Final Exam Questions Flashcards
(34 cards)
Term used to describe illegal use of escrow funds, such as earnest money
Conversion. Not commingling
Emblements are?
Personal property. They are cultivated crops, but considered personal property despite being attached to the soil.
When the Washington State Human Rights Commission notifies a respondent of a complaint of housing discrimination, the notice includes an offer of…, but this option must be used within 30 days of complaint being filed.
Conference is an option for resolving a complaint. It is a voluntary process led by a trained, neutral mediator, and is offered free of charge.
Agency responsible for enforcing fair housing laws in Washington
Washington State Human Rights Commission. Fair housing laws include discrimination, which goes against human rights.
Identify the correct ordering of the steps in the transaction process
Deposit earnest money, obtain clear title, record deed or mortgage
In order to assist your clients with environmental issues, what must you do?
Understand the risks and disclose everything related to environmental issues–even past issues–because they may not have been fully resolved or properly dealt with.
What is true of someone with a revoked license?
No one with a revoked license may have a controlling interest in the firm.
Types of licenses offered to real estate agents in Washington
Broker, managing broker
Which statement is true about duties seller and buyer clients have to their agents? What are those duties?
Both seller and buyer clients owe duties to their agents. Compensation, information, indemnification and availability are considered duties.
Raku was accused of unprofessional conduct in Washington. Therefore, he may be guilty of….
Misconduct related to either real estate-specific or non-real estate-specific events.
Who may a licensee represent in a real estate transaction?
A client. Not a customer
What’s the purpose of the buyer pre-qualification letter?
To reassure the seller that the buyer can obtain financing
Complaints of violations of the Washington Law Against Discrimination can be filed with the state Human Rights Commission within how long?
One year of the alleged violation.
What’s a vendee’s lien?
A lien against real property for the earnest money deposit paid on a contract of purchase.
What’s a subordination agreement?
It’s an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position. New loan now takes priority over an older loan.
Only firms and brokers with active licenses may perform real estate services, and every firm must have a designated broker. What may cause inactivation of a Washington broker’s license?
The designated broker’s failure to maintain an active license.
Which of the following types of licenses is required for a real estate firm to operate in Washington?
A brokerage firm license
Which duties if any, does a licensee owe a landlord they represent?
The licensee owes the same statutory duties to the landlord or tenant client as to a buyer or seller client, including reasonable care and skill, confidentiality, loyalty and disclosure.
You work for a title company and offer hockey tickets after you’ve closed a lucrative transaction with clients. Is this a violation of Washington licensing law?
Yes, because you solicited a gift from the title company.
In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as Correlation, where the certain factors may be given more weight.
Correlation
In addition to residential and commercial real estate sales, King County Realty has an active residential property managment department. The firm rarely holds earnest money on sales transactions, so it has a single trust account for earnest money and security deposits. The firm…
Must hold all trust funds in interest-bearing demand deposit accounts.
Washington has one set of rules for sales transaction trust accounts and another for property management accounts. Firms must deposit all trust funds of under $10k in interest-bearing demand deposit accounts.
Both tenants and property owners file lawsuits against property managers.Which item is a common owner grievance?
Breach of contract
Which IRS forms are independent contractors and employees required to complete?
Independent contractors fill out W-9, and employees fill out W-4s.
Why would licenees use the MAAP method?
To determine which property facts they need to disclose by asking, “Is the information Material? Is it Adverse? Do you have Actual knowledge of it? Does it affect the property’s Physical condition?”
