Rockwell WA Real Estate Practice Exam 2023 ACTUAL
EXAM/ MOSTLY TESTED QUESTIONS AND CORRECT DETAILED
ANSWERS| 100% CORRECT SOLUTIONS/GRADE A+
A. there is now a valid contract that has been
signed by all parties
A property is listed for $275,000. The buyers
B. the offer has been invalidated and the
offer $265,000, and insist that the gourmet six-
buyers will need to begin looking for a new
burner stove remain with the property. When
property
the signed offer is presented to the sellers, the
sellers accept the price, but want to take the
C. the sellers can turn around and accept the
stove with them. They cross out the item about
original offer, if the buyers won't go along
the stove, sign the form, and return it to the
with giving up the stove
buyers. Under these circumstances:
***D. the original offer is terminated, and the
sellers have made a counteroffer
A. advise the buyer that the property may be
subject to special assessments and recommend
that the buyer look into it
A buyer is looking at a house in a neighborhood
B. check the county records to see if the
with newly installed sidewalks. When the buyer
property has any special assessments pending
asks about taxes, the seller assures her that the
against it
home isn't subject to any special assessments.
The buyer's agent should:
C. contact an attorney to begin an
investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. ***A. rejected a $90,000 offer from a
Assuming that their listing agreement is typical, financially qualified buyer
the broker would NOT be entitled to a
commission if the seller: B. accepted a $90,000 offer from a financially
, qualified buyer
C. accepted a $95,000 offer, but his title
turned out to be unmarketable
D. rejected a $95,000 offer from a financially
qualified buyer
A. accepting compensation from both parties
to a transaction without a written disclosure
B. failing to adequately supervise an employee
who misrepresents a property to a prospect
A licensee would not be disciplined for:
C. failing to include the firm's name, as
licensed, in an advertisement
***D. offering to advertise a property, for a
fee, for a "For Sale by Owner" seller
A. will be inherited by her children according
to the provisions of her will
B. must be bequeathed to Kim and Diane in
Jesse, Kim, and Diane own a home together as her will
joint tenants. If Jesse dies, her property interest:
C. will be automatically devised to her heirs
***D. will be automatically transferred
(conveyed) to Kim and Diane
A. grant deed
B. bargain and sale deed
The deed that states that there is a conveyance
of interest, if any, is the:
***C. quitclaim deed
D. special warranty deed
A. unless the agent knows that the buyer has
an excellent credit history
***B. unless the purchase and sale agreement
The selling agent must NOT accept a discloses that the deposit is a note
promissory note as an earnest money deposit:
C. unless the seller agreed during negotiation
discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because A. broker
,they are likely to be unfair to the:
B. buyer
***C. seller
D. All of the above
A. will have to be torn down
B. must be remodeled to better conform to the
neighborhood's intended use
A movie theater was built ten years ago. If the
neighborhood is now zoned entirely residential, C. will be allowed to continue if the owner
the movie theater: obtains a conditional use permit
***D. will be allowed to continue since it was
built before the new zoning law went into
effect
A. Charge Kevin and Lyle rent
John, Kevin, and Lyle own a property as tenants
in common, but only Kevin and Lyle live on the B. Create a trust to manage the property
property. John would like to sell the property
for redevelopment, but Kevin and Lyle refuse. C. Evict Kevin and Lyle
What is John's best option?
***D. Obtain a court order to sell the property
A. No, because the sale didn't close
A licensee locates what seems like a ready,
willing, and able buyer. However, the deal falls ***B. No, because there was no ready,
through at closing because the buyer can't willing, and able buyer
obtain necessary financing. At the same time,
though, the seller turns out to be unable to C. Yes, because the licensee saw the
provide marketable title. Does the seller still transaction through to the closing date
owe a commission to the listing agent in this
case? D. Yes, because the seller has an absolute duty
to provide marketable title at closing
A. Interest on the difference between the
original loan amount and the refinanced
amount is not deductible
A homeowner bought his home for $150,000. B. Interest on only half of the difference
Ten years later, he refinanced his mortgage and between the original amount and refinanced
borrowed $100,000. Which of the following is amount is deductible
true for this type of property?
