Rockwell Exam Real Estate Classes WA Final Exam

pg. 1 Rockwell Exam Real Estate Classes WA Final Exam/ Latest Update Actual Exam Questions with Correct Detailed Answers/ Graded A+

Ben receives a life estate in a property, with his nephew Will designated as the remainderman. When Ben dies, what kind of interest does Will receive?

• Fee Simple Estate
• Life Estate
• Remainder Interest
• Reversionary Interest - Correct Answer - A. Fee Simple Estate

Rationale; The interest that passes to a designated person upon the death of a life tenant (or other measuring life) is a fee simple estate. Will has a remainder interest only up until the moment Ben dies. Once Ben is dead, Will's interest immediately becomes a fee simple interest.

A survey has been completed, and stakes have been placed marking off the property.

The survey can be used to:

• construct fences and driveways
• measure soil stability
• determine freehold interests
• verify known liens - Correct Answer - A. construct fences and driveways

Rationale; survey is used to determine where exactly a property's boundary lines fall.

Erin entered into a lease that begins February 1, and is to end on January 31 three

years later. This leasehold is a/an: 1 / 4

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• estate for years
• tenancy at sufferance
• periodic tenancy
• estate from year to year - Correct Answer - A. estate for years

An estate for years begins on a certain date an end on certain date.

Which of the following is true about surveys?

• they determine placement of improvements on a property
• They identify setback lines from property boundaries
• The protect against easements by prescription
• They reveal encroachments not of public record - Correct Answer - D. They reveal

encroachments not of public record Rationale; A survey may reveal matters that are not part of the public record that would only be discovered through a personal inspection, such as encroachments. Why they are performed as part of obtaining extended coverage title insurance policy.

Allen begins providing construction services on May 2 and records a construction lien on May 5. Bart begins providing services on May 3 and records a construction lien on May 4. On May 10, a judgment lien against the property is recorded. The property's owner also receives on May 10 that he is in arrears on his property tax payments.Which lien has lien priority?

• Allen's Lien
• Bart's Lien
• Judgement Lien
• Tax Lien - Correct Answer - D. Tax Lien

Rationale; Property tax liens take priority over other liens, including construction liens. Allen's lien still takes priority over Bart's. As a construction lien takes priority based on the date of the start of construction, but the tax lien takes priority over both. 2 / 4

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Which of the following is true about building designated a historical landmark?

• All lead paint must be removed immediately
• It may not be willfully destroyed without a permit
• It may only be sold to family members
• It must comply with all local ordinances - Correct Answer - B. It may not be willfully

destroyed without a permit, Rationale; Historical preservation ordinances may protect existing buildings of historical value, and cannot be destroyed or modified without approval from an appropriate local authority.

W, age 17, enters into an installment contract to purchase a five-year-old-car for S, an

adult. From a legal point of view, the contract is:

• void
• voidable by W only
• voidable by S only
• voidable by either S or W - Correct Answer - B. voidable by W only

Rationale; The contract is voidable by minor, but not by other party.

A real estate agent shows a listing to two different buyers. One buyer decided in the early morning to make an offer on the property for less than the listed price. The agent writes up an offer and plans to meet with the seller later in the day. The other buyer the contacts the agent and says she would like to make a full price offer. What should the agent do?

• Meet with the seller a but present the first offer, and then present the second offer

only if the first offer is rejected

• Present both offers to the seller at the same time
• Tell the second buyer that her offer is invalid because there is already an offer on the

property 3 / 4

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• Tell the second buyer that he can only present the first offer to the seller, then he'll

present her offer if the first one is rejected - Correct Answer - B. Present both offers to the seller at the same time Rationale; A real estate agent has the duty to present all written communications to and from all parties in a timely manner. Failing to inform a party of any offer would be a breach of this duty. This is the law no matter who the agent is representing.

To be valid, a listing agreement may be signed by:

• an attorney in fact
• the buyer
• the designated broker only, with the owner's authorization via telephone
• the licensee only - Correct Answer - A. the attorney in fact

Rationale; a listing agreement needs to be signed both by the listing agent, on the listing firm's behalf, and by the seller. An attorney in fact, someone the seller has appointed in a power of attorney and granted the authority to convey the property may sign the listing agreement on the seller's behalf.

An apartment building was built in 1960. An apartment is being rented to a couple it no children. Which of the following is true?

• The rules on lead-based paint don't apply unless the tenant have children
• The rules on lead-based paint don't apply to tenants, only purchasers
• The tenants must receive a ten-day window in order to test for lead-based paint
• The tenant should sign the lead-based paint disclosure and receive a pamphlet on

lead-based paint - Correct Answer - D. The tenant should sign the lead-based paint disclosure and receive a pamphlet on lead-based paint Rationale; A landlord must disclose the location of any known lead-based paint, provide a copy of any report concerning lead-based paint if the property has been inspected, and give tenants a copy of the lead-based paint pamphlet. Tenants do not receive ten-day period in which to have the home tested for lead-based paint that buyers do.

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