Download Washington State Real Estate Exam Latest Edition with Answers 2025. and more Exams Real Estate Management in PDF only on Docsity!
Washington State Real Estate Exam
Latest Edition with Answers 2025.
Datum - Correct Ans: ✅A horizontal plane from which heights and depths are measured.
Dba - Correct Ans: ✅Doing Business As
Debenture - Correct Ans: ✅A note or bond given as evidence of debt and issued without security.
Devise - Correct Ans: ✅A transfer of real estate by will or last testament. The donor is the devisor and the recipient is the devisee.
Diminishing Returns - Correct Ans: ✅The principle of diminishing returns applies when a given parcel of land reaches its maximum percentage return on investment, and further expenditures for improving the property yield a decreasing return.
Discount Points - Correct Ans: ✅An added loan fee charged by a lender to make the yield on a lower-than-market-value FHA or VA loan competitive with higher-interest conventional loans.
Discount Rate - Correct Ans: ✅The rate of interest a commercial bank must pay when it borrows from its Federal Reserve Bank.
Consequently, the discount rate is the rate of interest the banking system carries within its own framework. Member banks may take certain promissory notes that they have received from customers and sell them to their district Federal Reserve bank for less than face value. With the funds received, the banks can make further loans. Changes in the discount rate may cause banks and other lenders to reexamine credit policies and condition's.
Dispossess - Correct Ans: ✅To oust from land by legal process.
Dominant Tenement - Correct Ans: ✅A property that includes in its ownership the appurtenant right to use an easement over another's property for a specific purpose.
Dower - Correct Ans: ✅The legal right or interest recognized in some states that a wife acquires in the property her husband held or acquired during their marriage. During the lifetime of the husband, the right is only a possibility of an interest; on his death, it can become an interest in land. Many states have abolished dower.
Dual Agency - Correct Ans: ✅This occurs when an agent represents both parties in the same transaction. Both parties are clients.
Due Diligence - Correct Ans: ✅Reasonable care and protection agents owe any party that is their client; the obligation of a person to use good-faith efforts to perform the terms of a contract, such as the buyer's responsibility to make efforts to obtain financing if that was a term of the sales contract.
example: a right to an easement granted by Eleanor Franks to Joe Fish to use a portion of her property for the rest of his life would be an easement in gross.
Economic Life - Correct Ans: ✅The period of time over which an improved property will earn an income adequate to justify its continued existence.
Economic Obsolescence - Correct Ans: ✅The impairment of desirability or useful life arising from factors external to the property, such as economic forces or environmental changes that affect supply and demand relationships in the market. Loss in the use and value of a property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent in the property.
Debit - Correct Ans: ✅Something owed to another; an obligation to pay or to return something.
Debit Service - Correct Ans: ✅A borrower's periodic payment, comprising principal and interst, on the unpaid balance of a mortgage.
Decreasing returns - Correct Ans: ✅When adding improvements to the land does not produce a proportional increase in the property value.
Deed - Correct Ans: ✅A written instrument that, when executed and delivered, conveys title to, or an interest in, real estate.
Deed in Trust - Correct Ans: ✅A three-party instrument in which the trustor conveys legal title to the trustee for the benefit of the beneficiary. The trustee has full power to sell, mortgage, and subdivide a parcel of real estate. The beneficiary controls the trustee's use of these powers under the provisions of the trust agreement.
Deed Restrictions - Correct Ans: ✅The clauses in a deed limiting the future uses of the property. Deed restrictions may impose a vast variety of limitations and conditions, such as limiting the density of the buildings, dictating the types of structures that can be erected, and preventing buildings from being used for specific purposes or from being used at all.
Default - Correct Ans: ✅The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due.
Defeasance - Correct Ans: ✅A provision or condition in a deed or in a separate instrument that, when being performed, renders the instrument void.
Defeasible Fee Estate - Correct Ans: ✅An estate in land in which the holder has fee simple title subject to being divested on the happening of a specified condition. Two categories: (1) fee simple
functional depreciation, and economic obsolescence. In real estate investment, an expense deduction for tax purposes as taken over the period of ownership of income property.
Descent - Correct Ans: ✅The hereditary succession of an heir to the property of a relative who dies intestate.
Designated Agent - Correct Ans: ✅An agent who has been appointed by a broker to act for a specific principal or client.
Determinable Fee Estate - Correct Ans: ✅A defeasible fee estate in which the property automatically reverts to the grantor upon the occurrence of a specified event or condition. Also known as special limitation.
Abandonment - Correct Ans: ✅The voluntary and permanent cessation of use or enjoyment with no intention to resume or reclaim one's possession or interest. May pertain to an easement or a property.
