay for costs of formal hearing
Gerald engages a licensee to list his property and find a buyer for it. In this context, the licensee is acting as a:
special agent
If a real estate agent is sending out emails offering his services, the federal CAN-SPAM Act requires the agent to:
tell recipients how to opt out of receiving future emails
An affiliated licensee rarely works in the firm's main office. The records for the licensee's transactions must be kept in:
the firm's office
Real estate transaction records should be kept for a minimum of:
three years
A real estate agent shows a listing to two different buyers. One buyer decides in the early morning to make an offer on the property for less than the listed price. The agent writes up the offer and plans to meet with the seller later in the day. The other buyer then contacts the agent and says that she'd like to make a full price offer. What should the agent do?
Present both offers to the seller at the same time
To avoid tenant problems, a landlord is best off using a standardized lease form that includes:
specific rules and regulations
A parcel measures 198 feet by 330 feet. It sold for 30,000$. What was the price per acre?
$20,000
The seller lists her property with XYZ Realty and agrees to pay a commission rate of 6%. The MLS provides that a listing brokerage will split commissions at a 50-50 rate with the selling brokerage. Suzy a licensee for ABC Realty, finds a buyer and the property sells for $300,000. If Suzy is entitled to a 50/50 split with her brokerage, how much commission will she receive?
$4,500
A rural lot runs 500 feet east/west along its northern boundary, and 600 feet east/west along its southern boundary. Its eastern boundary runs 200 feet due north/south, while its western boundary runs 224 feet in a diagonal northeast/southwest direction. The cost of the land is $6 per square foot. What is the cost of this lot?
$660,000
Through careful management, a property manager increases an apartment building's monthly income of $3,000 by an additional $500/month. Assuming a cap rate of 8%, what is the increase in the building's value?
$75,000
An apartment building has eight units; each unit rents for $80 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?
$76,960
A buyer is unfamiliar with the concept of discount points and asks a licensee to explain. The licensee responds "Discount points are used to replace funds that are being held by the Federal Reserve, so that more funds are available to lend". Is this description correct?
No, discount points are used to increase the yield for lenders who will sell the loans on the secondary market.
While preparing a competitive market analysis, an agent finds four comparables to choose from. Comparable 1 sold for $180,000 13 months ago under normal conditions. Comparable 2 sold for $190,000 14 months ago under normal conditions. Comparable 3 sold for $175,000 10 months ago as a foreclosure. Comparable 4 sold for $180,000 16 months ago as a foreclosure. The agent should use:
None, because they are all older than nine months
A property's net operating income is $12,000 per year. If an investor wants a 12% rate of return, how much is the property worth to him?
$100,000
Which of the following would not be considered a nominal earnest money deposit, subject to the pooled interest-bearing account requirement?
$11,000 in the form of a cashier's check
A warehouse is listed at 60 feet long by 90 feet wide, with 15-foot ceilings. The building rents for five cents per cubic foot per month. What is the amount of the monthly rental payment?
$4,050
J passes the licensee exam on March 20. How much time does J have to apply for his license, before being required to retake the license examination?
12 months
Prior to a licensee's first license renewal, she must complete how many hours of education in courses approved by the Director?
90
Which of the following persons could be eligible to receive a VA loan?
A veteran or a deceased veteran's unremarried surviving spouse
A group of affiliated licensees form a team, the XYZ Corporation, within the brokerage they work for (ABC Real Estate). ABC has a firm license, but XYZ does not. Whose name must appear in all the advertising of those affiliated licensees?
ABC Real Estate
A buyer asks the buyer's agent to write an offer on terms that don't match the listing agreement. The buyer's agent refuses to write the offer and then, in writing, unilaterally terminates the agency relationship with the buyer. Which is true?
Buyer's agent is permitted to unilaterally terminate the agency relationship
An affiliated licensee owns a wholly owned S corporation, A Realty. He instructs an escrow agent to issue a commission check directly to A Realty. How has he violated the real estate license law?
Commissions can be paid to licensees only via their firm
Who is ultimately responsible for the delivery of the earnest money?
Designated broker
If a designated broker wishes to terminate an affiliated licensee, or an affiliated licensee wants to terminate employment with a brokerage, which of the following statements is true?
