Edna's Washington Real Estate Study Notes Part 1 (100 questions)
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The prohibition against discrimination on the basis of handicap in the Federal Fair Housing Act would not apply to discrimination aginst:
A heroin addict
*The Federal Fair Housing Act does not protect those who are a direct threat to the health or safety of others, or those who are currently using controlled substances.
A lease must be in writing if
The term of the lease is longer than one year.
A property's manager's preliminary study normally covers four basic areas of analysis:
The region, the neighborhood, the property, and the market.
Reparing a broken window in a building is an example of:
*corrective maintenance involves repairs that keep the property functioning in a proper manner, such as repairing broken fixtures.
A report listing all the units of a property and showing the amount of rent collected for each unit during a given period is called:
A rent roll
A list of all the rental rates assigned to the various units in property is called:
A rental schedule.
In the middle of his lease term, Tenant W transfers possession of the property to N, who enters into a new lese agreement with the landlord. The landlord releases W. This is an example of:
To pass the salesperson license exam, an applicant must score at least:
70% on each portion of the exam.
When an applicant has been notified that she has passed the salesperson license exam when can she begin working as a real estate agent?
Immediately once she mails her license application.
The rule that says a buyer is expected to reasonably inspect the property, instead of relying on what he or she was told. This best describes as
The doctrine of caveat emptor
At what minimum point must an inactive licensee take a 30 clock-hour course in order to reactivate her license?
An agent is supposed to give a $3,000 earnest money check to the escrow agent, but neglects to do so. When she realizes her error, what should she do?
Notify the principals
*The proper step would be to notify the principals. The agent should not place the check in the broker's trust account when the intructions are to give it to the escrow agent. The Real Estate Commission does not enforce disciplinary matters, and would not be concerned with this situation.
A licensee is criminally charged for stealing prescription drugs on July 2. He tells his broker about the charges on July 5. Who must notify the Real Estate Program Manager?
The licensee must provide notice by July 22.
*A licensee must notify the Real Estate Program Manager within 20 days of learning of any criminal complaint or indictment in which the licensee is named as a defendant.
What document is designed to determine what conditions and at what time the escrow agent will distribute the money and documents involved in a real estate transaction to the proper parties?
The rule that says a buyer will not pay more for a property than a comparable substitute is best describe:
The rule of substitution
What event will create an involuntary life estate?
Dower interest becoming cohate
A broker can serve as closing agent for a fee is the state of Washington, if the broker:
Is also a licensed escrow officer.
What would be considered a capital expenditure?
Adding a new room to a home.
A real estate agent tells a potential home seller that she has noticed a shift in the racial makeup of the neighborhood that, in her experience, usually results in lower property values. The agent is engaged in?
*Blockbusting (also called panic selling) is the attempt to induce a homeowner to sell his or her property because of a predicted change in the racial or ethnic composition of the neighborhood.
What are they 2 types of water rights?
- Riperian Rights
- Approriative Rights
An agent shows his customer, who is Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called:
*Steering is the practice of guiding prospective buyers or renters toward or away from certain neighborhoods based on national origin, race, or any of the other protected catergories.
What are the 3 types of real estate license?
- Associate Broker
- Sales Person
The greatest ownership one can have in real estate is referred to as?
Fee Simple Absolute
A local bank refuses to make residential loans in a particular section of town because of the ethnic background of its residents. This is a discriminatory practice called:
A closing with all parties closing is a?
The listing agent discriminates against a minority buyer. If the seller were to be held responsible for the actions of the agent, it would be an example of:
A blind person who owns a guide dog wants to rent an apartment in a building with a "no pets" policy. What can the owner of the building do?
Charge the tenant for any damages caused by the dog when the tenancy ends.
*The tenant can't be charged a higher damage deposit because of the guide dog, but at the end of the tenancy the landlord can charge the tenant for any damage the dog has caused.
Which of the following would have the lien priority?
Ad Valorem Taxes.
An advertisement for a condominium project that states that units in the project are available for sale to "adults only" may be in violation of the:
Civil Rights Act of 1968
*The Civil Rights Act of 1968 (which includes the Federal Fair Housing Act) prohibits discrimination based on familial status, including "adults only" complexes that aren't exempt as "housing for older persons."
A promissory note that is secured by a mortgage is?
Primary evidence of the debt.
What is market price?
The price the property actually sold for.
What is market value?
The price the property is likely to bring in an "arm's length" transaction
From an income tax standpoint, which of the following is an attractive feature of home ownership?
Claim mortgage interest deduction
An adult child is given a life estate to some farmland by her parents. she sells the life estate to a farmer. Which of the following is true?
The property will pass back to the parents upon the child's death.
S's home is being foreclosed on. Prior to the sheriff's sale, S is entitled to redeem the property by paying off the mortgage debt in full, plus any costs incurred. This referred to as the periof of
Someone who deliberately misrepresents a material fact with the intent of causing another person to suffer a loss may by guilty of?
Baird bought two rectangular lots, each of which measures 244' x 250'. Approximately how many total acres will be in the lots combined?
The members of the Washington Real Estate Commission are appointed by who?
A person has been using a property for a long time. That person's rights have been determined to supersede those of the fee simple owner. This is called:
A property has been condemned by the city so that the land can be used to build a better approach to the municipal hospital's emergency entrance. Which of the following powers is the city exercising?
Mark doesnt have a real estate license. Mark's father owns an apartment building and Mark routinely show the apartment to prospective tenants and negotiates rental agreements this is legal because?
Mark is a member of the owner's family
*The owner of a rental property or a memeber of his or her family is not required to have a real estate license in transactions related to that property
Under the truth in Lending Act (Regulation Z), which of the following statements in an advertisement would trigger full disclosure?
A. Low Monthly Payments
B. 7% Interest Rate
C. Easy Terms
D. FHA Financing Available
B. 7% Interest Rate
*A trigger statement is one that mentions a specific financing term, like an interest rate, a specific monthly payment, the amount of the downpayment, etc.
(this multiple choice question has been scrambled)
A salesperson deliberately shows a buyer homes in only one subdivision where many people of the buyer's religious faith live. Has the sales person violated any law?
Yes, because a salesperson cannot discriminate on the basis of religion when showing property to a buyer.
An appraiser is attempting to estimate the value of a 20-year-old home. Which of the following would provide the most reliable indication of the property's value?
The selling price of a nearby comparable that sold six weeks ago.
While using the sales comparison (market data) approach to value, an appraiser finds three comparable properties that recently sold for $195,000 $202,000 and $207,000 respectively. In order to determine what the comparables about the value of the subject property, the apraiser should:
Make adjustments for the differences between the comparable properties and the subject property.
*The adjustments are made to each comparable's price, so that it represents what the comparable would be worth if it were just like the subject property.
A licensee who works for ABC Realty obtains a listing. Two days later, the licensee begins working for XYZ Realty. Which of the following is true regarding this listing?
A. The listing is transferred to XYZ Realty.
B. The licensee is entitled to compensation when she begins working for XYZ Realty.
C. The listing Remains with ABC Realty.
D. The listing is automatically terminated.
Answer is C. because the seller has a listing agreement with broker ABC Realty.
Paul's real estate license expired last month, and now he wants to renew it. In order to do so, Paul will be required to pay?
Pay a penalty in addition to the renewal fee
On a settlement statement, an earnest money deposit that will be held by the broker until closing is a
Credit to the buyer
To renew a real estate license, a broker must show that she has taken a certain number of clock hours of approved continuing education courses. The total required is
*At lest 15 commenced within 24 months preceding the licensee's renewal date, and the remainder commenced within 36 months preceding the renewal date.
For their first renewal, real estate salespersons must
Complete a 30 clock hours of continuing education and complete a 30 clock hour course in real estate practices.
In a real estate loan transaction that is covered by RESPA, the lender is legally required to deliver to the purchaser a:
Good faith estimate of closing costs.
*The good faith estimate must be provided within three days of the loan application.
The main purpose of a mortgage is to?
Pledge the property as security for a loan.
For federal income tax purposes, when can you depreciate a single-family dwelling?
When it is rented
Which of the following provisions, contained in a promissory note or security instrument allows a lender to demand all sums due at once in the event of non payment?
A loss in value that is a cost that can be recovered is:
*The federal tax code allows for recovery of the cost of replacing an asset that will wear out. sometimes called a cost recovery deduction, this commonly known as a depreciation deduction.
Which of the following hazardous substances is a natural product of the decal of radioactive matter?
a 17-year old agrees in writing to purchase a home from S. what is the legal status of the contract?
Voidable by the 17-year old
A listing licensee finds out that the seller didn't disclose drainage problems on the seller disclosure form. The licensee must?
Complete a second seller disclosure statement form.
What is the purpose of alienation clause?
To protect the lender's security position.
After taking a listing on a home, K wants to measure its square footage. To do this he must measure the?
Exterior Dimensions, Excluding the Garage.
What component of a condominum would be considered an appurtenance to a unit?
H agrees to sell her farm to R for $287,000 and they both signed a valid purchase and sale agreement. Three weeks later H Changes her mind and notifies R that she is cancelling the agreement. R sues to force H to complete the transaction. This is called a suit for?
How long does an aggrieved person have to file a complaint concerning alleged act of discrimination with the Department of Housing and Urban Development?
The most important consideration in determining whether an article is a fixture is by:
The annexor's intention
The distance between the east and west boundary lines of a township is how many miles?
