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WA Real Estate practice questions

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Question 1Real Estate Fundamentals and Principles

A homeowner replaces a freestanding dishwasher with a built-in model. When the house is sold, the built-in dishwasher is best classified as:

  1. a fixture that conveys with the real property Correct answer.
  2. personal property because it is a machine
  3. personal property only if listed in the MLS
  4. a trade fixture removable by the seller

Explanation

A fixture is personal property that has been attached to the land or building in a way that shows an intent to make it a permanent part of the realty. Built-in appliances are generally treated as fixtures and convey with the property unless the contract says otherwise.

Question 2Real Estate Fundamentals and Principles

The most complete form of ownership of real property, lasting indefinitely and freely inheritable, is:

  1. a leasehold estate
  2. a life estate
  3. an easement in gross
  4. fee simple absolute Correct answer.

Explanation

Fee simple absolute is the fullest estate in land; it lasts indefinitely, can be inherited, and can be freely transferred. Lesser estates are limited by a measuring life, a lease term, or a nonpossessory right.

Question 3Real Estate Fundamentals and Principles

A deed is legally effective to transfer title only when it is:

  1. acknowledged before a notary public
  2. delivered with intent to convey Correct answer.
  3. signed by the grantee and notarized
  4. recorded with the county auditor

Explanation

A deed must be delivered by the grantor with present intent to convey; without delivery, a signed and notarized deed does not transfer title. Recording is a notice and priority step, not the act that creates the transfer.

Question 4Real Estate Fundamentals and Principles

Which agreement must be in writing to be enforceable under the statute of frauds?

  1. a month-to-month rental agreement
  2. a six-month employment contract to manage a store
  3. a contract for the sale of land Correct answer.
  4. an oral agreement to split a commission

Explanation

The statute of frauds requires contracts for the sale of land or an interest in land to be in writing and signed by the party to be charged. Short leases and ordinary service contracts fall outside it.

Question 5Real Estate Fundamentals and Principles

Which duty requires a licensee to place the principal's interests above the licensee's own?

  1. Reasonable care
  2. Loyalty Correct answer.
  3. Accounting
  4. Disclosure

Explanation

Loyalty is the fiduciary duty that requires the agent to put the principal's interest ahead of the agent's own and to avoid self-dealing. Accounting, disclosure, and reasonable care are separate fiduciary duties.

Question 6Real Estate Fundamentals and Principles

The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and:

  1. marital status
  2. disability Correct answer.
  3. age
  4. sexual orientation

Explanation

The federal Fair Housing Act lists race, color, religion, sex, national origin, familial status, and disability. Age, marital status, and sexual orientation are not federal protected classes, though Washington law covers some of them.

Question 7Real Estate Fundamentals and Principles

An appraiser valuing a typical single-family home would primarily rely on which approach?

  1. the income approach
  2. the gross rent multiplier method
  3. the sales comparison approach Correct answer.
  4. the cost approach

Explanation

The sales comparison approach estimates value from recent sales of similar properties and is the primary method for typical residential homes. Cost and income approaches are used for special-purpose or income-producing property.

Question 8Real Estate Fundamentals and Principles

For a home built in 1975, federal law requires the seller to:

  1. disclose known lead hazards and give the EPA pamphlet Correct answer.
  2. give the buyer a 10-day right to cancel after closing
  3. remove all lead-based paint from the home before closing
  4. test every painted surface and certify the results to the buyer

Explanation

For pre-1978 housing, federal law requires the seller or landlord to disclose known lead-based paint hazards and provide the EPA pamphlet. It does not require abatement or a post-closing cancellation right.

Question 9Real Estate Fundamentals and Principles

An easement that benefits a parcel of land and passes automatically when that parcel is sold is:

  1. an easement appurtenant Correct answer.
  2. a license revocable at will
  3. an easement in gross held by an individual
  4. a profit a prendre

Explanation

An easement appurtenant benefits a dominant parcel and runs with the land, so it passes automatically when the dominant parcel is transferred. An easement in gross benefits a person or entity rather than a parcel.