Either party may act unilaterally to end the relationship
Which of the following is true about a building designated a historical landmark?
It may not be willfully destroyed without a permit
J is a designated broker who manages several commercial properties. J also owns a janitorial company. J contracts with her janitorial company to service the properties J manages. Under what conditions is this permitted?
J discloses her interest in the janitorial company and obtains the owner's written permission to use it
Legally, how much earnest money must be submitted with a valid purchase and sale agreement.
No earnest money is required
A licensee, with permission from his designated broker, sets up his own subsection S corporation, which he calls M Realty. He then rents a billboard and advertises a listing on it, using only the M Realty name. Is this legal?
No, because ads must give the name of the firm
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real Estate Agency has expired, to avoid paying a commission. Does the firm (and, by extension, the individual listing agent) have any legal recourse?
No, the listing agent has no further recourse
John, Kevin, and Lyle own a property as tenants in common, but only Kevin and Lyle live on the property. John would like to see the property for redevelopment, but Kevin and Lyle refuse. What is John's best option?
Obtain a court order to sell the property
A buyer's agent has repeatedly seen sales collapse at the last minute because the buyers weren't able to obtain financing. How could he best limit this in the future?
Require prospects to be approved first
A licensee is about to change her business location. Which of the following should she do?
Surrender her license, and apply for an update license with the correct location
Which of the following would characterize a tenancy in common?
Tenants can will a partial interest in the property
A licensee is criminally charged for stealing prescription drugs on July 2. He tells his designated broker about the charges on July 5. Who must notify the Real Estate Program Manager?
The licensee must provide notice by July 22
A Washington real estate broker takes a listing for a waterfront bungalow while working for firm A. However, before a purchase agreement is signed, she terminates her affiliation and begins working for Firm B. Which of the following statements in true?
The listing belongs to the firm, and will remain with Firm A
A property manager handling a vacant building fails, for several months, to keep out vagrants who damage the property. Who is liable?
The property manager as well as the designated broker (for failing to properly supervise the licensee)
Which of the following is true about surveys?
They reveal encroachments not of public record
A homeowner has an unpaid hospital bill for $20,000. The hospital files suit and wins a judgment for the full amount. Is the homeowner's home (which he owns free and clear) at risk?
Yes, but he may be partly or fully protected by state homestead laws
The best description of the boundary lines for a property found in a subdivision would be found on:
a plat map
In Washington, a person licensed to act on behalf of a real estate brokerage is called a/an:
affiliated licensee
A licensee hires an unlicensed assistant. While the licensee is on a two-week vacation, the assistant helps negotiate contract addenda. The licensee could be disciplined under the Uniform Regulation of Business and Professions Act for:
aiding and abetting unlicensed practice
To be valid, a listing agreement may be signed by:
an attorney in fact
The cost of an appeal from a final decision made by the director of the Department of Licensing in an adjudicative proceeding is paid by the:
appellant
In a disciplinary action, the Director of the Department of Licensing can do any of the following, EXCEPT:
award damages to individuals defrauded by real estate licensees
A licensee hires another licensee, who works for the same firm, to be an assistant for negotiating and selling properties. The supervising licensee, in this relationship, must:
be a managing broker
When a borrower makes payments on a fully amortized loan, her debt service payments will cover:
both principal and interest on the loan
The protected class of "familial status" in the Federal Fair Housing Act refers to the presence of:
children under the age of 18 living on the property
An out-of-state real estate licensee (who is licensed in another state) may enter Washington to engage in which real estate activity?
commercial sales or leasing
Encroachments are
considered a trespass
S's license is temporarily suspended by the Director for a violation of the license law. S is also fined $500. The money collected as a result of the fine is:
deposited in the real estate education account, to be used solely for education for the benefit of licensees
Once a contract for deed is signed by the parties, the buyer immediately receives:
equitable title
Erin entered into a lease that begins on February 1, and is set to end on January 31 three years later. This leasehold is a/an:
estate for years
J is selling real estate without a license. J is guilty of a:
gross misdemeanor
It is not necessary to complete 30 hours of continuing education in order to renew a/an:
inactive license
An appraiser is trying to estimate depreciation 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?
