Rockwell Exam Real Estate Classes WA Final
Exam 1 Questions With Correct Answers
A |buyer |purchases |a |rental |home |that |is |fully |furnished. |The |document |used |to |transfer |title |
to |the |furniture |is: |
a. |quitclaim |deed
b. |bill |of |sale
c. |special |warranty |deed
d. |general |warranty |deed |- |CORRECT |ANSWER✔✔-b. |bill |of |sale
Deeds |transfer |title |to |real |estate, |a |bill |of |sale |is |generally |needed |to |transfer |title |to |personal
|property.
Ben |receives |a |life |estate |in |a |property, |with |his |nephew |Will |designated |as |the |
remainderman. |When |Ben |dies, |what |kind |of |interest |does |Will |receive?
A. |Fee |Simple |Estate
B. |Life |Estate
C. |Remainder |Interest
D. |Reversionary |Interest |- |CORRECT |ANSWER✔✔-A. |Fee |Simple |Estate
The |interest |that |passes |to |a |designated |person |upon |the |death |of |a |life |tenant |(or |other |
measuring |life) |is |a |fee |simple |estate. |Will |has |a |remainder |interest |only |up |until |the |moment |
Ben |dies. |Once |Ben |is |dead, |Will's |interest |immediately |becomes |a |fee |simple |interest.
A |buyer |accepts |a |general |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 |general |warranty |deed |been |violated?
,A. |No, |the |only |covenant |in |a |general |warranty |deed |promises |that |the |previous |owner |didn't |
encumber |the |property
B. |No, |the |principle |of |caveat |emptor |controls |matters |concerning |a |deed
C. |Yes, |there |is |a |covenant |providing |equitable |title
D. |Yes, |there |is |a |covenant |providing |marketable |title |- |CORRECT |ANSWER✔✔-D. |Yes, |there |is |
a |covenant |providing |marketable |title
The |general |warranty |deed |contains |a |covenant |of |the |right |to |convey, |meaning |that |the |
grantor |either |has |title |to |the |interest |or |is |an |agent |of |the |owner |with |the |authority |to |
transfer |the |interest.
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:
A. |Abstract |of |judgement
B. |Petition |for |alienation
C. |Writ |of |execution
D. |Lis |Pendens |- |CORRECT |ANSWER✔✔-D. |Lis |Pendens
A |Lis |Pendens |is |a |recorded |notice |stating |that |there |is |a |lawsuit |pending |that |may |affect |title |
to |the |defendant's |real |estate |and |that |could |bind |the |purchaser |of |the |property.
A |movie |theater |was |built |ten |years |ago. |If |the |neighborhood |is |now |zoned |entirely |
residential, |the |movie |theater:
A. |will |have |to |be |torn |down
B. |must |be |remodeled |to |better |conform |to |the |neighborhood's |intended |use
C. |will |be |allowed |to |continue |if |the |owner |obtains |a |conditional |use |permit
D. |will |be |allowed |to |continue |since |it |was |built |before |the |new |zoning |law |went |into |effect |- |
CORRECT |ANSWER✔✔-D. |Will |be |allowed |to |continue |since |it |was |built |before |the |new |zoning
|law |went |into |effect
,The |movie |theater |is |an |example |of |a |nonconforming |use, |which |predated |a |zoning |change. |
Nonconforming |uses |are |generally |allowed |to |continue, |although |they |may |not |be |enlarged, |or
|resumed |if |they |are |stopped.
In |a |bilateral |contract:
A. |a |duty |wil |be |performed |by |only |one |party
B. |one |party |can |restrict |the |performance |of |another |party
C. |two |parties |have |exchanged |promises, |and |both |parties |are |obligated |to |perform
D. |all |parties |have |fully |performed |their |duties |- |CORRECT |ANSWER✔✔-C. |two |parties |have |
exchanged |promises, |and |both |parties |are |obligated |to |perform
In |a |bilateral |contract, |two |parties |have |exchanged |promises |and |both |parties |are |obligated |to |
perform. |(Bi=two |way)
Gerald |engages |a |licensee |to |list |his |property |and |find |a |buyer |for |it. |In |this |context, |the |
licensee |is |acting |as |a:
A. |General |agent
B. |power |of |attorney
C. |property |manager
D. |special |agent |- |CORRECT |ANSWER✔✔-D. |Special |Agent
When |a |licensee |represents |a |seller |in |a |single |transaction, |and |is |authorized |to |perform |
typical |duties |associated |with |listing |a |property, |she |acts |as |a |special |agent.
