New Rockwell Washington's Salesperson Cram

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happyedi253
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New Rockwell Washington's Salesperson Cram
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2010-03-11 19:16:20
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New Rockwell Compu Cram practice test Real Estate
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New Rockwell Compu Cram practice test
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  1. It would violate fair housing laws to specifically advertise housing to:

    A. Peope living in the same neighborhood as the property for sale
    B. Members of the military
    C. finacially qualifired buyers only
    D. One particular minority group
    D. One particular minority group

    It is a discriminatory act to use advertising that indicates a preference or an intent to discriminate.
    (this multiple choice question has been scrambled)
  2. A seller fills out a seller disclosure form stating that house is in a 100-year floodplain. The seller also discloses that, in 1996, the house's foundation was raised 15 feet and all flooring replaced. The seller's agent knows that a flood affected the entire area in 1995. The agent must

    A. Verbally disclose the flood damage to all prospective buyers' agents
    B. Have the seller revise the disclosure statement
    C. Remain silent since he must be loyal to seller
    D. Do nothing, since disclosure has been made
    B. Have the seller revise the disclosure statement

    The seller's agent should ask the seller if the house was damaged by the 1995 flood and, if so, add this to the seller disclosure statement. The agent should not disclose that the property was damaged by a flood without first verifying from the seller that this was, in fact, what happened.
    (this multiple choice question has been scrambled)
  3. Under the federal Truth in Lending Act, a borrower's right to rescind a loan transaction last for:

    A. 5 days after the loan is disbursed at closing
    B. 5 business days after the borrower's sign the loan agreement
    C. 3 days after the loan is disbursed at closing
    D. 3 business days after the borrowers sign the loan agreement
    D. 3 business days after the borrowers sign the loan agreement

    The Truth in Lending Act creates a right of rescission for certain borrowers, but the right is usually limited to the three-day period after the borrower signs the loan agreement or receives TILA disclosures.
    (this multiple choice question has been scrambled)
  4. Which principle of appraisal forms the basis for the sales comparison method and all other approaches to appraising?

    A. Change
    B. Contribution
    C. Conformity
    D. Substitution
    D. Substitution

    Appraisal is based on the principle of substitution. It supposes that an informed buyer would pay no more for a property than it would cost to obtain an equivalent property in the same market.
    (this multiple choice question has been scrambled)
  5. Which of the following must be disclosed to prospective buyers?

    A. Periodic intrusion of water into basement
    B. Illegal drug activity next door
    C. Presence of sex offender in neighborhood
    D. Murder took place in house
    A. Periodic intrusion of water into basement

    The presence of water in the basement would be considered a latent defect, and would need to be disclosed. Criminal activity and the presence of a sex offender in the neighborhood are not considered by law to be material facts.
    (this multiple choice question has been scrambled)
  6. A seller listed her house for $235,000. The listing agent didn't tell the seller that the house was worth $260,000. If the listing agent purchse the property himself (without telling the seller the true value), he has violated his duty of:

    A. Obedience
    B. Expeditiousness
    C. Loyalty
    D. Accountability
    C. Loyalty

    The duty of loyalty prohibits an agent from making a secret profit on a transaction
    (this multiple choice question has been scrambled)
  7. A buyer's agent has all of the following duties, EXCEPT:

    A. to make sure the buyer receives the seller's property condition statement
    B. honesty and good faith towards the seller
    C. to suggest reasonable earnest money deposit under the paricular circumstances
    D. to show the buyer properties that will generate the largest brokerage commission.
    D. to show the buyer receives the seller's property condition statement.

    The agent's loyalty must be to the buyer; showing properties that would generate the largest commission would violate that duty of loyalty.
    (this multiple choice question has been scrambled)
  8. Broker R obtained a listing on a property for $450,000; the property had been appraised for $490,000. Broker R then got his sister to make an offer to the seller for $410,000, which the seller accepted. The arrangement between R and his sister was not disclosed. Why would this be a breach of R's Fudiciary duties?

    A. R collected a commission on a property he bought personally
    B. R failed to disclose the relationship between himself and the buyer
    C. R offered less than the listing price
    D. R listed the property for less than its appraised value
    B. R failed to disclose the relationship between himself and the buyer

    R must disclose any potential conflicts of interest to the principal, such as a relationship between himself and the buyer.
    (this multiple choice question has been scrambled)
  9. Joyce gives a life estate to her son and stipulates that upon her son's death, title will pass to her niece. What is the niece's estate called?

    A. estate for years
    B. life tenancy
    C. estate in recapture
    D. estate in remainder
    D. estate in remainder

    An estate in remainder is a future interest as long as the measuring life remains alive. On the death of Joyce's son, title passes to the niece known in this instance as the remainderman, in fee simple.
    (this multiple choice question has been scrambled)
  10. A property owner gave an open listing to each six different brokerages. Which of the following statement is correct?

    A. Whichever firm sells the property will share the commission equally with the other firms.
    B. The owner can't legally give more than one lising for her property
    C. The firm that sells the property will earn the entire commission
    D. The seller could be liable for as many as six different commissions.
    C. The firm that sells the property will earn the entire commission.

    The seller gave open (non-exclusive) listings. The firm that sells the property is entitled to the entire commission.
    (this multiple choice question has been scrambled)
  11. 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. An absentee owner who rents units in a four-plex without the help of a real estate broker
    B. Members of a certain ethnic group are denied lodging in facilities operated by a private club for commercial purposes
    C. A church-owned apartment complex where language in the lease restricts tenancy to members of a specific national origin.
    D. 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"
    D. 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"

    The Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968) does not apply to the sale or rental of a single-family home by its owner, provided that the owner doesn't own more than three such homes, no real estate broker is used, and no discriminatory advertising is used.
    (this multiple choice question has been scrambled)
  12. Choose the best description of a real estate agent's status as an independent contractor.

    A. The agent is currently licensed, and is not entitled to receive employee benefits from the brokerage, but the brokerage withholds income tax and social security contributions
    B. The agent is currently licensed, and is entitle to receive employee benefits from the brokerage firm.
    C. The agent is currently licensed, has a written employment contract with the broker, and agrees to work set hours at the firm's office
    D. The agent is currently licensed, has a written contract of affiliation with the brokerage firm, and at least 90% of the agent's income is commissions income.
    D. The agent is currently licensed, has a written contract of affiliation with the brokerage firm, and at least 90% of the agent's income is commissions income.

