Real Estate State Review

Any violation of the license law is a gross misdemeanor and can be prosecuted by the_________ a) county prosecutor or the state attorney general b) district attorney c) county prosecutor d) state attorney general

a) county prosecutor or the state attorney general Any violation of the license law is a gross misdemeanor and can be prosecuted by the county prosecutor or by the state attorney general

In a month-to-month rental, the landlord can raise the rent or change the rules at any time. But s/he must give you written notice about the changes at least __________ days before the end of a rental period. a) 14 days. b) 30 days. c) 20 days. d) 10 days.

c) 20 days. In the case of a periodic tenancy (such as month-to-month rental agreement), the rules, including the rent, may be changed upon 20 days notice.

Under the Washington State theory of community property, both spouses are required to join in executing the security agreement or bill of sale for ________________ a) any home appliances b) household furniture c) mobile home owned by husband and wife d) all of these

d) all of these Neither spouse can create a security interest, other than a purchase money security interest, in community household goods, furnishings, appliances, or a community mobile home unless the other spouse joins in executing the security agreement or bill of sale.

A seller agreed to list his house for $890,000, but the seller was not informed by the broker that the actual value of the property was $990,000. The broker purchased the property the day after it was listed. This is an example of a violation of which of the brokers responsibilities? a) Obedience. b) Accountability. c) Loyalty. d) Discovery.

c) Loyalty. Loyalty means to place the client's interest first, above every other person. A broker who does not inform the seller of the comparable market analysis, and then purchases the property would be violating the fiduciary duty of loyalty.

A right to take part of the soil or anything the soil produces such as timber, crops and minerals is known as a/an a) Correlative use. b) Easement. c) Profit. d) Grant.

c) Profit. A profit is the right to take part of the soil or anything the soil produces. It is also known as a profit a prendre.

Accretion occurs when A. Water recedes. B. There is a gradual loss of soil. C. There is a sudden loss of soil. D. Soil is deposited by the natural action of water

D. Soil is deposited by the natural action of water Accretion = the process of growth or increase, typically by the gradual accumulation of additional layers or matter.

An option contract that has been exercised is a/an a) Bilateral contract. b) Unilateral contract. c) Assigned contract. d) Void contract.

a) Bilateral contract Once the option has been exercised, that is the buyer has told the seller that he will buy, the contract is a bilateral contract. Both parties must perform.

A landlord must follow certain procedures to terminate a tenancy. To terminate a periodic tenancy, a landlord must give at least __________ days written notice prior to the end of the month a) 15 days. b) 20 days. c) 25 days. d) 30 days.

b) 20 days. To terminate a periodic tenancy, a landlord must give at least 20 days written notice prior to the end of the month.

The real estate commission meets how often? a) Every 6 months. b) Every 3 months. c) Every month. d) Every week.

b) Every 3 months. Every 3 months. The commission meets quarterly in March, June, September and December or as needed at the discretion of the director.

Who is ultimately responsible for keeping transaction records? a) The licensee. b) The designated broker. c) The office staff. d) The file clerk.

b) The designated broker. The designated broker is ultimately responsible for keeping transaction records.

What is the statute of limitations for written contracts in Washington? a) 3 years. b) 4 years. c) 6 years. d) 7 years.

c) 6 years.

A broker called a seller and informed him of an offer from a buyer. The seller agreed to accept the offer. At this point the offer is a) Executed. b) Voidable. c) Unenforceable. d) Valid.

c) Unenforceable. The acceptance is unenforceable because offer and acceptance must be in writing.

John has given Peggy the authority to act on his behalf. Peggy has the authority to sign checks, negotiate real estate transactions, as well as buy and sell stocks and bonds on behalf of John. Peggy is MOST LIKELY a/an a) General agent. b) Special agent. c) Universal agent. d) Disclosed agent.

c) Universal agent. A universal agent is one who has full power of attorney to act on behalf of another person or business.

A licensee can decline to work with a customer because of the customer's________. a) age b) sex c) income d) creed

c) income A licensee can decline to work with a customer because of the customer's income.

Kristin has a lease for one year (an estate for years lease). The one-year lease has expired and she is in the process of negotiating a new lease with the landlord. She continues to pay her rent according to the terms of the expired lease. What type of lease is this? A. Estate at will. B. Estate at sufferance. C. Periodic tenancy. D. Estate for years.

A. Estate at will. estate at will is a leasehold such that either the landlord or the tenant may terminate the tenancy at any time by giving reasonable notice. It usually occurs in the absence of a lease, or where the tenancy is not for consideration

In Washington, any property that is not separate and is acquired after marriage by the husband, wife, or both is considered _________ a) community property. b) property held in tenancy by the entirety. c) property held in joint tenancy with right of survivorship. d) personal property.

Any property that is not separate and is acquired after marriage by the husband, wife, or both is considered community

Littoral rights are associated with property that adjoins a/an A. Creek of non-navigable lake. B. Ocean, sea or navigable lake. C. Underground water. D. River.

B. Ocean, sea or navigable lake. Littoral rights are for static waters like oceans and lakes Riparian rights are for flowing water like rivers

Judie conveyed a life estate to Mark based on the life of Stephanie. This is an example of a/an A. Ordinary life estate. B. Legal life estate. C. Life estate pur autre vie. D. Homestead.

C. Life estate pur autre vie. pur autre vie (Old French for "for another['s] life")

A house is currently worth 50% of its original value. The land, however, has appreciated in 5 years from $60,000 to its current value of $96,000. What is the average annual rate of appreciation of the land over this 5-year period? a) 6.25% b) 8% c) 11.50% d) 12%

First, we'll find out the appreciation amount. $96,000 - $60,000 = $36,000/5 years = $7,200 per year. Now take $7,200/$60,000 = 12%

Diff between periodic tenancy and tenancy at will

Periodic tenancies are tenancies which exist over reoccurring periods of time, usually calculated by reference to the rent payment periods (monthly, quarterly, annually). Conversely, tenancies at will are terminable on immediate notice by either party. They do not have the protection of the Act and therefore the tenant will not have any security of tenure.