Abrogation - Correct Ans: ✅Tenants cannot sign away their rights in advance of signing the lease.
Abstract of Title - Correct Ans: ✅A condensed version of the history of title to a particular parcel of real estate as recorded in the county clerk's records; consists of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property.
Abutting - Correct Ans: ✅The joining, reaching, or touching of adjoining land. Abutting parcels of land have a common boundary.
Accelerated Depreciation - Correct Ans: ✅A method of calculating for tax purposes the depreciation of income property at a faster rat than would be achieved using the straight-line method. Note** any depreciation taken in excess of that which would be claimed using the straight-line rate is subject to recapture as ordinary income to the extent of gain resulting from the sale.
Acceleration Clause - Correct Ans: ✅A provision in a written mortgage, note, bond, or conditional sales contract that, in the event of a default, the whole amount of principal and interest may be declared to be due an payable at once.
Accretion - Correct Ans: ✅An increase or addition to land by the deposit of sand or soil washed up naturally from a river lake or sea.
Accrued Depreciation - Correct Ans: ✅The actual depreciation that has occurred to a property at any given date; the difference between the cost of replacement new (as of the date of appraisal) and the present appraised value.
Acknowledgment - Correct Ans: ✅A declaration made by a person to a notary public, or other public official authorized to take acknowledgments that an instrument was executed by that person as a free and voluntary act.
Agent - Correct Ans: ✅One who represents or has the power to act for another person (called the principal). The authorization may be express or implied. A fiduciary relationship is created under the law of agency when a property owner, as the principal, executes a listing agreement or management contract authorizing a licensed real estate broker to be the owner's agent.
Agreement of sale - Correct Ans: ✅A written agreement whereby the purchaser agrees to buy certain real estate and the seller agrees to sell, upon terms and conditions set forth in the agreement.
Air Lot - Correct Ans: ✅A designated airspace over a piece of land. Air lots, like surgace property, may be transferred.
Air Rights - Correct Ans: ✅The right to use the open space above a property, generally allowing the surface to be used for another purpose.
Alienation - Correct Ans: ✅The act of transferring property to another. Alienation may be voluntary, such as by gift or sale; or involuntary, such as through eminent domain or adverse possession.
Alienation Clause - Correct Ans: ✅The clause in a mortgage or deed of trst that states that the balance of the secured debt becomes immediately due and payable at the mortgagee's option if the property is sold by the mortgagor. In effect, this clause prevents the mortgagor from assigning the debt without the mortgagee's approval.
Alluvion - Correct Ans: ✅New deposits of soil as the result of accretion.
Amenitites - Correct Ans: ✅The tangible and intangible features that increase the value or desirability of real estate.
Americans with Disabilities Act (ADA) - Correct Ans: ✅A federal law that became effective in 1992. It is designed to eliminate the discrimination against individuals with disabilities by mandating equal access to jobs, public accommodations, public transportation, telecommunications and government services.
Amortization - Correct Ans: ✅The liquidation of a financial burden by installment payments.
Amortized Loan - Correct Ans: ✅A loan in which the principal, as well as the interest, is payable in monthly or other periodic installments over the term of the loan.
Antitrust Laws - Correct Ans: ✅The laws designed to preserve the free enterprise of the open marketplace by making illegal certain private conspiracies and combinations formed to minimize competition. Violations of antitrust laws in the real estate business generally involve either price fixing (brokers conspiring to set fixed compensation rates) or allocation of customers or markets (brokers agreeing to limit their areas of trade or dealing to certain areas or properties).
Assignment - Correct Ans: ✅The transfer in writing of rights or interest in a bond, mortgage, lease, or other instrument.
Assumption of Mortgage - Correct Ans: ✅The transfer of title to property to a grantee wherein he assumes liability for payment of an existing note secured by a mortgage agaisnt the property. Should the mortgage b foreclosed and the property sold for a lesser amount than that due, the grantee-purchaser who has assumed and agreed to pay the debt secured by the mortgage is personally liable for the deficiency. Before a seller may be relieved of liability under the existing mortgage, the lender must accept the transfer of liability for payment of the note.
Attachment - Correct Ans: ✅The method by which a debtor's property is placed in the custody of the law and held as security pending outcome of a creditor's suit.
Attorney-in-fact - Correct Ans: ✅The holder of a power of attorney.
Attorney's Opinion of Title - Correct Ans: ✅An instrument written and signed by the attorney who examines the title, stating the attorney's opinion as to whether a seller may convey good title.
Automatic Extension - Correct Ans: ✅A clause in a listing agreement that states that the agreement will continue automatically for a certain period of time after its expiration date. In many states, use of this clause is discouraged or prohibited.
