Washington Fundamentals Exam Review
B. No, because there was no ready, willing and able buyer
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? A. No because the sale didn't close B. No because there was no ready, willing, and able buyer C. Yes, because the licensee saw the transaction through to the closing date D. Yes because the seller has an absolute duty to provide marketable title at closing
A. As long as he has given her a power of attorney
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: A. As long as he has given her a power of attorney B. As long as he is overseas for work purposes and not for pleasure C. If they were originally married and a state that does not follow the law of community property D. Under any circumstances
D. Curable Depreciation
A licensee who is taking a posting 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: A. Economic obsolescence B. External obsolescence C. Functional obsolescence D. Curable Depreciation
D. Unlawful, because this is a 12 unit building
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: A. Lawful, because no discriminatory advertising was used B. Lawful, because the owner lives on the premises C. Lawful, because no real estate agent was used D. Unlawful, because this is a 12 unit building
B. Contract with contingencies
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: A. Acceptance B. Contract with contingencies C. Counteroffer D. Unilateral contract
A. General Agent
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 a/an: A. General Agent B. Implied Agent C. Special Agent D. Universal Agent
A. he is eligible for the commission because he was duly licensed when the sale was made
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? A. he is eligible for the commission because he was duly licensed when the sale was made B. he is eligible for the commission because he is technically licensed until all appeals have been exhausted C. he is not eligible for a commission because he was not licensed at the time the commission was paid D. he is not eligible for a commission because a license revocation automatically nullifies any right to commissions that are yet unpaid
C. $270,500
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 $2000 less. The comparable has a small porch worth $1000 that the subject property lacks. If the comparable sold for $269,500 recently, what is the estimated value of the subject property? A. $266,500 B. $268,500 C. $270,500 D. $272,500
D. Valid
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: A. Void B. Voidable C. Unenforceable D. Valid
A. Enforce the deed restriction against Smith via lawsuit
Jones and Smith live across the street from each other in a subdivision that has deed restrictions prohibiting the keeping of large animals as pets. Jones realizes that Smith is keeping a pet Shetland pony in his backyard. Jones can: A. Enforce the deed restriction against Smith via lawsuit B. Do nothing because Smith's ownership rights to take precedence over deed restrictions C. Do nothing because only a next-door neighbor can enforce such a deed restriction against Smith D. Notify the local zoning authority, who will investigate
C. Yes, because an easement of this type runs with the land, rather than belonging to an individual
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? A. No, because it wasn't recorded B. No, because it wasn't mentioned in the deed C. Yes, because an easement of this type runs with the land, rather than belonging to an individual D. Yes, because K is the servient tenant and L is the dominant tenant
A. No, discount points are used to increase the yield for lenders who will sell the loans on the secondary market.
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? A. No, discount points are used to increase the yield for lenders who will sell the loans on the secondary market. B. No, discount points are used to pay brokers' commissions. C. Yes, banks hold discount points in escrow until sufficient funds have been accumulated to make more loans. D. Yes, discount points lower interest rates which make loans more affordable for everyone.
B. A home protection plan
A buyer would be protected from risk of loss due to a failed heating system through: A. An agency disclosure statement B. A home protection plan C. Mortgage insurance D. Title insurance
B. The licensee must provide notice by July 22
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? A. The licensee must provide notice within 20 days of conviction B. The licensee must provide notice by July 22 C. The licensee must provide notice by July 25 D. Designated broker must provide notice by July 25
C. Notify the Principals
A $4,500 earnest money check bounces because of insufficient funds. The first thing the broker should do is: A. Notify escrow to charge this amount, plus the bounced check fee to the buyer B. Notify the borrower C. Notify the Principals D. Write a personal check for $4,500 to cover the shortage
B. Buyers agent is permitted to unilaterally terminate the agency relationship
A buyer asks the buyers agent to write an offer on terms that don't match the listing agreement. The buyers agent refuses to write the offer and then, in writing, unilaterally terminate the agency relationship with the buyer. Which is true? A. Buyers agent will be subject to disciplinary action B. Buyers agent is permitted to unilaterally terminate the agency relationship C. Buyers agent is a loud to terminate at the agency, but must write the offer before terminating D. Buyers agent is not permitted to write such an offer
D. No disclosure, because the land is agricultural
A buyer is getting a loan to purchase a 5 acre apple farm with no residence on it. The truth in lending act requires: A. A three day recession. If the borrower changes her mind B. Disclosure of all settlement charges on a uniform settlement statement C. Disclosure of the finance charge D. No disclosure, because the land is agricultural
C. The property manager as well as a designated broker (for failing to properly supervise the licensee)
A Property Manager handling a vacant building fails, for several months, to keep out vagrants who damage to property. Who is liable? A. The management firm's designated broker alone B. The Property Manager alone C. The property manager as well as the designated broker (for failing to properly supervise the licensee) D. No one is liable
B. The buyer can finish out the contract as the buyers Guardian has proposed
A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally incompetent. The buyers guardian contact the seller and says that he can continue to make the buyers payments as agreed. Which of the following is true? A. The buyer can disaffirm the contract within a reasonable period of time B. The buyer can finish out the contract as the buyers Guardian has proposed C. The seller can agree to receive payments from the guardian and if the payments become unreliable, the seller can then cancel the contract D. The contract is automatically voided because of the buyers incapacity, regardless of what the Guardian wants
A. Consult with an environmental expert
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 a storage site for a heating oil company. The licensee should advise her buyer to: A. Consult with an environmental expert B. Request a spot zone C. Seek tentative approval from the Environmental Protection Agency D. Use a condemnation clause in the offer
B. Alienation clause
A contract for deed wouldn't be a good idea if the sellers mortgage has a/an: A. Acceleration clause B. Alienation clause C. Defeasance clause D. Subordination clause
C. Voidable by the intoxicated party
A contract signed by a person who was intoxicated at the time of the signature would be: A. Valid B. Void C. Voidable by the intoxicated party D. Voidable by the other non intoxicated party
C. A permanent lender who will provide financing once construction is completed
A developer wants a construction loan to build 20 homes. The lender requires a takeout commitment. This means the developer needs: A. A clause that allows individual lots to be released from the blanket lien when they are sold to purchasers B. A new mortgage that wraps around an existing first mortgage C. A permanent lender who will provide financing once construction is completed D. An interim contract guaranteeing that the property will be finished by certain date
C. RESPA
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? A. Fraud enforcement and recovery act B. Home loan disclosure act C. RESPA D. Fair credit reporting act
A. ABC Real Estate
A group of affiliated licensees form a team, the XYZ team, within the brokerage they work for (ABC realty) ABC has a firm license, but XYZ does not. Whose name must appear in all the advertising of those affiliated licensees? A. ABC Real estate B. XYZ team C. Both abc real estate and xyz team D. The name of each affiliated licensee
B. The listing agent violated her fiduciary duty to the seller by telling the buyer how low the seller would go
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? A. The listing agent violated her fiduciary duty to the seller by engaging in self dealing B. The listing agent violated her fiduciary duty to the seller by telling the buyer how low the seller would go C. The listing agent did not violate her fiduciary duty to the seller because that is not information that the seller would expect to remain confidential D. The listing agent for filled her fiduciary duty to the seller by facilitating a successful offer and acceptance
B. Ground lease
A landowner is negotiating the lease of his land to a developer who wants to build a mall there. They should use a: A. Gross lease B. Ground lease C. Net lease D. Percentage lease
D. Property Taxes
A lease is most likely to be a net lease if it requires the tenant to pay: A. A portion of the tenants business income B. Periodic rent increases based on a measure of inflation like the Consumer Price Index C. Utilities D. Property Taxes
B. Suit for specific performance
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: A. Partition action B. Suit for specific performance C. Quite title action D. Injunction
D. Alienation clause (due on sale clause)
A mortgage often includes a clause requiring the lender consent before another borrower may assume the mortgage. This clause is called a/an: A. Power of sale clause B. Subordination clause C. Defeasance clause D. Alienation clause (due on sale clause)
C. Package mortgage
A mortgage that uses both real and personal property to secure the borrowers debt is a: A. Reverse equity mortgage B. Budget mortgage C. Package mortgage D. Deed of trust
D. Will be allowed to continue since it was built before the new zoning law went into effect
A movie theater was built ten years ago. If the neighborhood is now zoned entirely residential, the movie theater: A. Will have to be torn down B. Must be remodeled to better conform to the neighborhoods intended use C. Will be allowed to continue if the owner obtains a conditional use permit D. Will be allowed to continue since it was built before the new zoning law went into effect
D. Soil's ability to absorb and retain water
A percolation test will examine the: A. Likelihood of landslides or subsidence B. Presence of toxic contamination in soil C. Roofing material's ability to repel rain D. Soil's ability to absorb and retain water
D. Lis Pendens
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 a/an: A. Abstract of Judgement B. Petition for Alienation C. Writ of Execution D. Lis Pendens
C. Anticipated expenses and revenue
A property manager bases the operating budget on: A. Rental rates B. The rental market C. Anticipated expenses and revenue D. State landlord-tenant law
B. $100,000
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? A. $1,440 B. $100,000 C. $144,000 D. $1,000,000
B. Seller's agent is not breaching the duty of loyalty
A seller complains that the seller's agent is showing other properties to buyers that compete with the sellers property. Which of the following is true? A. Seller's agent is breaching the duty of loyalty to seller B. Seller's agent is not breaching the duty of loyalty C. Seller's agent has created a conflict of interest D. Sellers agent may do so, but only with the sellers express permission
D. End her agency with the seller, as it would be a violation of the federal Fair Housing Act
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? A. Agree to it, but avoid using any discriminatory advertising B. Agree to it, as the agent owes the seller the duty of loyalty C. End her agency with the seller, as the agent's duty is to find the most lucrative offer for the seller regardless of race D. End her agency with the seller, as it would be a violation of the federal Fair Housing Act
C. $260,000
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? A. $241,800 B. $258,726 C. $260,000 D. $276,060
B. It will increase, in anticipation of the changing uses
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? A. It will decrease, because of fears of new businesses being built nearby B. It will increase, in anticipation of the changing uses C. No effect, since the house is a nonconforming use D. No effect, until the change actually occurs
B. $600 debit for the seller and a $600 credit for the buyer
A tenant has already paid his $1200 rent for the month for a single-family property. The property is owner sells it to a new buyer with closing occurring on 15 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: A. $600 debit for the buyer and a $600 credit for the seller B. $600 debit for the seller and a $600 credit for the buyer C. $1200 credit for the buyer D. $1200 credit for the seller
A. Percentage lease
A type of lease that allows the lessor to share in the increasing sales generated by a retail property is a/an: A. Percentage lease B. Graduate lease C. Index lease D. Net lease
D. Offer inducements to prospective tenants
As a property manager, you may: A. Advertise that units are available, even when they're not B. Use different application forms for minority applicants C. Require credit checks for some applicants, but not for others D. Offer inducements to prospective tenants
D. Tax lien
Alan 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 is owner also receives notice on May 10 that he is in arrears on his property tax payments. Which lien has lien priority? A. Allen's lien B. Bart's lien C. Judgment lien D. Tax lien
B. commissions can be paid to licensees only via their firm
An affiliated licensee owns a wholly owned S corporation, The A Team. He instructs an escrow agent to issue a commission check directly to the A Team. How has he violated the real estate license law? A. a third party can't give instructions to an escrow agent B. commissions can be paid to licensees only via their firm C. the licensee didn't first inform the principals D. the licensee may charge for escrow services only if he is also a licensed escrow agent
B. Comparable X: lacks a garage, which the subject property has
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? A. Comparable W: is on a larger lot size than the subject property B. Comparable X: lacks a garage, which the subject property has C. Comparable Y: has a swimming pool, which the subject property lacks D. Comparable Z: is in a superior neighborhood compared to the subject property
B. Income
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 rate in the same market, and a capitalization rate can be supported. Which approach to value should the appraiser use? A. Cost B. Income C. Market data D. Sales comparison
C. Limited common element
An assigned parking space in a lot at a condominium development would be considered a/an: A. Common element B. Easement C. Limited common element D. Private restriction
C. Planned Unit Developments
An increasingly common land use pattern allows for subdivision with smaller lot sizes and little or no setback and sideyard requirements while keeping the same density ratios. These are known as: A. Horizontal Property Divisions B. Downzoning C. Planned Unit Developments D. Spot Zoning
C. Price, plus capital improvements, minus land value
An investor rents a property to a tenant. For tax purposes, depreciation on this property is based on: A. Market value, plus capital improvements, minus land value B. Market value, plus rental income, minus land value C. Price, plus capital improvements, minus land value D. Price, plus rental income, minus land value
B. The firms office
And affiliated license he really works in the firms main office. The record for the licensees transactions must be kept in: A. The licensees personal files B. The firm's office C. Both the licensees personal files in the firms office D. In the licensees personal files until closing, then at the firm's office
C. Yes, because the seller won't provide marketable title, which is considered a default.
At closing, a sale doesn't go through because the seller's anticipated transfer to another city suddenly gets postponed and the seller no longer wants to sell. Does the seller owe the listing agent a commission in this situation? A. No, because the sale didn't close. B. No, because this was a circumstance outside the seller's control. C. Yes, because the seller won't provide marketable title, which is considered a default. D. Yes, unless the buyer and seller agreed to mutually cancel the transaction.