John received a net amount of $74,000 from the sale of his house after paying $1,200 in legal and other fees; and 6 percent sales commission. What was the selling price of the house? a) $80,000 b) $78,440 c) $79,640 d) $79,000

a) $80,000 First, take $74,000 + $1,200 = $75,200 sales price less commission. $75,200/.94 = $80,000 sales price.

Which of the following is NOT a statutory general lien? a) Ad valorem tax lien. b) IRS lien. c) Judgment. d) State income tax lien

a) Ad valorem tax lien. An ad valorem or property tax lien is a specific lien, not a general lien. A general lien is against both real and personal property. A specific lien is against one identified property. A statutory lien means it is placed by statute, or law.

If a homestead property is sold to satisfy the owner's debts, which of the following represents the first allocation from the proceeds of the sale (after any secured debt like mortgages? a) Amount of the homestead exemption is paid to the owner b) Amount of the debt is paid to the creditor c) Balance is paid to the owner d) Proceeds divided between the creditor and the owner

a) Amount of the homestead exemption is paid to the owner If the property is sold, the proceeds of the sale are applied in the following order: (1) the amount of the homestead exemption will be paid to the homestead owner, (2) the amount of the debt will be paid to the creditor, and (3) any balance will be paid to the homestead owner.

One responsibility that the director does NOT have is ________________. a) Appointing commissioners b) Adopting a seal for copy certification c) Disciplining licensees d) Hiring staff

a) Appointing commissioners The director is NOT the one who appoints commissioners - it's the governor that does.

The process of the government taking the property is called a) Condemnation. b) Eminent domain. c) Seizure. d) Repossessing.

a) Condemnation. Eminent domain is the right of the government to take property "for the good of the public." Condemnation is the process of taking the property.

John and Joyce leased a cottage on Lake Geneva from July 1 through July 31. They probably entered into a/an? a) Estate for years. b) Periodic tenancy. c) Tenancy at will. d) Tenancy at sufferance.

a) Estate for years. An estate for years lease will have definite beginning and ending dates.

An appraiser has been hired to appraise a 20 unit apartment building. Which method of appraising would be used? a) Income approach. b) Market approach. c) Cost approach. d) GRM approach.

a) Income approach. The income approach is used to appraise income producing properties such as a twenty unit apartment building.

What must Nancy do to regain her license if she is not able to, due to personal circumstances, renew within the 1 year period after expiration? a) Meet all the first-time requirements for obtaining a real estate license b) Pay a penalty, take the refresher course and pass an exam c) Pay a penalty and take a refresher course d) Pay an extra penalty fee

a) Meet all the first-time requirements for obtaining a real estate license A person must start the licensing procedure all over again if they have not renewed within one year of expiration

A real estate broker has been working with buyers. After helping them negotiate for their dream home, the buyers ask the broker to help them secure a mortgage. The broker knows a lender that pays a fee for referring purchasers to them. Should the broker refer the buyers to this lender? a) No, because RESPA prohibits lenders from paying a referral fee. b) Yes, if the broker and the buyers have previously entered into a written buyer agency agreement. c) Yes, if the broker discloses the referral fee to the sellers. d) Yes, if the lender offers the best interest rates and terms available in the market.

a) No, because RESPA prohibits lenders from paying a referral fee. A licensee may have his or her license revoked or suspended if found guilty of directing any transaction involving his or her principal to any lending institution for financing in expectation of receiving a kickback or rebate.

If a person lawfully relies on the word, representation, or conduct of a licensee who knowingly commits or is a party to any material fraud, misrepresentation, concealment, conspiracy, collusion, trick, scheme, or device, who is subject to disciplinary sanctions? a) Only the licensee b) Any party involved in the transaction c) The principal d) All of the above

a) Only the licensee If someone relies on the licensee's misrepresentation, to the person's detriment, the licensee will be subject to disciplinary sanctions.

The Law Against Discrimination is administered by the_____________________. a) Washington State Human Rights Commission b) Equal Credit Opportunity Council c) Americans with Disabilities Council d) Department of Housing and Urban Development

a) Washington State Human Rights Commission The Law Against Discrimination is administered by the Washington State Human Rights Commission. It is composed of five members who are appointed by the governor with the advice and consent of the senate. Its task is to formulate policies and make recommendations to government agencies. It also hears complaints about alleged violations of the law.

The director of the Department of Licensing has the authority to________. a) institute a program of real estate education b) hold educational conferences for the benefit of the industry c) administer the exams given at the testing sites d) prepare the real estate exam

a) institute a program of real estate education The director of the Department of Licensing has the authority to institute a program of real estate education. The Washington Real Estate Commission may hold educational conferences, administer the exams at testing sites, and prepare the real estate exam.

If the director determines that the evidence supports the accusation against a licensee by a preponderance of evidence, the director___________ a) may impose sanctions b) must initiate a full investigation c) is required to suspend the individual's license d) is required to revoke the individual's license.

a) may impose sanctions The director is not required to initiate any of the suggested actions, but according to statue, the director may impose anyone or more of the following sanctions: suspend or revoke licenses, deny applications for licenses, fines, or require the completion of a course in a selected aspect of real estate practice.