Question 10Real Estate Fundamentals and Principles

Two unmarried buyers take title as joint tenants. When one dies, that owner's interest:

  1. escheats to the state
  2. passes to the deceased owner's heirs by will
  3. becomes community property
  4. passes to the surviving joint tenant Correct answer.

Explanation

Joint tenants each own an undivided share with a right of survivorship, so a deceased joint tenant's interest passes to the surviving joint tenant rather than through probate. In Washington, the survivorship language must be express.

Question 11Real Estate Fundamentals and Principles

In Washington, property acquired during marriage with community funds is generally:

  1. community property owned by both spouses Correct answer.
  2. separate property of the spouse who earned the money
  3. held as tenants in common
  4. property of the marital community only if titled jointly

Explanation

Washington is a community property state; property acquired during marriage with community funds is presumed community property and owned by both spouses. Separate property is property owned before marriage or acquired by gift or inheritance.

Question 12Real Estate Fundamentals and Principles

Washington's recording statute protects a subsequent bona fide purchaser who records first. This statute is best described as:

  1. a race-notice statute Correct answer.
  2. a pure race statute
  3. a title-theory statute
  4. a notice statute

Explanation

A race-notice statute protects a later purchaser who takes without notice of a prior unrecorded interest and records before that interest is recorded. Washington follows the race-notice rule.

Question 13Real Estate Fundamentals and Principles

To acquire title by adverse possession in Washington, the claimant's possession must generally be:

  1. accompanied by annual tax payments to the county
  2. open, notorious, hostile, and continuous Correct answer.
  3. secret, occasional, and interrupted
  4. permitted in writing by the record owner

Explanation

Common-law adverse possession requires possession that is open, notorious, exclusive, hostile, and continuous for the statutory period. In Washington the period is generally ten years.

Question 14Real Estate Fundamentals and Principles

A first mortgage recorded in January and a judgment lien recorded in March affect the same property. The mortgage generally has priority because:

  1. mortgages always outrank judgments
  2. judgment liens attach only to personal property
  3. it was recorded first Correct answer.
  4. the lender is a secured creditor under RESPA

Explanation

Liens on the same property are generally prioritized by recording order, so the earlier-recorded mortgage outranks the later judgment lien. The type of lien does not automatically give a mortgage priority.

Question 15Real Estate Fundamentals and Principles

A buyer defaults on a purchase and sale agreement that provides for liquidated damages. The seller may generally:

  1. return the earnest money and sue for punitive damages
  2. sue for specific performance and keep the earnest money
  3. keep the earnest money as liquidated damages Correct answer.
  4. keep the earnest money only if actual damages exceed it

Explanation

A liquidated damages clause makes the earnest money the seller's agreed remedy if the buyer defaults, avoiding a separate damages trial. The seller may not also obtain specific performance and keep the deposit as a double recovery.

Question 16Real Estate Fundamentals and Principles

Under Washington law, a licensee acting as a dual agent must:

  1. avoid any written disclosure to the parties
  2. represent the seller only
  3. represent the buyer only
  4. get written consent from both parties after disclosure Correct answer.

Explanation

A dual agent represents both the buyer and the seller and must make a full written disclosure and obtain both parties' written consent. The agent must not withhold required disclosures from either party.

Question 17Real Estate Fundamentals and Principles

A licensee who directs buyers away from a neighborhood because of the residents' race is engaged in:

  1. redlining
  2. reverse discrimination
  3. blockbusting
  4. steering Correct answer.

Explanation

Steering is channeling buyers toward or away from neighborhoods based on protected characteristics. Blockbusting is panic selling, and redlining is discriminatory lending or insurance.

Question 18Real Estate Fundamentals and Principles

A lender pays a real estate broker a fee for each mortgage referral. Under RESPA, this payment is:

  1. required to be held in escrow
  2. permitted if under $500
  3. permitted if disclosed to the borrower
  4. prohibited as an unearned fee split Correct answer.