    In order to be treated as an independant contractor by the IRS, the agent must have a real estate license, have a contract with her brokerage which states that she will be treated as an independant contractor, and substantially all of her compensation must be from commission income.
    (this multiple choice question has been scrambled)
  13. A listing agent presents an offer to a seller and states that the buyers are willing to go $5,000 higher. The listing agent:

    A. is acting appropriately
    B. has disclosed a material fact
    C. is breaching a duty to buyers
    D. has acted appropriately only if this is a dual agency
    A. is acting appropriately

    Unless the listing agent is a dual agent and is also representing the buyer, there is no duty of confidentiality owned to the buyer.
    (this multiple choice question has been scrambled)
  14. Which of the following would be a violation of the Sherman Antitrust Act?

    A. Charging a below market commission rate for the purpose of attracting customers
    B. Sharing commission with a licensee who works for another broker
    C. Establishing a commission schedule within a group of brokers
    D. Charging a higher commission than is customary for the area
    C. Establishing a commission schedule within a group of brokers

    Establishing a commission schedule within a group of brokers is conspiracy to fix prices. It is a violation of the Sherman Antitrust Act, which is the anti-monopoly act.
    (this multiple choice question has been scrambled)
  15. A homeowner wants to sell his home, which is in an exclusive neighborhood. During the listing presentation, he tells the agent that he's lived there a long time and loves the neighborhood. He wants to preserve its character and is going to be very careful about who he sells to. He wants the agent to tell him the nationality of each person who makes an offer. Under these circumstances, what should the agent do?

    A. Charge the seller a higher commission because the home will be harder to sell
    B. Follow the owner's instructions, because the agent has a duty of obedience
    C. Explain that she can take the listing, but only if no discriminatory advertising is used
    D. Refuse to take the listing since the seller's instructions are a violation of federal law
    D. Refuse to take the listing since the seller's instructions are a violation of federal law

    What the seller is asking for vilates the Federal Fair Housing Act. Agents must refuse the listing in these circumstances, unless they are allowed to show the home to anyone interested in seeing it.
    (this multiple choice question has been scrambled)
  16. An agent shows his customer, who is Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called

    A. Redlining
    B. Steering
    C. Blockbusting
    D. Channeling
    B. Steering

    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 categories, in violation of fair housing laws.
    (this multiple choice question has been scrambled)
  17. A condominium owner leased his unit to a tenant. The interest acquired by the tenant is called a/an:

    A. life estate
    B. equitable estate
    C. freehold estate
    D. leasehold estate
    D. leasehold estate

    A lease creates a leasehold estate. The interest of the landlord (owner) is called a leased fee.
    (this multiple choice question has been scrambled)
  18. Of the following, which is NOT an encumbrance to a piece of property?

    A. A gross easement for a utility company
    B. A shed built over the property line
    C. A pending foreclosure lawsuit
    D. A license
    D. A license

    A license is revocable, non-assignable permission to use another person's land for a paricular purpose, and therefore is not an encumbrances because they affect the physical use or condition of the property.
    (this multiple choice question has been scrambled)
  19. For zoning purposes, the distance from a lot boundary to the front wall of a building on the lot is called

    A. the building variance
    B. the setback
    C. perimeter footage
    D. the lot to building ratio
    B. the setback
    (this multiple choice question has been scrambled)
  20. A real estate agent enters into a listing agreement with the property owner. Under a terms of a typical listing agreement, the agent is obligated to perform all of the following except:

    A. prepare the deed and title for closing
    B. market the property in a reasonable and customary manner
    C. present all offers to the seller as soon as they're received
    D. use a reasonable effort (due diligence) to find a ready, willing, and able buyer
    A. prepare the deed and title for closing

    real estate agents are not responsible for preparing the deed that will transfer title to the buyer. In fact, this would likely constitute the unauthorized practice of law.
    (this multiple choice question has been scrambled)
  21. Which of the following statements about a leas is true?

    A. If the lease is in writing, to be valid it must be signed by both landlord and tenant
    B. It creates an equitable interest for the leasee
    C. A lease is classified as real property
    D. It is both a contract and an instrument to transfer an interest in land
    D. It is both a contract and an instrument used to transfer an intereset in land
    (this multiple choice question has been scrambled)
  22. A seller signs a deed and has it notarized. The buyer accepts the deed and takes possession the next day. Six month later, the seller checks the title and notices that the buyer has not yet recorded the deed. Is there a valid transfer of title between the parties?

    A. Yes, the seller/grantor has signed and the buyer/grantee has accepted a notarized deed, so the transference is valid between the parties
    B. No, because the buyer/grantee did not record the deed, there is no valid transference between the parties
    C. No, because the grantee did not obtain title insurance and therefore the conveyance is invalid
    D. Yes, because the buyer took possession of the property there was a valid conveyance of title
    A. Yes, the seller/grantor has signed and the buyer/grantee has accepted a notarized deed, so the transference is valid between the parties

    For a deed to convey (transfer) title, it must be delivered to the grantee by the grantor and it must be accepted by the grantee
    (this multiple choice question has been scrambled)
  23. A buyer has signed a purchase and sale agreement for an estimated 48 acres of land. When the property is surveyed, it turns out to be only 37 acres. A contract that results form a misrepresentation like this is

    A. void
    B. a valid contract
    C. voidable by either party
    D. voidable by the aggrieved (injured) party
    D. voidable by the aggrieved (injured) party

    The contract is voidable by the buyer. Whether the misinformation was deliberate (actual fraud) or an innocent misrepresentation (constructive fraud), the buyer is not getting what she bargained for. She can rescind the contract if she wants, or she can complete the sale anyway.
    (this multiple choice question has been scrambled)
  24. After taking a listing on a small commercial property, a broker learns that the state plans to build a freeway access ramp near the rear of the property. The broker should

    A. not tell the seller, because it's not in the seller's best interest
    B. withhold the information until the access ramp is actually built
    C. notify the property owner at once
    D. do nothing, because the information is not material to the seller's decision to sell the property
    C. notify the property owner at once

    The agent should notify the property owner at once, because the information could affect the owner's decision to sell the property, or the owner's pricing decision.
    (this multiple choice question has been scrambled)
  25. A mortgage loan's annual percentage rate will be higher than the interest rate stated in the note, because the APR includes:

    A. the buyer's settlement costs
    B. discount points paid by the seller
    C. loan fees and other financing costs
    D. the appraisal fee and credit report fee
    C. loan fees and other financing costs

    The APR takes into account loan fees and other financing costs, as well as the nominal intrest rate (the rate stated in teh note).
    (this multiple choice question has been scrambled)
  26. which of the following has th emost impact on the value of property?

