RES 100 REAL ESTATE FUNDAMENTALS MID-TERM EXAM
Based on 2013 Edition of Washington Real Estate Fundamentals
PLEASE RECORD YOUR ANSWERS ON A SCANTRON FORM LABELED WITH YOUR
NAME AND “MID-TERM” AND PLEASE USE A #2 PENCIL. THIS IS AN “OPEN BOOK”
EXAM. EACH CORRECT ANSWER IS WORTH 1 POINT.
1.
A lease that provides for periodic increases of rent at regular intervals is called a:
A.
B.
2.
C.
D.
The best overall offer
Both offers
Reserve for replacements
Advances to owners
Operating expenses
Debt service
7 percent
8 percent
10 percent
14 percent
Which of the following situations is an example of encroachment?
A.
B.
C.
D.
6.
The first offer received
The highest offer
A property produces an income of $10,000 per year. Management expenses are $700 annually.
Monthly heating costs are $92. If the property is valued at $80,000, what is the owner’s
approximate overall capitalization rate?
A.
B.
C.
D.
5.
Yearly lease
Net lease
To obtain net operating income, which of the following expenses is subtracted from gross income?
A.
B.
C.
D.
4.
C.
D.
If a broker receives two offers for the same property at approximately the same time, which of the
following offers should the broker submit to the owner?
A.
B.
3.
Graduated lease
Percentage lease
An access road that runs across a property from a public road to another property
A storage building that extends over the boundary line between the property of the building
owner and an adjacent property
Timber that has been cut down on the property by a tenant for use as firewood
A right-of-way for electric and telephone lines that goes across a property
A cloud on the title of property will be revealed by the:
A.
B.
C.
D.
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Application for title insurance
Appraisal
Settlement or closing
Title search
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7.
Solina, who recently received the deed to a newly purchased property, noted that there were a
number of limitations regarding the use of the property. These limitations are commonly known
as:
A.
B.
C.
D.
8.
The value placed on land and building by a governmental unit for use in levying annual real estate
taxes is called the:
A.
B.
C.
D.
9.
$406
$500
The owners of each will receive a master deed to their unit
Each owner will be assessed for the cost of maintenance to the common areas
The common areas are made available for use upon issuance of the proprietary lease
Prior to receiving the unit deed the owners will execute a stock subscription agreement
160 acres
320 acres
A half section
A township
When private property is abandoned, the public body of the state or the county may exercise its
reversionary claim to that property under the right of:
A.
B.
13.
C.
D.
A rectangular parcel of property that measures ½ mile by ½ mile is equal to:
A.
B.
C.
D.
12.
$125
$281
Which of the following items are similar in the ownership of a condominium and cooperative?
A.
B.
C.
D.
11.
Assessed value
Market value
Appraised value
Economic value
A property has an appraised value of $50,000. A loan is granted on the property for 75 percent of
its appraised value. The loan is spread over 25 years at an interest rate of ¾ percent per month. If
the amount paid toward the principal is to remain constant throughout the life of the loan, what is
the FIRST monthly payment?
A.
B.
10.
Constraints
Building codes
Codicils
Restrictive covenants
Escheat
Eminent domain
C.
D.
Police power
Condemnation
Failure of homeowners to pay for labor to repair their home may result in a:
A.
B.
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Mechanic’s lien
General lien
C.
D.
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Construction lien
Banker’s lien
14.
Developer Gary leases real property from the owner with the intent of constructing an office
building on it. Gary has which of the following interests in the property?
A.
B.
C.
D.
15.
Under the cost approach method of appraisal the term “accrued depreciation” may refer to which
of the following options EXCEPT:
A.
B.
C.
D.
16.
Grant
Quitclaim
Exculpatory
Prepayment
C.
D.
Assumption
Subordination
Common elements
Limited common elements
Fee simple elements
Leasehold elements
Which of the following terms describe personal property that, because of its attachment to real
property, is regarded as real property?
A.
B.
20.
C.
D.
In a condominium apartment project, swimming pools and laundry rooms for use of unit owners
are described as:
A.
B.
C.
D.
19.
Warranty
Special Warranty
Which of the following clauses will change the priority of mortgage or deed of trust in relation to a
subsequent encumbrance?
A.
B.
18.
