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Rockwell WA Real Estate Practice Exam Verified 2024
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Rockwell WA Real Estate Practice Exam Verified 2024
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Rockwell WA Real Estate Practice ExamVerified 2024
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? - ANSWER-300,000 x .80 = 240,000
300,000 - 240,000 = 60,000
240,000 x 0.03 = 7,200
60,000 + 7,200 = 67,200
A broker arranges a transaction while working for ABC Realty. Before the transaction
closes, the broker's license becomes inactive. Which statement about the broker's
commission is true? - ANSWER-A. ABC Realty must return the commission to the seller
***B. ABC Realty can pay the commission to the broker
C. ABC Realty must pay the commission to the licensee who took over the transaction
for the now-inactive broker
C. ABC Realty must keep the commission
A buyer asks the buyer's agent to write an offer on terms that don't match the listing
agreement. The buyer's agent refuses to write the offer and then, in writing, unilaterally
terminates the agency relationship with the buyer. Which is true? - ANSWER-A. Buyer's
agent will be subject to disciplinary action
***B. Buyer's agent is permitted to unilaterally terminate the agency relationship
C. Buyer's agent is allowed to terminate the agency, but must write the offer before
terminating
D. Buyer's agent is not permitted to write such an offer
A buyer is looking at a house in a neighborhood with newly installed sidewalks. When
the buyer asks about taxes, the seller assures her that the home isn't subject to any
special assessments. The buyer's agent should: - ANSWER-A. advise the buyer that
the property may be subject to special assessments and recommend that the buyer look
into it
B. check the county records to see if the property has any special assessments pending
against it
C. contact an attorney to begin an investigation of the matter
,D. say nothing and take the seller's word for it
A buyer is planning to purchase a property where he can operate a small mechanic's
shop out of his home. He eventually finds a property he likes and tells the listing agent
his plans. However, after closing he finds out that there are deed restrictions that
prevent him from operating such a business from his home. Which of the following is
true? - ANSWER-***A. Since the agent knew the buyer's intended use, the agent should
have investigated whether it was feasible or informed the buyer that he or his agent
should investigate it
B. The agent represented the seller and did not have a duty of loyalty to the buyer
C. The seller always has to disclose the zoning on a property
D. The real estate agent was the one responsible for investigating deed restrictions
A buyer purchases a rental home that is fully furnished. The document used to transfer
title to the furniture is a: - ANSWER-A. quitclaim deed
***B. bill of sale
C. special warranty deed
D. general warranty deed
A buyer's agent has repeatedly seen sales collapse at the last minute because the
buyers weren't able to obtain financing. How could he best limit this in the future? -
ANSWER-A. Qualify all prospects himself
B. Refer buyers to a specific lender
***C. Require prospects to be approved first
D. Show lower-priced properties
A buyers' purchase and sale agreement contained a financing contingency. The buyers
applied for a loan with a local lender, who verbally informed them that their loan
application was denied. The buyers' agent should: - ANSWER-A. ask the sellers to
provide a purchase money loan instead
B. have the sellers extend the contingency deadline
***C. tell the buyers about their right to receive the denial in writing
D. terminate the agency relationship
,A contract specifies that "time is of the essence." This means that: - ANSWER-A. the
seller must fulfill her contractual duties by the date set forth in the contract, but the
buyer does not have to
B. the buyer must fulfill her contractual duties by the date set forth in the contract, but
the seller does not have to
C. the agent must fulfill his contractual duties by the date set forth in the contract, but
the buyer and seller do not have to
***D. all contractual duties must be fulfilled on or before the date set forth in the contract
[ A time is of the essence clause means that all parties to the contract are legally
required to meet all deadlines set in the agreement. Failure to meet any deadline by
either party is a breach of contract. ]
A couple with children would like to buy a house that was built in 1950. The home was
recently remodeled, with completely new paint and plumbing. In this situation, what
does the agent always have to do? - ANSWER-A. Ensure that the paint used during the
remodel is lead-free
***B. Make sure the buyers receive a pamphlet on lead-based paint
C. Provide them with a copy of a recent lead inspection report
D. Nothing; the house was remodeled so lead-based paint rules don't apply
A deed that is not signed by the seller is still considered valid as long as it: - ANSWER-
A. is executed by a competent relative of the seller
B. is delivered to the buyer
C. contains a covenant of seisin
***D. is signed by an authorized attorney in fact
A federal law requires lenders to give a booklet about shopping for a home loan to all
prospective borrowers within three business days of loan application. What law is this? -
ANSWER-A. Fraud Enforcement and Recovery Act
B. Home Loan Disclosure Act
***C. RESPA
D. Truth in Lending Act
, A former mansion has been divided into three apartments. The best approach to finding
the property's value is: - ANSWER-A. cost
***B. income
C. reconciliation
D. sales comparison
A home inspection revealed that black mold is present in a home. What should the
buyer's agent tell the buyer? - ANSWER-A. That black mold is toxic, and that the buyer
should not buy the house
B. That mold is commonplace, and can be cleaned up with bleach
C. To require the seller to remedy the problem
***D. To seek expert advice
A homeowner bought his home for $150,000. Ten years later, he refinanced his
mortgage and borrowed $100,000. Which of the following is true for this type of
property? - ANSWER-A. Interest on the difference between the original loan amount
and the refinanced amount is not deductible
B. Interest on only half of the difference between the original amount and refinanced
amount is deductible
***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 homeowner has an unpaid hospital bill for $20,000. The hospital files suit and wins a
judgment for the full amount. Is the homeowner's home (which he owns free and clear)
at risk? - ANSWER-A. No, because the debt must be at least $25,000 to force a sale
B. No, because the debt must exceed the value of the homestead
***C. Yes, but he may be partly or fully protected by state homestead laws
D. Yes, a court may always force a sale to fulfill a judgment
A homeowner has been sharing with a friendly neighbor the use of a driveway that
crosses both of their properties. However, the neighbor is about to move out, and the
remaining homeowner would like to make sure that she can continue to use the
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