A tax assessor has determined that the appraised value of a property is $199,250. If the assessment rate is 28% and the tax rate is $5.25 per $100, what is the quarterly tax bill? a) $723.25 b) $732.25 c) $1,464.49 d) $2,928.98

b) $732.25 $199,250 x 28% = $55,790 $5.25 ÷ $100 = .0525 $55,790 x .0525 = $2,928.98 ÷ 4 = $732.25

If Broker Sarah receives 35 percent of a total commission from her broker, then what is Sarah's broker's share if the property sold for $23,000, and the commission was on a 6% basis? a) $483 b) $897 c) $1,380 d) $1,390

b) $897 To figure out the broker's share, first take the sale price and multiply it by 6%, for a total commission of $1,380. The broker receives 65% of that, which is $897.

After a tenant moves out, the landlord has ______ days to send you all of the deposit or a letter telling you why s/he is not giving some or all of it back. a) 7 days. b) 14 days. c) 20 days. d) 30 days.

b) 14 days. At the end of the rental period of a lease the landlord must return the deposit within 14 days of the termination or inform the tenants specifically why all or part of the deposit is being retained.

The Washington Real Estate Commission has how many members? a) 4 b) 6 c) 7 d) 10

b) 6 The Washington Real Estate Commission had 6 members. They serve for a term of six years. At least 2 members must be from east of the Cascades. The commissioners meet quarterly (4 times a year).

Which of the following loans would NOT be covered by RESPA? a) A loan that is intended to be sold to Fannie Mae. b) A long that is negotiated as a contract for deed. c) A loan that is insured by the FHA or guaranteed by the VA. d) A loan that is negotiated on a one to four unit family home

b) A long that is negotiated as a contract for deed. A contract for deed is also known as a land contract or seller financing. RESPA does not cover loans that are seller financed. RESPA regulates the settlement procedures in federally related loans, and first and second liens for the purchase or refinancing of one-to-four family dwellings.

Easements, water rights, and improvements on a property are examples of a) Amenities. b) Appurtenances. c) Personal Property. d) Chattels.

b) Appurtenances. An appurtenance is a right, privilege or improvement that belongs to the land and is transferred from one property owner to another. Easements, water rights, and improvements are examples of appurtenances.

An encumbrance is BEST defined as anything that a) Creates an appurtenant easement. b) Burdens a title or diminishes the use of the land. c) Involves a mortgage. d) Prevents a broker from listing a property.

b) Burdens a title or diminishes the use of the land. An encumbrance is anything that burdens a title or diminishes the use of the land. Typical encumbrances are easements, deed restrictions, liens, assessments, and taxes. An encumbrance is not an ownership interest.

Which of the following entries on a HUD-1 statement would be a credit to the buyer? a) Sales price. b) New loan. c) Appraisal fee. d) Title insurance premium.

b) New loan The Real Estate Settlement Procedures Act (RESPA) requires a lender to provide the booklet Settlement Costs and You and to provide a good faith estimate of the closing costs on a one-to-four family residential loan, that involves a federally related transaction.

A buyer and seller enter into a written contract to sell/purchase. After the contract has been accepted, how long does the seller have to deliver the disclosure statement to the buyer? a) At least five business days before contract offer and acceptance b) No later than five business days after contract offer and acceptance c) At the time of contract signing d) At least 48 hours before contract offer and acceptance

b) No later than five business days after contract offer and acceptance The disclosure statement must be delivered to the buyer no later than five business days after mutual acceptance of a written contract to purchase between a buyer and a seller. The parties can mutually agree on a different time frame if they desire. See RCW 64.06.030.

Mario, the buyer, entered into an agency agreement with Joe Brown. Joe's company will be paid a commission only if Joe locates the property that Mario purchases. This agency agreement can be BEST described as a) Exclusive Buyer Agency. b) Non-Exclusive Buyer Agency. c) Open Buyer Agency. d) Dual Buyer Agency.

b) Non-Exclusive Buyer Agency. If the parties agree to a non-exclusive buyer agency relationship and if the buyer shall, during the course of or within six months after the expiration or termination of the agreement, purchase a property that was first brought to the attention of Buyer by the efforts or actions of the brokerage firm, or through information secured directly or indirectly from or through the brokerage firm, then Buyer shall pay to the brokerage firm the compensation provided for in the agreement.

Concerning the required Real Property Transfer Disclosure Statement, if the buyer does not deliver a written rescission notice to the seller within the three-day period, the _________________ a) buyer forfeits his or her opportunity to buy the property. b) Real Property Transfer Disclosure Statement will be deemed approved and accepted by the buyer. c) seller can sue the buyer for damages. d) Real Property Transfer Disclosure Statement will be deemed rejected by the buyer.

b) Real Property Transfer Disclosure Statement will be deemed approved and accepted by the buyer. If the buyer does not deliver a written rescission notice to the seller within the three-day period or as otherwise agreed to, the Real Property Transfer Disclosure Statement is deemed approved and accepted by the buyer.

Who establishes the rules and regulations? a) The commissioner b) The director c) The commission staff members d) The governor

b) The director The law differs from rules and regulations; therefore it is the director who establishes them.

What is the minimum score required for passing the real estate broker's test? a) 70% on both the state and national portions. b) To pass each portion of the Broker examination, you must attain a scaled score of 70. c) To pass each portion of the Broker examination, you must attain a scaled score of 75. d) 75% on both the state and national portions.

b) To pass each portion of the Broker examination, you must attain a scaled score of 70. To pass each portion of the Broker examination, you must attain a scaled score of 70. The state and national portions of the test carry equal weight and require minimum scaled scores of 70 to pass the test and get a broker licensee.

Mr. and Mrs. Lambert applied for a reverse mortgage loan, which is considered a refinance of their home. Which of the following laws would provide a three day right of rescission of the loan? a) Equal credit Opportunity Act. b) Truth in Lending Act. c) Fair Credit Reporting Act. d) Real Estate Settlement Procedures Act.

b) Truth in Lending Act. Truth in Lending requires that lenders provide a three day right of rescission on second loans, home equity loans, and reverse mortgages. Please note. A loan (first mortgage) that is used to purchase a property does not require the three day right of rescission.