Explanation

RESPA Section 8 prohibits giving or receiving anything of value for the referral of settlement service business. Disclosing the fee or keeping it small does not make it lawful.

Question 19Real Estate Fundamentals and Principles

A duplex rents for $2,500 per month and recently sold for $360,000. The gross rent multiplier is:

  1. 12 Correct answer.
  2. 10
  3. 15
  4. 20

Explanation

The gross rent multiplier equals sale price divided by gross annual rent. Here $360,000 divided by $30,000 equals 12.

Question 20Real Estate Fundamentals and Principles

In the cost approach, a loss in value caused by wear and tear from normal use is:

  1. economic obsolescence
  2. functional obsolescence
  3. physical deterioration Correct answer.
  4. external obsolescence

Explanation

Physical deterioration is ordinary wear and tear, deferred maintenance, or damage that reduces value. Functional and external obsolescence are separate causes of depreciation.

Question 21Real Estate Fundamentals and Principles

A property sells for $400,000 with an $80,000 down payment. The loan-to-value ratio is:

  1. 80% Correct answer.
  2. 20%
  3. 75%
  4. 90%

Explanation

Loan-to-value is the loan amount divided by the property value. A $400,000 price with an $80,000 down payment gives a $320,000 loan, or 80% LTV.

Question 22Real Estate Fundamentals and Principles

A grocery store operating legally before the area was zoned residential may generally continue as:

  1. a variance
  2. a nonconforming use Correct answer.
  3. a conditional use permit approved by the hearing examiner
  4. a spot zone

Explanation

A use that lawfully existed before the zoning ordinance restricted the area may continue as a nonconforming use. It is not a variance or a conditional use, which involve new approvals.

Question 23Real Estate Fundamentals and Principles

A sale closes on June 30. Property taxes of $3,650 for the calendar year are unpaid and are prorated using a 365-day year, with the seller responsible through the day of closing. What is the seller's share?

  1. $1,825 debit to seller
  2. $1,800 debit to seller
  3. $1,810 debit to seller Correct answer.
  4. $1,840 credit to seller

Explanation

Property taxes are prorated by determining the seller's share of the annual charge. At $10 per day for 181 days (January 1 through June 30), the seller owes $1,810, shown as a debit to the seller.

Question 24Real Estate Fundamentals and Principles

Washington's Law Against Discrimination adds which protected class beyond the federal Fair Housing Act?

  1. religion
  2. national origin
  3. familial status
  4. military status Correct answer.

Explanation

Washington's Law Against Discrimination adds protections beyond the federal Fair Housing Act, including marital status, sexual orientation, and military status. Religion and national origin are already federal protected classes.

Question 25Real Estate Fundamentals and Principles

A property owner seeks permission to build a garage that exceeds the height limit because of a hardship unique to the lot. The appropriate request is:

  1. a variance Correct answer.
  2. a conditional use permit
  3. a nonconforming use
  4. a rezone

Explanation

A variance grants relief from a dimensional or use standard when a hardship unique to the property makes strict compliance unreasonable. A conditional use permit is for a use the code allows with review, and a rezone changes the classification.

Question 26Real Estate Fundamentals and Principles

A tenant installs a walk-in freezer and bolts it to the floor of the leased commercial kitchen to store inventory. When the lease ends, the freezer is best described as:

  1. A trade fixture the tenant may remove if removal causes no substantial damage Correct answer.
  2. A fixture that stays with the building unless the lease says otherwise
  3. Real property of the landlord because it is bolted down
  4. Personal property only if the lease term exceeds one year

Explanation

Items a tenant attaches to leased premises for a trade or business are trade fixtures, not ordinary fixtures. The tenant may remove them before the lease ends as long as removal does not cause substantial damage to the premises; any damage must be repaired.

Question 27Real Estate Fundamentals and Principles

A grantor conveys land 'to the City of Ellensburg so long as the parcel is used as a public park.' The estate created by this language is:

  1. A fee simple determinable Correct answer.
  2. A life estate
  3. An easement in gross
  4. A fee simple absolute

Explanation

Words of duration such as 'so long as' or 'while' create a fee simple determinable, which ends automatically if the stated use stops. The grantor keeps a possibility of reverter, so title would return without further action if the park use ceases.

