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Real Estate Mock Exam 3
Terms in this set (83)
the owner of property located along a stream or river may have which type of water right?
five people buy an investment property. They take title so that they each have equal ownership shares, and so that if one of them dies, his share will pass to his heirs. How did they take title?
tenancy in common
What would cause a judgment lien to be imposed on a landowner's property?
Siobhan listed her property with ABC Realty. She asks her agent, Robert, to draft deed covenants that will prevent a buyer from subdividing the land in the future. She'd also like the agent to create a trust from the sale, to benefit her disabled sister. Robert's reply should be
I can't help you with either of these things; you'll need to contact an attorney
for income tax purposes, a homeowner can deduct
a minority buyer with a disabled daughter makes a full-price offer on a property. the home doesn't have any grab bars in the bathroom and the front door isn't wide enough for a wheelchair. the seller inform the buyer's agent that the property wouldn't be suitable for the daughter, so he is going to refuse the offer. the buyer's agent should:
explain the situation to the buyer, and advise her to consult an attorney and/or file a complaint with HUD
a broker would need to have a securities license to participate in
a transaction involving an investment contract
an easement appurtenant is one that
runs with the land
a 3,000 square foot retail property rents annually for $20 per square foot, plus 8% of the tenant's gross sales. the building's tenant pays $120,000 rent in one year. What were that year's gross sales?
a commercial tenant leases retail space for 1500 per month. a few months later, the owner of the complex adds new counters and increases the rent to 1750 per month. at the end of the lease term, the commercial tenant
cannot take the counters with her, because the owner installed them
a buyer who records a deed is giving
a veteran's guaranty benefits may be restored by
substitution of eligibility/entitlement by another veteran assuming the loan
john leases a commercial property. in the lease, he agrees to pay part of the utilities and taxes, as well as a fixed monthly rent amount. this is a
a borrower takes out an 88,000 loan at 6% interest. the monthly principal and interest payment, amortized over 30 years is $585. he also makes a $12,000 downpayment. the borrower will need to pay one discount point to the lender. How much is the cost of one discount point
by what right would a railroad company acquire private land necessary for a new railway line
a real estate agent lists Harold's home, which he owns as a life estate. harold's children hold the remainder interest. which of the following is true?
someone who buys harold's life estate receives only the interest held by harold
a quitclaim deed conveys:
the grantor's interest in a given property, if any
the entity that determines the maximum number of people who may legally live in a rental unit is the
local health department and zoning authority
if the mortgage amount is $80,000 and the borrower paid $4800 in discount points, how many discount points were charged?
on a settlement statement, the seller's net proceeds are calculated by
subtracting the seller's debits from the seller's credits
after the sale of a property in a 1031 exchange, seller must close on the new property within:
which law prohibits discrimination in real estate transactions based on race, with no exceptions
civil rights act of 1866
if a buyer wants to protect herself against unrecorded encumbrances, she should:
request a title insurance policy that has the fewest exceptions
an owner-occupied property qualifies for its state's homestead exemption from property taxes. shortly after closing, the new assessed value of the property is issued, and the property tax amount increases significantly. the selling agent is obligated to:
most conventional loans contain an alienation clause which prohibits:
the loan from being assumed without the lender's consent
a three-year lease ends. the tenant is allowed by the landlord to stay on and to continue to pay rent, on a month to month basis. this would be a:
the purpose of a building code is to
provide minimum standards for construction
which of the following methods would be most appropriate for valuing a recently built, single-family home?
market analysis and replacement cost
a square parcel of farmland measure measures 1320 feet from north to south. in the center of the parcel is eight acres of swampland that is not tillable. if the property sells for $2,000 per acre of tillable land, what is the selling price?
a corporation takes title to real property through a/an:
estate in severalty
for how long is a deed restriction valid?
a 10 year old home cost $120,000 to build and the land it's on cost $20,000. if an appraiser finds that depreciation has averaged 1.5% per year, what is the total amount of depreciation on your property?
a property investor sells his 100 acre rural parcel of land with the restriction that the buyer may not divide the land into parcels smaller than one acre each. this restriction is:
valid; this restriction doesn't violate public policy
an appraiser is valuing a commercial property that contains a restaurant run by the property owner. which method of valuation would be most appropriate
a buyer is considering purchasing a store in a standalone building in a strip mall. the building has steps in front, without a ramp, and no disability parking spots in front. the buyer's agent should tell the buyer that
the property probably does not comply with the americans with disabilities act
when a home in a new development is sold, a $2,000 fee is charged to the buyer. this fee covers the homeowners association dues for the first year. HOA dues for each subsequent year are $1,000. in the development's first year, ten homes are sold. ten more are sold the second year. assuming that the HOA's account had no disbursements or expenses (and ignoring any possible contributions from the developer), what is the balance of the account after two years?
teresa gives her little brother Mark, a life estate pur autre vie. Which of the following is true?
Mark is the life tenant, but the measuring life is someone else
65. victoria receives an offer from Lloyd for her property. The offer is for $225,000 and she receives it on Friday morning. On saturday, she counters by changing the purchase price to $235,000. the counteroffer states that Lloyd has 48 hours to accept the offer. On Sunday, Lloyd rejects the counteroffer. Victoria immediately accepts Lloyd's original offer. Under these circumstances, the agreement is:
not valid because Victoria terminated Lloyd's original offer when she made the counteroffer
an elderly woman gives a power of attorney to her son to manage all her affairs. what sort of agent is he?
which of the following loans would result in the borrower paying the least over the life of the loan term?