Down zoned land
Termite damage
Out-dated plumbing fixtures
External lighting fixtures in ‘need’ of repair
Which of the following deeds should a grantor use to transfer an uncertain interest in real
property?
A.
B.
17.
Leased fee
Leasehold
Sale and leaseback
Lease option
Emblements
Personalty
C.
D.
Fixtures
Trade fixtures
Under which of the following agreements are the owners of a property obligated to pay a
commission, even though they want to sell the property themselves?
A.
B.
C.
D.
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An exclusive agency listing
An open listing
An exclusive right-to-sell listing
An option
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21.
The owners of a house are being transferred. They want to sell but also want to avoid a
commission if they are able to find their own buyer. The listing type that will meet their specific
needs is a (n):
A.
B.
22.
C.
D.
Security
Proprietary lease
The signatures of the devisors
The signatures of the grantors
A legal description of the property
A granting clause
Physical deterioration
Accrued depreciation
Functional obsolescence
Economic obsolescence
The provision in a deed of trust or a mortgage that gives the lender the right to call the entire
balance due on a default in any payment is called a (n):
A.
B.
C.
D.
27.
Cooperative
Sale-leaseback
If the value of a property is affected by negative forces outside the property, which are beyond the
control of the owner, an appraiser shows this on the appraisal report as:
A.
B.
C.
D.
26.
Delivery and acceptance of the deed
Recording of the deed
Signing of the deed by the lender
Witnessing and acknowledging of the deed
A valid deed must contain all of the following information EXCEPT:
A.
B.
C.
D.
25.
Net listing
Multiple listing
A condominium unit that is sold in connection with a “rental-pool arrangement,” with no
individual right of control, is considered a type of:
A.
B.
24.
C.
D.
Requirements for conveying title to real property include:
A.
B.
C.
D.
23.
Exclusive right-to-sell
Exclusive agency
Acceleration clause
Prepayment penalty clause
Prepayment privilege clause
Right of redemption clause
Which of the following sources provides the MOST reliable data for a direct sales comparison?
A.
B.
C.
D.
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Loan foreclosure sales
Divorce property settlements
Estate sales
Multiple listing service sales records
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28.
The act of recovering title to property lost through foreclosure on a mortgage is called:
A.
B.
29.
Redemption
Reclamation
Injunction
Deficiency judgment
Fraudulent misrepresentation
Negligent omission
Which of the following details is included in an appraisal of a parcel of real property:
A.
B.
C.
D.
31.
Mortgagee against default in loan payments
Mortgagor against default in loan payments
Mortgagee against existing, undiscovered title defects
Mortgagor against unrecorded liens
The right of ingress and egress over the land of another is classified as a (n):
A.
B.
C.
D.
34.
A fee simple estate is the least limiting interest in property
A deed must be recorded to be valid
A leasehold interest is a higher estimate than a freehold
A deed must be acknowledged to be valid
A “mortgagee’s title policy” will protect the:
A.
B.
C.
D.
33.
An estimate of the property taxes
A stated definition of estimated value
The real estate taxes on adjacent property
The owner’s estimate of value
Which of the following statements about real property ownership is CORRECT?
A.
B.
C.
D.
32.
Restitution
Reparation
A Broker, with full knowledge, intentionally put deceptive information into a MLS listing form.
Based on that information an offer was made and accepted. The offeree suffered damages as a
result of the transaction. The Broker may be liable for damages because of a (n):
A.
B.
C.
D.
30.
C.
D.
Servient tenement
Easement
Encroachment
Equitable lien
A commercial site is being appraised. In order for the appraiser to consider the site at its highest and
best use, the site must meet all of the following criteria EXCEPT that the use be:
A.
B.
C.
D.
Permissible legally
Compatible with surrounding land uses
Economically feasible
Managed by a licensed property manager
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35.
Which of the following statements about an oral sales contract that involves the sale of real estate is
CORRECT?
A.
B.
C.
D.
36.
Asia purchases an individual cooperative housing unit with a large down payment. Asia should
receive all of the following documents EXCEPT:
A.
B.
C.
D.
37.
It may not be enforceable if a breach takes place
It is not subject to the Statute of Frauds
It is a common method of consummating a sale
It is assignable to a third party
A proprietary lease
Shares of stock
Corporate bylaws
A special warranty deed
Which of the following clauses in a conventional mortgage instrument entitles the lender to accelerate
the loan if the loan is assumed?
