Exam (elaborations)
ROCKWELL CRAM EXAM 4 QUESTIONS AND ANSWERS
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ROCKWELL CRAM EXAM 4 QUESTIONS AND ANSWERS
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Name: Score:54 Multiple choice questions
Term 1 of 54
Buyer Bob and Seller Sam decide to wait until Sam's listing agreement with XYZ Real Estate
Agency has expired, to avoid paying a commission. Does the firm (and, by extension, the
individual listing agent) have any legal recourse?
Yes
No
Term 2 of 54
The capitalized value of a property is $280,000, the capitalization rate is 10%, and the operating
expenses are 76% of the annual gross income. What is the gross income?
$116,667
$100,000
$93,334
$70,000
Term 3 of 54
The best description of the boundary lines for a property found in a subdivision would be
found on:
describing a township
a survey
a plat map
a package mortgage
,Term 4 of 54
Which of the following is an absolute requirement of a selling agent in every real estate
transaction?
The agent must conduct himself in accordance with the agency disclosure made
The sanctions imposed by the Director remain in effect throughout the appeals process
both principal and interest on the loan
There will be an increase in sale prices for homes
Term 5 of 54
Appointments to the Real Estate Commission are made by:
the Governor
the Nmls
the Commissioner
the Legislature
Term 6 of 54
In a disciplinary action, the Director of the Department of Licensing can do any of the
following, EXCEPT:
award damages to individuals defrauded by real estate licensees
issue a warning to the licensee
grant a promotion to the licensee
revoke the real estate license of the licensee
,Term 7 of 54
Of the following types of contracts, which one is a unilateral contract?
Option
Swap
Deed
Future
Term 8 of 54
A mortgage includes a prepayment penalty of 3% of the loan's balance at the time of payoff, if
the owner pays off the entire balance before a specified date. Monthly amortized principal
and interest payments are $1,484.40, with a 5% annual interest rate. The borrower's balance
after making the January 1st payment was $44,731.15. On February 1st, he made the next
payment as scheduled, and then after that, paid off the entire remaining balance. What would
the prepayment penalty be?
$1,257.20
$1,319.37
$290.30
$1,302.99
Term 9 of 54
Which of the following entities would participate in the primary market for mortgage lending?
Federal reserve bank
Commercial bank
Investment bank
Mutual fund
, Term 10 of 54
Real estate license fees are put into the:
Washington Association Of Realtors Trust Account
Real Estate Commission Account
Record The Mortgage
Commercial Bank
Term 11 of 54
A property sold for $410,000. The seller has a mortgage outstanding, with a balance of
$170,000 that will need to be paid off. The seller owes his real estate agent a 6% commission.
The seller also agreed to pay 3% in discount points as a buydown, to help the buyer receive a
loan with a 95% LTV. Finally, the seller must pay another $8,000 in closing costs. After all costs
are paid, how much will the seller net?
$200,715
$195,715
$200,920
$208,939
Term 12 of 54
A licensee, with permission from his designated broker, sets up his own subsection S
corporation, which he calls M Team. He then rents a billboard and advertises a listing on it,
using only the M Team name. Is this legal?
No, because ads must give the name of the firm
No, as long as the corporation is registered
Yes, as long as the broker approves
Yes, if the billboard is located in a specific area
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