    A. The financial qualifictions of the buyer
    B. The ethnic makeup of the neighborhood
    C. Local economic conditions
    D. How much the seller originally for the property
    C. Local economic conditions
    (this multiple choice question has been scrambled)
  27. A buyer and a seller enter into a purchase and sale agreement that constains no unusual prohibitions or restrictions. If they buyer later wants to transfer her rights and interests int he contract to a third party, she could arrange for:

    A. an assignment
    B. a cancellation
    C. a rescission
    D. an estoppel
    A. an assignment

    As long as the contract does not specifically prohibit it, the buyer could assign her interest to a third party, who would then complete the purchse. However, without a realease from the seller, the original buyer would remain secondarily liable in case the new buyer defaults. (In a residential transaction, though, secondary liability wouldn't ordinarily be an issue, since the buyer's deposit serves as liquidated damages.
    (this multiple choice question has been scrambled)
  28. After a licensee takes a listing, he discovers some of the improvements are too close to the property line. What should the licensee do?

    A. Not tell the seller, to protect him from liablity
    B. Cancel the listing
    C. Advise the seller to apply for zoning change
    D. Advise the seller that any prospective buyer must be told of the problem immediately
    D. Advise the seller that any prospective buyer must be told of the problem immediately

    Any prospective purchaser must be advise of the problem BEFORE an offer to purchase is written
    (this multiple choice question has been scrambled)
  29. A homebuyer can seek an FHA loan from which of the following?

    A. Fannie Mae
    B. A qualified Federal Housing Administration mortgagee (such as a bank)
    C. Ginnie Mae
    D. Federal Home Loan Mortgage Corporation
    B. A qualified Federal Housing Administration mortgagee (such as a bank)

    Prospective borrowers do not apply to the FHA itself for a loan; rather, they make the application to an FHA-approved lender, such as a commerical bank, savings bank or mortgage company
    (this multiple choice question has been scrambled)
  30. Edward wants the right to buy a piece of property at a certain price within a certain time. Edward should obtain a/an:

    A. option
    B. rescission
    C. easement
    D. encumrance
    A. Option

    If the optionee (the buyer) decides to exercise the option within the specified time, he can compel the optionor (the seller) to sell.
    (this multiple choice question has been scrambled)
  31. Which of the following is NOT an involuntary alienation of real property?

    A. Eminent domain
    B. Forfeiture
    C. Foreclosure
    D. Quitclaim
    D. Quitclaim

    Alienation is the transfer of real property from one person to another. It may be voluntary or involuntary. Eminent domain, forfeiture and foreclosure all pertain to involuntary methods of alienation.
    (this multiple choice question has been scrambled)
  32. Which of the following would MOST LIKELY happen in a land contract?

    A. The vendor retains the title to the property until the final payment is made
    B. The vendee receives possession and the vendor retains equitable title.
    C. The vendor finances the property and makes installment payments
    D. The vendor pays the property taxes, insurance, repairs, and upkeep on the property until the final payment is made
    A. The vendor retains the title to the property until the final payment is made

    The vendee is also usually responsible for property taxes, repairs, and upkeep during the contract
    (this multiple choice question has been scrambled)
  33. A seller's agent must disclose which of the following to the buyer

    A. The lowest offer the seller will accept on the property
    B. The fact that the seller has been transferred as is in a hurry to move across the country
    C. Any material fact regarding the property
    D. The fact the seller has AIDS
    C. Any material fact regarding the property

    Listing agents must disclose all material fact about the property to the buyer, but they are not allowed to disclose the seller's bargaining position, or the fact that he has AIDS.
    (this multiple choice question has been scrambled)
  34. Adams purchases a home that is wired for 100 amps of electricity, a little underpowered by modern standards (the power company now offers 200 amp service). This is an example of

    A. functional obsolescene
    B. deferred maintenance
    C. external obsolescene
    D. physical obsolescence
    A. functional obsolescene

    Any problem found within a property's boundaries other than physical deterioration (wear and tear) is classified as functional obsolescene. Thus, any depreciation resulting from outdated aspects of the property is functional obsolescence.
    (this multiple choice question has been scrambled)
  35. Which of the following is true about mineral rights?

    A. They belong to the state
    B. They represent an interest in personal property
    C. They can be reserved by the seller if the buyer agrees
    D. Solid mineral rights are an interest in real property; liquid mineral rights are an interest in personal propety
    C. They can be reserved by the seller if the buyer agrees

    A seller can sell her land but reserve the mineral rights beneath the surface if the buyer agrees to the agreement. Al mineral rights are rights appurtenant to real property-that is, part of the real property. However, once the minerals are captured (that is, separated from the earth), they become personal property.
    (this multiple choice question has been scrambled)
  36. ABC Realty lists a property for sale with a multiple listing association. XYZ Realty conveys an offer on the property from a prospective buyer. If the listing agreement contains a unilateral offer of subagency, which of the following is correct?

    A. ABC Realty has an agency relationship with the buyer only
    B. ABC Realty has an agency relationship with both the buyer and seller
    C. ABC Realty is a subagent of XYZ Realty
    D. XYZ Realty is a subagent of the seller
    D. XYZ Realty is a subagent of the seller

    Under a unilateral offer of subagency, a selling agent (the buyer's agent) is considered to be a subagent of the seller.
    (this multiple choice question has been scrambled)
  37. If a seller has declared bankruptcy, what is the listing agent required t do?