A. Prepayment
B. Right to sell
38.
C. Due on sale
D. Variable interest rate
The brokerage fee, to be charged by a listing broker to the Seller, is determined by the:
A. Local ordinance
B. Local real estate board
39.
An appraiser using the direct sales comparison approach has information on a comparable property
that is similar in all respects to the subject property except that, while the subject property is ten years
old and has two baths, the comparable property is five years old and has one bath. In this case, the
appraiser should adjust the:
A.
B.
C.
D.
40.
C. Multiple listing service
D. Brokerage and Seller
Sale price of the comparable property down for the age and up for the number of baths
Sale price of the comparable property up for the age and down for the number of baths
Value of the subject property up for the age and up for the number of baths
Value of the subject property up for the age and down for the number of baths
All of the following requirements are necessary to the establishment of an “agency” relationship
EXCEPT:
A. An agreement between the parties
B. Competent parties
41.
C. A lawful objective
D. Earnest money
Which of the following controls govern the acquisition and transfer of title to land, including matters
such as the laws of intestate succession?
A.
B.
C.
D.
The federal laws
The laws of the state in which the property is located
The laws of the state in which the owner resides
The wishes of the person holding title
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42.
Which of the following deeds fails to provide the purchaser any assurance as to the quality of the
grantor’s title?
A.
B.
C.
D.
43.
General warranty
Quitclaim
Trustee’s
Special warranty
A Washington real estate broker may:
A. Accept an offer, which will be binding on the broker’s principal, if he or she is given the proper
authority by the principal.
B. Reject an offer without consulting the principal.
C. Submit an offer on behalf of a buyer, even if he is representing the seller in an exclusive listing.
D. Offer to buy a listed property through a straw man, as long as the offer is at the listed price.
44.
A broker lists a property. The broker advertises and shows the property several times, but after each
showing, the owners call the broker with a list of unreasonable restrictions they want placed on the
showing of the property. The broker decides not to continue the listing. In this situation, the broker:
A.
B.
C.
D.
45.
All of the following actions terminate a listing agreement EXCEPT:
A.
B.
C.
D.
46.
Acceptance by the principal of an offer to purchase
Death of the broker or principal
Bankruptcy of the broker or principal
Mutual agreement
The instrument that is recorded which shows that a lien has been removed is known as a (n):
A.
B.
C.
D.
47.
Must sue the owners to obtain a release from the listing contract
Must give the owner thirty days advance written notice to cancel the listing contract
May not cancel the listing contract
May renounce the listing contract without obtaining permission from the owner.
Acknowledgment
Cession
Release
Trust
Broker Shin is employed by the Johansen’s to sell their house. The Mulkowski’s submit an offer to
Shin to purchase the Johansen’s house, and they tell Shin that they will pay more than the offer price
if the Johansen’s request it. In this situation, Shin is:
A. Not obligated to convey the information to the Johansen’s because it will violate Shin’s
relationship with the Mulkowski’s
B. Not obligated to convey the information to the Johansen’s because the Mulkowski’s are not
bound by this verbal representation
C. Obligated to withdraw from the transaction because of conflicting obligations to the parties
D. Obligated to convey the information to the Johansen’s
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48.
Which of the following statements provides justification for owner’s claims that their property
assessment is too high?
A.
B.
C.
D.
49.
All of the following pairs of terms describe the same person EXCEPT:
A.
B.
C.
D.
50.
After bringing the buyer and seller together under contract
Only with the consent of the associate’s employing broker
At the time of settlement
At no time
For a real estate sales contract to be valid it MUST:
A.
B.
C.
D.
53.
It automatically becomes tenancy in severalty
It is divided, with 50 percent held by Ray and 50 percent to Kim’s estate
Ray holds fee simple ownership in Kim’s share of the property
Ray holds a life estate ownership in Kim’s share of the property
A real estate salesperson may offer legal advice concerning real estate:
A.
B.
C.
D.
52.
Lessor..landlord
Mortgagee..lender
Grantor..seller
Life tenant..remainderman
Kim and Ray bought a house as tenants in common. If Kim dies, which of the following statements is
CORRECT about ownership of the house?
A.
B.
C.
D.
51.
