ROCKWELL EXAM REAL ESTATE CLASSES WA FINAL EXAM 20232024 ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (100%CORRECT AND VERIFIED ANSWERS) |AGRADE

ROCKWELL EXAM REAL ESTATE CLASSES WA FINAL EXAM 2023-

2024 ACTUAL EXAM 180 QUESTIONS AND CORRECT DETAILED

ANSWERS WITH RATIONALES (100%CORRECT AND VERIFIED

ANSWERS) |AGRADE

A homeowner bought his home for $150,000. Ten years later, he refinanced his

mortgage and borrowed $100,000. Which of the following is true for this type of

property?

A. Interest on the difference between the original loan amount and the refinanced

amount is not deductible

B. Interest on only half of the difference between the original amount and

refinanced amount is deductible

C. Interest on loans such as this one for the purchase or refinance of a principal

residence is deductible

D. Interest deductibility will depend on the borrower's tax bracket - ANSWER- C.

Interest on loans such as this one for the purchase or refinance of a principal

residence is deductible

Rationale: For a principal residence, interest on a purchase or refinance loan is

fully deductible. Interest on a home equity loan of up to $100,000 is also

deductible, regardless of the size of the purchase loan, and regardless of the

taxpayer's income.

Under Title VIII of the Civil RIghts act of 1968, certain transactions are exempt.

Which one of the situations below would be exempted and not a violation of the

act?]

A. A church-owned apartment complex where the language in the lease restrict

tenancy to memers of a specific national orgin

B. Members of a certain ethnic group are denied lodging in facilities operated by a

private club for commercial purposes

C. An unlisted home that is for sale by owner, where the only advertising is a sign

in front of the property that simply reads " For Sale" and the owner owns only one

other home

D. An Absentee owner who rents units in a four-plex without the help of a real

estate agent - ANSWER- C. An unlisted hoe that is for sale by woenr, where the

only advertising is a sign in front of the property that simply reads "For Sale" and

the owner owns only one other home

Rationale: The Federal Fair Housing Act ( Title VIII of the Civil Rights Act of

1968) does not apply to the sale or rental of a single-family home by its owner,

provided that the owner doesn't own more than three such homes, no real estate

agent is used, and no discriminatory advertising is used.

As a property manager, you may:

A. advertise that units are available, even when their not

B. use diferent application forms for minority applicants

C. require credit checks for some applicants, but not others

D. offer inducements to prospective tenants - ANSWER- D. offer inducements to

prospective tenants

Rationale: Property managers may offer inducements to attract tenants; waiving

the first month's rent. A property manager should perform credit checks on all

prospective tenants.

Price fixing is prohibited by the:

A. state usuary act

B. federal Regulation Z

C. Sherman Antitrust Act and state antitrust laws

D. federal Real Estate Settlement Procedures Act - ANSWER- C. Sherman

Antitrust Act and state antitrust laws

Rationale: The Sherman Antitrust Act and state antitrust laws prohibits price

fixing, group boycotts, market allocation, and tie-in arrangements.

A metes and bounds description reads as follows: "started at the intersection of

Route 120 and Wells Lane. Proceed due south 1,815 feet, then due east 1,200 feet.

Proceed due north 1,815 feet, then return west to point of beginning." How many

acres is this property?

A. 5

B. 20

C. 50

D. 100 - ANSWER- C. 50

Rationale: Sketch as described. Area = Length x Width. Multiple 1,815 x 1,200 =

2,178,000 sq. ft. convert to acreage by dividing by 43,560, which equals 50.

(43,560 equals square feet in one acre.)

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

property. The survey can be used to:

A. construct fences and driveways

B. measure soil stability

C. determine freehold interests

D. verify known liens - ANSWER- A. construct fences and driveways

Rationale: survery 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:

A. estate for years

B. tenancy at sufferance

C. periodic tenancy

D. estate from year to year - ANSWER- A. estate for years

Rationale: An estate for years begins on a certain date an ends ona certain date.

Which of the following is true about survey's?

A. they determine placement of improvements on a property

B. They identify setback lines from property boundaries

C. The protect against easements by prescription

D. They reveal encroachments not of public record - 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?

A. Allen's Lien

B. Bart's Lien

C. Judgement Lien

D. Tax Lien - 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.

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

A. All lead paint must be removed immediately

B. It ay not be willfully destroyed without a permit

C. It may only be sold to family members

D. It must comply with all local ordinances - ANSWER- B. It may not be willfully

destroyed without a permit,

Rationale: Historical preservation ordinances may protect exsiting 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 fro S,

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

A. void

B. voidable by W only

C. voidable by S only

D. voidable by either S or W - ANSWER- B. voidable by W only

Rationale: The contract is voidabole 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?

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

offer only if the first offer is rejected

B. Present both offers to the seller at the same time

C. Tell the second buyer that her offer is invalid because there is already an offer

on the property

D. 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 - ANSWER- B. Present both offers

to the seller at the same time