    A. Disclose it to the closing agent only
    B. Only disclose it if it will affect the closing process
    C. Disclose it to all potential buyers
    D. Keep this information confidential
    B. Only disclose it if it will affect the closing process

    A fact is a material fact that must be disclosed only if it has a substantial negative effect on the value of the property or on a party's ability to perform his or her contractual duties. Therefore, if the closing process would be affected, the bankruptcy must be disclosed. Otherwise, the bankruptcy is confidential information about the seller that the listing agent must keep confidential.
    (this multiple choice question has been scrambled)
  38. A federal law requires lenders to give the booklet "Settlement Costs and You" to all prospective borrowers within 3 business days of loan application. What law is this?

    A. RESPA
    B. Truth in Lending Act
    C. Home Loan Disclosure Act
    D. Regulation Z
    A. RESPA

    RESPA requires, among other things, all lenders to give prospective borrowers a copy of the booklet about settlement procedures, entitled "Settlement Cost and You"
    (this multiple choice question has been scrambled)
  39. The price of residential real estate in a neighborhood would probably increase if

    A. a major employer moved into the area
    B. zoning changes allowed group homes to be builty nearby
    C. there is a large stock of unsold homes for buyers to choose from
    D. home loan interest rates moved higher
    A. a major employer moved into the area

    A new employer means more buyers will have money to spend on housing, making it possible for seller to raise prices
    (this multiple choice question has been scrambled)
  40. A mortgage that uses both the borrower's real and personal property to secure the debt is a

    A. blanket mortgage
    B. package mortgage
    C. budget mortgage
    D. wraparound mortgage
    B. package mortgage
    (this multiple choice question has been scrambled)
  41. Under the terms of RESPA, all of the following are true EXCEPT:

    A. the borrower must be given a good faith estimate of closing costs by the lender
    B. no party may receive any kickbacks in connection with the loan transaction
    C. the borrower is given seven days to rescind (or back out of) the loan transaction after receiving the good faith estimate of closing cost
    D. a uniform settlement statement must be used at closing.
    C. the borrower is given seven days to rescind (or back out of) the loan transaction after receiving the good faith estimate of closing cost

    There is no seven-day right of rescission under the provisions of RESPA
    (this multiple choice question has been scrambled)
  42. Which of the following can a homeowner deduct for federal income tax purposes?

    A. Recurring repair expense on her home
    B. The annual principal payments on her home mortgage
    C. Depreciation on her personal residence
    D. Interest paid on a mortgage that finances the purchase of the home
    D. Interest paid on a mortgage that finances the purchase of the home

    The homeowner can claim mortgage interest deductions, but she CANNOT deduct repair expenses or depreciation. Also, a loss on the sale of a principal residence or other personal use property is not deductible.
    (this multiple choice question has been scrambled)
  43. Alberto wants to be excused from the requirements of a zoning ordinance. He should request a

    A. restrictive covenant waiver
    B. certificate of alternate usage
    C. building permit
    D. variance
    D. variance

    A zoning variance, also called a zoning exception, usually permits a minor departure from the existing ordinance
    (this multiple choice question has been scrambled)
  44. Mark tells Elizabeth that a new freeways will be built near the vacant land he is selling, even though he knows the freeway plans have been dropped. Elizabeth relies on Mark's representation and buys the land. In this situation

    A. Mark can be forced to proceed with the sale even though there was fraud
    B. the contract is voidable at Mark's option
    C. the misrepresentation automatically makes the contract void
    D. Elizabeth must purchase the property and cannot sue Mark for fraud
    A. Mark can be forced to proceed with the sale even though there was fraud

    Fraud makes the contract voidable by the injured party. However, the injured party may also choose to go through with the contract, and the person who committed the fraud (in this case, Mark) will be bound by the contract.
    (this multiple choice question has been scrambled)
  45. Tim and Alisa both work for XYZ Realty. Monday morning, Tim gets an offer on XYZ listing. Two hours later, Alisa gets an offer on the same house. Alisa's offer is $10,000 higher. The office policy at XYZ is to only present one offer at a time, waiting to present the second offer until the first offer has been rejected. So Tim presents his offer right away, but Alisa cannot present her offer yet. XYZ's policy in regards to presenting offers is:

    A. lawful, as long as the firm's policy was written into listing agreement
    B. unlawful, because licensees are obligated to submit all offers to the seller
    C. lawful, but unethical, because the agents should also be notigying the second buyer of the existence of the first offer
    D. both ethical and lawful, as long as Tim and Alisa get to share the commission
    B. unlawful, because licensees are obligated to submit all offers to the seller

    Real estate agents are legally obligated to submit all written offers to the sellers.
    (this multiple choice question has been scrambled)
  46. A buyer signs an offer and makes an earnest money deposit, but also inclueds a contingency requiring approval by the buyer's spouse within four days. The buyer's spouse looks at the house three days later and disapproves. Which of the following is true?

    A. The buyer forfeits the earnest money deposit
    B. The broker is entitled to a portion of the earnest money deposit
    C. The buyer is entitled to a return of the full earnest money deposit
    D. The broker is owed a full commission
    C. The buyer is entitled to a return of the full earnest money deposit

    If a transaction is subject to a contingency, and the contingent event does not occur, then the contract is terminated and the buyer is entitled to a refund of the earnest money deposit. In this case, the contract was contingent on obtaining the spouse's approval, an event that did not occur.
    (this multiple choice question has been scrambled)
  47. Of the following liens, what's listed in the correct priority

    A. Income tax liens, then property taxes
    B. First mortgage, then property taxes
    C. Income tax liens, then special assessments
    D. Property taxes, then first mortgage
    D. Property taxes, then first mortgage

    While then general rule is "first to record, first in right" general real estate taxes (also called ad valorem taxes or property taxes) always have first lien priority over mortgage liens. Income tax (IRS) liens, special assessments, and property tax liens have equal priority with each other.
    (this multiple choice question has been scrambled)
  48. All of the following types of real estate contracts would create an agency relationship EXCEPT a/an:

    A. property management agreement
    B. purchase and sale agreement
    C. open buyer agency agreement
    D. listing agreement
    B. purchase and sale agreement

    Purchase and sale agreement (sales contracts) are between buyers and seller, who do not have an agency relationship with each other.
    (this multiple choice question has been scrambled)
  49. George entered into a buyer agency agreement with agent maria. Under the terms of the agreement, the agent who finds him a suitabe property is paid a flat fee. George and Maria entered into a/an:

    A. open buyer agency agreement
    B. exclusive buyer agency agreement
    C. multiple listing buyer agency agreement
    D. designated agency agreement
    A. open buyer agency agreement

    Since the only agent who finds the property is entitlted to payment, this would be considered an open listing.
    (this multiple choice question has been scrambled)
  50. J is a broker who manages several commericial properties. J also owns a janitorial company. J contracts with her janitorial company to service the properties J manages. Under what conditions is the permitted?