Question 28Real Estate Fundamentals and Principles

Which of the following is necessary for a deed to be valid between grantor and grantee in Washington?

  1. Delivery of the deed with intent to convey and acceptance by the grantee Correct answer.
  2. Notarized acknowledgment of the grantor's signature
  3. Recording of the deed with the county auditor
  4. Signature of the grantee on the deed

Explanation

A deed becomes effective when the grantor delivers it with present intent to convey and the grantee accepts it. Acknowledgment and recording affect enforceability against third parties and priority, not validity between the parties.

Question 29Real Estate Fundamentals and Principles

A landlord and tenant orally agree to an 18-month residential lease at $1,800 per month, and the tenant moves in. The enforceability of this agreement is best described as:

  1. Valid only if the monthly rent exceeds $1,000
  2. Fully enforceable because the tenant took possession and paid rent
  3. Void, so no landlord-tenant relationship exists at all
  4. Unenforceable for the 18-month term, though a month-to-month tenancy may result Correct answer.

Explanation

Washington's statute of frauds requires leases longer than one year to be in writing and signed by the party to be charged. An oral long-term lease cannot be enforced for its stated term, but payment and acceptance of rent generally create a periodic month-to-month tenancy.

Question 30Real Estate Fundamentals and Principles

Which fiduciary duty requires a licensee to place the principal's interests above the licensee's own interests?

  1. Confidentiality
  2. Loyalty Correct answer.
  3. Reasonable care and skill
  4. Accounting

Explanation

The duty of loyalty obligates the agent to act solely for the principal's benefit, avoiding self-dealing, secret profits, and conflicts of interest. The other duties govern recordkeeping, competence, and protection of private information rather than allegiance itself.

Question 31Real Estate Fundamentals and Principles

Under Washington's residential seller disclosure law, when must the seller deliver the completed disclosure statement to the buyer?

  1. Within 30 days after closing
  2. Before the listing agreement is signed
  3. Within five business days after mutual acceptance of the offer Correct answer.
  4. At closing, along with the deed

Explanation

The seller must deliver the completed seller disclosure statement to the buyer within five business days after mutual acceptance, unless the buyer waives it or the transaction is exempt. Delivery before closing gives the buyer time to rescind if the disclosure reveals problems.

Question 32Real Estate Fundamentals and Principles

Most Washington residential loans are secured by a deed of trust, which means default is typically handled by:

  1. Strict foreclosure with no sale
  2. Automatic transfer of title to the lender on default
  3. A judicial foreclosure requiring a court decree
  4. A nonjudicial trustee's sale after notice to the borrower Correct answer.

Explanation

A deed of trust conveys title to a trustee, who may sell the property nonjudicially after a notice of default and a trustee's notice of sale. Court involvement is not required, although the borrower may seek to enjoin a sale or reinstate the loan within statutory limits.

Question 33Real Estate Fundamentals and Principles

In a typical Washington residential sale, the real estate excise tax is customarily paid by:

  1. The county
  2. The lender
  3. The seller Correct answer.
  4. The buyer

Explanation

Washington's real estate excise tax is imposed on the transfer of real property and is customarily the seller's obligation, collected at closing. The parties may agree otherwise in the contract, but the statutory default places the tax on the grantor.

Question 34Real Estate Fundamentals and Principles

Earnest money that a buyer deposits with an escrow holder is generally:

  1. Returned to the buyer at closing in addition to the purchase price
  2. Forfeited to the state if the sale does not close
  3. Applied to the purchase price at closing Correct answer.
  4. Paid to the listing broker as an administrative fee

Explanation

Earnest money is held in trust by the escrow holder or broker and credited toward the buyer's purchase price at closing. If the sale fails, the money is disbursed according to the contract's default provisions or a written agreement between the parties.

