WA Real Estate Fundamentals Questions - Rockwell
Study online at https://quizlet.com/_90ea0x
1. Which of the following is most likely to be considered a fixture?: Plumbing
2. A life estate will last until:: The Death of the recipient
3. A deed that states there is a conveyance of interest, if any, is the:: Quitclaim
deed
4. A judgement lien:: When paid off, requires a satisfaction of judgement to be
recorded to clear the record
5. The police powers of the government include:: Building codes and zoning
regulations
6. The term "meeting of the minds" is associated with:: Offer and acceptance
7. Exaggeration about a property's positive characteristics would be consid-
ered:: Puffing
8. The seller listed the property for $95k. Assuming that their listing agreement
is typical, the broker would not be entitled to a commission if the seller:: Re-
jected a $90k offer from a financially qualified buyer
9. A contract specifies that "time is of the essence." That means that:: All
contractual duties must be fulfilled on or before the date set forth in the contract.
10. Usury laws fix which of the following:: Maximum interest rates: state usury
laws set max interest rates for certain types of loans
11. For which of the following people would an adjustable rate loan not be a
good idea?: A person about to retire (fixed income)
12. An appraiser needs to be state certified to perform which of the following
appraisals:: Appraisal related to an FHA loan
13. On a settlement statement, an earnest money deposit that will be held by
the brokerage firm until closing is a:: Credit to the buyer
14. A licensee hears that a religious group will be opening a commune in a
neighborhood. He begins contacting neighbors and telling them about this,
encouraging them to list their properties with him before property values
decline. This is:: Blockbusting
15. An investor is interested in purchasing a multi-family dwelling. He would
most likely want to look for a:: Property where the rents are similar to comparable
properties in the same area (key inquiry for investor market analysis is comps)
16. Zoning requirements state that a lot must be at least four times the size of
the building located on the lot. An architect draws up a plan for a building that
is 20k sq. ft. At least how many acres does the lot need to be?: 2! 20k x 4 = 80k
sq ft. - devide by 43,560 (sq ft per acre) to find size.
17. Tests to distinguish a fixture from personal property include all of the
following except:: Cost of the item (method of attachment, intent of annexor and
adaptability are tests)
18. A primary advantage of owning a property in severalty is:: Flexibility
, WA Real Estate Fundamentals Questions - Rockwell
Study online at https://quizlet.com/_90ea0x
19. All of the following are requirements for a valid deed except:: Acknowledge-
ment
20. A homeowner has been sharing with a friendly neighbor the use of a
driveway that crosses both of their properties. However, the owner is about
to move out and the remaining neighbor would like to make sure that she can
continue to use the driveway even if the new owner is not amenable to that.
The homeowner should request an:: Easement
21. A local ordinance states that no sign can extend more than two feet above
the roofline. The Morgans want to put a sign on their roof, but the sign is six
feet high. To install their sign legally, the Morgans must apply for a:: Variance
22. A property is listed for $275,000. The buyers offer $265,000, and insist
that the gourmet six-burner stove remain with the property. When the signed
offer is presented to the sellers, the sellers accept the price, but want to take
the stove with them. They cross out the item about the stove, sign the form,
and return it to the buyers. Under these circumstances:: The original offer is
terminated, and the sellers have made a counteroffer
23. A seller's agent, upon meeting with a prospective buyer, becomes con-
cerned that the buyer is unlikely to be financially qualified. The agent should:-
: Relay those concerns to the seller, who will decide.
24. Net listings are strongly discouraged because they are likely to be unfair
to the:: Seller
25. A purchase and sale agreement is for $150,000, with 80% financing, closing
in 30 days with possession at closing, and a rent provision for possession
after closing. This is an example of a/an:: Contract with contingencies
26. A promissory note that is secured by a mortgage is:: Primary evidence of
the debt (The note is evidence of the debt; the mortgage makes the property security
for the debt.)
27. Which of the following is an advantages of using private mortgage insur-
ance from a borrower's perspective:: It allows for a smaller downpayment
28. The market price of a property would be best defined as:: The amount paid
to obtain the property
29. Bronson agreed to sell his house to the Hatchers. Closing is scheduled for
May 15. Bronson already paid the taxes for the entire year, but the Hatchers are
assuming responsibility for the taxes as of the closing date. The settlement
statement will prorate the taxes as a:: Debit to the buyer and credit to the seller
30. An agent shows his customer, who is an Asian-American, homes only in
neighborhoods that are predominantly Asian-American. This is called:: Steer-
ing
, WA Real Estate Fundamentals Questions - Rockwell
Study online at https://quizlet.com/_90ea0x
31. A property manager will be paid 3% of a property's annual gross rental
income. The rent paid is: $24,000 base rent; $12,000 percentage rent; $8,000
maintenance, taxes, and insurance (triple net). The commission amount that
the manager will receive is:: $1080 - In a triple net lease, the tenant pays operating
expenses (maintenance costs, taxes, and insurance) in addition to base rent and, in
some cases, percentage rent. First, calculate the rent paid each year: $24,000 base
rent + $12,000 percentage rent = $36,000. Then calculate the commission amount:
.03 x $36,000 = $1,080. (Expenses probably wouldn't be considered part of the rent
when calculating a commission.)