income
Addenda to a purchase and sale agreement must be:
kept in the brokerage's transaction file
Unless the purchase agreement or other contract states differently, an earnest money check given to a real estate licensee shall be made out to the:
licensee's firm, as licensed
An investor would like to invest in real estate, but without being involved in management or subjecting himself to any personal liability. He should invest in a:
limited partnership
Licensees are required to keep the Director notified of changes in their:
mailing address
A licensee is considering an employment offer from a brokerage firm. The position would involve control over the firm's operational and financial decisions. The level of licensure required would be:
managing broker with a designated broker endorsement
A mortgage that uses both real and personal property to secure the borrower's debt is a :
package mortgage
A Washington real estate licensee's license has expire because he did not pay his license fee as required. His license can be reinstated if he:
pays back renewal fees, plus penalties
A type of lease that allows the lessor to share in the increasing sales generated by a retail property is a/an:
percentage lease
The Real Estate Settlement Procedures Act (RESPA) applies to:
residential first mortgages
The Real Estate Commission does all of the following except:
set real estate transaction fees
A legal action brought in court to compel a party to fulfill the terms of a contract because the land is unique and money damages would not adequately compensate the party victimized by a breach is called a/an:
sue for specific performance
Q falls behind on his child support payments. The matter is forwarded to the Director of the Department of Licensing. What action is available to the Director? She can:
suspend Q's license
When a broker attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. The Director can:
suspend the license and charge him with misrepresentation in obtaining or reinstating a license
Special assessments levied against a property for local improvements, such as streetlights and sidewalks, are computed on the basis of:
the benefit the property receives from the improvements
In an option:
the option agreement must clearly state all the terms and conditions of the sale
Late on a friday afternoon, an agent receives an offer on a property that she has listed, for 10k$ less than the listed price. The sellers will be away all weekend. The agent should:
try to get the offer to them as soon as possible on Friday.
In a bilateral contract
two parties have exchanged promises, and both parties are obligated to perform
L's broker's license is issued on October 16. L's license will expire at the end of:
two years, on October 16
A licensee can reveal confidential information about his principal:
under court order or subpoena
The selling agent must NOT accept a promissory note as an earnest money deposit:
unless the purchase and sale agreement discloses that the deposit is a note
Carl is housebound and never goes outside. Neighbor Salvador plants a vegetable garden on a corner of Carl's property that is not visible from the main house. After the required period of time, Salvador claims a prescriptive easement over this portion of Carl's land. This easement is:
valid, because the use was open, and Carl's knowledge of the use isn't considered
To be entitled to sue for a commission, a person must be able to prove that at the time the real estate activities were performed, she:
was licensed
The following are all goals of Washington Center for Real Estate Research, except:
writing real estate exam questions
A seller wants to net $60,000 from a transaction, but will have to pay off a mortgage and other fees, at a total cost of $181,800. The seller will also need to pay a 7% commission. What will the property need to sell for?
$260,000
Brian purchases two parcels of land, one measuring one square mile and the other containing five acres. If he paid $2k an acre, what was his total purchase price?
1,290,000
Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are:
Ad valorem taxes
What kind of property could a buyer purchase with a FHA 203(b) loan?
Four-unit dwelling where the buyer will occupy one of the units
The IRS issues rules that determine when a real estate agent is an employee and when he is an independent contractor. Which of the following statements on that topic is FALSE?
The brokerage may require an independent contractor to have a cell phone
Which of the following situations would be exempt under the Fair Housing Act?
The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin
A buyer would be protected from risk of loss due to a failed heating system through:
a home protection plan
When title to property is lost but the property boundaries remain the same, it is:
alienation
The mortgagee assigns its interests and the assignee records the assignment. The mortgagor now needs to make payments to the:
assignee
Ben receives a life estate in a property, with his nephew Will designated as the remainderman. When Ben dies, what kind of interest does Will receive?