15 year loan at 10% interest
a square parcel measures 1/8 of a mile by 1/8 of a mile. How many acres is this property?
a parcel occupies the NW 1/4 of the SE 1/4 and the S 1/2 of the SW 1/4 of the NE 1/4 of Section 4. How many acres is this parcel?
a letter of intent:
sets out basics prior to negotiation
a broker will be working for a firm as an independent contractor. the firm must provide the broker with:
an independent contractor agreement
a survey has been completed and stakes have been placed marking off the property. the survey can be used to:
construct fences and driveways
a tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental period or duration of possession is called a/an:
estate at will
Ned and Carla buy a house that is listed at $105,000; their offer for $5,000 less than that is accepted. they obtain a loan with an 80% loan-to-value ratio. the loan is for 30 years with a 5.5% interest rate. taxes for the year are $4,000; insurance for the year is $800. Calculate their monthly PITI payment. be sure to use the amortization table
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:
an increasingly common land use pattern allows for subdivisions with smaller lot sizes and little or no setback and sideyard requirements while keeping the same density ratios. these are known as:
planned unit developments
a 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:
at closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postponed, and the seller no longer wants to sell. does the seller owe the listing agent a commission in this situation?
yes because the seller won't provide marketable title, which is considered a default
a percolation test will examine the
soil's ability to absorb and retain water
a property manager bases the operating budget on
anticipated expenses and revenue
meridians and base lines relate to the:
rectangular survey method
which of the following would characterize a tenancy in common?
tenants can will a partial interest in the property
a buyer accepts a warranty deed from a seller, believing that the seller is the sole owner of the property. the buyer later finds out that the seller is only a co-owner. Has a covenant in the warranty deed been violated?
yes, there is a covenant providing marketable title
K buys a piece of landlocked property from L on the condition that L provide an easement across the property for ingress and egress. the easement isn't recorded. K later sells the property. Is the easement still valid for the new owner?
yes, because an easement of this type runs with the land, rather than belonging to an individual
a contract for deed wouldn't be a good idea if the seller's mortgage has a/an:
a buyer is getting a loan to purchase a five-acre apple farm with no residence on it. The truth in Lending Act requires:
no disclosure, because the land is agricultural
as a property manager, you may:
offer inducements to prospective tenants
Brian purchases two parcels of land, one measuring one square mile and the other containing five acres. If he paid $2,000 an acre, what was his total purchase price?
Which of the following is true about the holder of an inactive license? this person:
may not perform any acts that require a real estate license
a property manager needs a real estate license when engaged in which of the following activities?
third-party property management
a company that is organized as an LLC wants to represent clients in real estate transactions. Who must be licensed?
the company and a person with control over operational and financial decisions
a licensee has obtained the signatures of the buyer and seller on a sales contact. failure to do which of the following could result in disciplinary action by the Director?
provide a copy of the sales contract to the buyer and the seller when they signed it
S's real estate license is inactive. This is because:
her license has been delivered to the Director of the Department of Licenseing
a licensee manages a property for one of her friends for a fee of $70 per month. Which of the following is true?
a written agreement is required between the licensee's firm and the property owner
according to WA license law, a licensee who is acting as a property manager must give the owner a summary statement for all of the following, except:
if a licensee is sued based on her real estate activities, the licensee must notify the Real Estate Program Manager:
within 20 days of a court order, verdict, or judgment against the licensee
119. a licensee who knows that there's an encroachment on the seller's property is discussing the property with a buyer. Which of the following statements is true?
the licensee should mention the encroachment and tell the buyer to consult an attorney before making an offer on the property
in place of three years of actual full time real estate sales experience, a managing broker license applicant can qualify to take the managing broker's examination with
five years of experience as a mortgage loan broker
after a disciplinary hearing, if the Director imposes sanctions, the licensee may appeal the Director's order within:
30 days, by filing an appeal with the superior court
How many years of experience in real estate is required for appointment as a real estate commisioner?
when making the required agency disclosure, a licensee must always:
conduct herself in conformity with the agency disclosure she has made
where should an amendment to a purchase and sale agreement be filed?
in the appropriate transaction file
clarence johnson is the listing designated broker and Alison Takahashi is the selling designated broker. Broker Samantha, who works for Alison, procured the sale of the property. who writes the check to Samantha for her commission?
a brokerage is under investigation by the DOL. The designated broker is responsible for all of the following except
responding to a subpoena where the designated broker's name isn't listed
a licensee is a defendant in a civil suit stemming from real estate activities. when must the licensee notify the real estate program manager?
within 20 days of learning of a verdict or judgment against her
broker linda obtains a listing from a seller that she has never previously worked with. However, when she tells Mel, her designated broker, about it, Mel says that he's had bad dealings with that seller before and tells Linda to cancel the listing. Which of the following statements is true?
linda must renounce the listing, because it belongs to the brokerage, not to her
a property manager would like to have his son perform maintenance duties on the managed property. the manager needs to provide all of the following to the owner, EXCEPT:
proof that the son is a licensed and bonded contractor
the following are all goals of Washington Center for Real Estate REsearch, except:
writing real estate exam questions
a licensee hires an unlicensed assistant. while the licensee is on a two-week vacation, the assistant helps negotiate contract addenda. the licensee could be disciplined under the Uniform Regulation of Business and Professions Act for:
aiding and abetting unlicensed practice
an out-of-state real estate licensee (who is licensed in another state) may enter Washington to engage in which real estate activity?
commercial sales or leasing
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