32. A borrower is purchasing a $300,000 home. She will be using a loan with
an LTV of 80%. She will also be paying 3 discount points. What is the total
amount of cash that she will need to bring to closing?: $67,200 -
There are two components that you'll need to calculate. First, calculate the size
of the loan: $300,000 x .80 = $240,000. She'll need to bring $60,000 to cover the
downpayment ($300,000 - $240,000 = $60,000). Second, calculate the amount of
the discount points, using the loan amount and not the purchase price ($240,000 x
.03 = $7,200). Add the two together for the total amount of cash needed ($60,000 +
$7,200 = $67,200).
33. A rectangular parcel of land, starting from the point of beginning, mea-
sures 180 feet north, then 90 feet east, then 180 feet south. What is the length
and direction of the last side?: 90 ft. west
34. A seller finds that he cannot provide marketable title because of a cloud
on title. To clear the title, he should file a:: Quiet Title action - (a quitclaim deed
would also work but that means whoever would need to sign the deed would have
to cooperate and that's not usually an option.)
35. Which of the following actions by a developer would require a zoning
variance or a rezone, because it would result in a more intensive use of the
land?: Increase in number of lots per acre
36. A contract for the purchase and sale of real property does not contain an
adequate land description. The agreement is:: Unenforceable
37. In a dual agency, which of the following duties can the parties agree
with the agent that they will waive?: The duty to submit additional offers after
acceptance has been reached
38. Which of the following is the most commonly used type of disclosure?: -
Seller disclosure statement (not used in agricultural land or foreclosures)
39. A mortgage, and the associated mortgage note are both examples of:: -
Contracts
40. To obtain a 100% loan, with no downpayment, a borrower would most likely
need to use a/an:: VA Loan
Study online at https://quizlet.com/_90ea0x
1. Which of the following is most likely to be considered a fixture?: Plumbing
2. A life estate will last until:: The Death of the recipient
3. A deed that states there is a conveyance of interest, if any, is the:: Quitclaim
deed
4. A judgement lien:: When paid off, requires a satisfaction of judgement to be
recorded to clear the record
5. The police powers of the government include:: Building codes and zoning
regulations
6. The term "meeting of the minds" is associated with:: Offer and acceptance
7. Exaggeration about a property's positive characteristics would be consid-
ered:: Puffing
8. The seller listed the property for $95k. Assuming that their listing agreement
is typical, the broker would not be entitled to a commission if the seller:: Re-
jected a $90k offer from a financially qualified buyer
9. A contract specifies that "time is of the essence." That means that:: All
contractual duties must be fulfilled on or before the date set forth in the contract.
10. Usury laws fix which of the following:: Maximum interest rates: state usury
laws set max interest rates for certain types of loans
11. For which of the following people would an adjustable rate loan not be a
good idea?: A person about to retire (fixed income)
12. An appraiser needs to be state certified to perform which of the following
appraisals:: Appraisal related to an FHA loan
13. On a settlement statement, an earnest money deposit that will be held by
the brokerage firm until closing is a:: Credit to the buyer
14. A licensee hears that a religious group will be opening a commune in a
neighborhood. He begins contacting neighbors and telling them about this,
encouraging them to list their properties with him before property values
decline. This is:: Blockbusting
15. An investor is interested in purchasing a multi-family dwelling. He would
most likely want to look for a:: Property where the rents are similar to comparable
properties in the same area (key inquiry for investor market analysis is comps)
16. Zoning requirements state that a lot must be at least four times the size of
the building located on the lot. An architect draws up a plan for a building that
is 20k sq. ft. At least how many acres does the lot need to be?: 2! 20k x 4 = 80k
sq ft. - devide by 43,560 (sq ft per acre) to find size.
