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WRA Final Exam Review Part 1 Questions & answers
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WRA Final Exam Review Part 1Four condominium units are valued at $200,000; $215,000, $220,000; and
$225,000. Together the annual property maintenance fees for the condominiums
are $8,500. What is the total value of the units?
A: $868,500
B: $465,000
C: $415,000
D: $860,000 - CORRECT ANSWER-D: $860,000
The total value of the four condominiums is $860,000
An appraisal would most likely be used in all of the following transactions or
situations EXCEPT:
A: originating a mortgage or home equity loan
B: subletting an apartment unit
C: selling or refinancing a property
D: establishing property taxes or when applying for property insurance -
CORRECT ANSWER-B: Subletting an apartment unit
Value does not need to be established in order to sublet an apartment unit.
Question 3
A listing contract is best described as a:
A: personal service contract
B: contract where specific performance is an available remedy
C: special fiduciary relationship that lacks trust and confidence in the firm
D: contract where damages are not an available remedy - CORRECT
ANSWER-A: Personal Service Contract
A listing contract is a personal service contract based upon a special fiduciary
relationship of trust and confidence in the firm. Specific performance is not an
available remedy for breach of a listing contract. However, damages are an
available remedy for breach of a listing contract.
Which type of loan does the federal government guarantee?
A: Federal Housing Administration loan (FHA)
B: Department of Veterans Affairs (VA) loan
C: Adjustable rate mortgage
, D: Conventional loan - CORRECT ANSWER-B: Department of Veterans Affairs
(VA) Loan
The guarantee feature on a VA loan promises lenders that in the event of
deficiency in a foreclosure the lender will be compensated by the VA for any
losses incurred in the foreclosure and subsequent sale of the property up to the
limit of the guarantee.
The listing contract states that the washer and dryer are included in the sale. The
offer to purchase does not mention the washer and dryer anywhere. At the time
of closing the washer and dryer:
A: are included in the sale
B: must be removed
C: must be on the property
D: will be purchased separately - CORRECT ANSWER-B: Must be removed.
Lines 485-488 of the WB-11 Residential Offer to Purchase state "At time of
Buyer's occupancy, Property shall be in broom swept condition and free of all
debris, refuse, and personal property belonging to current tenants, or that sold to
Buyer or left with Buyer's consent." The offer to purchase determines what
property is included or excluded in the transaction. Since the washer are dryer
are personal property if they are not addressed in the offer to purchase they must
be removed at closing.
A firm may charge for services in all of the following ways EXCEPT:
A: commission based upon a percentage of the selling price
B: hourly rate
C: a single flat fee
D: agreement with other firms in the area to charge a certain rate - CORRECT
ANSWER-D: Agreement with other firms in the area to charge a certain rate.
A firm may charge a single flat fee, a commission based upon a percentage of
the selling price, or an hourly rate. The practice of getting together with other
firms in an area and agreeing upon a certain rate to charge for services rendered
is a violation of antitrust laws.
The property being transferred has a purchase price of $475,450. What is the
transfer fee the seller will pay at closing?
A: $1,426.50
B: $1,440.00
, C: $14,263.50
D: $1,426.35 - CORRECT ANSWER-A: $1,426.50
The transfer fee is $475,500 x .003 = $1,426.50
Which of the following activities can an unlicensed personal assistant do?
A: Schedule appointments
B: Attend showings
C: Conduct an open house
D: Complete an offer for a buyer - CORRECT ANSWER-A: Schedule
Appointments
An unlicensed personal assistant cannot do any activities that would require a
real estate license such as showings, open houses, or completing forms. An
unlicensed assistant can complete activities that do not require a license such as
scheduling appointments.
A buyer wants to have the interest earned on their earnest money deposit. Which
of the following statements is most correct?
A: The firm can give the interest to the buyer with written permission from the
seller.
B: The firm cannot draft an escrow agreement for the buyer and seller.
C: The firm can give the interest to the buyer if the offer to purchase states that
the buyer gets the interest.
D: The firm cannot hold the earnest money but they may draft an escrow
agreement for the buyer and the seller - CORRECT ANSWER-B: The firm cannot
draft an escrow agreement for the buyer and seller.
Wis. Admin. Code § REEB 18.06 If the parties to a transaction do not desire that
the firm hold the earnest money in the firm's real estate trust account, and wish to
designate an escrow agent other than the firm, the firm may not draft the escrow
agreement. The escrow agreement shall be drafted by the parties or an attorney.
The firm may not hold the funds in the firm's real estate trust account, nor may
the firm act in any way as custodian of the funds for the parties. The funds,
pursuant to the escrow agreement, shall be held by some other party, such as a
bank, a savings and loan association, a credit union, or an attorney.
A listing firm and a seller can modify an Exclusive Right to Sell Listing Contract to
create any of the following EXCEPT:
A: exclusive agency
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