A. Fee simple estate
Been receives a life estate in a property, with his nephew will designated as the remaindermen. When Bill dies, what kind of interest does Will receive? A. Fee simple estate B. Life estate C. Remainder interest D. Reversionary interest
D. No, the listing agent had no further recourse
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? A. Yes, the listing agent can pursue criminal charges B. Yes, the listing agent can sue Bob under the listing agreement C. Yes, the listing agent can sue Sam under the listing agreement D. No, the listing agent has no further recourse
D. Personal Property
Chin, a home seller, is talking to his real estate agent. He mentions that he rents the back up generator; it doesn't belong to him. The generator would be considered: A. A fixture B. A natural attachment C. A trade fixture D. Personal property
D. Special agent
Gerald engages a licensee to list his property and find a buyer for it. In this context, the licensee is acting as a: A. General agent B. Power of attorney C. Property manager D. Special agent
B. The deed is still valid between Deborah and Juan
Deborah sells her property to Juan, but Juan fails to record the deed. Which of the following statements is true about unrecorded deeds? A. The conveyance is invalid B. The deed is still valid between Deborah and Juan C. The deed provides constructive notice that Juan is the owner D. The property with the unrecorded deed will escheat to the county where it is located when Juan dies
D. Considered a trespass
Encroachments are: A. Spoken permission to use someone else's property B. Activities that interfere with a neighboring owner's use of his property C. Protected against by standard title insurance D. Considered a trespass
B. Ad Valorem Taxes
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: A. Special Assessments B. Ad Valorem Taxes C. Estate Taxes D. Excise Taxes
D. Exclusive Agency Listing
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 wasting she has created? A. Non-exclusive listing B. Exclusive right to sell listing C. Exclusive open listing D. Exclusive agency listing
C. Tell the buyers about their right to receive the denial in writing
Hey buyers 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 buyers agent should: A. Ask the sellers to provide a purchase money loan instead B. Have the sellers extend the contingency deadline C. Tell the buyers about their right to receive the denial in writing D. Terminate the agency relationship
D. The option agreement must clearly state all the terms and conditions of the sale
In an option: A. No consideration is required B. The seller is the optionee and the buyer is the optionor C. The seller must apply the option money to the purchase price if the optionee exercises her option D. The option agreement must clearly state all the terms and conditions of the sale
C. Inactive License
It is not necessary to complete 30 hours of continuing education in order to renew a/an: A. Active license B. Broker's license C. Inactive License D. Managing Broker's license
B. 12 months
J passes the license exam on March 20. How much time does J have to apply for his license, before being required to retake the license examination? A. Six months B. 12 months C. 18 months D. 2 years
B. 1,208
Jamie's house is mostly rectangular, measuring 30' x 40'. There is also an enclosed triangular foyer (a fully walled-in entry area) in front, measuring 4 feet across, 4 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 measures 10' x 20'. What is the square footage of the living area? A. 1,200 B. 1,208 C. 1,408 D. 1,608
B. The benefit of the property receives from the improvements
Special assessments levied against a property for local improvements, such as street lights and sidewalks, are computed on the basis of: A. Market value of the property B. The benefit the property receives from the improvements C. A recent appraisal of the property D. The square footage of the land
D. Rectangular survey method
Meridians and base lines relate to the: A. Lot and block method B. Metes and bounds method C. Recorded map method D. Rectangular survey method
C. Equitable title
Once a contract for deed is signed by the parties, the buyer immediately receives: A. A life estate B. Legal title C. Equitable title D. The right to lease the property
C. Sherman Antitrust Act and state antitrust laws
Price fixing (including setting commission rates in a community) is prohibited by the: A. State usury Act B. Federal regulation Z C. Sherman Antitrust Act and state antitrust laws D. Federal Real Estate Settlement Procedures Act
A. $4,800
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? A. $4,800 B. $6,000 C. $6,400 D. $7,500
B. Yes as long as he maintains possession
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 owner of the farm? A. Yes because he's putting the land to productive use B. Yes as long as he maintains possession C. No because adverse possession requires that the true owner be unaware of the possession D. No because his possession is not hostile to the owner's interest
B. Set real estate transaction fees
The Real Estate Commission does all of the following except: A. Prepare licensing exam questions B. Set real estate transactions fees C. Advise the Director regarding new regulations D. Hold educational conferences for the benefit of the real estate industry
D. Residential first mortgages
The Real Estate Settlement Procedures Act (RESPA) applies to: A. Contracts for deed B. Seller-financed transactions C. Commercial and residential mortgages D. Residential first mortgages
D. Writing real estate exam questions