Mr. and Mrs. Lambert applied for a reverse mortgage loan, which is considered a refinance of their home. Which of the following laws would provide a three day right of rescission of the loan? a) Equal Credit Opportunity Act. b) Truth-in-Lending Act. c) Regulation B. d) Real Estate Settlement Procedures Act.

b) Truth-in-Lending Act. Truth-in-Lending requires that lenders provide a three day right of rescission on second loans, home equity loans, and reverse mortgages. Please note. A loan (first mortgage) that is used to purchase a property does not require the three day right of rescission.

A buyer purchased a home and the property disclosure statement indicated the basement did not leak. Upon the first rain, the basement leaked. If the seller committed fraud when filling out the property disclosure statement, the status of the contract is a) Valid. b) Voidable. c) Void. d) Unenforceable.

b) Voidable. A contract entered into under misrepresentation, duress, or fraud is voidable by the aggrieved party.

In Washington, the real estate license law is administered by the____________. a) Washington Real Estate Commission b) Washington State Department of Licensing c) Washington Association of REALTORS d) Washington State Department of Records

b) Washington State Department of Licensing The Washington State Department of Licensing administers the real estate license law. License law consists of laws passed by the state legislature and rules promulgated by the director of the Department of Licensing. All real estate licensees are required to obtain a copy of the license law, which is available from the Department of Licensing.

Brokers and managing brokers must submit ___________________to the designated broker of their firm when they terminate affiliation with the firm. a) A department of licensing form. b) Written notification. c) Commissioners form. d) All of the above.

b) Written notification. Brokers and managing brokers must submit written notice to the designated broker of the firm when they terminate affiliation with the firm.

Most agency disclosure paragraphs also include _____________ a) the duties that the licensee agrees to accomplish. b) a statement that the party has received the Agency Pamphlet required by law. c) the amount of compensation to be received by the licensee. d) a list of things that the licensee will not be performing.

b) a statement that the party has received the Agency Pamphlet required by law. Most agency disclosure paragraphs also include a statement that the party has received the Agency Pamphlet required by law.

A sales agreement has been negotiated by more than one broker, and the purchaser deposits funds prior to the closing. The broker who first receives the funds will keep them and be accountable for them until they are distributed in accordance with written instructions signed by_____________. a) all participating brokers b) all parties to the transaction c) all parties to the transaction and all participating brokers d) the escrow agent

b) all parties to the transaction The written instructions to distribute funds must be signed by all parties to the transaction. The broker is not a party to the transaction.

In Washington, any property that is not separate and is acquired after marriage by the husband, wife, or both is considered _____________. a) individual property b) community property c) property held in tenancy by the entirety d) property held in joint tenancy with right of survivorship

b) community property Any property that is not separate and is acquired after marriage by husband, wife, or both is community property.

If the licensee continues to sell any real estate where the interests of the public are endangered, disciplinary sanctions are warranted after objections are stated by the______________ a) principal b) director c) real estate commission d) EPA

b) director Continuing to sell any real estate whereby the interests of the public are endangered would warrant disciplinary sanctions.

The broker and seller reached an agreement to release each other from the listing contract and to terminate the contract. The term that BEST describes this action a) specific performance. b) rescission. c) redemption. d) redlining.

b) rescission. Rescission is the termination of a contract and would put the parties in the same legal position they were in before they entered into the contract.

What is the minimum score required for passing the real estate Managing Broker's test? a) 70% on both the state and national portions. b)To pass each portion of the Managing Broker examination, you must attain a scaled score of 75. c) To pass each portion of the Managing Broker examination, you must attain a scaled score of 70. d) 75% on both the state and national portions.

b)To pass each portion of the Managing Broker examination, you must attain a scaled score of 75. To pass each portion of the Managing Broker examination, you must attain a scaled score of 75. The state and national portions of the test carry equal weight and require minimum scaled scores of 75 to pass the test and get a managing broker licensee

The licensee wishes to appeal the decision made by the director in a disciplinary hearing. To file an appeal, what must the licensee post with the court clerk? a) $50 filing fee b) $100 filing fee c) $1,000 bond d) $500 bond

c) $1,000 bond Upon instituting an appeal in the superior court, the appellant (licensee) shall give a cash bond to the state of Washington, which bond shall be filed with the clerk of the court, in the sum of ($1,000.00) one thousand dollars to be approved by the judge of said court, conditioned to pay all costs that may be awarded against an appellant (licensee) in the event of an adverse decision, the bond and notice to be filed within (30) thirty days from the date of the director's decision.

Ashley Anderson pays her taxes of $660 for the calendar year. She then sells her property and closes on June 15. What is the amount of the prepaid portion that is due back to her? Assume a 360 day year, 30 days a month. a) $297 b) $300 c) $357.50 d) $437.50

c) $357.50 You simply need to figure out the amount of time in which she did not use the property (6 1/2 months), and then figure out the monthly amount for taxes, were this amount divided into monthly payments ($660/12 = $55/mo.). Multiply the monthly amount by the months to find out the answer. So, $55 x 6 1/2 months = $357.50

A temporary cease and desist order is served. Unless the licensee requests a later hearing, the hearing to determine whether the order becomes permanent is held within ________________. a) 60 days after the department receives the request for hearing b) 90 days after the department receives the request for hearing c) 20 days after the department receives the request for hearing d) 10 days after the department receives the request for hearing

c) 20 days after the department receives the request for hearing The request for hearing must be filed within twenty days after service of the notice of intent to issue a cease and desist order. The failure to request a hearing constitutes a default, whereupon the disciplinary authority may enter a permanent cease and desist order, which may include a civil fine.

In order to obtain a designated broker's license, how many years of sales experience are required? a) 1 b) 2 c) 3 d) 5

c) 3 In order to obtain a designated broker's license, 3 years of sales experience as a broker is required.