Avulsion - Correct Ans: ✅The sudden removal of land by natural forces, such as an earthquake.
Balloon payment - Correct Ans: ✅the final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized.
Bargain and Sale Deed - Correct Ans: ✅A deed that carries with it no warranties against liens or other encumbrances, but that does imply that the grantor has the right to convey title. Note that the grantor may add warranties to the deed at his or her discretion.
Base Line - Correct Ans: ✅One of a set of imaginary lines running east and west and crossing a principal meridian at a definite point, used by surveyors for reference in locating and describing land under the rectangular survey system (or government survey method) of property description.
Bench Mark - Correct Ans: ✅A permanent reference mark or point established for use by surveyors in measuring differences in elevation.
Benficiary - Correct Ans: ✅The person for who a trust operates, or in whose behalf the income from a trust estate is drawn. Also refers to a lender who lends money on real estate and takes back a note and deed of trust from the borrower.
Branch Office - Correct Ans: ✅A secondary place of business apart from the principal or main office from which real estate business is conducted. A branch office generally must be run by a licensed real estate broker working on behalf of the broker operating the principal office.
Breach of Contract - Correct Ans: ✅The failure, without legal excuse, of one of the parties to a contract to perform according to the contract.
Broker - Correct Ans: ✅One who buys and sells for another for a commission.
Budget Loan or Budget Mortgage - Correct Ans: ✅A loan in which the monthly payments made by the borrower cover not only interest and a payment on the principal , but also one-twelfth of such expenses as taxes, insurance, assessments, and similar charges. The monthly payment is called a PITI payment.
Buffer Zone - Correct Ans: ✅A zone or space between two different use districts. An example of a buffer zone would be a park between a residential district and a commercial district.
Building Code - Correct Ans: ✅An ordinance specifying the minimum standards of construction of buildings for the protection of public safety and health.
Building Line - Correct Ans: ✅A line fixed at a certain distance from the front and/or sides of a lot beyond which no structure can project; a setback line used to ensure a degree of uniformity in the appearance of buildings and unobstructed light, air, and view.
Building Restrictions - Correct Ans: ✅The limitations on the size or type of property improvements established by zoning acts or by deed or lease restrictions.
Bulk Zoning - Correct Ans: ✅Bulk zoning controls the density of the development on land to avoid overcrowding.
Bundle of Legal Rights - Correct Ans: ✅The theory that land ownership involves ownership of all legal rights to the land such as: Possession, control within the law, and enjoyment, rather than ownership of the land itself.
Buydown Mortgage - Correct Ans: ✅A mortgage in which the interest rate is reduced by paying interest in advance. A temporary buydown is for the initial years of the loan. A permanent buydown is for the life of the loan.
Capacity of Parties - Correct Ans: ✅The legal ability of ability of persons to enter into a valid contract. Most persons have full capacity to contract, and are said to be competent parties.
Caveat emptor - Correct Ans: ✅A Latin phrase meaning "let the buyer beware"
Caveat Venditor - Correct Ans: ✅A Latin phrase meaning "Let the seller beware"
Certificate of Eligibility - Correct Ans: ✅A certificate given by the federal government to qualified veterans to show their remaining eligibility for a VA guaranteed loan.
Certificate of Occupancy - Correct Ans: ✅A certificate of occupancy is issued after the building is inspected to make sure it complies with building codes.
Certificate of Reasonable Value - Correct Ans: ✅A certificate issued by the Veterans Ad ministration certifying the value, as determined by an approved VA appraiser, of property secured by a VA mortgage.
Certificate of Reduction - Correct Ans: ✅A document issued by the lender to verify the loan balance.
Certificate of Sale - Correct Ans: ✅The document generally given to a purchaser at a tax foreclosure sale. A certificate of sale does not convey title; generally, it is an instrument certifying that the holder received title to the property after the redemption period had
passed and that the holder paid the property taxes for that interim period.
Certificate of Title - Correct Ans: ✅A statement of opinion on the status of the title ot a parcel of real property based on an examination of specified public records.
Cession Deed - Correct Ans: ✅The type of deed used when land is donated to the government.
Chain of TItle - Correct Ans: ✅The succession of conveyances from some accepted starting point whereby the present holder of real property derives a title.
Codicil - Correct Ans: ✅An addition to a will that alters, explains, adds to, or confirms the will, but does not revoke it.
Coinsurance Clause - Correct Ans: ✅A clause in insurance policies covering real property that requires the policy holder to maintain fire insurance; coverage is generally equal to at least 80 percent of the property's actual replacement cost.
Collateral - Correct Ans: ✅Something of value given or pledged to a lender as security for a debt or obligation.
Commercial Property - Correct Ans: ✅A classification of real estate that includes income-producing properties.