A |licensee |located |what |seems |like |a |ready, |willing, |and |able |buyer. |However, |the |deal |falls |
through |at |closing |because |the |buyer |cant |obtain |necessary |financing. |At |the |same |time, |
though, |a |seller |turns |out |to |be |unable |to |provide |marketable |title. |Does |the |seller |still |owe |a |
commission |to |the |listing |agent |in |this |case?
, A. |No, |because |the |sale |didn't |close
B. |No, |because |there |was |no |ready, |willing, |and |able |buyer
C. |Yes, |because |the |licensee |saw |the |transaction |through |the |closing |date
D. |Yes, |because |the |seller |has |an |absolute |duty |to |provide |marketable |title |at |closing |- |
CORRECT |ANSWER✔✔-B. |No, |because |there |was |no |ready, |willing, |and |able |buyer
The |most |important |rule |of |determining |whether |a |seller |is |obligated |to |pay |a |commission |is |
whether |a |ready, |willing, |and |able |buyer |was |found |during |the |listing |period. |This |would |take |
precedence |over |the |seller's |failure |to |provide |marketable |title. |A |buyer |who |does |not |have |
financial |ability |to |complete |the |purchase |does |not |qualify |as |"able."
Legally, |how |much |earnest |money |must |be |submitted |with |a |valid |purchase |and |sale |
agreement?
A. |1% |of |the |purchase |price
B. |3% |of |the |purchase |price
C. |5% |of |the |purchase |price, |but |the |amount |over |3% |cannot |be |retained |as |liquidated |
damages
D. |No |earnest |money |is |required |- |CORRECT |ANSWER✔✔-D. |No |earnest |money |is |required
While |almost |all |buyers |will |include |an |earnest |money |deposit |along |with |the |purchase |and |
sale |agreement, |that |is |because |of |tradition. |There |is |no |contractual |or |legal |requirement |of |a |
particular |amount, |or |any |earnest |money |at |all.
A |mortgage |often |includes |a |clause |requiring |the |lender's |consent |before |another |borrower |
may |assume |the |mortgage. |This |clause |is |called |a/ |an:
A. |power |of |sale |clause
B. |subordination |clause
C. |defeasance |clause
Exam 1 Questions With Correct Answers
A |buyer |purchases |a |rental |home |that |is |fully |furnished. |The |document |used |to |transfer |title |
to |the |furniture |is: |
a. |quitclaim |deed
b. |bill |of |sale
c. |special |warranty |deed
d. |general |warranty |deed |- |CORRECT |ANSWER✔✔-b. |bill |of |sale
Deeds |transfer |title |to |real |estate, |a |bill |of |sale |is |generally |needed |to |transfer |title |to |personal
|property.
Ben |receives |a |life |estate |in |a |property, |with |his |nephew |Will |designated |as |the |
remainderman. |When |Ben |dies, |what |kind |of |interest |does |Will |receive?
A. |Fee |Simple |Estate
B. |Life |Estate
C. |Remainder |Interest
D. |Reversionary |Interest |- |CORRECT |ANSWER✔✔-A. |Fee |Simple |Estate
The |interest |that |passes |to |a |designated |person |upon |the |death |of |a |life |tenant |(or |other |
measuring |life) |is |a |fee |simple |estate. |Will |has |a |remainder |interest |only |up |until |the |moment |
Ben |dies. |Once |Ben |is |dead, |Will's |interest |immediately |becomes |a |fee |simple |interest.
A |buyer |accepts |a |general |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 |general |warranty |deed |been |violated?
,A. |No, |the |only |covenant |in |a |general |warranty |deed |promises |that |the |previous |owner |didn't |
encumber |the |property
B. |No, |the |principle |of |caveat |emptor |controls |matters |concerning |a |deed
C. |Yes, |there |is |a |covenant |providing |equitable |title
D. |Yes, |there |is |a |covenant |providing |marketable |title |- |CORRECT |ANSWER✔✔-D. |Yes, |there |is |
a |covenant |providing |marketable |title
The |general |warranty |deed |contains |a |covenant |of |the |right |to |convey, |meaning |that |the |
grantor |either |has |title |to |the |interest |or |is |an |agent |of |the |owner |with |the |authority |to |
transfer |the |interest.