    A. J discloses her interest in the janitorial company and obtains the owner's written permission to use it
    B. J's janitorial company is competitively priced
    C. J has written permission to select the janitorial company for the buildings she manages
    D. J cannot use her own janitorial company, as that would create a conflict of interest
    A. J discloses her interest in the janitorial company and obtains the owner's written permission to use it

    Even though J has the autority to select a janitorial company for the buildings she manages, she would still have to disclose her interest in the janitorial company, if that's the one she uses, and obtain the written permission of each owner whose building is serviced by J's company.
    (this multiple choice question has been scrambled)
  51. Which of the following would NOT be grounds for disciplinary action against a licensee?

    A. Conversion
    B. A licensee acts as a dual agent without disclosure to both buyer and seller
    C. A licensee acts as a fee broker
    D. An agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror
    D. An agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror

    Giving a copy of the sales agreement to the purchaser when it has been signed only by the offeror (who is the purchaser) is something the agent MUST do, so obviously that would not be a license law violation
    (this multiple choice question has been scrambled)
  52. The Director of the Department of Licensing has revoked S's license. Which of the following is TRUE?

    A. S must stop acting in the capacity of licensee as of the date S receives the order of revocation
    B. S has no right of appeal
    C. on the Director can appeal to superior court
    D. S can appeal to district court
    A. S must stop acting in the capacity of licensee as of the date S receives the order of revocation

    The revocation takes effect when ordered and remains in effect while an appeal is being heard. S, as well as the Director, has the right to appeal to superior court.
    (this multiple choice question has been scrambled)
  53. J, a broker, is entitled to a commission of $10,000 from a client, The commission will come out of his trust account for that client. J has an advertising bill in the amount of $10,500 of his own money into the trust account and then writes a check for $10,500 out of the trust account to the advertiser. Which of the following is TRUE?

    A. As long as J kept accurate records, his actions were legal
    B. This is lawful, but confusing for the advertiser, who receives a trust fund check
    C. J is subject to disciplinary action for commingling
    D. This is permissible, since J was entitled to the money for his commission
    C. J is subject to disciplinary action for commingling

    It is never permissible to mix trust funds and personal funds together. J should have transferred the commission into his business acount first, and then paid the advertising bill from his business account
    (this multiple choice question has been scrambled)
  54. K was convicted of illegal possession of a controlled substance eight years ago. When she applies for her real estate salesperson's license, she may be required to do which of the following

    A. Submit at least three character references along witht the application
    B. Ask that a temporary license be issued
    C. Submit fingerprint identification along with the application
    D. Ask that a probationary license be issued
    C. Submit fingerprint identification along with the application

    If an applicant has been convicted of a crime within ten years preceding the application for a license, she may be required to submit her fingerprints along with the application.
    (this multiple choice question has been scrambled)
  55. S's real estate license is inactive. This is because:

    A. she failed to renew her license before the expiration date
    B. her application has not yet been received by the Department of Licensing
    C. her license has been delivered to the Director of the Department of Licensing
    D. she has not gotten a listing in over six months
    C. her license has been delivered to the Director of the Department of Licensing

    Any time a license is surrendered to the Director of the Department of Licensing, it becomes inactive
    (this multiple choice question has been scrambled)
  56. Q makes a full-time living selling real estate, even though Q is not a licensed real estate salesperson or broker. Q's activities are legal if Q:

    A. is an employee of a developer
    B. is a salaried employee of a real estate broker
    C. sells raw land only
    D. sells his own property
    D. sells his own property

    Anyone acting as a principal (in this case the seller) can buy and sell without a license. It is when you are acting on behalf of someone else that you need a license.
    (this multiple choice question has been scrambled)
  57. Who issues rules and regulations that govern the activities of real estate licensees?

    A. Real Estate Commission
    B. Real Estate Program Manager
    C. Governor
    D. Director
    D. Director

    The Director, with the advice and approval of the Real Estate Commission, issues rules and regulations to govern the activities and practices of real estate licensees.
    (this multiple choice question has been scrambled)
  58. When a licensee is terminated, the date of termination is the:

    A. moment the termination is understood and agreed upon by both the broker and the affliate
    B. date the terminated licensee is received by the Department of Licensee
    C. Date the termination notice is tendered by either the broker or the agent
    D. postmark date or the date the licensee is hand-delivered to the Department of Licensing
    D. postmark date or the date the licensee is hand-delivered to the Department of Licensing
    (this multiple choice question has been scrambled)
  59. When a licensee appeals the Director's disciplinary decision to the superior court, which of the following is true?

    A. The result of the Director's disciplinary hearing are set aside
    B. The santcions imposed by the Director are stayed until the appeals process is complete
    C. The sanctions imposed by the Director remain in effect throughout the appeals process
    D. The licensee has no right of appeal
    C. The sanctions imposed by the Director remain in effect throughout the appeals process

    Whatever disciplinary measure was imposed by the Director remains in effect throughout the appeals process
    (this multiple choice question has been scrambled)
  60. A broker's trust accounts must be opened:

    A. in a recognized institution in the same county as the broker's office
    B. with the broker listed as the beneficiary of the trust
    C. with signature cards for all trust beneficiaries
    D. in the broker's name, and must be designated as trust accoutns
    D. in the broker's name, and must be designated as trust accoutns

    A trust account must be opened in the broker's name (as trustee) and must also be designated as a trust account. The depository institution must be in Washington State.
    (this multiple choice question has been scrambled)
  61. Which of the following is an absolute requirement of a selling agent in every real estate transaction?

