Washington State Real Estate Exam
Test Prep Multiple Choice well
solved.
Qs
Bulk Zoning - n
Ans✔
Bulk zoning controls the density of the development on land to avoid overcrowding.
Qs
Bundle of Legal Rights - n
Ans✔
The theory that land ownership involves ownership of all legal rights to the land
such as: Possession, control within the law, and enjoyment, rather than ownership
of the land itself.
Qs
Buydown Mortgage - n
Ans✔
A mortgage in which the interest rate is reduced by paying interest in advance. A
temporary buydown is for the initial years of the loan. A permanent buydown is for
the life of the loan.
Qs
Capacity of Parties - n
Ans✔
The legal ability of ability of persons to enter into a valid contract. Most persons
have full capacity to contract, and are said to be competent parties.
Qs
,Capital Gains - n
Ans✔
A tax on the profits realized from the sale of a capital asset.
Qs
Capital Improvement - n
Ans✔
Any improvement that is made to extend the useful life of a property or add to its
value.
Qs
Capital Investment - n
Ans✔
The initial capital and the long-term expenditures made to establish and maintain a
business or investment property.
Qs
Capitalization - n
Ans✔
The process of converting into present value (or obtaining the present worth of) a
series of anticipated future periodic installments of net income. In real estate
appraising, it usually takes the form of discounting. The formula is expressed as
follows: Income / Rate = Value
Qs
Capitalization Rate - n
Ans✔
The rate of return a property will produce on the owner's investment.
Qs
Cash Flow - n
,Ans✔
The net spendable income from an investment, determined by deducting all
operating and fixed expenses from the gross income. If expenses exceed income, a
negative cash flow is the result.
Qs
Casualty Insurance - n
Ans✔
A type of insurance policy that protects a property owner or other person from loss
or injury sustained as a result of theft, vadalism, or similar occurrences.
Qs
Caveat emptor - n
Ans✔
A Latin phrase meaning "let the buyer beware"
Qs
Caveat Venditor - n
Ans✔
A Latin phrase meaning "Let the seller beware"
Qs
Certificate of Eligibility - n
Ans✔
A certificate given by the federal government to qualified veterans to show their
remaining eligibility for a VA guaranteed loan.
Qs
Certificate of Occupancy - n
Ans✔
, A certificate of occupancy is issued after the building is inspected to make sure it
complies with building codes.
Qs
Certificate of Reasonable Value - n
Ans✔
A certificate issued by the Veterans Ad ministration certifying the value, as
determined by an approved VA appraiser, of property secured by a VA mortgage.
Qs
Certificate of Reduction - n
Ans✔
A document issued by the lender to verify the loan balance.
Qs
Certificate of Sale - n
Ans✔
The document generally given to a purchaser at a tax foreclosure sale. A certificate
of sale does not convey title; generally, it is an instrument certifying that the holder
received title to the property after the redemption period had passed and that the
holder paid the property taxes for that interim period.
Qs
Certificate of Title - n
Ans✔
A statement of opinion on the status of the title ot a parcel of real property based
on an examination of specified public records.
Qs
Cession Deed - n
Ans✔
The type of deed used when land is donated to the government.
Test Prep Multiple Choice well
solved.
Qs
Bulk Zoning - n
Ans✔
Bulk zoning controls the density of the development on land to avoid overcrowding.
Qs
Bundle of Legal Rights - n
Ans✔
The theory that land ownership involves ownership of all legal rights to the land
such as: Possession, control within the law, and enjoyment, rather than ownership
of the land itself.
Qs
Buydown Mortgage - n
Ans✔
A mortgage in which the interest rate is reduced by paying interest in advance. A
temporary buydown is for the initial years of the loan. A permanent buydown is for
the life of the loan.
Qs
Capacity of Parties - n
Ans✔
The legal ability of ability of persons to enter into a valid contract. Most persons
have full capacity to contract, and are said to be competent parties.
Qs
,Capital Gains - n
Ans✔
A tax on the profits realized from the sale of a capital asset.
Qs
Capital Improvement - n
Ans✔
Any improvement that is made to extend the useful life of a property or add to its
value.
Qs
Capital Investment - n
Ans✔
The initial capital and the long-term expenditures made to establish and maintain a
business or investment property.
Qs
Capitalization - n
Ans✔
The process of converting into present value (or obtaining the present worth of) a
series of anticipated future periodic installments of net income. In real estate
appraising, it usually takes the form of discounting. The formula is expressed as
follows: Income / Rate = Value
Qs
Capitalization Rate - n
Ans✔
The rate of return a property will produce on the owner's investment.
Qs
Cash Flow - n
,Ans✔
The net spendable income from an investment, determined by deducting all
operating and fixed expenses from the gross income. If expenses exceed income, a
negative cash flow is the result.
Qs
Casualty Insurance - n
Ans✔
A type of insurance policy that protects a property owner or other person from loss
or injury sustained as a result of theft, vadalism, or similar occurrences.
Qs
Caveat emptor - n
Ans✔
A Latin phrase meaning "let the buyer beware"
Qs
Caveat Venditor - n
Ans✔
A Latin phrase meaning "Let the seller beware"
Qs
Certificate of Eligibility - n
Ans✔
A certificate given by the federal government to qualified veterans to show their
remaining eligibility for a VA guaranteed loan.
Qs
Certificate of Occupancy - n
Ans✔
, A certificate of occupancy is issued after the building is inspected to make sure it
complies with building codes.
Qs
Certificate of Reasonable Value - n
Ans✔
A certificate issued by the Veterans Ad ministration certifying the value, as
determined by an approved VA appraiser, of property secured by a VA mortgage.
Qs
Certificate of Reduction - n
Ans✔
A document issued by the lender to verify the loan balance.
Qs
Certificate of Sale - n
Ans✔
The document generally given to a purchaser at a tax foreclosure sale. A certificate
of sale does not convey title; generally, it is an instrument certifying that the holder
received title to the property after the redemption period had passed and that the
holder paid the property taxes for that interim period.
Qs
Certificate of Title - n
Ans✔
A statement of opinion on the status of the title ot a parcel of real property based
on an examination of specified public records.
Qs
Cession Deed - n
Ans✔
The type of deed used when land is donated to the government.
