Free Washington Property Practice Test — LicenseIQ

Question 1

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 2

Under RCW 18.85.275, a listing agreement obtained by a broker belongs to:

Accepted Answer

RCW 18.85.275(2) states that listings, transactions, and other brokerage service contracts belong to the firm. The individual broker does not own the listing.

Question 3

A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

Accepted Answer

Down payment = $60,000; 1 point = $240,000 x 0.01 = $2,400; total = $60,000 + $2,400 + $450 + $1,800 = $64,650; minus $10,000 earnest money = $54,650.

Question 4

In Washington, the broker's written disclosure of whom the broker represents in a transaction appears in a paragraph titled:

Accepted Answer

RCW 18.86.030(1)(g) requires the written disclosure in a paragraph titled "Agency Disclosure," given before the party signs an offer or as soon as practical.

Question 5

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 6

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 7

Washington's real estate research center is established through:

Accepted Answer

RCW 18.85.471 requires the director to establish the center through a memorandum of understanding with an institution of higher learning.

Question 8

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 9

Washington's state real estate excise tax uses graduated rates. Using the statute's base brackets (1.10% to $500,000; 1.28% from $500,000 to $1,500,000), what is the state tax on a $700,000 sale?

Accepted Answer

Apply each rate to its slice: $500,000 × 1.10% = $5,500; ($700,000 − $500,000) × 1.28% = $200,000 × 1.28% = $2,560; total $8,060. Choosing $8,960 applies 1.28% to the entire price, and $7,700 applies 1.10% to the entire price.

Question 10

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 11

A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

Accepted Answer

EGI = $240,000 - 8% = $220,800; value = $220,800 x 6 = $1,324,800.

Question 12

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 13

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 14

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 15

Which body or official has the authority to adopt rules and to issue and deny Washington real estate licenses?

Accepted Answer

RCW 18.85.041 gives the director, with the advice of the commission, the power to adopt rules and to issue and deny licenses. The commission's role is advisory; trade associations and the housing finance commission have no licensing authority.

Question 16

In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

Accepted Answer

Seisin = ownership and right to convey. Quiet enjoyment protects against superior title claims; further assurance obligates the grantor to cure defects; warranty forever defends title against all claims.

Question 17

If a buyer rescinds under RCW 64.06.030, the buyer is entitled to:

Accepted Answer

RCW 64.06.030 entitles a rescinding buyer to immediate return of all deposits and other consideration, less agreed disbursements, and the agreement becomes void.

Question 18

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 19

The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

Accepted Answer

Substitution: a buyer will pay no more than the cost of an equally desirable alternative.

Question 20

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 21

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 22

Which characteristic is protected under the Washington Law Against Discrimination in real estate transactions but NOT under the federal Fair Housing Act?

Accepted Answer

RCW 49.60.222 protects marital status, which the federal Act does not. Race, national origin, and families with children are protected under both laws.

Question 23

Which statement about real estate commissions in Washington is correct?

Accepted Answer

No Washington statute sets commissions. RCW 18.86.080 lets the seller, buyer, or a third party pay, and DOL's advertising guidelines warn that claiming a rate is set by law is false.

Question 24

Which practice is prohibited for a property management trust account that holds tenant security deposits?

Accepted Answer

WAC 308-124E-115 prohibits preauthorized payments from an account containing tenant security deposits or funds of more than one client. Property management accounts may be non-interest-bearing, and monthly withdrawal of commissions by single check with a schedule is required or allowed.

Question 25

A married buyer signs a purchase agreement for a home without her spouse's participation, intending it as community property. Under RCW 26.16.030:

Accepted Answer

RCW 26.16.030(4) states that neither spouse or domestic partner may purchase or contract to purchase community real property without the other joining in the transaction.

Washington real estate property practice test

1. A quitclaim deed is most often used to:

2. Under RCW 18.85.275, a listing agreement obtained by a broker belongs to:

3. A buyer purchases a $300,000 home with an 80% loan, pays 1 point on the loan, a $450 appraisal and $1,800 in title charges, and has already deposited $10,000 earnest money. How much must the buyer bring to closing?

4. In Washington, the broker's written disclosure of whom the broker represents in a transaction appears in a paragraph titled:

5. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

6. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

7. Washington's real estate research center is established through:

8. Which action may a life tenant take WITHOUT the remainderman's consent?

9. Washington's state real estate excise tax uses graduated rates. Using the statute's base brackets (1.10% to $500,000; 1.28% from $500,000 to $1,500,000), what is the state tax on a $700,000 sale?

10. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

11. A commercial property has potential gross income of $240,000 and an 8% vacancy allowance. Using a gross income multiplier of 6, what is the estimated value?

12. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

13. A special warranty deed warrants title only against defects that:

14. Which document is recorded in the county records and makes the property collateral for a loan?

15. Which body or official has the authority to adopt rules and to issue and deny Washington real estate licenses?

16. In a general warranty deed, the grantor's promise that he owns the property and has the right to convey it is the covenant of:

17. If a buyer rescinds under RCW 64.06.030, the buyer is entitled to:

18. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

19. The principle that a property's value tends to be set by the cost of an equally desirable substitute is:

20. The four unities required to create a joint tenancy are:

21. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

22. Which characteristic is protected under the Washington Law Against Discrimination in real estate transactions but NOT under the federal Fair Housing Act?

23. Which statement about real estate commissions in Washington is correct?

24. Which practice is prohibited for a property management trust account that holds tenant security deposits?

25. A married buyer signs a purchase agreement for a home without her spouse's participation, intending it as community property. Under RCW 26.16.030:

Sources