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Terms in this set (50)
An apartment complex generates $905,000 in effective rental income and $14,000 in other income. The same complex has $415,000 in operating expenses and $39,000 as reserves. What is the net operating income of the complex?
Which of the following would be considered a "material fact" that must be disclosed in a real estate transaction?
The highway department has approval for the acquisition and construction of a traffic lane on 10 feet of the property's road frontage.
Which of the following statements are FALSE?
Bill board advertising is exempt from including the firm's name or assumed name
Which of the following actions would NOT constitute unprofessional conduct?
Being involved in a business venture outside of the real estate industry as a silent partner
A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. This broker is guilty of what prohibited activity?
Which statement is FALSE?
Property management is not classified as a real estate activity
If an administrative law judge (ALJ) finds that an unfair discriminatory practice was committed, he or she can provide relief in any EXCEPT which of these ways?
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $33,000 and the replacement cost of the home is $110,000. A new $20,000 garage was recently added. Total depreciation from all causes is $7,000. What is the indicated value of the property?
Phillip advised his clients they needed to paint their master bedroom before showing the property. The walls of this room were 11' high. The wall lengths were 13', 19', 13', and 17'. If a gallon of paint covers 180 SF, how many whole gallons would the home sellers have to buy?
What is one definition of a designated broker?
A person with a controlling interest in a firm who is designated to act as a designated broker on behalf of the real estate firm and receives an endorsement from the department of "designated broker."
As a managing broker, which of the following tasks are not a typical responsibility?
Maintain delegation agreements.
If a rectangular office space is 72 feet wide and has a 410-foot perimeter, what is its area?
9,576 square feet
A property has sold for $185,000. The listing agreement calls for a commission of 6.5%. The listing broker and selling broker agree to share the commission equally. What will the listing agent receive if the agent is scheduled to get a 65% share from his broker?
Which of the following statements is TRUE regarding earnest money?
Earnest money must be held in a separate trust account other than the broker's general funds.
All properties rented or leased by a firm must be supported by which of these documents?
Written rental or lease agreement
A farmer wants to net at least $10,000/acre on the sale of his 80-acre property. If he allows for a total of 10% for commissions and closing costs, what should his listing price be per acre? Assume the farmer has no mortgage
Under Washington State law, the director may refer a complaint under RCW 18.85.440 to which of the following?
Any court of competent jurisdiction
Who has the ultimate responsibility for all activities performed by the persons who represent a firm?
Dan is buying Jessica's house. The closing date (day belongs to seller) of the sale transaction is March 9th. Current year real estate taxes are $1,900 (will be billed to Dan next year). Use the 365-day method for prorating. What is Jessica's share of the real estate taxes for the current year?
Jean completed all her course work and passed the course exam for the managing broker's license on November 10. Jean must apply for her managing license before which date?
November 9 of the following year
A real estate licensee does not owe which of the following duties to his customers?
Loyalty after the transaction is closed.
A property sells for $140,000 two years after it was purchased. If the annual appreciation rate is 6%, how much did the original buyer pay for it?
When a case is dismissed, the director must notify which of the following?
The licensee and the accuser
Which is the correct formula to calculate Total Commission?
Sale price x Commission rate
A property is purchased for $480,000. The land is valued at 10% of the initial purchase price of the property. Given a 39 year depreciation term, what is the annual depreciation expense?
Who can provide compensation to a broker?
Employing managing broker
The review of the brokerage services contracts for new licensees must be reviewed by the designated broker within what time frame?
Five business days
A property's taxes are $9,540 and are paid for in arrears. The property was sold and closing took place on March 7. The seller was responsible for the day of closing. Using the 360 day method, how will taxes be prorated?
Credit the buyer $1775.50 and Debit the Seller $1775.50
What action might a director take if complaint accusations are supported by the evidence?
Which of the following actions/occurrences would NOT terminate an agency relationship according to Washington law?
Failure to account for all monies within 20 days of receipt
A buyer will receive a power bill for an estimated $140 at the end of the month. At closing, the seller has used an estimated $67 in power. What should appear on the closing statement?
Credit the buyer $67 and debit the seller $67
A town has a tax base of $411,000,000 and a budget of $850,000. What is the tax rate in terms of mills?
A developer wants to develop a 18-acre subdivision. He figures that the streets and common area will take up about 20% of this overall area. If the minimum lot size is to be 10,000 SF, how many lots can the developer have on this property?
To avoid income tax confusion, Broker Fred deposits earnest money into a joint account with his wife. He is guilty of what?
In Washington, laws pertaining to real estate originate from what source?
The Washington Legislature
A lender offers an investor a maximum 85% LTV loan on the appraised value of a property. If the investor pays $160,000 for the property how much will the investor have to pay as a down payment?
The lender quotes closing costs of $800 plus 2 points on a $610,000 loan. How much will the borrower have to pay?
A building has 9 apartments generating annual potential rent of $1,500 each month. Vacancy = 6% and annual expenses are $84,000. Vending machines yield $1,800 per year. What is the NOI?
What are the steps followed in the rule-making process?
Pre-proposal Statement of Inquiry, Proposed Rule Making, Rule Making Order (Adoption)
Firm licenses are valid for how long?
Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commission, and that closing costs will be an additional $1,200. What should she accept as a final sale price (to the nearest hundred)?
Trust fund bank accounts for real estate and business opportunity transactions must be what?
Interest-bearing demand deposit accounts
Which of the following tasks can a Buyer's Agent legally do?
Use approved pre-printed sales agreements.
If a candidate for a managing broker's license does not have the required number of years of actual experience, he or she may submit an application which shows experience in a business allied with or related to real estate. Which of the following would probably NOT qualify as a substitute for full-time broker experience?
Three years experience in closing real estate transactions with an escrow company.
An investor paid $43,000 for a lot and $520,000 to have a strip mall constructed on it. He has depreciated the property for the past 15 years on a 39-year straight-line schedule. If he sells the property this year and realizes $710,000 after closing expenses, what is his capital gain?
Which of these statements about alternative record storage is FALSE?
The storage media must be indexed and available for retrieval within three business days.
Anne obtains a new loan @ 80% of her home's price of $740,000. The loan constant is 5.645. What is Anne's monthly payment?
How many clock hours of instruction beyond the thirty (30) clock hours submitted for a previous renewal date may be carried forward to the following renewal date?
Tyler Holdlong owns a small retail property that he inherited from his father. There are no mortgages or interest expenses connected with the property. Tyler takes an annual cost recovery expense of $3,000. The property has a monthly gross income of $3,500 and monthly operating expenses of $1,100. Tyler's taxable income from this property will be taxed at a rate of 25%. What is the tax liability for the year?
A managing broker can require an independent agent to perform which of the following tasks?
Set monthly listing quotas.
OTHER SETS BY THIS CREATOR
Real Estate Contract Validity and Enforceability
Real Estate Ad Valorem
Real Estate Planning
Real Estate Foreclosure