All advertising or solicitations without limitation for brokerage services, to include the internet-based advertising, web pages, e-mail, newspaper, and other visual media must include ___________. a) The firm name. b) An assumed name of the firm as licensed. c) Either a or b d) Neither a nor b.

c) Either a or b All advertising or solicitations without limitation for brokerage services, to include the internet-based advertising, web pages, e-mail, newspaper, and other visual media must include the firm name or an assumed name of the firm as licensed.

Which of the following laws prohibit discrimination against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependence on public assistance? a) Regulation Z. b) Community Reinvestment Act. c) Equal Credit Opportunity Act. d) Fair Credit Act.

c) Equal Credit Opportunity Act. The Equal Credit Opportunity Act (ECOA) prohibits discrimination against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age or dependence on public assistance.

A landlord and tenant entered into a month-to-month lease with no specified ending date. The tenant and landlord are required to give each other proper notice to terminate this tenancy. The lease agreement is probably a/an? a) Estate for years. b) Estate from year to year. c) Estate at will. d) Estate at sufferance.

c) Estate at will. An estate at will (tenancy at will) is a lease with an uncertain duration. Proper notice must be given to terminate the lease.

As an unlicensed secretary, what actions may Dorthy take if she's alone in a real estate office and a prospective buyer calls asking for the price and location of an advertised property? a) Ask the caller if this is there price range. b) Ask what type of property they're interested in and set up an office appointment c) Give them price and location only d) Give them advise on how to negotiate the price

c) Give them price and location only In order to engage in all of the other actions, it is required that you have a license. Unlicensed assistants may NOT show properties, answer questions, or interpret information about the property, price, or condition

When determining if an article is a fixture, a person would consider the a) Age of the fixture. b) Utility of the article. c) Method of attachment. d) Cost of the article.

c) Method of attachment. Personal property that is attached to real estate is called a fixture. One of the tests to determine if an item is real or personal property is the method of annexation; or how it was attached to the property. If the item is permanently attached it is considered real property.

Is it a legal business practice if Ericka rents an office space, begins selling real estate and collects commissions if she's only had her salesperson's license for two months? a) Yes, she's licensed to sell real estate b) Yes, as long as she's only selling property and not listing it c) No, Ericka needs a designated broker's license to sell on her own d) No, Ericka needs two years experience to sell on her own

c) No, Ericka needs a designated broker's license to sell on her own Unless they are working under the supervision of a designated broker, a holder of a broker's license cannot sell real estate on their own

Julie has a friend named Jill who wants to sells her house. Julie knows prospective buyers and decides to talk to some of them. She ends up finding a buyer, negotiates a price, and obtains a contract. However, she then decides to get a real estate license BEFORE closing so she can collect a commission. Would this be considered legal? a) Yes, if Julie's friend agrees b) Yes, as long as Julie is licensed before closing c) No, Julie must be licensed before trying to sell her friend's house for compensation d) No, since she didn't hold an unlicensed assistant's job

c) No, Julie must be licensed before trying to sell her friend's house for compensation Any third-party real estate transaction for compensation requires a license unless it's on behalf of a family member.

Julia has leased on a month-to-month basis with her landlord. At the end of each month the lease renews itself unless either party gives proper notice to the other party to terminate the lease. What type of lease does Julia have? a) Estate at will. b) Estate at sufferance. c) Periodic tenancy. d) Estate for years.

c) Periodic tenancy. Periodic tenancy is a lease where there is no termination date set. It has a specific lease period, (one day, a week, a month or one year) and then continues for similar periods (one day, a week, a month or one year) until either party gives notice of termination.

The federal law that requires a lender who is negotiating a loan on a one-to-four unit residential dwelling to provide buyers with the booklet Settlement Costs and You, and to give the buyer a good-faith estimate of closing costs within three days of loan application is? a) Regulation Z. b) Fair Credit Reporting Act. c) Real Estate Settlement Procedures Act. d) Truth in Lending Act.

c) Real Estate Settlement Procedures Act. The Real Estate Settlement Procedures Act (RESPA) requires a lender to provide the booklet Settlement Costs and You and to provide a good faith estimate of the closing costs on a one-to-four family residential loan, that involves a federally related transaction.

Jerry Stevens was the owner and only designated broker of a small real estate agency. The accountant was his wife. One day Jerry died, and since his wife held no real estate license, she wanted to become a temporary broker in order to complete pending transactions. Would this be legal? a) No, the director may only appoint a licensed real estate professional b) No, the temporary broker must be an employee of the firm c) Yes, the director can appoint anyone as a temporary broker at his discretion d) Yes, as the firm's accountant she is the person most familiar with the company's finances and pending transactions

c) Yes, the director can appoint anyone as a temporary broker at his discretion Whether or not a person holds a real estate license or has more familiarity with the company, the director may appoint a temporary broker at his discretion

Upon the completion of the listing contract, the seller looked at the broker and said, "There's one more thing I need you to understand, "Under no circumstances is this property to be sold to my ex-business partner." Is this a legal instruction? a) No, it is not a legal instruction. Under the federal fair housing laws, ex-business partners are members of a protected class. b) No, this is not a legal instruction. The seller never has the right place any conditions on the transfer of the property. c) Yes, this is a legal instruction. The licensee should get the instruction from the seller in writing. d) Yes, this is a legal instruction. The licensee need not take any other action because the oral directions are sufficient.

c) Yes, this is a legal instruction. The licensee should get the instruction from the seller in writing. Yes, this is a legal instruction. The licensee should get the instruction from the seller in writing. If the seller is refusing to sell to the ex-business partner because they are a member of a protected class, then the request would not be legal and you should decline but explain the fair housing issue violation to the seller.