Comparable properties are assessed for less
The owners have made no improvements on the property since the last assessment period
The owners property was assessed for less the previous year
Market conditions for sales are slow
Be signed by the seller
Provide for possession of the property by the buyer
Provide for installment payments
Contain a metes and bounds description of the property
Nikaya has been given the authority to enter into contracts of any kind, on behalf of a principal.
Nikaya is a(n):
A.
B.
54.
special agent
universal agent
C.
D.
specific agent
attorney
Miyako acted on behalf of Tony without his authority, or even appearance of authority. At a later
date, Tony approved of her actions. Tony’s later approval of Miyako’s actions would be an example
of:
A. Express agreement
B. Ratification
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C.
D.
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Estoppel
Assumption of authority
55.
A buyer should consider the disclosure statement to be a
A.
B.
C.
D.
56.
Warranty by the seller of the condition of the property
Partial agreement between the buyer and the seller
Disclosure statement only
Guaranty that every problem has been disclosed
Sellers of which of the following are obligated to make a property disclosure?
A. Investment property
B. Multi-family property
57.
Five years ago, Unit 5B in a condominium community was the site of a brutal and highly publicized
murder. The unit was then sold to an elderly woman who contracted the AIDS virus in a blood
transfusion and died in the last year. As the Broker chosen by the Executor for the woman’s estate,
what are your disclosure responsibilities to prospective purchasers of Unit 5B?
A.
B.
C.
D.
58.
C. Residential property up to four units
D. Commercial property
You must voluntarily disclose both the murder and the AIDS-related death
You are specifically prohibited by law from disclosing either event
You are specifically relieved of liability for nondisclosure of either event
You do not need to disclose the AIDS-related death
Broker A took a listing for a small office building. Because the property is in excellent condition and
produces a good, steady income, Broker B in the same brokerage office has decided to make an offer
on it as an investment. If Broker B wishes to buy this property, Broker B must
A. Resign as a Broker with this brokerage, then make an offer
B. Have some third party purchase the property on Broker B’s behalf so that the owner does not learn
the true identity of the purchaser
C. Obtain permission from the Washington Real Estate Commission
D. Inform the owner in writing that Broker B is a licensee before making an offer
59.
Six months after the buyer bought a house, the roof leaked during a rainstorm. When the house was
listed, the seller told the listing broker that the roof leaked, but they agreed not to tell any prospective
buyers. The broker states that the buyer did not ask about the roof. Under these facts the buyer
A.
B.
C.
D.
60.
Can sue the broker for non-disclosure
Cannot sue the broker under the license law
Can sue the seller under license law
Cannot do anything because the leaking roof could have been discovered by inspection
A Broker has signed a brokerage agreement with a tenant who is looking for an apartment to rent.
The Broker does not charge a fee to prospective tenants; rather, the Broker receives a commission
from landlords. The Broker tells a landlord that the prospective tenant could probably pay a
somewhat higher rent than the landlord is asking. Which of the following statements is true?
A. The Broker owes the statutory agency duties to the landlord who pays the commission
B. The Broker’s disclosure to the landlord was appropriate under these circumstances
C. The Broker’s disclosure violated the statutory duties owed to the tenant
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D. Because the Broker is not charging a fee to prospective tenants, the Broker has violated
Washington agency statute
61.
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.
B.
C.
D.
62.
A seller has filed a suit for damages against the broker whom the seller listed a property with,
claiming that the broker really represented the buyer without disclosing that fact to the seller and
obtaining the seller’s permission. The buyer has testified to various statements, made by the broker to
the buyer. Which of the following alleged statements would be MOST damaging to the broker?
A.
B.
C.
D.
63.
Both facts
The suicide, but not the foundation
The cracked foundation, but disclosing the suicide could constitute a breach of duty to the client
Neither fact
“This property has the best view in the city.”
“You should submit your offer as soon as possible.”
“Let’s start with an offer under the listed price.”
“Let me explain about the different ways we can finance this property.”
If a principal tells the Broker to make certain material representations which are known to the
principal to be false, and if the Broker follows those instructions, the:
A. Principal is liable because he or she explicitly authorized the misrepresentation.
B. Broker will not be personally liable for the misrepresentation.
C. Broker cannot lose his or her license as long as the Broker was following the instructions of
principal.
D. Representations are not actionable at law.
64.
Mr. and Mrs. Meyerson listed their home with broker Nathan. At the time of the listing, the
Meyersons withheld from Nathan the fact that there was dry rot in the structure. When Nathan
secured an offer from Mr. and Mrs. Liu, they continued to withhold the information about the dry rot
from Nathan and the buyers, although they accepted the Liu’s offer. Shortly thereafter, Mr. and Mrs.
Liu rescinded the contract when they discovered the dry rot. Broker Nathan is entitled to:
A. The full commission.
B. One-half the regular commission.
65.
C. Out-of-pocket expenses.
D. The full commission plus punitive damages.
A brokerage’s license is issued to a corporation, limited liability company, or limited liability
partnership. Who is entitled to act as a managing broker?
A. All corporate officers, managers, and partners
B. One corporate officer, manager or partner who is named in the license application
C. All individuals hired by the corporation or partnership for the express purpose of conducting real
estate business
D. Any individual acting on behalf of the corporation or partnership
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66.
In Washington, a broker may NOT:
A. Represent both a tenant and an owner.
B. Take a net listing on a property.
C. Collect a commission from both parties to a transaction, even if both parties know of the
commission from the other and give their consent.
D. Sell a property listed by another broker, without permission of the listing broker.
67.
Commissions earned by a broker in a real estate transaction
A. Are determined by agreement of the broker and his or her principal
B. May be shared with an unlicensed person as a referral fee, provided that such person aided the
broker in bringing the buyer and seller together
C. May be deducted from the earnest money deposit and claimed by the broker as soon as the buyer
and seller execute the purchase and sales agreement
D. Are based on a schedule of commission rates set by the Washington Real Estate Commission
68.
The broker received a buyer’s earnest money check for $5,000 and immediately cashed it. At closing,
the broker handed the seller a personal check drawn on the broker’s personal bank account for $5,300,
representing the original earnest money plus 6 percent interest. The broker
A. Should have deposited the money in a special non-interest-bearing bank account
B. Properly cashed the check, but should have kept the interest
C. Should have deposited the money in his personal bank account, and would have been entitled to
keep the interest as a service fee
D. Should have deposited the money in a special bank account, and should have discussed the interest
with the parties
69.
The broker is required to keep all of the following bank trust account records EXCEPT
A. A client’s accounting ledger summarizing all moneys received and all moneys disbursed for each
transaction or each account
B. Separate ledger sheets, in conjunction with client ledgers, for each tenant (including security
deposit), lessee, vendee, or mortgagor
C. A duplicate cash receipts journal that is kept in a safe deposit box
D. Reconciled bank statements and cancelled checks for all trust bank accounts
70.
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 after receiving the statement from the
seller, the
A.
B.
C.
D.
71.
Buyer forfeits his or her opportunity to buy the property
Real property disclosure statement will be deemed approved and accepted by the buyer
Seller can sue the buyer for damages
Real property transfer disclosure statement will be deemed rejected by the buyer
A managing broker died. At the time of the broker’s death, the broker’s daughter, who was an
associate broker licensed under the managing broker, had several listings with the deceased broker’s
office. The daughter had her license reissued as a managing broker and took over the business from
her father’s estate. The daughter must:
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A. Notify all the sellers that she has taken over the business before she can enforce the listings and
legally collect a commission.
B. Re-list the properties with her.
C. Do nothing additional, in order to continue in business as usual.
D. Have the father’s personal representative sign over the listings to her.
72.
Maya listed her house for sale with the real estate firm of Dilley, Dalley, Doolittle and Stall for 180
days. After 90 days, the property had not yet sold, and Maya changed her mind about selling. Maya
then instructed the firm to take the property off the market. The agency relationship is terminated:
A.
B.
C.
D.
73.
On the 180th day of the listing.
When the firm receives the instructions to take the property off the market.
As soon as Maya re-lists the property with another broker.
On the 180th day of when Maya re-lists the property, whichever occurs earlier?
Under the law of agency in Washington, the duty to disclose requires that the Broker accomplish
which of the following?
A. Conduct an independent inspection of the property
B. Conduct an independent investigation of the financial condition of the parties
C. Independently verify the accuracy and completeness of any statements made by either party or
other source
D. Disclose any material defect in the property that is known by the Broker
74.