***C. Interest on loans such as this one for the
purchase or refinance of a principal residence
is deductible
, D. Interest deductibility will depend on the
borrower's tax bracket
A borrower is purchasing a $300,000 home.
300,000 x .80 = 240,000
She will be using a loan with an LTV of 80%.
300,000 - 240,000 = 60,000
She will also be paying 3 discount points. What
240,000 x 0.03 = 7,200
is the total amount of cash that she will need to
60,000 + 7,200 = 67,200
bring to closing?
A. Appraisal of a residence valued at
$200,000
B. Appraisal of a residence valued at $500,000
An appraiser needs to be state-certified to
perform which of the following appraisals?
C. Appraisal related to a loan that will be
issued by a federally insured lender
***D. Appraisal related to an FHA loan
A. independent licensee
***B. affiliated licensee
In Washington, a person licensed to act on
behalf of a real estate brokerage is called a/an:
C. associate licensee
D. designated licensee
A. The brokerage may allow an independent
contractor to place her own ads but the ads
must conform with the firm's advertising rules
The IRS issues rules that determine when a real ***B. The brokerage may require an
estate agent is an employee and when he is an independent contractor to have a cell phone
independent contractor. Which of the following
statements on that topic is FALSE? C. The brokerage will take taxes from an
employee's paycheck
D. The brokerage will tell an employee when
to work certain hours
A. a fixture
Chin, a home seller, is talking to his real estate
B. a natural attachment
agent. He mentions that he rents the backup
generator; it doesn't belong to him. The
C. a trade fixture
generator would be considered:
***D. personal property
A. accretion
When part of the land is removed, but the
boundaries of a property generally stay the
B. adverse possession
same, it is known as:
EXAM/ MOSTLY TESTED QUESTIONS AND CORRECT DETAILED
ANSWERS| 100% CORRECT SOLUTIONS/GRADE A+
A. there is now a valid contract that has been
signed by all parties
A property is listed for $275,000. The buyers
B. the offer has been invalidated and the
offer $265,000, and insist that the gourmet six-
buyers will need to begin looking for a new
burner stove remain with the property. When
property
the signed offer is presented to the sellers, the
sellers accept the price, but want to take the
C. the sellers can turn around and accept the
stove with them. They cross out the item about
original offer, if the buyers won't go along
the stove, sign the form, and return it to the
with giving up the stove
buyers. Under these circumstances:
***D. the original offer is terminated, and the
sellers have made a counteroffer
A. advise the buyer that the property may be
subject to special assessments and recommend
that the buyer look into it
A buyer is looking at a house in a neighborhood
B. check the county records to see if the
with newly installed sidewalks. When the buyer
property has any special assessments pending
asks about taxes, the seller assures her that the
against it
home isn't subject to any special assessments.