Five years ago, Unit 7C in a condominium community was the site of a brutal and highly publicized murder. The unit was sold to an elderly woman who contracted the AIDS virus in a blood transfusion and died in the unit last year. As the agent for the woman's estate, what are your disclosure responsibilities to prospective purchasers of Unit 7C? a) You must disclose both the murder and the AIDS-related death. b) You are specifically prohibited by law from disclosing either event. c) You are specifically relieved of liability for nondisclosure of either event. d) You do not need to disclose the murder, but you must disclose the AIDS-related death.

c) You are specifically relieved of liability for nondisclosure of either event. Federal fair housing laws prohibit discussion of HIV or AIDS. "Psychological impacts" or "stigmas," such as a murder or suicide, are not considered material facts under Washington license law (RCW 18.86.010 (9), and therefore do not have to be disclosed. However, a licensee must respond truthfully if asked about such matters

A crime committed on the property has affected the physical condition of the property. Information about the crime is _______________ a) not a material fact and disclosure constitutes a breach of duty to the principal. b) a material fact but cannot be disclosed. c) a material fact and must be disclosed. d) not a material fact but should be disclosed anyway.

c) a material fact and must be disclosed. If a crime does affect the physical condition of the property, it is a material fact. For example, if the property was used to manufacture illegal drugs, this fact must be disclosed because there could be chemical residue left on the property that could endanger the buyer

Community property real estate in Washington is subject to _____________________. a) mechanic's liens for labor and material furnished in erecting structures and improvements on the property b) judgment liens for community-property debts c) both mechanic's liens and judgment liens d) only mechanic's liens

c) both mechanic's liens and judgment liens Community property real estate is subject to both mechanic's and judgment liens

Several real estate brokerages may operate out of the same address if______________ a) permission is granted by the director b) permission is granted by the DOL c) each business is clearly identified by a sign visible to the public d) permission is granted by the Commission

c) each business is clearly identified by a sign visible to the public The public is not to be confused. Each business needs to be clearly identified by a sign visible to the public.

With the advice and approval of the commission, the director of the Department of Licensing shall a) author the questions for the state portion of the real estate licensing examinations b) investigate complaints to see if the commission has jurisdiction. c) issue rules and regulations to govern the activities of real estate licensees. d) proctor the real estate exam held at least once per month.

c) issue rules and regulations to govern the activities of real estate licensees.

An earnest money deposit of $11,000 _______________ a) must be placed in a pooled interest-bearing trust account b) must be placed in the brokers operating account c) may be placed in either a pooled interest-bearing trust account or a separate interest-bearing trust account, at the option of the depositor d) must be placed in a separate interest-bearing trust account

c) may be placed in either a pooled interest-bearing trust account or a separate interest-bearing trust account, at the option of the depositor An earnest money deposit of $11,000 may be placed in either a pooled interest-bearing trust account or a separate interest-bearing trust account, at the option of the depositor. If the amount is $10,000 or less it is required the interest go into the state pooled interest bearing account

When a broker represents the seller of real estate, an agency disclosure must be given to the _________________ a) seller, at the beginning of the first personal meeting with the sellernconcerning the real estate. b) seller, at the time the listing agreement is signed. c) purchaser, before the purchase and sale contract is signed. d) purchaser, at the beginning of the first personal meeting with the purchaser.

c) purchaser, before the purchase and sale contract is signed. The broker must disclose to the purchaser, before the purchaser signs an offer, that the broker represents the seller (see RCW 18.86.030 (g)). A licensee owes all parties to whom the licensee renders real estate brokerage services the duty of providing a pamphlet on the law of real estate agency. This must be provided before the party signs an agency agreement with the licensee, signs an offer in a real estate transaction handled by the licensee, or consents to dual agency or waives any rights, whichever occurs first

All real estate license fees are paid to the_____________ a) state auditor and placed in the general fund for real estate taxes in that county b) state treasurer and placed in the public services fund of the state treasury c) state treasurer and placed in the real estate commission account in the state treasury d) Washington Real Estate Commission and placed in the real estate recovery fund

c) state treasurer and placed in the real estate commission account in the state treasury All license fees are paid to the state treasurer and placed in the real estate commission account in the state treasury. All money derived from fines imposed under the license law is deposited into the real estate education account.

A real estate broker representing the seller knows that the property has a cracked foundation and that its former owner committed suicide in the kitchen. The broker must disclose a) both facts. b) the suicide, but not the foundation. c) the cracked foundation, but disclosing the suicide could constitute a breach of duty to the client. d) neither fact.

c) the cracked foundation, but disclosing the suicide could constitute a breach of duty to the client. The broker must disclose the cracked foundation as a material fact. The suicide is considered a psychological impact or stigma and not a material fact. Therefore, it does not have to be disclosed. However, a licensee must respond truthfully if asked about such matters

The source document for a lease must contain all of the following information EXCEPT___________ a) the name and address of the tenant b) the address of the leased premises, if different from the tenant's address c) the square footage of the leased unit d) the duration of the lease and the rental amount

c) the square footage of the leased unit The square footage of the leased unit is not required in the source document. The source document for a lease must contain the name and address of the tenant, the address of the leased premises if different from the tenant's address, the duration of the lease, the rental amount, the amount(s) of any and all deposits made by the tenant and the purpose of said deposits, the location where the deposits are being held, and any modification of the terms of the original lease document.