17. Tests to distinguish a fixture from personal property include all of the
following except:: Cost of the item (method of attachment, intent of annexor and
adaptability are tests)
18. A primary advantage of owning a property in severalty is:: Flexibility
, WA Real Estate Fundamentals Questions - Rockwell
Study online at https://quizlet.com/_90ea0x
19. All of the following are requirements for a valid deed except:: Acknowledge-
ment
20. A homeowner has been sharing with a friendly neighbor the use of a
driveway that crosses both of their properties. However, the owner is about
to move out and the remaining neighbor would like to make sure that she can
continue to use the driveway even if the new owner is not amenable to that.
The homeowner should request an:: Easement
21. A local ordinance states that no sign can extend more than two feet above
the roofline. The Morgans want to put a sign on their roof, but the sign is six
feet high. To install their sign legally, the Morgans must apply for a:: Variance
22. A property is listed for $275,000. The buyers offer $265,000, and insist
that the gourmet six-burner stove remain with the property. When the signed
offer is presented to the sellers, the sellers accept the price, but want to take
the stove with them. They cross out the item about the stove, sign the form,
and return it to the buyers. Under these circumstances:: The original offer is
terminated, and the sellers have made a counteroffer
23. A seller's agent, upon meeting with a prospective buyer, becomes con-
cerned that the buyer is unlikely to be financially qualified. The agent should:-
: Relay those concerns to the seller, who will decide.
24. Net listings are strongly discouraged because they are likely to be unfair
to the:: Seller
25. A purchase and sale agreement is for $150,000, with 80% financing, closing
in 30 days with possession at closing, and a rent provision for possession
after closing. This is an example of a/an:: Contract with contingencies
26. A promissory note that is secured by a mortgage is:: Primary evidence of
the debt (The note is evidence of the debt; the mortgage makes the property security
for the debt.)
27. Which of the following is an advantages of using private mortgage insur-
ance from a borrower's perspective:: It allows for a smaller downpayment
28. The market price of a property would be best defined as:: The amount paid
to obtain the property
29. Bronson agreed to sell his house to the Hatchers. Closing is scheduled for
May 15. Bronson already paid the taxes for the entire year, but the Hatchers are
assuming responsibility for the taxes as of the closing date. The settlement
statement will prorate the taxes as a:: Debit to the buyer and credit to the seller
30. An agent shows his customer, who is an Asian-American, homes only in
neighborhoods that are predominantly Asian-American. This is called:: Steer-
ing
, WA Real Estate Fundamentals Questions - Rockwell
Study online at https://quizlet.com/_90ea0x
31. A property manager will be paid 3% of a property's annual gross rental
income. The rent paid is: $24,000 base rent; $12,000 percentage rent; $8,000
maintenance, taxes, and insurance (triple net). The commission amount that
the manager will receive is:: $1080 - In a triple net lease, the tenant pays operating
expenses (maintenance costs, taxes, and insurance) in addition to base rent and, in
some cases, percentage rent. First, calculate the rent paid each year: $24,000 base
rent + $12,000 percentage rent = $36,000. Then calculate the commission amount:
.03 x $36,000 = $1,080. (Expenses probably wouldn't be considered part of the rent
when calculating a commission.)
32. A borrower is purchasing a $300,000 home. She will be using a loan with
an LTV of 80%. She will also be paying 3 discount points. What is the total
amount of cash that she will need to bring to closing?: $67,200 -
There are two components that you'll need to calculate. First, calculate the size
of the loan: $300,000 x .80 = $240,000. She'll need to bring $60,000 to cover the
downpayment ($300,000 - $240,000 = $60,000). Second, calculate the amount of
the discount points, using the loan amount and not the purchase price ($240,000 x
.03 = $7,200). Add the two together for the total amount of cash needed ($60,000 +
$7,200 = $67,200).
33. A rectangular parcel of land, starting from the point of beginning, mea-
sures 180 feet north, then 90 feet east, then 180 feet south. What is the length
and direction of the last side?: 90 ft. west
34. A seller finds that he cannot provide marketable title because of a cloud
on title. To clear the title, he should file a:: Quiet Title action - (a quitclaim deed
would also work but that means whoever would need to sign the deed would have
to cooperate and that's not usually an option.)
35. Which of the following actions by a developer would require a zoning
variance or a rezone, because it would result in a more intensive use of the
land?: Increase in number of lots per acre
36. A contract for the purchase and sale of real property does not contain an
adequate land description. The agreement is:: Unenforceable
37. In a dual agency, which of the following duties can the parties agree
with the agent that they will waive?: The duty to submit additional offers after
acceptance has been reached
38. Which of the following is the most commonly used type of disclosure?: -
Seller disclosure statement (not used in agricultural land or foreclosures)
39. A mortgage, and the associated mortgage note are both examples of:: -
Contracts
40. To obtain a 100% loan, with no downpayment, a borrower would most likely
need to use a/an:: VA Loan
