A driveway easement providing access to lot B across lot A is an example of:
An easement appurtenant
Which federal law requires an environmental impact statement to be prepared under certain circumstances?
NEPA
*NEPA the National Environmental Policy Act, requires an EIS for any government action that would have a significant impact on the environment.
In Washington, a property owner is expected to pay at least the first half of the general real estate taxes by:
April 30.
*The second half is due on October 31st
A religious congregation wishes to build a house of worship in an area that is zoned for residential use. The congregation should:
Apply for a conditional use permit.
*Conditional use permits allow a limited number of special uses, such as hospitals, schools, and churches, in zones that would normally not allow these uses.
Before adding a room to a house, the homeowner is usually required to obtain a:
Building permit.
a contract is bilateral if:
Each party makes a promise, so that both parties are legally obligated to perform.
The buyer and seller agreed that they would terminate their purchase and sale agreement and the seller would keep the earnest money deposit the buyer had given him. This is an example of:
Cancellation
*with cancellation, the parties terminate the contract, but they agree to keep any consideration that has been exchanged.
A contract signed under duress
Is voidable by the party who was forced to sign.
*A contract is voidable if one of the parties used duress to persuade the other party to enter into it. When a contract is voidable, the injured party has the right to rescind it.
Statue of limitations is used to set
a deadline for filing a lawsuit.
When an offeree makes a counteroffer is there a contract formed?
NO
*No contract is formed unless the original offeror accepts the coutneroffer. A counteroffer acts as a rejection of the original offer. The oly way a contract can be formed at this point is if the original offeror accepts the counteroffer.
In order to alleviate confusion among buyers and sellers regarding agency representation issues, many states, including Washington, enacted laws that:
Require agents to disclose to the parties which party they are representing in the transaction.
A real estate salesperson is the
Agent of his or her broker.
If a principal gives approval after the fact to unauthorized actions, an agency relationship is established by:
Ratification.
An agency relationship may terminate with:
With the mutual consent of the parties.
*It may also be terminated through the revocation of the principal or the renunciation of the agent.
If a licensee chooses to act as a non-agent in a transaction, the licensee still owes what:
Still owes general duties of disclosure, reasonable care, and accounting to both parties.
*This also includes honesty and good faith, reasonable care and skill, presenting all written communications, disclosure of material facts, and accounting.
A principal entered into an agency agreement that was to last for a period of three monts. Two weeks later, the principal died of natural causes. What happens to the agency relationship?
The agency relationship terminated automatically when the principal died.
*Agency relationships always terminate immediately upon the death, incapacity, or bankruptcy of either party.
The most likely evidence of environmental contamination on a property would be:
Discolored soil and dying plants in the back yard.
When should you give the pamphlet on agency law
The pamphlet must be given to each parties before a written agreement is signed by either party.
When should a seller's agent disclose confidential information about her client?
Under court order or subpoena
If a couple asks a broker how they should take title to property they are purchasing, the broker should tell them
to consult an attorney.
*The broker should never give legal advice, and telling someone how to take title is legal advice.
A broker's commission is usually
a percentage of the property's sales price.
A buyer is considered "ready and willing" if she:
Makes an offer that meets the seller's stated terms.
*If the offer doesn't meet the seller's terms, the seller can turn down the offer without becoming liable for a commission.
An exclusive listing agreement should always include:
A termination date
*It's very important for an exclusive listing agreement to state the date the agreement will terminate. Although exlusive listings without termination dates are not actually illegal in Washington, they are illegal in many other states. On the National portion of the license exam, the termination date may be treated as an essential element of an exclusive listing.
A married couple is listing their house for sale, and a salesperson is preparing the listing agreement. The agreement should be signed by:
Both of the sellers, and the salesperson on behalf of the broker.
*all of the owners of a property should sign the listing agreement. In addition, the spouses of any married owners should sign the agreement, even if they probaby do not have any ownership interest. The salesperson can sign the listing agreement on behalf of the broker.
A listing agreement is NOT an enforceable contract unless it contains:
A description of the property that is adequate to identify it.
*A listing agreement will be enforceable as long as it includes an adequate description of the property in question. It's always good to have the street address and the complete legal description, and photocopying the seller's deed is often a simple way to get the description: but these are not legal requirements.
If the full legal description of a property is too long to fit on the form, the agent should
Attach a separate sheet with the full description.
*It should say "See Attachment" in the space provided in the purchase and sale agreement for the legal description. The licensee should never just fill in the street address; it is not a legally adequte description.
Which of the following items does not need to be included in a purchase and sale agreement?
C. Copy of the deed
*A copy of the deed is not required to be included in a purchase and sale agreement.
The type of deed specified in most purchase and sale agreement forms is a
General warranty deed
*The most commonly specified deed in purchase and sale agreement forms is the general warranty deed, which offers the greatest protection for the buyer.
In a typical residential sales transaction, if there was no mention of a possession date, possession would be given:
At the time of closing.
Randall takes out a loan to purchase both a farm and agricultural equipment. The mortgage used to secure this loan would be a:
Package mortgage
*A package mortgage provides security for financing the purchase of personal property together with real property.
In an installment land contract, when does title pass to the buyer?
When the term of the contract have been fulfilled.
A loan that does not meet the standards set by Fannie Mae and Freddie Mac is called
A nonconforming loan.
If a loan's monthly payments do not cover all the interest owed, the lender may add the unpaid interest to the principal balance. This is called:
Negative amortization
Points paid at closing to increase the lender's yield on the loan are called:
Discount points.