Question 35Real Estate Fundamentals and Principles

A comparable property sold for $500,000 and is superior to the subject property by $20,000. Using the sales comparison approach, the indicated value of the subject is:

  1. $520,000
  2. $500,000
  3. $480,000 Correct answer.
  4. $460,000

Explanation

Adjustments are made to the comparable to reflect how the subject differs from it. Because the comparable is superior, its price must be adjusted downward by $20,000, producing an indicated value of $480,000 for the subject.

Question 36Real Estate Fundamentals and Principles

A small apartment building produces a net operating income of $48,000 and sells for $600,000. The capitalization rate is:

  1. 10.0 percent
  2. 8.0 percent Correct answer.
  3. 6.5 percent
  4. 12.5 percent

Explanation

The capitalization rate equals net operating income divided by sale price. Dividing $48,000 by $600,000 yields 0.08, or 8 percent.

Question 37Real Estate Fundamentals and Principles

A lender charges 2 discount points on a $300,000 loan. The borrower pays for points in the amount of:

  1. $1,500
  2. $6,000 Correct answer.
  3. $600
  4. $3,000

Explanation

One discount point equals 1 percent of the loan amount. Two points on a $300,000 loan equal 0.02 multiplied by $300,000, or $6,000, paid at closing to reduce the interest rate.

Question 38Real Estate Fundamentals and Principles

In a condominium form of ownership, each unit owner typically holds:

  1. Shares of stock in a corporation along with a proprietary lease
  2. Fee title to the unit plus a tenancy-in-common share of the common elements Correct answer.
  3. A leasehold interest in the unit granted by the association
  4. A life estate in the unit with a remainder to the association

Explanation

Condominium ownership combines a separate fee simple interest in the individual unit with an undivided tenancy-in-common interest in the common elements. The unit owner may sell or mortgage the unit independently, subject to the governing documents.

Question 39Real Estate Fundamentals and Principles

A neighbor asks a landowner for permission to cross the land to reach a lake. The permission is given orally, is not recorded, and the owner may revoke it at any time. This arrangement is:

  1. An easement in gross
  2. A license Correct answer.
  3. An easement by prescription
  4. An easement appurtenant

Explanation

A license is revocable permission to use another's land; it creates no interest in real property and ends when the owner revokes it or the circumstances change. Easements, by contrast, are interests in land that generally must satisfy writing or other legal requirements.

Question 40Real Estate Fundamentals and Principles

A landowner builds a fence that sits two feet onto the adjoining parcel. This condition is best described as:

  1. An encroachment Correct answer.
  2. A variance
  3. An easement by prescription
  4. A license

Explanation

An encroachment is a physical intrusion of a structure or improvement onto another person's land. The affected owner may seek removal by injunction or damages, and a prescriptive right could arise only if the statutory elements are met.

Question 41Real Estate Fundamentals and Principles

A developer plans a marina on the shore of Puget Sound. The Washington statute that specifically governs development in shoreline areas and requires a substantial development permit is the:

  1. Growth Management Act
  2. Shoreline Management Act Correct answer.
  3. State Environmental Policy Act
  4. Clean Water Act

Explanation

The Shoreline Management Act regulates development within shoreline jurisdictions and generally requires a substantial development permit from the local government. Other statutes may add review, but the SMA is the state law that directly governs shoreline development.

Question 42Real Estate Fundamentals and Principles

A lender's title insurance policy protects:

  1. The listing broker if title proves unmarketable
  2. The owner for the full purchase price for as long as the owner holds title
  3. The seller against claims brought by the buyer after closing
  4. The lender's interest in the property up to the outstanding loan balance Correct answer.

Explanation

A lender's policy insures the mortgagee against loss from covered title defects, with coverage generally decreasing as the loan balance is paid down. An owner who wants protection for the equity must obtain a separate owner's policy.