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:
A. |Abstract |of |judgement
B. |Petition |for |alienation
C. |Writ |of |execution
D. |Lis |Pendens |- |CORRECT |ANSWER✔✔-D. |Lis |Pendens
A |Lis |Pendens |is |a |recorded |notice |stating |that |there |is |a |lawsuit |pending |that |may |affect |title |
to |the |defendant's |real |estate |and |that |could |bind |the |purchaser |of |the |property.
A |movie |theater |was |built |ten |years |ago. |If |the |neighborhood |is |now |zoned |entirely |
residential, |the |movie |theater:
A. |will |have |to |be |torn |down
B. |must |be |remodeled |to |better |conform |to |the |neighborhood's |intended |use
C. |will |be |allowed |to |continue |if |the |owner |obtains |a |conditional |use |permit
D. |will |be |allowed |to |continue |since |it |was |built |before |the |new |zoning |law |went |into |effect |- |
CORRECT |ANSWER✔✔-D. |Will |be |allowed |to |continue |since |it |was |built |before |the |new |zoning
|law |went |into |effect
,The |movie |theater |is |an |example |of |a |nonconforming |use, |which |predated |a |zoning |change. |
Nonconforming |uses |are |generally |allowed |to |continue, |although |they |may |not |be |enlarged, |or
|resumed |if |they |are |stopped.
In |a |bilateral |contract:
A. |a |duty |wil |be |performed |by |only |one |party
B. |one |party |can |restrict |the |performance |of |another |party
C. |two |parties |have |exchanged |promises, |and |both |parties |are |obligated |to |perform
D. |all |parties |have |fully |performed |their |duties |- |CORRECT |ANSWER✔✔-C. |two |parties |have |
exchanged |promises, |and |both |parties |are |obligated |to |perform
In |a |bilateral |contract, |two |parties |have |exchanged |promises |and |both |parties |are |obligated |to |
perform. |(Bi=two |way)
Gerald |engages |a |licensee |to |list |his |property |and |find |a |buyer |for |it. |In |this |context, |the |
licensee |is |acting |as |a:
A. |General |agent
B. |power |of |attorney
C. |property |manager
D. |special |agent |- |CORRECT |ANSWER✔✔-D. |Special |Agent
When |a |licensee |represents |a |seller |in |a |single |transaction, |and |is |authorized |to |perform |
typical |duties |associated |with |listing |a |property, |she |acts |as |a |special |agent.
A |licensee |located |what |seems |like |a |ready, |willing, |and |able |buyer. |However, |the |deal |falls |
through |at |closing |because |the |buyer |cant |obtain |necessary |financing. |At |the |same |time, |
though, |a |seller |turns |out |to |be |unable |to |provide |marketable |title. |Does |the |seller |still |owe |a |
commission |to |the |listing |agent |in |this |case?
, A. |No, |because |the |sale |didn't |close
B. |No, |because |there |was |no |ready, |willing, |and |able |buyer
C. |Yes, |because |the |licensee |saw |the |transaction |through |the |closing |date
D. |Yes, |because |the |seller |has |an |absolute |duty |to |provide |marketable |title |at |closing |- |
CORRECT |ANSWER✔✔-B. |No, |because |there |was |no |ready, |willing, |and |able |buyer
The |most |important |rule |of |determining |whether |a |seller |is |obligated |to |pay |a |commission |is |
whether |a |ready, |willing, |and |able |buyer |was |found |during |the |listing |period. |This |would |take |
precedence |over |the |seller's |failure |to |provide |marketable |title. |A |buyer |who |does |not |have |
financial |ability |to |complete |the |purchase |does |not |qualify |as |"able."
Legally, |how |much |earnest |money |must |be |submitted |with |a |valid |purchase |and |sale |
agreement?
A. |1% |of |the |purchase |price
B. |3% |of |the |purchase |price
C. |5% |of |the |purchase |price, |but |the |amount |over |3% |cannot |be |retained |as |liquidated |
damages
D. |No |earnest |money |is |required |- |CORRECT |ANSWER✔✔-D. |No |earnest |money |is |required
While |almost |all |buyers |will |include |an |earnest |money |deposit |along |with |the |purchase |and |
sale |agreement, |that |is |because |of |tradition. |There |is |no |contractual |or |legal |requirement |of |a |
particular |amount, |or |any |earnest |money |at |all.
A |mortgage |often |includes |a |clause |requiring |the |lender's |consent |before |another |borrower |
may |assume |the |mortgage. |This |clause |is |called |a/ |an:
A. |power |of |sale |clause
B. |subordination |clause
C. |defeasance |clause