A loan origination fee is charged:
in most residential transaction.
A loan is amortized over 30 years, but comes due in 10 years. This would be a
10-Year balloon payment loan.
The purpose of most appraisals is to
estimate the property's maket value
To appraise a single-family home using the sales comparison approach, an appraiser generally needs:
At least three good comparables.
The rent that a property would generate if it were currently available for lease on the open maket is called
Economic rent.
The sales comparison approach to value is also known as:
The market data approach
The simplest way to estimate replacement cost is:
the square foot method
What would be an example of functional obsolescence?
A. A loss in value because of outdated bathroom and kitchen fixture.
*Functional obsolescence is caused by problems relating to age or poor design, such as outdated fixtures.
What would be an example of external obsolescene?
A loss in value because of odors from a nearby factory
*External obsoloscence involves factors outside the property, such as neighborhood deterioration or exposure to nuisances (such as industrial emissions.)
When is the effective date of an appraisal?
The date of evaluation.
Which of the following has the most impact on the value of property?
Local economic conditions.
For 95% conventional loan, how much of a barrower's income can be debt?
33%
Zoning, planning, building codes, fire ordinances and environmental regulations are example of the government’s exercise of its inherent
POLICE POWER
H recently passed the real estate examination and then went to work for Acme Realty. Where should H’s license be displayed?
AT THE OFFICE NAMED ON H’S LICENSE
Unlicensed individual who is related to a property owner can perform all of the following acts with respect to the owner’s property except:
Sign the purchase and sale agreement in order to sell a property
An inactive licensee may have her license cancelled if she does not:
Renew her license
A real estate unlicensed assistant may do which of the following without a license?
MANAGE A RESIDENTIAL COMPLEX WHERE HE LIVES
The commission a broker will charge a seller is determined by?
Negotiation between the broker and the property owner.
Five licensees who works for ABC Real Estate form a team, with their broker’s permission. They incorporate their team under the name XYZ Realty. The team members are diligent in only including the name “XYZ Realty” on all listing agreements and purchase and sale agreements they sign. The broker ABC Real Estate could be cited for?
NOT REQUIRING THE TEAM TO INCLUDE THE NAME OF THE BROKERAGE THEY WORK FOR
A branch office is manage by:
A BRANCH MANAGER WHO MUST BE AN ACCOSIATE BROKER
The owners of a house want to sell, and they recognize the value of using a broker who is committed to selling their house. But they want to avoid paying a commission if they are able to find a buyer on their own. What type of listing should they sign?
Exclusive Agency.
A homeowner sells his own property, but is still required to pay a real estate commission. What kind of listing did the homeowner sign?
Exlusive right to sell
An internet website operated by salesperson displays the properties he has listed. The site must:
HAVE THE BROKER’S LICENSED NAME
A licensee who takes a listing fails to disclose to the buyer or the buyer’s agent that the roof leaks. The leaking roof causes the buyer $13,500 in damages. The licensee is found to have committed two violations of the license law. What is the maximum amount of fines the licensee will pay?
$10,000
*The maximum fine for a violation of the license law is $5000 for each violation. If there are 2 violations the maximum fine would be $10,000
In most real estate transaction, the buyer is the?
Offeror
Under what conditions can a temporary broker’s permit be issued?
WHEN THE BROKER OF RECORDS DIES.
What are the requirements for conveying title to real property?
Deed must be delivered by grantor and accepted by grantee.
How is the premium for a standard pocily of title insurance paid?
Once, at closing
When the proceeds of a foreclosure sale aren't enough to pay off all of the liens against the property who gets paid first?
The lien with the highest priority is always paid first
*even if the proceeds are not enough to pay off all the liens
An easement is a type of what interest?
Nonpossessory interest.
The parcel of land that receives the benefit of an easement appurtenant is called the:
Dominant tenement
An easement created through long-term use of land without the permission of the owner is an easement by:
Prescription.
*An easement by prescription is created by using the land for 10 years without the permission of the owner.
An easement can be terminated by release if:
The dominant tenant is willing to give it up in writing.
Lien priority is generally established by recording date, but special priority is given to:
Property taxes and special assessment liens.
A judgement lien that are imposed without the owner's permission is:
Involuntary and general
*Judgement liens are involuntary and general liens. They are imposed without the owner's permission and apply to all the judgment debtor's property.
What would be considered as a voluntary lien?
A mortgage
*A mortgage is voluntary; ad valorem taxes (property taxes) and special assessments are not. An easement is not a lien.
Once a sales contract is signed by the parties, the buyer immediately receives
Equitable title
After disciplinary hearing against a licensee, the Director of Department of Licensing has the power to
TEMPORARILY SUSPEND THE LICENSE
A buyer and seller enter into a purchase and sale agreement that specifies that the buyer has 45 days to obtain financing. Through no fault of the buyer, it becomes impossible to obtain a loan commitment from a lender within the prescribed period; so the seller agrees to give the buyer an extension. The real estate broker should have both the buyer and the seller sign a/an:
Amendment
Licensee A and licensee B form a team, working together within the brokerage they work for. Licensee A listed as the agent on the purchase and sale agreement, but it was licensee B who negotiated the transaction. Which of the following is true?
LICENSEE B MUST RECEIVE PAYMENT FROM B’S BROKER
Author
happyedi253
ID
6838
Card Set
Edna's Washington Real Estate Study Notes Part 3 (100 questions)
Description
These are cards that I created to help me pass the Washington real estate exam so I can get my Real Estate License