fee simple estate
A 4,500 earnest money check bounces because of insufficient funds. The first thing the broker should do is:
notify the principals
As a property manager, you may:
offer inducements to prospective tenants
An investor rents a property to a tenant. For tax purposes, depreciation on this property is based on:
price, plus capital improvements, minus land value
Meridian and base lines relate to the:
rectangular survey method
A residential property manager should inform prospective tenants about:
the planned removal of a swimming pool
A prospective tenant applies to rent a unit in a 12-unit apartment building, where the owner lives in one of the units and handles all lease transactions on his own. The tenant is turned down, and believes he has been discriminated against on the basis of his race. If true, this would be:
unlawful, because this is a 12-unit building
A contract signed by a person who was intoxicated at the time of the signature would be:
voidable by the intoxicated party
When a licensee is terminated, the date of termination is the:
postmark date or the date the license is hand-delivered to the Department of Licensing
A metes and bounds description reads as follows: "Start at the intersection of Route 120 and Wells Lane. Proceed due south 1,815 feet, then due east 1,200 feet. Proceed due north 1,815 feet, then return west to point of beginning." How many acres is this property?
50
An agent is performing a competitive market analysis for a potential client, working with four comparables. Which of the following comparables would require an upward adjustment in its sales price?
Comparable X lacks a garage, which the subject property has
Which of the following is true concerning federal fair housing laws?
Enforcement may be brought about by filing a complaint with the Dept of Housing and Urban Development
An investor wants to invest $250,000 in the development of a shopping mall by taking out a loan secured by a residential property that he owns. Will the Truth in Lending Act apply to this transaction?
No, because this is a commercial transaction
Washington state's real estate agency law does not address which of the following?
Penalties for not disclosing agency status
To be enforceable, a contract for the sale of real estate must be in writing and signed by the parties. This is true because of which law?
Statute of Frauds
A home is listed for $200,000. A prospective buyer tells the listing agent that she may make an offer for $190,000. The listing agent tells her that the seller won't accept anything under $195,000. The buyer offers $195,000 and the seller accepts. Which is correct?
The listing agent violated her fiduciary duty to the seller by telling the buyer how low the seller would go
An apartment building was built in 1960. An apartment is being rented to a couple with no children. Which of the following is true?
The tenants should sign the lead-based paint disclosure and receive a pamphlet on lead-based paint
Chin, a home seller, is talking to his real estate agent. He mentions that he rents the backup generator; it doesn't belong to him. The generator would be considered:
personal property
A buyer is getting a loan to purchase a five-acre apple farm with no residence on it. The Truth in Lending Act requires:
no disclosure because the land is agricultural
Who needs to submit continuing education credits with each license renewal?
All active licensees
A prospective tenant asks a licensee to show him only properties that do not allow children. How should the licensee respond?
Say that only bona fide retirement communities may exclude children
When can a minor enter into a binding contract?
if a guardian co-signs
Under Title VIII of the Civil Rights Act of 1968, certain transactions are exempt. Which one of the situations below would be exempted and not a violation of the act?
An unlisted home that is for sale by the owner where the only advertising is a sign in front of the property that reads simply "For Sale" and the owner owns only one other home
A small house is situated on a large lot in a mixed-use neighborhood. The city decides that the area will, in the future, be zoned commercial. What will most likely happen to the property's value?
It will increase, in anticipation of the changing uses
A buyer makes an offer to purchase on May 2. The offer includes a promise to deposit 5k in earnest money within two business days after mutual acceptance. The offer is contingent on results of a soil feasibility report. On May 5 the seller accepts the offer. On May 11 the soil report is ordered. On May 17 the soil feasibility report comes back and is approved by the buyer. By what date does the earnest money need to be deposited?
May 7
A licensee locates what seems like a ready, willing, and able buyer. However, the deal falls through at closing because the buyer can't obtain necessary financing. At the same time, though, the seller turns out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent in this case?
No, because there was no ready, willing, and able buyer
A seller complains that the seller's agent is showing other properties to buyers that compete with the seller's property. Which of the following is true?
Seller's agent is not breaching the duty of loyalty
A tenant signs a one-year lease. Four months later the owner sells the property to a third party, who wants to move in immediately. Which of the following is correct?
The new owner takes ownership subject to the lease and must wait until the lease ends to move in
A buyer's purchase and sale agreement contained a financing contingency. The buyers applied for a loan with a local lender, who verbally informed them that their loan application was denied. The buyer's agents should:
tell the buyers about their right to receive the denial in writing