The Broker represents the seller, whose property was the site of a grisly murder. A prospective buyer
asks the Broker about the crime. The agent should
A. Deny the crime because it does not constitute a material fact
B. Tell the prospective buyer the truth about the event
C. Deny any knowledge of the crime so as not to hinder the transaction while not committing
misrepresentation.
D. Tell the buyer to talk to the neighbors
75.
The Director of the Department of Licensing is responsible for all of the following EXCEPT
A.
B.
C.
D.
76.
Holding hearings
Granting or denying licenses to real estate license applicants
Setting the general real estate tax range for each county in the state of Washington
Enforcing all laws, rules, and regulations relating to the licensing of real estate licensees
If the director finds that a licensee has violated the license law, the director can impose any of the
following sanctions EXCEPT
A. Require that the licensee to complete a course in the area of real estate practice relevant to the rule
violated
B. Order that the licensee be imprisoned for not more than 30 days for each offense
C. Suspend, revoke, or deny the license
D. Levy a fine not to exceed $1,000 for each offense
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77.
If the licensee wishes to appeal the decision made by the director in a disciplinary hearing, the appeal
and bond must be filed within
A. 48 hours of the director’s decision
B. 7 days of the director’s decision
78.
Disciplinary sanctions will be warranted if the licensee accepts something other than cash, or its
equivalent, as earnest money without communicating that fact in writing to the owner before
A. Delivery of the offer to purchase
B. Closing the transaction
79.
Depositing earnest money into the trust account
Acting as a vehicle dealer without having a license to do so
Violating an order to cease and desist issued by the director
Any conduct in a real estate transaction which demonstrated bad faith, dishonesty,
untrustworthiness, or incompetence
Disciplinary sanctions will be warranted if the licensee directs any transaction involving his or her
principal to any lending institution or escrow company in expectation of receiving a kickback or
rebate without first disclosing such expectation to
A. His or her managing broker
B. His or her principal
81.
C. Acceptance of the offer to purchase
D. Accepting this commodity as earnest money
Which of the following is a legal activity and will NOT warrant disciplinary sanctions?
A.
B.
C.
D.
80.
C. 30 days of the director’s decision
D. 60 days of the director’s decision
C. All parties to the transaction
D. The lending institution in question
A managing broker will be held liable for the conduct of his or her affiliated licensee under which of
the following circumstances?
A. The affiliated broker violated a provision of the license law in contravention of the managing
broker’s specific written policies
B. The managing broker had taken reasonable measures to verify that adequate supervision was being
performed
C. Upon learning of the violation, the managing broker attempted to prevent or mitigate the damage
D. The managing broker was aware of, but did not participate in the violation
82.
A real estate managing broker wishes to maintain an office in a residential building. All of the
following conditions must be met EXCEPT that the
A. Office must be separate from any living quarters
B. Office must be identified as a real estate office by a sign at the office entrance that is visible to the
public
C. Office must be accessible to the public by a street address that can be reasonably located
D. Managing Broker must live on the premises
83.
A managing broker must maintain records of his or her trust bank account. These records must
include:
A. Interest the broker earned on a pooled account for sales activity.
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B. Records of payments made, unless the payment was made to a registered escrow agent in WA.
C. Duplicates of deposit slips showing a bank validation stamp.
D. Check registers in triplicate.
84.
If a licensee changes the location of his or her business, the licensee must
A. First receive permission from the director to change his or her business location
B. Notify the Department of Licensing of his or her change of address within 30 days
C. File a change of address with the Department of Licensing before transacting business at the new
location
D. Surrender the license to the director and a new one with the new address will be issued
85.
Rachel, a Broker, sold a property without notifying her managing broker. Rachel gave part of the
commission directly to Slauto, a broker licensed to another firm, because they had worked together to
complete this sale. Which of the following statements is correct regarding the situation?
A.
B.
C.
D.
86.
A branch office license is not necessary when all real estate sales activity is conducted on and limited
to a particular subdivision or tract, as long as a licensed office is located within
A.
B.
C.
D.
87.
Rachel does not have the right to receive commissions directly.
Slauto may legally keep the money Rachel gave him.
Rachel has not violated her duty to her managing broker.
Slauto has not violated his duty to his principal.
5 miles of the subdivision or tract
35 miles of the subdivision or tract
50 miles of the subdivision or tract
10 miles of the subdivision or tract
The broker must deliver all documents signed by the parties, including earnest money receipts, listing
agreements, and the closing statement
A. Within 24 hours of signing
B. At the time of signing
88.