The following are all goals of Washington Center for real estate research, except: A. Recommending changes to state statutes regarding licensing B. Promoting growth and development in Washington C. Determining the low income vacancy rates D. Writing real estate exam questions
A. Assignee
The mortgagee assigns its interest and the assignee records the assignment. The mortgagor now needs to make payments to the: A. Assignee B. Assignor C. Beneficiary D. Mortgagee
B. $4,500
The seller lists her property with XYZ Realty and agrees to pay a commission rate of 6%. The MLS provides that the listing brokerage will split commissions at a 50-50 rate with the selling brokerage. Susie, a licensee for ABC realty, finds a buyer and the property sells for $300,000. If Susie is entitled to a 50-50 split with her brokerage, how much commission will she receive? A. $2,250 B. $4,500 C. $9,000 D. $18,000
B. Unless the purchase and sale agreement discloses that the deposit is a note
The selling agent must NOT accept a promissory not as an earnest money deposit: A. Unless the agent knows that the buyer has an excellent credit history B. Unless the purchase and sale agreement discloses that the deposit is a note C. Unless the seller agreed during negotiation discussion to accept a promissory note D. Under any circumstances
C. An unlisted home that is for sale by 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
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? A. A church owned apartment complex where language in the lease restricts tenancy to members of a specific national origin B. Members of a certain ethnic group are denied lodging in facilities operated by a private club for commercial purposes C. An unlisted home and that is for sale by owner, we're the only advertising is a sign in front of the property that reads simply "for sale" and the owner owns only one other home D. An absentee owner who rents units in a fourplex without the help of a real estate agent
C. $75,000
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? A. $37,500 B. $43,750 C. $75,000 D. $525,000
A. An attorney in fact
To be valid, a listing agreement may be signed by: A. An attorney in fact B. The Buyer C. The designated broker only, with the owner's authorization via telephone D. The licensee only
D. Penalties for not disclosing agency status
Washington state's real estate agency law does not address which of the following? A. Definition of dual agency B. Creation and termination of agency relationships C. Vicarious liability of principal and licensee D. Penalties for not disclosing agency status
D. Value and net income
What information does an appraiser need in order to calculate a capitalization rate? A. Price and gross income B. Price and net income C. Value and gross income D. Value and net income
C. Both principal and interest in the loan
When a borrower make payments on a fully amortized loan, her debt service payments will cover: A. Only principal on the loan B. Only interest on the loan C. Both principal and interest on the loan D. Principal, interest, taxes, and insurance
A. Postmark date or the date the license is hand-delivered to the Department of Licensing
When a licensee is terminated, the date of termination is the: A. Postmark date or the date the license is hand-delivered to the Department of Licensing B. Moment the termination is understood and agreed upon by both the designated broker and the affiliate C. Date the termination notice is tendered by either the designated broker or the agent D. Date the terminated license is received by the Department of Licensing
C. Avulsion
When part of the land is removed, but generally the boundaries of a property stay the same, it is known as: A. Accretion B. Adverse possession C. Avulsion D. Partition
D. They reveal encroachments not of public record
Which of the following is true about surveys? A. They determine placement of improvements on a property B. They identify setback lines from property boundaries C. They protect against easements by prescription D. They reveal encroachments not of public record
C. A veteran or a deceased veteran's unremarked surviving spouse
Which of the following persons could be eligible to receive a VA loan? A. Veteran or a deceased veterans children B. A veteran or a deceased veterans children or unremarried spouse C. Veteran or a deceased veterans unremarried surviving spouse D. Only a veteran him or herself
C. The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin
Which of the following situations would be exempt under the Fair Housing Act? A. A religious organization refuses to allow people of a particular national origin to live in their low-income housing project B. An elderly homeowner who rents out a room in her house asks that no people of a particular national origin apply, in her classified ad C. The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin D. The owner of a house refuses to sell the property to buyers because of their national origin, after his real estate agent confirms that is allowed
D. None, because they are all older than nine months
While preparing a competitive market analysis, an agent finds four comparable 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: A. The oldest two B. The newest two C. All four D. None, because they are all older than nine months
B. Designated broker
Who is ultimately responsible for the delivery of the earnest money? A. Purchaser B. Designated Broker C. Listing Licensee DX licensee who receives funds
B. Valid
X and Y execute a properly drawn up option agreement for X to purchase Y's commercial property. X gives $5 in consideration. the option is: A. Unenforceable B. Valid C. Void D. Voidable