Six miles by six miles
A listing agent would like to represent his sister in a transaction, he must do so if:
He must disclose this if he is acting as a dual agent
A loan, secured by a mortgage, in which the barrower can re-borrow up to the original amount without having to re-qualify for the loan is a called a/an:do
Open End Loan
A VA buyer wishes to buy a duplex using his VA entitlement. He may do so if he:
Certifies that he intends to occupy the Property
A fee simple title in real estate is of indefinite duration, and can be:
Freely transferred, encumbered, and inherited.
A conveyance of title with the condition that the land shall not be used for the sale of intoxicating beverages creates:
Hint: also known as defeasible fee
A qualified fee.
* A qualified fee (or defeasible fee) is an estate that will fail if a certain event occurs.
P enters into a purchase and sale agreement with seller H. Shortly thereafter, a title search reveals that H will not be able to deliver marketable title to P because there are title defects that cannot be corrected. P demands that her earnest money deposit be returned immediately. what is the proper course of action for the broker?
Pay any agreed upon cost and return the balance to the buyer
Which of the following would be classified as personal property?
Lease is considered a personal property
On Saturday, the buyer accept a counteroffer and initial the purchase agreement. On Monday, their broker notifies the seller's broker, who notifies the sellers. When did the mutual acceptance occur?
On Monday, when the notice of acceptance was made
A major department store leases a large space in a local mall, and it agrees topay the mall owner a base rent amount plus a percentage of gross sales. What kind of lease has the store entered into?
A Percentage Lease
Which of the following best describes a VA loan?
A lender makes it, the VA gurantees it.
N wants to lease space in a commercial complex to start a bakery. N is new to the business world, but the landlord expects profits to increase once business is established. What kind of lease would be most advantageous for the landlord?
Who makes decisions affecting a particular condominium complex?
Association of unit owners.
A buyer asked the buyer's agent to write an offer on terms that don't match the listing agreement. The buyer's agent refuses to write the offer and then, in writing unilaterally terminates the agency relationship with the buyer.
Is this permitted?
A buyer's agent is permitted to unilateraly terminate the agency relationship.
The M's agrees to purchase a property from the J's for $150,000. Several days later, the K's approach the M's and offer them $6,000 more for the property. Which of the following is true?
The M's may assign the contract to the K's
*(The M's may assign the contract to purchase the property to the K's (unless there is a clause in the purchase and sale agreement prohibiting assignment). The J's may not unilaterally terminate the contract; they may choose to breach it, but then they may be liable for damages to the M's.
A licensee owes to all parties, regardless of whom the licensee represents, the duty of:
Reasonable skill and care.
The M's wants to build a garage on their property but their plans don't meet the local zoning law's setback requirements. In order to build the garage they must?
Apply for a VARIANCE
In a typical real estate transaction, there is an agency relationship between
The seller (principal) and the listing broker (agent)
A broker would enter into a buyer agency relationship when the broker:
Agrees to show the buyer another's broker's listing.
A special agent is authorized to
Conduct a specific transaction
An option to buy when exercised becomes a:
In a listing agreement, who is the principal?
*a listing agreement creates an agency relationship between a seller and a broker
A security that is required to to be registered by the Federal Law must be registered with the?
Securities and Exchange Commission
A buyer's agent asks the listing agent for copies of the water and sewer bills for the listed property. The listing agent must do what?
Obtain copies from the seller and give them to the buyer's agent.
*A listing agent is obligated to disclose any material fact, since utility bills may reveal information that would have a negative effect on the property's value, the agent should disclose the utility bills.
An owner has a lakefront property with 500 feet of frontage. He wants to subdivide land into 50 adjancent lots, but maintain ownership and control of the forntage. A buyer of undeveloped lot would prefer what type of lakefront access rights?
A real estate broker who has taken a listing discovers that the dining room ceiling is discolored, possibly because of a leaky roof. What should he do?
He must disclose the potential problem to prospective purchasers.
*An Agent must disclose any latent defects to prospective buyers.
If a buyer assumes a mortgage, he should request what type of document from the lender to find out the outstanding balance?
Certificate of Estoppel
A real estate licensee is needed for all of these individuals, except?
An open listing is also called?
A non-exclusive listing
*Because a seller may give an open listing to more than one broker.
A salesperson's unlicensed assistant has failed to complete the paperwork for the last ten closing. Under the Uniform Regulation of Business and Professional act, the salesperson may be subject to disciplinary action on what grounds?
Failure to supervise staff adequately
A broker not licensed in Washington who is licensed elsewhere may work on a transaction involving commericial real estate in Washington if he does all of the following except?
Transmit a copy of any purchase and sale agreement to the Department of Licensing wihin 24 hours.
In Washington, an agency relationship is created between a buyer's agent and the buyer when:
The agent performs brokerage services for the buyer.
The mortgagee’s insurance protects the?
A Garage that is built over a lot line is an example of a/an:
What would you like to do?
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