If a license holder or applicant for a license requests a hearing, the disciplinary authority must fix the time of the hearing as soon as convenient, but not earlier than ______ days after the service of charge, charges, or intent to deny. The disciplinary authority may hold a hearing sooner than thirty days only if the disciplinary authority has issued a summary suspension or summary restriction. a) 7 b) 10 c) 20 d) 30

d) 30 If a license holder or applicant for a license requests a hearing, the disciplinary authority must fix the time of the hearing as soon as convenient, but not earlier than thirty days after the service of charge, charges, or intent to deny. The disciplinary authority may hold a hearing sooner than thirty days only if the disciplinary authority has issued a summary suspension or summary restriction

Broker Steve listed a property and showed it to twenty-five buyers during the listing period. The property did not sell and the sellers did not re-list with another company. Two weeks after the listing expired, a buyer that Steve had shown the property to wanted to make an offer. If the offer is accepted, Steve's broker will be able to collect the commission because of which of the following clauses? a) Broker protection clause. b) Extender clause. c) Carryover clause. d) All of the above.

d) All of the above. A broker protection clause is also known as an extender or carryover clause. This clause allows the broker to collect a commission if the seller accepts an offer from a buyer that was shown the property during the listing period. Usually the listing brokerage is protected in the listing agreement for up to 6 months should the listing sell due to efforts by the brokerage. Efforts would include any purchaser who was alerted of the property through the listing sign during the listing period.

Which of the following can an unlicensed assistant perform for property management? a) Deliver lease applications. b) Show rental units. c) Provide information about rental units. d) All of the stated actions.

d) All of the stated actions. An unlicensed assistant for property management may perform all of the stated actions.

Which of the following is NOT a responsibility of the director? a) Hiring staff. b)Disciplining licensees. c) Adopting a seal for copy certification. d) Appointing commissioners.

d) Appointing commissioners. Appointing commissioners. The governor, not the director, appoints commissioners.

The easement that is created when two properties are owned by two parties and one benefits from the easement, while the other is burdened by easement, is an a) Easement by prescription. b) Easement in gross. c) Easement by necessity. d) Appurtenant easement.

d) Appurtenant easement. An appurtenant easement involves two tracts of land owned by two different property owners. The dominant estate benefits from the appurtenant easement, while the servient estate is burdened by the appurtenant easement.

Broker Keith just presented the buyer's offer to the sellers. The sellers accepted in writing. At this point the contract is a/an a) Unilateral, executed contract. b) Bilateral, executed contract. c) Implied, executory contract. d) Bilateral, executory contract.

d) Bilateral, executory contract. It is a bilateral contract because both parties are obligated to perform. It is executory because there are duties to be performed.

Bill bought into a new subdivision located near the airport. The airport got federal and state approval to redirect the flight path of incoming planes over the new subdivision. The effect of the change is known as? a) Physical obsolescence. b) Incurable obsolescence. c) Functional obsolescence. d) Economic obsolescence.

d) Economic obsolescence. Economic obsolescence is a loss in value due to factors away from the subject property but adversely affecting the value of the subject property.

A landlord must provide a disabled person with a disabled parking space a) Upon request. b) Within 10 feet of the entrance. c) Within 14 days of the request. d) If available.

d) If available. A landlord must provide a disabled parking space if available.

Does Washington require errors and omissions insurance? a) Yes. b) Yes, only if the designated broker has had complaints filed against them. c) Yes, only if a licensee had complaints filed against them. d) No.

d) No Washington does not require errors and omissions insurance, though it is wise to have this coverage.

The law which requires that an applicant receive a good faith estimate within three days of loan application is a) Truth-in-Lending. b) Regulation Z. c) Regulation B. d) RESPA

d) RESPA RESPA requires borrowers to receive a good faith estimate (GFE) within three days of loan application. The TILA-RESPA Integrated Disclosure Rule is commonly known as the TRID rule. The TRID rule consolidates existing disclosures required under TILA and RESPA which no longer use the HUD-1 settlement form or a Good Faith Estimate (GFE). The two new forms are Loan Estimate (LE) that must be delivered or placed in the mail no later than the third business day after receiving the consumer's application and Closing Disclosure (CD) that must be provided to the consumer at least three business days prior to loan consummation. These new forms replace the RESPA HUD-1 settlement form, and the Regulation Z TILA Good Faith Estimate (GFE) to help make it easier for the borrower to understand their financial obligation to the lender.

The purpose of an alienation clause in a mortgage is to? a) Allow the lender to sell the mortgage to the secondary market. b) Allow the mortgagor to sell the property as long as taxes and insurance are paid. c) Require the full payment of the mortgage balance if the mortgagor transfers the title without the mortgagee's permission. d) Require the full payment of the mortgage balance if the mortgagee transfers the title without the mortgagor's permission.

d) Require the full payment of the mortgage balance if the mortgagee transfers the title without the mortgagor's permission. The purpose of the alienation clause is to require full payment of the loan if the mortgagor (borrower) transfers the title without the permission of the mortgagee (lender).

When a party purchases a cooperative, she/he will secure a) A real property interest in personal property. b) A real property interest through the deed. c) Stock in the company and a deed to the unit. d) Stock in the company and a lease to the unit.

d) Stock in the company and a lease to the unit. The owner of a cooperative will purchase stock in the company that owns the building. The owner will be given a proprietary lease to the co-op unit.

Jessica negotiated a home equity loan. She will make monthly payments of interest only for the next ten years, and then the entire principal balance is due and payable. The loan Jessica negotiated is a? a) Amortized mortgage. b) Balloon mortgage. c) Blanket mortgage. d) Straight mortgage.

d) Straight mortgage. In a straight or term mortgage, interest only is paid on the loan. The entire principal balance is due at the end of the loan term.

A tenant leased a commercial space for a dance studio. The tenant purchased and installed mirrors on all the walls in the practice room. Which of the following statements is not true in this situation? a) The tenant may install the mirrors with the permission of the landlord. b) The mirrors are legally classified as trade fixtures. c) Unless stipulated otherwise in the lease agreement, the mirrors would become the property of the landlord if not removed before the expiration of the lease. d) The mirrors are legally classified as fixtures.

d) The mirrors are legally classified as fixtures. This is the incorrect statement. The mirrors are legally classified as trade fixtures, or the personal property of a tenant that is installed for use in a business.