Question 43Real Estate Fundamentals and Principles

An owner's title insurance policy issued at closing generally protects the owner against loss from:

  1. A general decline in neighborhood property values
  2. Physical defects such as a leaking roof
  3. Title defects that existed at the policy date, up to the policy amount Correct answer.
  4. Liens the owner voluntarily creates after the policy date

Explanation

An owner's policy insures title as of the policy date and pays covered losses caused by defects in that title, subject to exclusions and the policy limit. Losses from the owner's later acts, physical conditions, or market changes are not title risks.

Question 44Real Estate Fundamentals and Principles

Under Washington's Residential Landlord-Tenant Act, after the tenancy ends and the tenant returns possession, the landlord must return the security deposit, with a written statement of any deductions, within:

  1. 14 days
  2. 45 days
  3. 30 days Correct answer.
  4. 60 days

Explanation

The landlord must mail or deliver the deposit refund along with a written statement of deductions within 30 days after the tenant vacates and returns possession. Failure to comply can expose the landlord to liability for the deposit plus statutory penalties.

Question 45Real Estate Fundamentals and Principles

Under the implied warranty of habitability recognized in Washington, a residential landlord must:

  1. Provide renter's insurance for the tenant's belongings
  2. Keep the premises in a condition fit for human habitation Correct answer.
  3. Install air conditioning in every rental unit
  4. Renew the lease whenever the tenant requests it

Explanation

The implied warranty of habitability requires the landlord to maintain the dwelling in a condition fit for living, including essential services and required repairs. The tenant's remedy may include repair and deduct, rent reduction, or termination in serious cases.

Question 46Real Estate Fundamentals and Principles

A buyer's written offer states that it expires Friday at 5:00 p.m. The seller signs it Saturday and delivers the signed document to the buyer Sunday. As a result:

  1. The seller's signature is an acceptance that binds the buyer but not the seller
  2. The seller's late signature operates as a counteroffer that the buyer may accept or reject Correct answer.
  3. A binding contract was formed when the seller signed on Saturday
  4. The document is void under the statute of frauds

Explanation

An offer terminates when its stated expiration time passes, so the buyer's offer was no longer open when the seller signed. The seller's late signature is a new proposal, which the original buyer is free to accept or reject.

Question 47Real Estate Fundamentals and Principles

Mutual assent in a real estate contract is established by:

  1. Recording the agreement with the county auditor
  2. Reduction of the terms to writing
  3. Consideration alone
  4. An offer by one party and acceptance by the other Correct answer.

Explanation

Mutual assent, sometimes called a meeting of the minds, requires a definite offer and an unqualified acceptance of its terms. Consideration, capacity, and legality are separate required elements of a valid contract.

Question 48Real Estate Fundamentals and Principles

Under Washington agency law, a licensee must deliver the agency law pamphlet to a party:

  1. Only if the party specifically requests it in writing
  2. Only at the closing table
  3. At the earliest practicable opportunity and before the party reveals confidential information Correct answer.
  4. Within 30 days after the closing

Explanation

The pamphlet explaining agency relationships must be provided at the earliest practicable point and before the party discloses information the licensee would be obligated to keep confidential. This timing lets the party make an informed choice about representation.

Question 49Real Estate Fundamentals and Principles

A licensed broker may allow an unlicensed assistant to:

  1. Represent a seller at the closing
  2. Perform clerical tasks such as filing and delivering documents Correct answer.
  3. Sign listing agreements on behalf of the brokerage
  4. Negotiate price and terms directly with a buyer

Explanation

Unlicensed assistants may handle administrative and clerical work that does not require a real estate license. Activities such as negotiating terms, executing contracts for the firm, and representing parties are reserved to licensed brokers and managing brokers.

Question 50Real Estate Fundamentals and Principles

A home sells for $500,000 with a 6 percent total commission. The listing brokerage splits the commission equally with the selling brokerage, and the selling agent receives 60 percent of her brokerage's share. The selling agent's commission is:

  1. $15,000
  2. $18,000
  3. $9,000 Correct answer.
  4. $4,500

Explanation

Total commission is 6 percent of $500,000, or $30,000. Each brokerage receives half, or $15,000, and the selling agent keeps 60 percent of that amount, which is $9,000.