Natasha is a managing broker with many years experience in the residential field. She works closely
with Churnham and Burnham, Mortgage Brokers. Because of her loyalty she gets very attractive
mortgage terms for her brokerage customers. On each transaction Churnham and Burnham gives her
a $100 referral fee. In this situation:
A.
B.
C.
D.
89.
C. Within 5 business days of signing
D. Within 14 business days of signing
Natasha is in violation of the license law.
Natasha must obtain a mortgage broker license.
Natasha has done nothing wrong.
Churnham and Burnham is in violation of the license law.
For sales transactions, a copy of the earnest money agreement, a copy of the final settlement
statement, and any addenda related to the accounting or disposition of client funds must be
A. Maintained by a certified title company.
B. Kept at a separate location from the location where the trust bank account records are maintained.
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C. Kept at the same location where the trust bank account records are maintained.
D. Kept at the main office or any branch where the brokerage firm is licensed.
90.
Unless otherwise agreed to in writing, all checks received as earnest money, security or damage
deposits, rent, lease payments, contract or mortgage payments on real property, or business
opportunities owned by clients, must be made payable to the
A.
B.
C.
D.
91.
A sales agreement has been negotiated by more than one broker, and the purchaser deposits funds prior to
the closing. The managing 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.
B.
C.
D.
92.
All participating managing brokers
All parties to the transaction
All parties to the transaction and all participating managing brokers
The escrow agent
Any amendment or modification to a property management agreement must be made in writing and
signed by
A.
B.
C.
D.
93.
Lessor
Seller or escrow agent
Real estate brokerage as licensed
Client who owns the real property or business opportunity
The owner
The owner and the managing broker
All tenants of the property, if residential
All tenants of the property whether residential or industrial
A property management agreement, which must be written and signed before a broker can manage a
property, must include all of the following EXCEPT
A. A listing of tenant obligations
B. The broker’s compensation
C. The type and number of individual units in the project or the square footage if the property is
something other than residential
D. Whether or not the broker is authorized to collect and disburse funds, and for what purpose
94.
Shortly after the close of escrow, Jiwani, the seller, learned that the buyers, Mr. and Mrs. Khanna, were
the step father and mother of Jiwani’s broker, that the Khannas were acting on behalf of the broker, and
that an escrow for resale of the same property had been opened at a $25,000 higher sales price before
the Jiwani and Khanna escrow was closed. Jiwani filed a complaint with the Department of Licensing.
Which of the following is true regarding this situation?
A. After a hearing, the Director would discipline the broker for not disclosing the relationship and
would award money damages to the seller.
B. Since the seller got his asking price, there is no basis for a complaint.
C. The real estate law does not cover a situation of this kind and the Department has no jurisdiction.
D. The seller could sue the broker in civil court for the amount of the profit realized on the resale of the
property and the broker is subject to disciplinary action by the Director.
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95.
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
96.
Washington homestead protection is
A. An equitable right
B. A statutory right
97.
C. An inalienable right
D. A right of ownership
If a homestead property is sold to satisfy the owner’s unsecured debts, which of the following represents
the first allocation from the proceeds of the sale?
A.
B.
C.
D.
98.
C. A community mobile home
D. All of these
Amount of the homestead exemption is paid to the owner
Amount of the debt is paid to the unsecured creditor
Balance is paid to the owner
Proceeds divided between the unsecured creditor and the owner
A brokerage firm may pay a finder’s fee to:
A. Another brokerage for real estate activity which involved the lease-option of real estate
B. A broker previously licensed with the brokerage, who earned the fee prior to transferring his or her
license
C. A broker licensed in another state
D. A broker licensed under another designated broker for real estate activity which involved the
management of real estate
99.
“Engaging in the real estate business” consists of acting for another and for a fee in all of the following
activities EXCEPT
A.
B.
C.
D.
100.
Managing real estate
Selling a new manufactured or mobile home
Selling real estate
Collecting rent for the use of real estate
A real estate broker must give the Agency Disclosure Statement to prospective purchasers/tenants
A.
B.
C.
D.
Before they are shown any properties
At an open house
At the closing table
Before any offers to purchase or lease are signed by the purchaser/tenants
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