    A. The agent must disclose that his fudiciary responsibilities rest with the party that is paying the commission
    B. The agent must disclose that he is the agent for the buyer
    C. The agent must conduct himself in accordance with the agency disclosure made
    D. The agent must disclose that he is the agent for the seller
    C. The agent must conduct himself in accordance with the agency disclosure made

    The agent's conduct must be consistent with the agency disclosure made. This means that whoever he claims to be representing must be the person he actually represents
    (this multiple choice question has been scrambled)
  62. A broker's trust account records should include all of the folloing, EXCEPT:

    A. reconciled bank statements
    B. canceled checks
    C. deposit slips
    D. photocopies of all checks
    D. photocopes of all checks

    Trust account records normally include receipts, a check register, deposit slips, reconciled bank statements, canceled checks, and a ledger summarizing all transactions. Photocopies of checks are not required.
    (this multiple choice question has been scrambled)
  63. To be eligible for an appointment to the Real Estate Commission, an individual must have how many years of experience in real estate?

    A. Five
    B. Two
    C. Three
    D. Four
    A. Five

    Commissioners are generally required to have five years of experience in real estate
    (this multiple choice question has been scrambled)
  64. 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. Two years
    C. 18 months
    D. 12 months
    D. 12 months

    J has 12 months. If the license fee is not paid and the licensed placed on an active or inactive status within that time, the applicant will have to retake the exam and meet any additional licensing requirements that have been adopted in the interim.
    (this multiple choice question has been scrambled)
  65. A salesperson hires an unlicensed assistant. While the salesperson is on a two week vacation, the assistant helps negotiate contract addenda. The sales person could be disciplined under Uniform Regulation of Business and Professions Act for:

    A. unlicensed practice
    B. misrepresentation
    C. aiding and abetting unlicensed practice
    D. incompetence, negligence, or malpractice
    C. aiding and abetting unlicensed practice

    A licensee may be disciplined under the license law for aiding or abetting an unlicensed person to perform real estate activities that require a license.
    (this multiple choice question has been scrambled)
  66. If a broker wishes to terminate a salesperson, or a salesperson wants to terminate employement with a brokerage, which of the following statements is true?

    A. A salesperson may terminate only after the agent pays all debts incurred to the broker
    B. A broker may terminate a salesperson only if the broker has good cause for termination
    C. Either party may act unilaterally to end the relationship
    D. Only the salesperson can terminate employment
    C. Either party may act unilaterally to end the relationship
    (this multiple choice question has been scrambled)
  67. The cost of an appeal from a final decision made by the Director of the Department of Licensing in an adjudicative proceeding is paid by the

    A. appellant's real estate brokerage
    B. Real Estate Commission
    C. State Attorney General
    D. appellant
    D. appelant

    A licensee appealing the outcome of a disciplinary hearing must posts a $500 appeal bondo to cover court costs, in case the superior court judge decides agianst the licensee. Even if the licensee wins the appeal, the licensee will still be responsible for the cost of a transcript of the hearing.
    (this multiple choice question has been scrambled)
  68. M tells her next-door neighbor, P, that she will pay him a commission if he can help sell her home. P, an unemployed bartender, locates a buyer and a sale results. M changes her mind and refuses to pay P his promised commission. Which of the following is TRUE?

    A. P is not entitled to a commission, because he is unlicensed
    B. P is entitled to a commission if it is called a finder's fee
    C. P is entitled to a commission, as long as he did nothing that would require a license
    D. P is not entitled to a commission, because M is unlicensed
    A. P is not entitled to a commission, because he is unlicensed

    P is unlicensed and cannot collect a commission for real estate servies. Option B is incorrect because collecting a commission requires a license.
    (this multiple choice question has been scrambled)
  69. Clearance Johnson is the listing broker and Alison Lee is the selling broker. Salesperson Samantha, who works for Alison, procured the sale of the property. Who pays Samantha's commission?

    A. Alison
    B. Clarence
    C. Seller
    D. Buyer
    A. Alison

    A salesperson may receive compensation only directly from her broker. A salesperson cannot receive compensation from a seller, or from another broker
    (this multiple choice question has been scrambled)
  70. Which one of the following people does not need a real estate license?

    A. A property manager
    B. A building contractor (developer)
    C. A person who sells business opportunities involving real estate
    D. A person who lists or offers to list real estate
    B. A building contractor (developer)

    A building contractor is often involved in selling homes he has built. As long as he is acting in his capacity as a building contractor, he does not have to have a real estate license.
    (this multiple choice question has been scrambled)
  71. To be entitled to sue for a commission, a licensee must be able to prove that at the time the real estate activities were performed she

    A. was under the supervised of a broker
    B. had at least a verbal promise of compensation
    C. was licensed
    D. had passed the real estate exam
    C. was licensed

    a licensee must have been validly licensed at the time she engaged in the real estate activities for which a commission is claimed.
    (this multiple choice question has been scrambled)
  72. L's salesperson's license was issued on February 16, 2009. His birthday is September 3. L's license will expire on

    A. September 3, 2010
    B. September 3, 2009
    C. February 16, 2010
    D. December 31, 2009
    A. September 3, 2010

    Li's license will expire on his second birthday after its issuance: September 3, 2010
    (this multiple choice question has been scrambled)
  73. Which of the following is EXEMPT from the pooled interest-bearing account requirement?

    A. Earnest money deposits of no more that $10,000
    B. Property managent trust funds
    C. Al earnest money deposits for residential transactions
    D. Earnest money deposits of no more than $5,500
    B. Property managent trust funds

    Property management trust funds are exempt. The pooled interest-bearing account requirement applies to earnest money deposits $10,000 or less.
    (this multiple choice question has been scrambled)
  74. A licensee has obtained the signatures of the buyer and the seller on a sales contract. Failure to do which of the following could result in disciplinary action by the Director?