As far as commission members go, which of the following is NOT true? a) They serve six year terms b) They hold educational conferences c) They advise and approve actions of the director d) They take disciplinary action against licensees

d) They take disciplinary action against licensees The director's duty is to discipline licensees while the commissions' duty is to provide advice and consent.

A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur? a) No, because the real estate company would then be a dual agent. b) Yes, as long as written agency agreements have been entered into with both parties. c) Yes, if the seller has agreed to pay the commission. d) Yes, if both the buyer and seller give their consent to dual agency.

d) Yes, if both the buyer and seller give their consent to dual agency. If both parties agree, then the brokerage can represent both parties. Agency is about representation; payment of fee does not determine representation.

Eight years ago, Unit 204 in a condominium community was the site of a murder. The property was sold and the new owner committed suicide by a drug overdose. As the agent for the estate, what are the disclosure responsibilities to the prospective purchasers of the condominium? a) You are required to disclose both of the tragedies. b) You need to only disclose the murder. c) You need to only disclose the overdose. d) You do not need to disclose information that substantially adversely affects the value of the property.

d) You do not need to disclose information that substantially adversely affects the value of the property. "Material fact" means information that substantially adversely affects the value of the property or a party's ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property, or any neighboring property, is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other act, occurrence, or use not adversely affecting the physical condition of or title to the property is not a material fact.

The Can-Spam Act requires the opt-out feature to be a) active for 10 days after the email was sent and the request for the opt-out must be honored within 30 days. b) active for 15 days after the email was sent and the request for the opt-out must be honored within 30 days. c) active for 30 days after the email was sent and the request for the opt-out must be honored within 30 days. d) active for 30 days after the email was sent and the request for the opt-out must be honored within 10 days.

d) active for 30 days after the email was sent and the request for the opt-out must be honored within 10 days. The Can-Spam Act requires the opt-out feature to be active for 30 days after the email was sent and the request for the opt-out must be honored within 10 days.

Under the Washington State theory of community property, both spouses are required to join in executing the security agreement or bill of sale for______________ a) household goods b) furnishings and appliances c) a community mobile home d) all of these

d) all of these Neither spouse can create a security interest, other than a purchase money security interest, in community household goods, furnishings, appliances, or a community mobile home unless the other spouse joins in executing the security agreement or bill of sale.

Disciplinary sanctions will be warranted if the licensee fails to furnish a copy of any listing, sale, lease, or other contract relevant to a real estate transaction to all signatories a) prior to execution b) within three days after execution c) within 48 hours after execution d) at the time of execution

d) at the time of execution At the time of execution, failing to furnish a copy of any listing, sale, lease, or other contract to all signatories of a real estate transaction will warrant disciplinary sanctions.

An escrow agent wishes to close a real estate transaction and wants to charge a fee. In order to do this, the escrow agent is required to hold a(n)_______________. a) escrow license b) office c) affiliation with a title company d) certificate of registration

d) certificate of registration An escrow agent's certificate of registration is required in order to close a real estate transaction for compensation.

The director will suspend an individual's license for_________ a) nonpayment or default on a federal- or state-guaranteed educational loan or service-conditional scholarship b) failure to pay child support c) neither of these d) either of these

d) either of these A license can be suspended for failing to pay child support. The director will also suspend the license of anyone who has been certified by a lending agency and reported to the director for nonpayment or default on a federal or state guaranteed educational loan or service conditional scholarship.

If a seller does not know the answer to a question on the property disclosure form, he or she should ____________________ a) leave the space blank. b) put a bold black line through the space. c) enter an answer that is likely to be correct. d) enter

d) enter The seller must complete the disclosure form in its entirety to the best of his or her knowledge. No space is to be left blank. If the seller does not know the answer to a question, he or she should enter, "don't know." If the question clearly does not apply to the property, the seller is to write "N/A".

David has been a real estate appraiser for 10 years, The Department of Licensing grants him a waiver from the experience requirements for a managing broker's license. If he fails to pass the broker's exam on the first try_____________ a) he may reapply to take the exam after 30 days. b) he may reapply to take the exam after completing a 30 hour course in real estate law. c) he may reapply to take the exam after completing a 30 hour course in real estate practices. d) he may not reapply to take the exam until he fulfills the experience requirement for a managing broker's license.

d) he may not reapply to take the exam until he fulfills the experience requirement for a managing broker's license. The correct answer is d -Because David has been a real estate appraiser for 10 years, The Department of Licensing grants him a waiver from the experience requirements for a managing broker's license. If David fails to pass the broker's exam on the first try he may not reapply to take the exam until he fulfills the experience requirement for a managing broker's license.

A property management agreement must state all of the following EXCEPT______________. a) broker compensation b) any authorization to collect or disburse funds c) the frequency of furnishing summary statements d) rent schedule

d) rent schedule A property management agreement must state broker compensation, any authorization to collect or disburse funds and the frequency of furnishing summary statements. It does not need to furnish a rent schedule.

Agency Disclosure is required by the licensee _____________ a) prior to showing an open house. b) at the time of closing (escrow). c) prior to showing any properties. d) to disclose in writing to all parties to whom the broker renders real estate brokerage services before the party signs an offer.

d) to disclose in writing to all parties to whom the broker renders real estate brokerage services before the party signs an offer. The licensee (broker) owes to all parties to whom the broker renders real estate brokerage services the following duties, which may not be waived; To disclose in writing to all parties to whom the broker renders real estate brokerage services, before the party signs an offer in a real estate transaction handled by the broker, whether the broker represents the buyer, the seller, both parties, or neither party. The disclosure shall be set forth in a separate paragraph entitled "Agency Disclosure" in the agreement between the buyer and seller or in a separate writing entitled "Agency Disclosure