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Mock Exam 1
| Question | Answer |
|---|---|
| An optionee's rights can be assigned under all of the following circumstances, except when the: | ...option money is in the form of a promissory note (his estate can't either if the optionee is dead). |
| For income tax purposes, a homeowner can deduct: a) property taxes b) principal payments on a mortgage c) capital expenditures d) the adjusted basis. | A -- A real property owner can deduct property taxes. |
| A mortgage, and the associated mortgage note, are both examples of: | Contracts. -- A security instrument (such as a mortgage) and a promissory note are both contracts between borrower and lender. The promissory note is an promos to repay money, and the mortgage pledges the subject property as security for the loan. |
| Under WA license law, a licensee's license may be suspended if she hasn't': a) made timely payments on a federally guaranteed ed. loan. b) obtained a driver's license. c) paid her business and occupation taxes. d) paid her Worker's Comp premiums. | A -- WA law permits the Director of the Department of Licensing to suspend the license of any licensee who is not in compliance with payment requirements for a guaranteed student loan. |
| Who is responsible for preparing and conducting real estate licensing examinations? | The Real Estate Commission (although it delegates it to a professional testing service). |
| The following are all goals of the WA Center for Real Estate Research: a) recommending changes to state statutes regarding licensing. b) promoting growth and development in WA. c) determining low-income rates. d) writing real estate exam questions | D -- The Center for Real Estate Research does not write real estate exam questions; this is the job of the Real Estate Commission. |
| A buyer who records a deed is giving: a) Constructive notice. b) Actual notice. c) pending notice d) statutory notice | A -- A buyer who records a deed is giving constructive notice of his interest in the property. Anyone who later acquires an interest in the property is held to know about all previously recorded interests, even if she didn't check the records. |
| After the sale of a property in a 1031 exchange, the seller must close on the new property within: | 180 days -- Once a Section 1031 exchange (tax-deferred or "tax-free" exchange) has been arranged, the parties must close the transaction within 180 days. |
| The Real Estate Settlement Procedures Act (RESPA) applies to: | Residential 1st mortgages -- RESPA applies to mortgages secured by a dwelling with up to 4 units. It does not apply to comm trans or seller financing. |
| An apt building was built in the 1960's. A unit is being rented to a couple with no kids. What should the tenants be asked to do regarding lead-based paint? | The tenants should sign the lead-based paint disclosure and receive a pamphlet on lead-based paint. Also, a landlord must disclose the location of any known lead-based paint, provide a copy of any report. |
| Mark is selling his property, which has an unfinished basement. He gets a full-price offer from Susan, but the offer requires Mark to finish the basement prior to closing. Do they have a binding contract? Yes or no and why? | No, because Mark has not accepted Susan's offer. For a valid contract to exist, there must be offer and acceptance. An advertisement (like a listing) is not considered an offer, only an invitation to negotiate. The buy's offer is just that: an offer. |
| Under Title VIII of the Civil Rights Act of 1968, what would be an exemption that does not violate the act? | The Federal Fair Houseing Act (Title VIII of the Civil Rights Act of 1968) does not apply to the sale or rental of a single-family home by its owner, provided that the owner doesn't own more than 3 of such homes, no agent is used, and no discrimin ads. |
| What law requires lenders to give the booklet Shopping for Your Home Loan to all prospective borrowers within 3 business days of loan application? | RESPA |
| In a purchase and sale agreement, the offeror is the same as the purchaser. True or False | True |
| Can the Director of the Department of Licensing suspend or revoke or suspend the licensee's license? | The director can suspend a license until the licensee has repaid the delinquency or otherwise complied with the order. |
| A licensee is about to change her business location. What should she do? | Surrender her license, and apply for an updated license with the correct location. |
| When a broker attempts to renew his license, he intentionally lists a 3-hour course twice in order to reach 30 hours. What can the Director do? | Suspend the license and charge him with misrepresentation in obtaining or reinstating a license. |
Created by:
fwlenard