    A. Accurately determine the settlement costs of the buyer
    B. Provide a copy of the sales contract to the buyer and the seller when they sign it
    C. Accurately determine the settlement costs of the seller
    D. Provide a good faith estimate of the value of the property before the contract is signed
    B. Provide a copy of the sales contract to the buyer and the seller when they sign it

    A copy of the sales contract must be given to any principal who signs it at the time sign it.
    (this multiple choice question has been scrambled)
  75. Under which of the following circumstances would a broker NOT be subject to disciplinary action for an illegal act committed by one of his salespersons?

    A. He did not authorize the act and failed to report it upon discovery
    B. The salesperson who committed the illegal act was an independant contractor.
    C. He is not responsible for inadequate supervision if the licensee violated a writted rule or policy
    D. he became aware of the illegal act before or just after it was committed
    C. He is not responsible for inadequate supervision if the licensee violated a writted rule or policy

    The broker would usually not be held responsible for the salesperson's conduct if that person violated a written rule or policy of the organization
    (this multiple choice question has been scrambled)
  76. An advertisement placed by a real estae licensee that does not identify the advertiser as a real estate agent is a:

    A. violation of the Truth in Lending Act
    B. blind ad
    C. violation of the Real Estate Procedures Act
    D. legal practice, as long as the ad contains accurate paritculars about the property
    B. blind ad

    This is a description of a blind ad, which is illegal. While a blind ad is a violation of the license law, it is not a violation of TILA or RESPA
    (this multiple choice question has been scrambled)
  77. When making the required agency disclosure, a licensee must always:

    A. avoid dual agency situations, because they are illegal
    B. conduct herself in conforminty with the agency disclosure she has made
    C. explain that she is the agent of the party who is responsible for paying the commission
    D. explain that seh is the agent for the seller
    B. conduct herself in conforminty with the agency disclosure she has made
    (this multiple choice question has been scrambled)
  78. Where should an amendment to a purchase and sale agreement be filed?

    A. Alphabetically, under the seller's name
    B. In the broker's trust account ledgers
    C. In the appropriate transaction file
    D. Alphabetically, under the buyer's name
    C. In the appropriate transaction file
    (this multiple choice question has been scrambled)
  79. A salesperson fails to attend a scheduled disciplinary hearing. What happens?

    A. The hearing is held without the salesperson present
    B. The hearing is automatically delayed for up to 20 days
    C. The salesperson's license is automatically revoked
    D. The proceeding is referred to superior court
    A. The hearing is held without the salesperson present

    If a salesperson does not show up for a disciplinary hearing, the hearing still proceeds without the salesperson present.
    (this multiple choice question has been scrambled)
  80. All of the following places are appropriate for the display of a license EXCEPT:

    A. on a broker's office wall
    B. in the front window of a broker's office
    C. above a filing cabinet in a broker's office
    D. in the licensee's personnel file in the broker's office
    D. in the licensee's personnel file in the broker's office

    State law requires that all licenses must be displayed "prominently" in the broker's office. A license in a file cabinet isn't prominently displayed.
  81. A buyer discovered, after purchasing a property, that there was major foundation damage that would cost $13,500 to repair. It was later discovered that the agent representing the seller knew of this damage yet failed to disclose it to the buyer. The agent could be subject to:

    A. a fine of up to $10,000
    B. a fine of up to $5,000
    C. a fine of up to $13,500
    D. prosecution for felony fraud
    B. a fine of up to $5,000

    Licensees may be fined up to $5,000 per violation of the license law, regardless of the amount of actual damages caused by the licensees's actions. Of course, the licensee may still be subject to civil liability for part or all of the $13,500 in actual damages, but the buyer would need to file a lawsuit to recover that amount. The licensee may also be subject to prosecution, but violations of the license law are gross misdemeanors.
    (this multiple choice question has been scrambled)
  82. T represents J, a buyer. A week later after J purchases a home, he decides to resell it. What role can T play in the resale transaction?

    A. T can represent J only
    B. T can represent only a prospective buyer
    C. T can act as dual agent for the two parties
    D. T must wait 90 days before representing either party to the new transaction
    C. T can act as dual agent for the two parties

    In the new transaction, T may represent the buyer, the seller, or, if he makes the proper disclosures, he may represent both parties as a dual agent. If representing the new buyer, T would not be able to disclose to the buyer any confidential information previously learned about J.
    (this multiple choice question has been scrambled)
  83. Which of the following is an example of commingling

    A. Paying the broker's commission directly from a trust account
    B. Depositing an employee's paycheck in a trust account
    C. Depositing rent from a commericial rental account in a trust account
    D. Placing a buyer's deposit in a trust account
    B. Depositing an employee's paycheck in a trust account

    Depositing an employee's paycheck is a trust account is commingling: mixing non-trust funds with trust funds. (The commission payable to the brokerage can be transferred from the trust accoun to the broker's general account. The broker cannot pay individual commissions out of the trust account, however.)
    (this multiple choice question has been scrambled)
  84. Real estate license fees are put into the

    A. Real Estate Education Fund
    B. Director's personal account
    C. Real Estate Commission Account
    D. Washington Association of Realtors trust account
    C. Real Estate Commission Account

    Real estate license fees (application fees, renewal fees, etc.) are placed in the Real Estate Commission Account in the state treasury.
    (this multiple choice question has been scrambled)
  85. J is selling real esate without a license. J is guilty of a

    A. first degree felony
    B. second degree felony
    C. misdemeanor
    D. gross misdemeanor
    D. gross misdemeanor

    Selling real estate without a license is a gross misdemeanor, which in terms of seriousness is somewhere between a misdemeanor and a felony.
    (this multiple choice question has been scrambled)
  86. In place of two years of actual full-time real esate sales experience, a broker's license applicant can qualify to take the broker's examination with:

    A. ten month of experience as a rea estate attorney
    B. five years of experience as a commercial insurance agent
    C. five years of experience as a property manager
    D. two years of experience as a residential apartment manager
    C. five years of experience as a property manager

    Five years of experience as a property manager will fulfill the experience requirement for a broker's license. (A real estate attorney needs one year of experience to qualify to take the broker's examination.)
    (this multiple choice question has been scrambled)
  87. Washington State's real estae agency law does not address which of the following

    A. Vicarious liability of principal and licensee
    B. Creation and termination of agency relationship
    C. Penalties for not disclosing agency status
    D. Definition of dual agency
    C. Penalties for not disclosing agency status

    Washington's real estate agency law is found in the Real Estate Brokerage Relationship Act (RCW chapter 18.86). There is no reference in the law to penalties for not disclosing agency status. Penalties are found in the license law (RCW chapter 18.85)
    (this multiple choice question has been scrambled)
  88. In the course of business, a broker earns property management fees that are to be paid out of the trust account. The fees must be taken out of the account:

    A. quarterly
    B. annually
    C. monthly
    D. semi-annually
    C. monthly
    (this multiple choice question has been scrambled)
  89. How many years of experience in real estate is required for appointment as a real estate commissioner?

