60 Hour CEshop Final Exam Questions Flashcards

60 Hour CEshop Final Exam Questions Flashcards Which of the following statements is true about a Washington firm's real estate license?- No one with a revoked license may have a controlling interest in the firm.- The firm can't operate as a sole proprietorship.- The firm must provide the location of all social media accounts.- The license must be renewed every three years.Answer = No one with a revoked license may have a controlling interest in the firm.The firm's license, which must be renewed every two years, can be held as any legal form of business ownership. Persons who have had their licenses revoked may NOT make operational or financial decisions for the firm.What is the purpose of a deed?- It offers proof of a lender's lien on real property.- It's a method of obtaining an abstract of title.- It's used to determine a property's assessed value for property taxes.- It's used to transfer real property from one party to another.Answers = It's used to transfer real property from one party to another.Bianca wants to buy a cooperative, but she's unsure that she can afford it. With a cooperative, her share of mortgage interest and real estate taxes will be ______.- Deductible on her personal income tax returns- Fully refundable to her- Not deductible on her personalincome tax returns- Paid by the cooperative board Answer = Deductible on her personal income tax returns Samantha is reviewing applications to fill the vacant unit in a building she manages. The standout applicant also happens to be a single mother with two young children.Samantha knows that most of the tenants in the building don't have young children, and she's concerned that applicant's children will be disruptive. Can Samantha deny the application because of this?- No, because Samantha can't discriminate against protected classes, even if she questions the tenant's compatibility.- Yes, because compatibility trumps a tenant's status as a protected class.- Yes, because Samantha has the authority to select whichever tenants s he wants.- Yes, because Samantha has to do what's best for the entire building.Answer = No, because Samantha can't discriminate against protected classes, even if she questions the tenant's compatibility.Answer = Stay within the scope of your license and expertise Penalties the director may impose on brokers, firms, and schools and their staff include which one of the following?- Criminal charges- Fines- Incarceration- License revocation You're representing Janice in the purchase of a home.Under which of the following instances would it be unacceptable to disclose confidential information?- Disclosure is necessary to defend yourself against an accusation of wrongful conduct- Janice gives you written permission to disclose the information- The information is made public from a source other than you- You suspect the disclosure will enable Janice to buy a home at a lower price Answer = You suspect the disclosure will enable Janice to buy a home at a lower price.

Investors in commercial real estate often give up ______ when they purchase a new property.- Hope- Leverage- Liquidity- Risk Answer = LiquidityCommercial properties are often illiquid, meaning they can't be sold quickly to reclaim the cash invested.Because Washington is a title theory state, which of the following is true?- A non-judicial foreclosure process is used, but lenders must gain court approval to launch the process.- Borrowers elect the foreclosure process to be used in the event a foreclosure becomes necessary.- Lenders who are forced to foreclose may use a non-judicial process.- Lenders who are forced to foreclose must use a judicial process.Answer = Lenders who are forced to foreclose may use a non-judicial process.In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight.- Averaging- Bracketing- Conformity- Correlation Answer = CorrelationThrough a correlation process, the most weight may be given to one or two of the sales that are presented, or equal weight may be given to all.What is a general lien?- A claim against a person and all of that person's property- A claim against a specific piece of property- A type of mortgage lien- A type of tax lien Answer = A claim against a person and all of that person's propertyClaims against a person and all of that person's property are called general liens. They're involuntary liens.Individual licensure categories in Washington are broker and managing broker, and licensing subcategories are designated broker and ______.- Associate broker- Branch manager- Firm- Supervising broker Answer = Branch manager Wayne conveys a property to Robbie until Robbie's death, when the property is conveyed to Tiffany. What is this scenario an example of?- Fee simple estate- Homestead- Leasehold estate- Life estate Answer = Life estate

Washington officially recognizes three levels of brokers:

broker, managing broker, and _____.- Associate broker- Branch manager- Designated broker- Supervising broker Answer = Designated broker A primary role of Washington's DOL director is to ______.- Consider and pass real estate- related laws- Enforce all laws and rules relating to firm and broker licensing- Investigate complaints related to violation of municipal codes such as sign placement- Mediate compensation disagreements between a broker and brokerage firm Answer = Enforce all laws and rules relating to firm and broker licensing Your client, Lee, a foreign investor, is selling his property and learns a 15% withholding of the sales price will be imposed. Why is this?- This is a penalty that applies if the property is sold within two years of purchase.- This is required when a foreign seller has a poor credit history.- This is to cover brokerage fees and additional expenses.- This is to make sure he doesn't leave the country without paying his taxes.Answer = This is to make sure he doesn't leave the country without paying his taxes.

The Washington State Department of Licensing will conduct a routine audit of a real estate brokerage at what location?- All branch locations of the brokerage- The designated broker's home office- The DOL's offices- The license address on record for the firm Answer = The license address on record for the firmAll audits, both routine as well as those conducted in response to a specific complaint, are conducted at the address shown as the primary license location for the real estate brokerage. However, the DOL auditor may choose another location.Edgar is in the process of selling his home in a short sale.What's a short sale?- A property sale that occurs in less than one week- A sale that fails to receive a high enough bid at auction, and then falls to the bank's ownership- The forced sale of a home due to the borrower defaulting on the mortgage loan- The sale of a property at an amount less than is owed, not including closing costs Answer = The sale of a property at an amount less than is owed, not including closing costs Olivia has paid off her Washington mortgage loan. What happens now?- The lender releases the deed of trust that secured her mortgage loan.- The lender releases the mortgage that secured her mortgage loan.- The trustee releases the deed of trust that secured her mortgage loan.- The trustee releases the mortgage that secured her mortgage loan.Answer = The trustee releases the deed of trust that secured her mortgage loan.Washington lenders usually secure mortgage loans with a deed of trust. When the loan is satisfied, the trustee releases the deed of trust to the borrower.Which of the following is an example of single agency?- Mary from XYZ Real Estate represents Susan, a buyer for Seamus's listing. Seamus represents the seller and is also a licensee for XYZ.- Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.- Walter from Sell Fast Realty represents Hallie, a seller. He also represents Jackson, a buyer who wants to make an offer on Hallie's condo.- Whenever dual agency doesn't exist, it's single agency.Answer = Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.The only time single agency occurs is when one agent from one firm represents one side of the transaction.The other side is either unrepresented or represented by a different firm.The duty of confidentiality survives agency unless the former client is found guilty of fraud or ______.- it will help another client.- the former client has moved out-of-state.- the information is known from other sources.- the transaction has closed.Answer = the information is known from other sources.Answer = Carrying out a client's instructions Terry just passed her licensing exam, and she's been working with a broker for the last two months. So far, though, she doesn't have any clients. How can she spend her time most productively?- Add new connections to her sphere or her niche.- Buy some new clothes so she will look successful when she does get a client.- Call up all her friends and ask them a third time for referrals.- Purchase some office supplies.Jamal is a real estate licensee. What's his responsibility regarding household lead hazards?- He must disclose to buyers that there's lead-based paint in a home, but only if

he's positive that it's there.- He must ensure his sellers know how to hide the presence of lead-based paint.- He must make sure all lead is removed, even if he has to personally remove it.- He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.Answer = He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978.