Determine your answer, then click the arrow to see the correct response.
What Is "Constructive Eviction"?
A) The legal process of evicting a tenant through court action
B) When a landlord makes living conditions so unbearable that a tenant is forced to leave
C) When a tenant willingly leaves a property before the lease ends
D) A mutual agreement between landlord and tenant to terminate the lease early
Correct Answer: B) When a landlord makes living conditions so unbearable that a tenant is forced to leave
Explanation: Constructive eviction occurs when a landlord fails to maintain a property in a habitable condition, effectively forcing the tenant to move out. This can include not repairing essential services like heat or water.
What Is "Functional Obsolescence" in Real Estate?
A) A decrease in property value due to outdated design or features that are no longer considered desirable
B) Physical wear and tear on a property
C) A decline in property value due to changes in the neighborhood
D) Legal restrictions that limit the use of property
Correct Answer: A) A decrease in property value due to outdated design or features that are no longer considered desirable
Explanation: Functional obsolescence refers to a reduction in the usefulness or desirability of a property due to an outdated design or features that do not meet current market standards or needs.
What Is "Assemblage" in Real Estate?
A) The process of dividing a single property into multiple lots
B) The combining of two or more adjacent parcels of land into one larger parcel
C) A method of appraising property value based on recent sales
D) The subdivision of a property for resale
Correct Answer: B) The combining of two or more adjacent parcels of land into one larger parcel
Explanation: Assemblage is the process of combining two or more adjoining parcels of land into one larger parcel, typically to increase its overall value or for development purposes.
What Does "Spot Zoning" Mean in Real Estate?
A) Changing the zoning of a single parcel or a small area to benefit a particular property owner or use
B) Reverting a property's zoning to its previous classification
C) Zoning changes that apply to an entire neighborhood
D) Temporary zoning changes for special events
Correct Answer: A) Changing the zoning of a single parcel or a small area to benefit a particular property owner or use
Explanation: Spot zoning is the practice of reclassifying a single parcel of land or a small area in a way that is inconsistent with the surrounding zoning classifications, often to benefit a specific property owner or use.
Eric, a Property Owner in Washington, Is Selling His Home and Requires an Earnest Money Deposit From the Buyer. The Buyer Provides a Promissory Note Instead of Cash. What Must Eric Ensure According to Washington Law?
A) Accept the promissory note without any further action
B) Inform the buyer that only cash is acceptable
C) Disclose the acceptance of the promissory note to any other interested parties and reflect this in the earnest money receipt
D) Hold the promissory note until the full payment is made
Correct Answer: C) Disclose the acceptance of the promissory note to any other interested parties and reflect this in the earnest money receipt
Explanation: According to RCW 18.85.230, accepting anything other than cash as an earnest money deposit must be communicated to the owner before acceptance and reflected in the earnest money receipt.
What Is the Maximum Amount a Landlord in Washington Can Charge for a Security Deposit Under the State's Residential Landlord-Tenant Act?
A) One month's rent
B) Two months' rent
C) There is no statutory limit, but it must be agreed upon in the lease
D) $1,000
Correct Answer: C) There is no statutory limit, but it must be agreed upon in the lease
Explanation: Washington law does not set a maximum limit on security deposits, but the amount must be agreed upon in the lease agreement and included in the rental contract (RCW 59.18).
What Is the Duty of a Real Estate Broker in Washington Regarding the Retention of Transaction Records?
A) Keep records for one year
B) Keep records for three years
C) Keep records until the transaction closes
D) No requirement to keep records
Correct Answer: B) Keep records for three years
Explanation: Under RCW 18.85.230, real estate brokers in Washington are required to keep records of all real estate transactions for at least three years following the consummation of the transaction.
A Condominium Owner in Washington Is Selling Their Unit. What Must Be Included in the Resale Certificate Provided to the Buyer?
A) Only the financial statements of the association
B) A statement of any restrictions on the use or occupancy of the unit
C) An appraisal of the unit’s value
D) The previous year's tax returns of the owner
Correct Answer: B) A statement of any restrictions on the use or occupancy of the unit
Explanation: The resale certificate must include various details, such as any restrictions on the use or occupancy of the unit, information about pending assessments, and any violations of health or building codes related to the unit. This helps ensure that the buyer is fully informed about the property’s status (Revised Code of Washington § 64.90.640).
An Investor Buys a Duplex in Washington for $900,000. The Property Generates a Monthly Rental Income of $7,500 and Has Annual Operating Expenses of $45,000. What Is the Property's Annual Cash Flow and Its Gross Rent Multiplier (GRM)?
A) Annual cash flow: $30,000, GRM: 10
B) Annual cash flow: $45,000, GRM: 10
C) Annual cash flow: $45,000, GRM: 12
D) Annual cash flow: $60,000, GRM: 12
Correct Answer: B) Annual cash flow: $45,000, GRM: 10
Explanation: Annual rental income is $7,500 × 12 = $90,000. Annual cash flow is calculated by subtracting annual operating expenses from annual rental income: $90,000 – $45,000 = $45,000. GRM is calculated by dividing the purchase price by the annual rental income: $900,000 / $90,000 = 10.
A Property in Washington Is Valued at $550,000. The Property Tax Rate Is 1.1%. What Is the Annual Property Tax for This Property?
A) $6,000
B) $6,050
C) $6,100
D) $6,150
Correct Answer: C) $6,050
Explanation: The annual property tax is calculated by multiplying the property value by the tax rate. Annual property tax = $550,000 * 0.011 = $6,050.