    A. Five
    B. Three
    C. Four
    D. Two
    A. Five

    The commissioners are required to have at least five years of experience; they are usually real estate brokers
    (this multiple choice question has been scrambled)
  90. A person who represents a real estate broker in selling, listing, renting, leasing or exchanging real property is a/an:

    A. land development representative
    B. real estate salesperson
    C. associate licensee
    D. incorporated associate broker
    B. real estate salesperson

    The question described a real estate salesperson as defined in the license law.
    (this multiple choice question has been scrambled)
  91. Q, a salesperson, marries but doesn't change her last name. With respect to license law, what is she required to do?

    A. Notify the Real Estate Program Manager
    B. Notify her broker
    C. She is not required to do anything
    D. Notify the Director
    C. She is not required to do anything

    Q would be required to notify the Director if she changed her name, but she doesn't have to notify the Director that she married.
    (this multiple choice question has been scrambled)
  92. Which of the following is not a requirement for a sales person's license in the state of Washington?

    A. Age 18 or older
    B. Pass a state license examination
    C. Complete a 60 clock-hour course in real estate fundamentals.
    D. High school diploma or its equivalent
    D. High school diploma or its equivalent

    A high school diploma or its equivalent is not a requirement for a salesperson's license. It is a requirement for a broker's license.
    (this multiple choice question has been scrambled)
  93. A salesperson writes a successful transaction while working for Broker X. Before the transaction closes, though, the salesperson stars working for Broker B. How is the salesperson's commission handled?

    A. Broker X must forfeit the commisson
    B. Broker X will keep the commission
    C. Broker X will pay the salesperson, even though she is working for another broker
    D. Broker X will pay the commission to Broker B, who will pay the salesperson
    D. Broker X will pay the commission to Broker B, who will pay the salesperson

    A salesperson can only accept compensation from the broker for whom she currently works. So, if a salesperson moves from one broker to another with a transaction pending, the salesperson's new broker would accept the compensation from the old broker and then pay the salesperson.
    (this multiple choice question has been scrambled)
  94. A property manager needs a real estate license when engaged in which of the following activities?

    A. Third-party property management
    B. Managing property for the company that employs her
    C. Serving as resident manager of an apartment complex
    D. Managing self-owned property
    A. Third-party property management

    A property manger who manages property for third parties must be licensed. Licensing exemption exist for persons who manage property they own or on behalf of a group they belong to, and for residential managers of apartment complexes.
    (this multiple choice question has been scrambled)
  95. An attorney at law is exempt from real estate licensing laws when:

    A. transacting real estate business through her licensed law firm
    B. arranging the sale of real property while settling a client's estate
    C. negotiating the sale of any business opportunity
    D. soliciting real estate business
    B. arranging the sale of real property while settling a client's estate

    An attoney at law is exempted from licensing requirements when performing her duties as an attorney
    (this multiple choice question has been scrambled)
  96. When a salesperson attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. The Director can:

    A. refer the case to the Attorney General for prosecution
    B. suspend the license and charge him with misrepresentation in obtaining or reinstating a license
    C. audit the school administrator
    D. grant a 45-day interim license until the course is completed
    B. suspend the license and charge him with misrepresentation in obtaining or reinstating a license

    It is a violation of the license law, and grounds for disciplinary action, for a licensee to engage in misrepresentation or concealment of a material fact when obtaining or reinstating a license
    (this multiple choice question has been scrambled)
  97. A salesperson represents the seller in a transaction involving property. Several months later, the new owner asks the salesperson if he would act as property manager for that property. The salesperson may take this position:

    A. only if the broker allows it
    B. only if the salesperson does not work for compensation
    C. only if the salesperson works for a third party rather than the buyer
    D. only if the salesperson and the buyer are not related
    A. only if the broker allows it

    A salesperson represents his broker, and cannot act without the broker's knowledge and permission.
    (this multiple choice question has been scrambled)
  98. After a disciplinary hearing, if the Director imposes sanctions, the licensee may appeal the Director's order within:

    A. six months, by filing an appeal with the court of appeals
    B. two months, by filing an appeal with the superior court
    C. 30 days, by filing an appeal with the superior court
    D. 30 days, by filing an appeal with an appellate administrative judge
    C. 30 days, by filing an appeal with the superior court
    (this multiple choice question has been scrambled)
  99. Q is a property manager. Q also owns a carpet cleaning company. Q's carpet cleaning company provides services for all of the properties managed by Q. This is permissible if Q:

    A. is not principal stockholder in the property management company
    B. is not principal stockholder in the carpet cleaing company
    C. discloses the arrangment in writing to all affected property owners
    D. Charges competitive rates
    C. discloses the arrangment in writing to all affected property owners

    Q must disclose his intereset in the carpet cleaning company and obtain the written permission of all the owners whose properties are affected by this arrangement
    (this multiple choice question has been scrambled)
  100. A broker manages a property where there is no resident manager. The property management records must be kept in:

    A. the broker's safe deposit box
    B. the broker's main office
    C. the property being managed
    D. the broker's personal files
    C. the property being managed

    Ordinarily, all property management records must be kept at the broker's main office or a branch office. If there is a residential manager for the property, the records may be kept at the property site so long as the broker has a source document with tenant information and lease terms in his main office.
    (this multiple choice question has been scrambled)

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