The buyer's agent should:
C. contact an attorney to begin an
investigation of the matter
D. say nothing and take the seller's word for it
The seller listed the property for $95,000. ***A. rejected a $90,000 offer from a
Assuming that their listing agreement is typical, financially qualified buyer
the broker would NOT be entitled to a
commission if the seller: B. accepted a $90,000 offer from a financially
, qualified buyer
C. accepted a $95,000 offer, but his title
turned out to be unmarketable
D. rejected a $95,000 offer from a financially
qualified buyer
A. accepting compensation from both parties
to a transaction without a written disclosure
B. failing to adequately supervise an employee
who misrepresents a property to a prospect
A licensee would not be disciplined for:
C. failing to include the firm's name, as
licensed, in an advertisement
***D. offering to advertise a property, for a
fee, for a "For Sale by Owner" seller
A. will be inherited by her children according
to the provisions of her will
B. must be bequeathed to Kim and Diane in
Jesse, Kim, and Diane own a home together as her will
joint tenants. If Jesse dies, her property interest:
C. will be automatically devised to her heirs
***D. will be automatically transferred
(conveyed) to Kim and Diane
A. grant deed
B. bargain and sale deed
The deed that states that there is a conveyance
of interest, if any, is the:
***C. quitclaim deed
D. special warranty deed
A. unless the agent knows that the buyer has
an excellent credit history
***B. unless the purchase and sale agreement
The selling agent must NOT accept a discloses that the deposit is a note
promissory note as an earnest money deposit:
C. unless the seller agreed during negotiation
discussion to accept a promissory note
D. under any circumstances
Net listings are strongly discouraged because A. broker
,they are likely to be unfair to the:
B. buyer
***C. seller
D. All of the above
A. will have to be torn down
B. must be remodeled to better conform to the
neighborhood's intended use
A movie theater was built ten years ago. If the
neighborhood is now zoned entirely residential, C. will be allowed to continue if the owner
the movie theater: obtains a conditional use permit
***D. will be allowed to continue since it was
built before the new zoning law went into
effect
A. Charge Kevin and Lyle rent
John, Kevin, and Lyle own a property as tenants
in common, but only Kevin and Lyle live on the B. Create a trust to manage the property
property. John would like to sell the property
for redevelopment, but Kevin and Lyle refuse. C. Evict Kevin and Lyle
What is John's best option?
***D. Obtain a court order to sell the property
A. No, because the sale didn't close
A licensee locates what seems like a ready,
willing, and able buyer. However, the deal falls ***B. No, because there was no ready,
through at closing because the buyer can't willing, and able buyer
obtain necessary financing. At the same time,
though, the seller turns out to be unable to C. Yes, because the licensee saw the
provide marketable title. Does the seller still transaction through to the closing date
owe a commission to the listing agent in this
case? D. Yes, because the seller has an absolute duty
to provide marketable title at closing
A. Interest on the difference between the
original loan amount and the refinanced
amount is not deductible
A homeowner bought his home for $150,000. B. Interest on only half of the difference
Ten years later, he refinanced his mortgage and between the original amount and refinanced
borrowed $100,000. Which of the following is amount is deductible
true for this type of property?
***C. Interest on loans such as this one for the
purchase or refinance of a principal residence
is deductible
, D. Interest deductibility will depend on the
borrower's tax bracket
A borrower is purchasing a $300,000 home.
300,000 x .80 = 240,000
She will be using a loan with an LTV of 80%.
300,000 - 240,000 = 60,000
She will also be paying 3 discount points. What
240,000 x 0.03 = 7,200
is the total amount of cash that she will need to
60,000 + 7,200 = 67,200
bring to closing?
A. Appraisal of a residence valued at
$200,000
B. Appraisal of a residence valued at $500,000
An appraiser needs to be state-certified to
perform which of the following appraisals?
C. Appraisal related to a loan that will be
issued by a federally insured lender
***D. Appraisal related to an FHA loan
A. independent licensee
***B. affiliated licensee
In Washington, a person licensed to act on
behalf of a real estate brokerage is called a/an:
C. associate licensee
D. designated licensee
A. The brokerage may allow an independent
contractor to place her own ads but the ads
must conform with the firm's advertising rules
The IRS issues rules that determine when a real ***B. The brokerage may require an
estate agent is an employee and when he is an independent contractor to have a cell phone
independent contractor. Which of the following
statements on that topic is FALSE? C. The brokerage will take taxes from an
employee's paycheck
D. The brokerage will tell an employee when
to work certain hours
A. a fixture
Chin, a home seller, is talking to his real estate
B. a natural attachment
agent. He mentions that he rents the backup
generator; it doesn't belong to him. The
C. a trade fixture
generator would be considered:
***D. personal property
A. accretion
When part of the land is removed, but the
boundaries of a property generally stay the
B. adverse possession
same, it is known as:
